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Use caseUC0262

Reconcile a retail tenant's percentage-rent statement

A retail tenant's annual sales statement arrives with its own deductions already taken off, and whether each one is allowed is one sentence buried in that tenant's own lease. This app reads the clause, corrects the total, and says what is owed.

For the property accountantReal Estate & Property

Why it matters

Today's manual process, and the same job with the app

A property accountant at a shopping center, reconciling one retail tenant's percentage-rent statement for the year.

✕Today's manual process

1Read the clause to see which deductions this specific tenant's lease actually allows.
2Check the statement against that reading, deduction by deduction, not from memory.
3Redo the arithmetic the breakpoint, the credit, and the ledger, manually.
4One misread deduction bills the wrong figure, or leaves rent uncollected for a year.
Every lease year read from memory

✓With the app

1The clause is read once, and every permitted deduction is listed against this lease.
2The statement is checked line by line, and any deduction the clause forbids is added back.
3The arithmetic runs itself the breakpoint, the credit and the ledger, the same way every time.
4One reconciled lease year comes out, with the exact clause sentence that establishes it, held for review.
Every year checked against its own clause

See it work

One real case: what the app read, step by step

Ambergate Booksellers' statement deducts $168,350.00 in bad debts that its Wexford Town Center lease does not allow.

Reconcile a retail tenant's percentage-rent statementReference appBuilt to be shaped to your process
  1. 1What this lease allows Only three deductions are permitted here, and bad debts is not one.
  2. 2What the app finds It disallows the one deduction this lease does not permit: bad debts.
  3. 3The exact sentence it cites The same line that lists everything gross sales may exclude.
  4. 4Gross sales, corrected Adding that deduction back puts gross sales over the $1,800,000.00 breakpoint.
  5. 5What is owed $2,521.69 in percentage rent, on a statement that read as nothing further due.

For engineers

How it is built, and how we measured it

All fourteen steps of the build are written up, from the business case to running it in your own environment.

Kit overview →
64 of 64lease years closed correctlymeasured in 06 Evals →
22 of 22years where the numbers disagreedmeasured in 06 Evals →
14 of 16late or uncertified statements caughtmeasured in 06 Evals →
1.4¢to reconcile one lease yearmeasured in 07 Unit cost →

The build, step by step

14 steps

Make it yours

What you see is a reference app. We shape it to how you work.

Every part of it is built to change, and none of it means starting over.

Your rulesYour own percentage-rent clauses, exclusion lists and breakpoint conventions, however each lease states them.
Your recordsYour own sales statements, ledgers and lease abstracts, in the format you already keep them.
Your systemsReads from your lease administration system, and hands a reconciled year to your accountant to release.
Your screensThe fields, wording and layout your property accounting team already uses.

Want this for your team?

Talk to us

We can run this on your own leases and statements, inside your environment.

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