Revision Index

Comments

Each kind of rental contract may have, by law, a reference to a particular type of index. This index will be used as a reference to update the rental amount. The update (increase or decrease) is done generally once a year, by calculating difference between old and new index.
E.g., for empty main residence rental contract, the rent amount will be updated according to the value of the so-called : IRL index.

INSEE is the french official statistics organisms, that publishes different kind od indexes - generally each quarter - that are used to review rent amount when needed (in principle once a year). These indexes are generally used within the rental contracts.

You can find HERE values for INSEE indexes

IMPORTANT : for more details about index revision, please visit

Diagram

This diagram presents collection of revision Indexes

create part process diagram

1.Revision Index
Collection of official indexes published by INSEE. Contains :

  • IdBank : official Id given by INSEE for each index. For instance, IRL index type ID bank is : 001515333

  • official issue date is the date to which one index is published to the "journal officiel"

  • validity date can also be deducted from e.g. the quarter to which a index relates to : Q4/2018 => valid from 01/10/2018 to 31/12/2018

  • value : the value of the index. Used in rent amount calculation

2.RentalContractIndex
Stores the different relevant indexes along the rental contract lifecycle. As said above, a residence rental contract should have its renta mount reviewed each year, based on a new index value. All these indexes are stored here.

  • key and value are inherited from the RevisionIndex collection

  • whenEffective : date on which a index is active. Generally, at the birthday date of the contract. This date is updated for each new index stored. The most recent effective date gives an index the status of "current index"

  • whenNoticed : date on which the new index is set in the rental contract (RC), either when the RC is created, or foe each new index published buy INSEE.

  • whenNotified : date on which the new index is confirmed by the tenant. As a prerequisite, a email and/or a letter has been first sent to the tenant informing about the changes

  • effective : set as a boolean. True means the index can be used for rent amount calculation.False can be set for initial index in a take-over process, or if an index has been published but not yet notified to the tenant

  • next expected index key : the next new index that is waited for. Generally equals to last effective index key + 1 year

  • next expected index key date : date on which the next new index is waited for. Generally equals effective date + 1 year

3.Example
In this example, we can see a rental contract starting on the 3rd of december 2018.

  • the contract contains the last known INSEE index (type of IRL) = 2018/Q3. As the contract starts, we consider that the tenant is notified at the same date, i.e. 03/12/2018, and that the first index is also effective on this date.

  • the contract must also contain expected informations : when and which the next index that will be used for updating rental amount is waited for :

    • when : begin date + 1 year (i.e. actually the birthday date of the contract)

    • what : the index corresponding to the reference (= initial) index in 1 year

  • once INSEE publishes a new index, it is necesarry to check if this new index corresponds to the expected one :

    • if no => nothing to do
    • if yes : a information must be given to the tenant that as of the next birthday date, the rent amount wil change according to the value of the new index.

index lifecycle

References

Information about attributes are available here : Attributes Dictionary