Rent escalations

Overview

Most Indian commercial leases raise the rent by a fixed percentage at set intervals, for example 5% every year or 15% every three years. In Property360 you do this in two parts:

• The plan (on the lease): the rate, the interval and the first escalation date.
• Applying each escalation when it falls due. This records the new rent and moves the next due date forward.

Escalations are counted from the lease's commencement, not its expiry. Applying one raises the total rent, so the bank and cash parts both go up by the same percentage.

Before you start

• The lease must have a rent saved. See Create a lease.
• Have the escalation clause from the agreement to hand.

Steps

Set the plan

1. Open the tenant on Lease Dashboard and go to Lease Info → Tax & Escalation.
2. Enter Escalation % and Escalation Interval (Months), for example 12 or 36.
3. Check the Escalation Date. It fills itself as Lease Start plus the interval. If the term is shorter than the interval, it rolls to the day after the lease ends. For irregular clauses (for example, first after 20 months, then every 12), type the date and it will be kept.
4. Click Save Lease. The Escalation card on Overview shows the Next Escalation and Last Applied dates.

Apply an escalation from Lease Tracker & Alerts

1. Open Lease Tracker & Alerts. Rows marked Escalation show Rent → enhanced.
2. Open the row's ⋮ menu and choose Apply escalation….
3. Check Effective from and Escalation %. New monthly rent shows the calculated figure. Leave it blank to use that figure, or type the rent you agreed.
4. Click Apply escalation. The reminder for that date closes automatically.

Apply from the Lease Dashboard

1. On Lease Info, click Apply Escalation.
2. Check Effective Date, Escalation % and Enhanced Rent. Enter Override Rent (optional) for an exact negotiated figure, and choose a Reason.
3. Click Apply, then choose Escalation only or Extend + Escalate (which also extends the term by the interval).

Example

Acme Retail Pvt Ltd at Lakeview Plaza pays ₹1,20,000 (₹1,00,000 by bank + ₹20,000 cash) with 5% every 12 months from 1 July 2026. On 1 July 2027 you apply the escalation. The rent becomes ₹1,26,000: ₹1,05,000 by bank and ₹21,000 cash. GST and TDS are worked out on the new ₹1,05,000. The next escalation moves to 1 July 2028.

FAQs

What do Base Rent, Current Effective and Next Enhanced mean?

You'll find them under History. Base Rent is the original contract rent. Current Effective is what is billed now. Next Enhanced is the rent after the next escalation.

Can I undo an escalation?

Yes. In History, the most recent rent change can be undone. If an extension was recorded with it, you can undo both together.

The rent was already raised this year. Will the tenant still get a notice?

No. If the rent was already increased in the current cycle, Property360 doesn't send an escalation reminder for that date.

Troubleshooting

"Enter the escalation % or the new rent"

Fill in at least one of the two before clicking Apply escalation.

Lease Tracker says "Add escalation %"

The lease has an escalation date but no rate. Add the Escalation % on Tax & Escalation.

The next escalation date looks wrong

Check Lease Start, Escalation Interval (Months) and Escalation Date on the lease, and correct the date if the agreement says otherwise.

Related articles

• Lease renewals and extensions
• Lease reminders and the Lease Tracker
• Create a lease