Minimum Rent, Maximum Rent, and Recovery Adjustments

Minimum rent, or fixed rent, is the amount that is deducted from the gross overage billing for a billing period. If the gross overage is less than this amount, the billing for the period does not include sales overage. Typically, a minimum rent is involved with a lease that is set up both for regular rent as a recurring billing and for sales overage. In this case, the bill code line for recurring billing has the same amount and bill code as the minimum rent for sales overage.

Maximum rent is the upper limit of the gross overage billing for a billing period. If the gross overage is greater than this amount, the system uses the maximum amount in the calculation.

Recovery is normally an amount that a tenant has paid or has been billed that can be deducted from the gross overage billing for the billing period. For example, suppose a tenant paid a contractor to improve the appearance of a storefront. Depending on the terms of the lease, the tenant can recover this expense over a period of time against the sales overage.