Rent schedules, rent slabs and prorated revisions

Overview

Many leases agree a different rent for each period rather than one rent plus a percentage — for example ₹1,30,000 in year 1, ₹1,40,000 in year 2, ₹1,50,000 in year 3, then 15% more every 36 months. The Rent Schedule on a lease records exactly that, as rent slabs:

• Fixed rent — an agreed monthly rent for a period (for example Year 1, 15 Jul 2026 – 14 Jul 2027).
• Escalation % or Escalation ₹ — the rent of the slab before it, raised by a percentage or a fixed amount. Its rent is worked out for you, and recalculated if you change an earlier slab.

Once a lease has a schedule:

• Invoices bill day by day. When the rent changes part-way through a month, the days before the change are billed at the old rent and the days from it at the new rent, each prorated on its own, then added up. The invoice lists both parts.
• The tenant is told. An invoice for a period in which the rent changes carries a Rent Revision Applied notice — previous rent, escalation, revised rent and effective date — on the PDF and in the email. Invoices with no change carry no notice.
• The current rent moves on its own. On each slab's start date the lease's current rent becomes that slab's rent, and the change is recorded in the lease's rent history once. You don't apply these escalations by hand.

A lease without a schedule keeps working as before, from its rent and escalation terms.

Before you start

• Save the lease first (start date, end date and rent). See Create a lease.
• Have the rent clause of the agreement to hand.

Steps

Generate the schedule from the lease terms

1. Open the tenant on Lease Dashboard and go to Lease Info → Tax & Escalation.
2. In Rent Schedule, click Generate.
3. Under Agreed fixed rents, click Add agreed slab for each period with a set rent (for example Year 1, Year 2 and Year 3, with their dates and monthly rents). Leave it empty if the lease simply starts at one rent — enter it in Initial monthly rent.
4. Choose Escalation by (percentage or fixed amount), the increase, Every (months) and First escalation.
5. Click Generate preview. The slabs appear in the editor. Nothing is saved yet.

Enter or edit slabs by hand

1. Click Enter slabs (or Edit schedule).
2. For each slab enter Label, From, To (leave it blank to run until the next slab), Basis and its Value (the rent, the % or the ₹ increase). Add slab adds a row.
3. Choose Proration for part months: Calendar days (rent × days ÷ days in the month, the default) or 30-day month.
4. Optionally enter a Lease reference (for example the clause number). It is printed on the rent-revision notice.
5. Check the panel as you type: the computed Monthly rent of each slab, any errors (gaps, overlaps, a slab outside the lease term, two slabs on one date), Upcoming rent changes and Rent billed per month — revision months are marked REVISION with both parts shown.
6. If invoices already raised would come out differently under the new schedule, they are listed. Saving never changes an issued invoice.
7. Click Review & save, then Confirm save.

Example

Acme Eyewear Pvt Ltd at Lakeview Plaza: lease 15 July 2026 – 30 June 2035, with the rents below and 15% every 36 months from 1 July 2029.

The July 2027 invoice bills 1–14 July at ₹1,30,000 (₹1,30,000 × 14 ÷ 31 = ₹58,709.68) and 15–31 July at ₹1,40,000 (₹1,40,000 × 17 ÷ 31 = ₹76,774.19): ₹1,35,483.87 in all, with GST and TDS on that total. From August 2027 the invoice is ₹1,40,000. The July 2029 invoice bills ₹1,72,500 and shows Rent Revision Applied – Effective July 1, 2029: previous rent ₹1,50,000, escalation 15%, revised rent ₹1,72,500.

FAQs

Does the notice show the cash part of the rent?

No. A GST invoice bills — and announces — only the bank (on-paper) rent. Each slab's bank and cash parts move by the same factor as its total.

What about rent-free days?

Days inside the lease's rent-free period carry no rent, whatever the slab. The invoice lists them as a rent-free line at ₹0.

Does the tenant get a reminder before a slab starts?

Yes, when lease reminders are on. Each slab whose rent differs from the one before is a rent revision in Lease Tracker & Alerts, and the tenant notice quotes the agreed rents. You don't need to apply it — it closes on its own.

Troubleshooting

"No rent is defined from … to …"

There is a gap between two slabs. Change the earlier slab's To, or leave it blank so it runs until the next slab.

"The first slab must state the agreed rent"

The first slab can't be an escalation. Make it Fixed rent with the starting rent.

The panel says rent schedules are waiting on a database update

The feature is installed but its tables are not created yet. Until they are, the lease bills from its rent and escalation terms as before.

Related articles

• Rent escalations
• Invoices for part of a month
• Generate GST invoices
• Rent Summary