Overview
CPI Rent Increase allows you to calculate and apply Consumer Price Index adjustments to eligible recurring charges.
You can configure CPI settings on recurring charges, manage reusable CPI templates, generate a preview, and review the proposed adjustments before creating new charges.
Configure CPI Settings on a Recurring Charge
Open a lease and select the Recurring Charges tab.
Select CPI Settings for the recurring charge you want to configure.
You can either:
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Create a new CPI configuration.
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Select an existing CPI template to pre-fill the configuration.
Only users with permission to edit the lease or recurring charge can modify CPI settings.
CPI Controls
Retroactive Method
Choose how SIRE handles missed adjustment periods:
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No Retroactive: Does not create charges for missed adjustment periods.
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Create a Charge: Creates a separate charge for eligible retroactive adjustments. Select the retroactive charge item ID when this option is used.
Adjustment Frequency
Enter the number of months between CPI adjustments.
For example, enter 12 for an annual adjustment.
Next Adjustment Date
Enter the date of the next CPI adjustment.
This date determines when the recurring charge becomes eligible for CPI processing. SIRE updates the next adjustment date after a successful adjustment.
Terminate Date
Optionally enter the date after which CPI adjustments should no longer be processed.
Calculation Methods
Calculation Method 1
Select the primary method:
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Current Year Against Last Year: Compares the current index with the previous index.
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Current Year Against Base Year: Compares the current index with a configured base-year index.
Index 1
Select the primary CPI index.
Area 1
Select the geographic area associated with the primary index.
Previous Index Values
When Current Year Against Last Year is selected, complete:
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Previous Index Date
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Previous Index
Calculation Method 2
Optionally configure a second calculation method, index, and area.
When two indexes are configured, choose whether SIRE should use the:
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Greater index value.
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Lesser index value.
Base Year Controls
Base year fields apply when Current Year Against Base Year is selected.
Complete the applicable fields:
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Base Year Index
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Base Year Index Date
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Base Year Index Value
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Base Year Description
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Base Year
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Base Year Basis
The base year description is for reference and does not affect the calculation.
Calculation Components
The following optional components can adjust the calculated CPI increase:
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Stop Percentage: The percentage increase above which the tenant participates in the increase.
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Lease Factor: The percentage of the CPI increase applied to the charge.
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Floor Percent: The minimum percentage increase applied when the calculated increase is lower.
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Cap Percentage: The maximum percentage increase applied.
Enter percentage values as percentages. For example, enter 25 for 25%.
Manage CPI Templates
Go to Setup > Templates > CPI Templates.
CPI templates allow you to reuse common CPI configurations when setting up recurring charges.
From the template list, you can:
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Create a new template.
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View an existing template.
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Edit a template.
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Delete a template when it is no longer needed.
Updating a template does not automatically change CPI settings that were previously saved on recurring charges.
Preview CPI Escalations
Go to Tasks > Manage Charges > Process CPI.
Complete the processing details:
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Property: Select the property to process.
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Index Date: Select the CPI reference date.
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Invoice Date: Enter the invoice date for generated adjustment charges.
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GL Posting Date: Enter the posting date for generated transactions.
You can further filter the results by:
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Lease
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Index Type
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Area
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Next Adjustment Date
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Recurring charge
The Next Adjustment Date filter can be used to limit the preview to adjustments scheduled for a specific month and year.
Select Preview CPI Escalations.
The preview is generated asynchronously. When it is ready, open the notification to review the CPI journal.
Review the CPI Preview
The preview displays the proposed adjustments for the selected property and leases.
Review:
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Lease, unit, and tenant.
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Recurring charge and item ID.
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CPI index and area.
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Previous and current index values.
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Applied stop, floor, cap, and lease factor values.
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Existing and new charge amounts.
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Calculated rent increase.
You can export the preview to Excel or PDF.
If CPI data is unavailable or a charge cannot be calculated, review the warning shown for that charge before generating the adjustments.
Post CPI Escalations
After reviewing the preview, select Post CPI Escalations.
SIRE creates the eligible new recurring charge amounts. When retroactive processing is configured, SIRE can also create separate retroactive charges for eligible missed periods.
SIRE prevents the same preview journal from being generated more than once.
Frequently Asked Questions
Can I Reuse A CPI Configuration?
Yes. Select an existing CPI template when configuring the recurring charge.
Does Updating A CPI Template Change Existing Recurring Charges?
No. Updating a template does not automatically change configurations already saved on recurring charges.
What Is The Difference Between Current Year Against Last Year And Current Year Against Base Year?
Current Year Against Last Year compares the current index with the previous index. Current Year Against Base Year compares the current index with a configured base-year index.
When Is A Recurring Charge Eligible For CPI Processing?
The recurring charge must have CPI settings, be associated with an eligible lease, and have a next adjustment date that matches the processing criteria.
What Does Create A Charge Do For Retroactive Adjustments?
It creates separate charges for eligible missed adjustment periods using the configured retroactive charge item ID.
Can I Review CPI Adjustments Before Creating Charges?
Yes. Generate the CPI preview, review the proposed adjustments, and select Post CPI Escalations only after confirming the results.
Can I Export The CPI Preview?
Yes. The CPI preview can be exported to Excel or PDF.