rent amount review - RC residential - creation

References

Information about attributes are available here : Attributes Dictionary

Diagram

This diagram presents the global process of reviewing a rent amount for rental contract : created (take-over separetly) and of category : empty or furnished residential

create part process diagram

Comments

  • IMPORTANT : for more details about index revision, please visit

  • for take-over, please see

  1. Step 1
    INSEE publishes on 14/10/2019 the last IRL index, related to Q3/2019, with a value of 105.

  2. Step 2
    on 08/12/2019, a new rental contract is signed. The contract will take the last known IRL index, meaning Q3/2019 = base index.
    WhenNoticed, whenEffective and whenNotified dates are set with the begin date of the contract.

  3. Step 3
    on 28/12/2019, global call 4 rent is done, for period = january 2020. As a rent amount is subject to review, system must do calculation based on the formula : amount x (effective index / base index). Here the effective index is still equal to the base index.
    Note : the definition of initial index is a concept. Does not exist necessarily in the BE

  4. Step 4
    As every quarter, INSEE published a new IRL index, here Q3/2020. This index matches with the one expected for this particular rental contract, attribute : nextExpectedIndexKey. => according to the law, the rent amount must be reviewed each year, and the tenant must be notified (email and/or letter) that his rent amount will be adjusted, as of the date defined in the rental contract (usually the birthday date).
    The system records in the contract the new index but without an effective date, as a confirmation that the tenant has been informed is needed

  5. Step 5 After tenant has confirmed, system records a new effective dates and a notified date which is actually the confirmation date).

note : for a review to be effective at the birthday date, the tenant must have confirmed BEFORE this date. If for some reason the confirmation is done AFTER, then the whenEffective becomes the date of confirmation<

  1. Step 6 on 28/10/2020, call for rent is done for november. The system checks which is the current index for november => it still retrieves Q3/2019, as the new index is effective on december 8th (see step 5),

  2. Step 7 on 28/11/2020, call for rent is done for december. Here, the system checks which is the current index for november => it retrieves Q3/2020. But the system must calculate 2 distinct sub-periods, one with previous rent amount (Q3/2019), and one with the new one (Q3/2020)

  3. Step 8 Call for rent will continue normally, but taking into account Q3/2020 as current index. This until next update of INSEE for relevant index (normally Q3/2021) in october 2021