Revenue Rules - Automatic Rate Adjustments

Automatic Rate Adjustments are controlled by Revenue Rules in DomicoCloud. Revenue Rules are sets of conditions that occupied units must meet to receive a rate increase. DomicoCloud runs these Rules on a schedule of your choice. As new units are moved in, they will trigger the adjustments once they meet the conditions in their respective Rule. You can access the Revenue Rules in Financial Setup > Billing Plans. 

Revenue Rules - Conditions

A Rule is created for each billing plan (size code), allowing for different conditions for different types of spaces. This also allows you to create separate Rules for Occupied units and the Street Rate. 

The conditions for Occupied units are: 

1. Length of Occupancy 

           ex. Unit must be occupied for more than 1 year to get an increase

2. Occupancy of that size overall 

           ex. Only increase 10x10s if 90% of 10x10s are occupied

3. Percentage of the street rate vs occupied rate

           ex. Only increase rate if current rate is less than 95% of the street rate 

Length of Occupancy is required; the other two are optional. 

The conditions for the street rate:

1. Age of current price 

           ex. If current price has been active for at least 30 days...

2. Age of occupancy percentage

           ex. If occupancy of the billing plan has been below 90% for 30 days... 

3. Last move-in date

           ex. If no one has moved into a unit in this billing plan in 30 days... 

Recurring Automatic Increases

Each rule will require a frequency at which the units can receive increases, ex Every 1 Year. This determines how often a unit will qualify for an increase. 

Effective Dates and Timing

When a Revenue Rule creates an adjustment, the effective date of the adjustment will always be 45 days from when the adjusted is created. Keep this in mind when planning your first round of rate increases in DomicoCloud. To avoid confusion on your customers' part, we indicate in the notice that the new rate will go into effect "with the first rent charge due on or after" the effective date. 

Notices

The notices for your customers will generate on a schedule of your choice. The standard is 35 days, which allows time for stuffing and posting US mail ahead of the minimum 30 days' notice required by most states. The notices can be sent via email if available and/or print. The notice can include the current rent, the new rent, and the effective date. 

Adding Revenue Rules for Occupied Units

For “First of the Month” facilities, the effective date may not be the 1st of the month, but the new rate will go into effect when rent is charged on the 1st following the effective date. For “Anniversary” facilities, the new rate’s effective date will likely not match the unit’s due day, but the new rate will go into effect the next time rent is charged after the effective date. 

1. Go to Financial Setup > Billing Plans (> select facility, if applicable)

2. Select the Billing Plan to adjust (the row will turn dark blue)

3. Select Edit Billing Plan...

4. Scroll down, click Show Advanced Controls, and scroll to the bottom. 

5. Click Add Rule...

Now on the Rule Info screen:

1 – “Start Date” is when the system will start queuing the adjustments.

2 – Check the radio box for "Occupied" 

3 – Minimum length of stay to receive the adjustment. The options below it are optional.

4 - Change the dropdown from "Suggest" to "Adjust"

             Dropdown 1

                            = : This will adjust to the amount

                            + : will raise by the amount (e.g. raise everyone by $5)

                            - : will lower by the amount

             Dropdown 2

                            % : Will use percentage of current Actual Rate

                            USD : Will be a flat dollar amount

 

5 – Determines the frequency at which new adjustments can be created. Set this to 1 YEAR if you want to limit the increases to once a year. The software will use this frequency and compare with the last adjustment date. If it has been over a year, a new adjustment will be created.  

6.    Save and repeat for all applicable Billing Plans. These rules can be edited after they’re saved. 

Adjusting Street Rates

Only affects new rentals

1. Go to Financial Setup > Billing Plans (> select facility, if applicable)

2. Select the Billing Plan to adjust (the row will turn dark blue)

3. Select Edit Billing Plan...

4. Change the Price and Save

The new price goes into effect immediately.

Scheduling Rate Adjustments by Unit

1.    Pull up the customer in Tenant Search:

2.    Open the Lease tab, select the unit, and click the billing plan/size code:

3.    Click Edit Billing Plan… to open the Billing Plan Info screen:

4.    Scroll down to the Scheduled Rate Adjustments section: 

5.    Click Add Adjustment…

Set the Date to the desired effective date, keeping in mind that the notices need adequate time to generate beforehand.

Enter the new Price. Click Save on Adjustment Info, then Save on Billing Plan Info. 

To see a list of upcoming price adjustments, generate the Billing Plan Price Change report.

Notices for Customers

1.    System > Automated Actions

2.    Locate the row for “Scheduled Rate…”

3. Select the row and click Edit Action…

4. Change the highlighted value to how many days in advance you would like the notices to generate:

If DomicoCloud finds that the number of days between today and the effective date is greater than the value entered, it will generate the letters during the next closeout. For example, if today is March 15, 2022 and an adjustment effective date is April 15, 2022 and you set this to generate 40 days before the event, DomicoCloud will generate the notice that night.

5.    Scroll down and confirm that “Send Notification” is checked, and the correct notice is selected. 

“Primary Customer” should be listed as Recipient, as shown above.