|Index Rent family|
|Description: Rents that grow in line with indexation|
|Introduction: The Index Rent family models rents that grow with indexation, for example, the Retail Price Index or Construction Index. Except for the basic IdxRentGrowR and IdxRentFcstR they still retain the ability to review to market like a normal lease, and you can turn off the indexation and model a "normal" rent just by specifying a large value for ĜIdxRegularityĜ, the frequency in months at which the rent changes in line with the index.|
All the functions can do reletting after a relet void and cater for a rent-free preriod on the relet. The functions also allow Variable Plurality for the relet variables and the indexation variables, which means that each relet can have different relet conditions, and the indexations conditions can vary too, depending on the function.
It"s important to be able to control the indexation, in particular if you have leases where indexations only applies to part of the lease. The two variables which do most to control the indexation, ĜIdxRegularity_sĜ and IdxBaseDate_s can accept a range as well as a single value.
How do you turn the indexation off for a particular review? You simply set a value for IdxReg_s that is very large, so no indexation could possible occur (eg 99 months). Using this technique, you can have part of the lease that runs off indexations, and part that is either fixed or uses open market reviews only.
|Functions in the Index Rent family (6)|