Contracts between the owner of real estate and the real estate manager according to which the manager manages the real estate on behalf of the owner. The following is specified in management contracts:

• The objects to be managed
• The fees agreed upon for managing the objects

The management contract represents the contractual relationship between a real estate manager (= R/3 user) and the owners of the real estate objects.

In this case, the owners do not manage the real estate objects themselves but entrust the manager with this task.

In return for services rendered, the manager receives a corresponding fee that can consist of several fee types:

• Periodic fees
• The fee is due after certain periods (for example, monthly). The settlement is then carried out periodically by means of a debit position.
• Event-driven fees
• The fee is due when a certain event occurs (for example, tenant changeover).
• Object-related fees
• You may assign periodic and event-driven fee types to the management contract as a whole as well as to the individual Real estate objects that are being managed. Consequently you can define fees or calculate them for each individual object of the management contract.

You define a permitted calculation rule for the fees in Customizing for Real Estate using three different factors:

• Fee type for which the amount is being calculated
• Calculation method
• This determines how the fee amount can be determined, for example as a fixed amount, as a fixed amount per object, or a share of a calculation base in % (for example, current basic rent of the rental unit, costs for construction work, purchase price, sales price).
• Selection type
• This determines whether a fee calculation is carried out using the calculation form for a certain object or object-independently.

The permitted combinations of calculation form and selection type are determined in Customizing for Real Estate and can be combined as required in the Real Estate component.

For posting reasons you have to process the management contract in a company code (CC) other than that in which the objects themselves are managed: