Rents setting management overview
The process of setting rents brings together all the attributes and qualities of an asset that attract rent, beginning with the agreement category to which the asset is linked (Residential, Non Residential, etc.), the property valuation and standard rent type variances, which could include the market rent, target rent and affordable rent valuations, right through to the services and any furniture provided. Rent charges and related charge elements can then be linked to the asset to form the price list. As the desired subset of charge elements might be quite similar, with only minimal changes, it is possible to 'clone' (copy) a record and adjust only those attributes that differ. In essence the rent types capture the theoretical rent based on government calculations; the combined charge elements derive the actual rent value, reflecting the convergence from one to the other.
Review dates for the asset are also specified to control its inclusion in target rent review models. When a review model is applied, the target rent of the asset will be recalculated based on the latest parameters, as defined by the end user. The individual charge elements will also comprise specific review dates assigned to them which will ensure they are captured in a rent charge review model. For those housing organisations that derive the rent value of a property using a points based system, a filter can be applied to review those specific points charges linked to the asset. Where points thresholds are revised, the associated charges can be recalculated for the asset on-the-fly.
When setting rents, housing organisations will typically conduct a target rent review first, as a benchmark, followed by a charge review.
Separate help articles have been created for each key aspect of rents setting management, including: