Regulation with custom KPI interval
In this guide, we will go through how you can regulate with the CPI. This is a function that retrieves the CPI index from Statistics Norway when it becomes available.
For more information about the actual implementation of regulation, you can read here: Regulating rent in LAFT
If you already have a tenancy in the system, the first thing you need to do is edit the tenancy. This is done by going to the rental property, clicking on the tenancy tab, and then clicking on the tenant's name > Edit.
You can also set up regulation with KP I when creating new tenancies, as you will be taken to the same editing page.
When you scroll down to adjustment, you can first choose whether the adjustment should follow the start date of the tenancy or not. If you do not want it to follow the start date, uncheck it and select the date you want the tenancy to be adjusted.
Once the date for the first price change/adjustment has been determined, you can go ahead and select the CPI months that will apply to the first adjustment . If you check the box to automatically adjust the CPI interval, the month you select as the end month will be the start month for the next adjustment period, and the end month will be 1 year after the start date.
You can also choose to regulate with a fixed rate. If you set a fixed rate, this will override the KPI interval that may have been set above.
Remember to check the box next to "update new rent" before saving!
Once you have set the CPI interval or fixed rate, you can complete the adjustment at Finance > Tenancy adjustment. If you changed so that the adjustment should not follow the start date, the date the adjustment should apply from will appear in the column "next adjustment date". Under "Adjustment %" you will see the CPI interval you have set. This is illustrated by an icon showing "CPI" behind the rate. If you have set an interval where the CPI rate is not yet available, it will say "not set", but the correct rate will be automatically filled in as soon as it is available from Statistics Norway.
The price listed under "New rent" is the new price that will apply from the next adjustment date, after the adjustment has been completed.
Read more about regulation here: Regulating rent in LAFT