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SIMG_CFMENUOFDIFOPU - Maintain Pass-On Percentage Rates

SIMG_CFMENUOFDIFOPU - Maintain Pass-On Percentage Rates

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In this section, you determine

  • the grading of the percentage rate of passed-on index increase, depending on the increase of the index-linked rent adjustment in percent.

By means of the "Lower limit" field, you can grade the passed-on index increase.

The percentage rate of the passed-on index increase is determined in dependency of the percentage, by which the rent would increase due to the index adjustment. This grading is normal, for example, according to Dutch tenancy law. The following example demonstrates how the final percentage rate of passed-on index increase is determined:


  Lower limit Percentage rate of passed-on index increase
  0.00             100
  3.00              70
  6.00              40      

If the index has increased, for example by 7 %, since the last adjustment, the increase is calculated as follows:

(3 - 0)% * 100% + ,, (from 0 - 3% -> 100%),, = 3,0%
(6 - 3)% * 70% + ,, (from 3 - 6% -> 70%) ,, = 2,1%
(7 - 6)% * 40% ,, (from 6 - 7% -> 40%) ,, = 0,4%

In total, the increase amounts to 5.5 %.

If you do not need such a grading procedure but would only like to determine the percentage rate of passed-on index increase, set the lower limit to 0.

The tenancy law to be edited has already been created.

  1. Assign missing tenancy laws.
  2. Position the cursor on a tenancy law and choose the level Percentage rate of passed-on index increase.
  • You might have to enter the location.
    If the setting is identical for all locations of a tenancy law, you can leave the Location field empty and only have to enter the percentage rates for the corresponding tenancy law.

  • Enter the percentage rate of passed-on index increase and possibly the required grading.

The determination in dependency of tenancy law is normal in the Netherlands and in Switzerland. With an adjustment according to Swiss law, the percentage rate of passed-on index increase for the price increase index is always taken from this Customizing table.






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