Overages are most often used to calculate lease charges for a tenant based on their sales volume. Typically the lease calls for charging the tenant a percentage of a number of "break points". At the time that the overage is being processed in the Lease Administrator Overages Tab the tenant's actual sales volume is entered and PMWeb automatically calculates the overage amount due.
Overage Table
Use this table to define up to 15 break points in the tenant's sales volume as well as a percentage for each. For example, if the tenant's sales volume for the rental period was $150,000, the overage calculation is as follows:
Actual Volume
%
Overage Amount Due
$10,000.00
5.00%
$500.00
$20,000.00
4.00%
$800.00
$30,000.00
3.00%
$900.00
$40,000.00
2.00%
$800.00
$50,000.00
0.00%
$0.00
$150,000.00
$3,000.00
The tenant would be charged $3,000.00 in rent for the period.
