Lease outs
Definition
Contract drawn up between tenant and landlord governing the rental of a rental unit.
Use
You need this object if you want to rent a rental unit.
A lease out can only be created on the basis of a vacant rental unit. Only one rental unit is assigned to each lease out time-dependently.
Structure
You determine the following factors in the lease out:
Rental type
Residential/commercial lease out
The system determines if the lease out is for residential or commercial purposes by means of the usage type of the assigned rental unit.
Provisional agreement
You can create provisional agreements for objects still under construction.
Internal/external rental
You also specify whether the rental is for own usage or third party usage (external).
Contract type
Lease outs are divided up according to company-specific criteria using freely defined contract types. You can specify lease outs to be garage agreements, residential or commercial agreements.
The contract type also determines which rent adjustment processes are permitted for the lease out, according to the usage type.
Term
The contract term stipulating the beginning and end of the rental period prevents the system from creating overlapping rental periods for a rental unit.
Rental units that are not assigned to any lease out at a particular time are identified as being vacant by the status control and only then become available for rent. The system takes account of all rental units that are shortly to become vacant due to the lease out expiring or notice being served on it - up until the point that a renewal contract is concluded.
Periods of notice
Periods of notice are determined on the basis of periods or deadlines.
Rent receivables and payment arrangements
Condition amounts
The condition amounts agreed on the level of the lease out form the basis of the rent receivables. The conditions are freely definable (Customizing for Real Estate). This means that the basic rent, service charges, advance payments, flat rates and surcharges can be structured as required and assigned time-dependently to the lease outs.
When the lease out is created, the conditions in the rental unit are proposed and can be edited as required. Alternatively, you may choose to adopt the conditions from the last lease out for the rental unit.
Rent reductions
You can also determine time-dependent rent reductions for each condition of a lease out.
Payment data
The following payment arrangements specified for each lease out influence the way in which the rent receivables are passed on to the tenant, depending on the type of rental:
Payment form: rent paid in advance, mid-term or in arrears
Monthly payment pattern
Payment methods (such as bank direct debit, incoming cash payment, check); see also: Dealing with Payment Methods (RE Real Estate)
Determining if the rent receivables should be charged pro rata or for the whole month, if rental start or end does not coincide with the start or end of the month.
Business partner with customer account
Rental accounting and rent collection are carried out using accounts receivable accounting of the Financial Accounting (FI) component (open item accounting).
A business partner assigned to the lease out acts in the role of tenant with a customer account, while taking account of alternative payers.
Roles |
Activity |
Tenant with customer account |
The debit position posts the receivables to the tenant with customer account |
Subsidizer with customer account |
Alternative payer, if rent is not paid in full by tenant but partially by other partners (e.g. social welfare office) |
Payer with customer account |
Alternative payer, if whole rent is not paid by master tenant but by a third party |
Settlement participation
The participation of the lease out in the service charge settlement is defined by the following parameters:
You determine which service costs for which periods are to be settled by way of the data assigned to the rental unit.
You determine how the service charges are apportioned to the tenants by way of the apportionment units/factors.
Whether particular service charges should be excluded from the settlement participation by way of the settlement type.
Rental collateral
Depending on the organization, you can differentiate between rental collateral types using user-defined deposit types, such as bank guarantees, fixed-term accounts, security deposit accounts and cash deposits.
It is possible to assign several deposit types and amounts to one agreement. By assigning guarantors or warrantors for each deposit type you can uniquely identify the person involved when the deposit is returned or retained at the end of the contract.
Interest on cash deposits
You can control the interest calculation on a cash deposit with the following parameters:
Interest percentage rate
Monthly frequency of interest calculation
Interest calculation method
Interest calculating on a particular date
Storing bank data
By assigning bank master data to a deposit type or agreed deadlines for exemption requests, declarations of assignment and deposit expiries, you always have access to relevant data on rental collateral.
Rent adjustment
When editing lease outs, also specify the required form of rent adjustment by directly assigning the adjustment data for the sales-based rent, the index-linked rent and graduated rent.
The valid rent adjustment procedures for the lease out are controlled by means of the following factors:
The usage type of the rental unit determines the permitted contract type.
The contract type controls the permitted adjustment types.
The adjustment types control which rent adjustment procedure you may carry out for the lease out.
Activation
You have to activate lease outs before they can participate in the debit position and service charge settlement. As a result, they receive the system status
Activated
and
Released
.
The system status
Released
allows you to make assignments on the lease out. You can set the status without activating the contract.
Integration
The following objects are required in order to edit and/or activate a lease out:
Rental unit
Settlement unit(s) or apportionment units/factor (if participating in the service charge settlement)
Business partner: tenant with customer account (main contractual partner)