Real Estate: Handling Service & Repair Requests for Real Estate Objects

This Business Scenario Map shows how the real estate manager can manage the services and repairs required for objects in his portfolio. It illustrates collaboration between three business partners, the tenant, real estate manager and service provider. The real estate manager is responsible for lease and building administration. He therefore manages all service and repair requests for his buildings. The tenant occupies the space and requests services and repairs such as catering or he reports a fault in his rental object (malfunction report). Due to the fact that many real estate companies do not have these services in-house, and they are needed on a regular basis, the real estate manager outsources the services to service providers. Standard service descriptions and prices are entered in a framework agreement. Seamless integration between the parties involved helps reduce process costs and increases operational efficiency.

Show Document Flow

Business Benefits

Simple entry of request for service & repair

Improved customer satisfaction

Accurate mapping and recording of services

Optimize maintenance planning & control

History of all maintenance tasks with error locations, causes, costs etc

Accurate cost recovery through complete integration

Tenant

Real Estate Manager

Service Provider

Request service or repair for real estate object

Receive invoice or SCS results

Define services required

Create service order

Accept activities

Settle service order

Define service agreement

Accept service order

Confirm activities

Receive credit note

Business Benefits

Optimization of prices, services, availability

Direct allocation of responsibilities, costs etc

Integrated procurement of services & repairs

Documentation of costs according to maintenance type

More accurate forecasting of services required


Real Estate: Handling Service & Repair Requests for Real Estate Objects Services for real estate objects are often required on a regular basis. This includes additional services required by a tenant, such as catering or cleaning, or repairs and maintenance required on buildings in the real estate portfolio. This Business Scenario Map shows how the real estate manager manages services and repairs required for real estate objects. Due to the fact that many real estate companies do not have these services in-house, and that they are needed on a regular basis, the real estate manager outsources the services to service providers. This allows the real estate manager to standardize processes and prices paid for particular services required for real estate objects and optimize the facility management process. After defining which services the real estate manager wishes to standardize on a fixed-price basis, he negotiates contracts, services and rates with various service providers for different trades, such as painting, cleaning and landscaping.The tenant requests a particular service or repair for the real estate object he occupies.The real estate manager plans which services are required and creates the necessary service orders to meet the tenant's demand, or the technical needs for repair. The service provider accepts or declines the service order according to the framework agreement conditions within a given time-frame. Having completed the service requested, the service provider confirms the activities he has carried out with the exact quantity of service provided (e.g. catering in meals or equipment replacement). Before accepting the activities, the real estate manager checks that the activities have been carried out, e.g. random sampling, and creates a credit note by combining the activities with the prices defined in the framework agreement. Based on the received credit note, the service provider receives payment automatically with the next payment run. The costs rising from the service received can be settled in a number of ways. For example, the catering costs could be settled directly to the tenant account, maintenance costs could be settled in the service charge settlement (via the settlement unit), or the repair costs could be posted directly to the rental space. The scenario demontrates seamless integration between SAP Real Estate Management and SAP Product Lifecycle Management (SAP PLM). Services and repairs are requested from tenants occupying real estate objects. The mapping of the particular services required, prices charged and availability of resources is managed in SAP PLM. Seamless integration enables the costs derived from services and repairs received to be displayed directly on the individual objects in real estate reporting. By negotiating framework agreements with service providers, the real estate manager is able to optimize prices, services and availability. This is especially relevant for re-occuring services and repairs. By handling the entire process chain, the real estate managerhas a complete overview of all the services that have been carried out or that are planned. Direct cost allocation provides complete cost transparency and enables the real estate manager to see exactly how much his portfolio is costing. The result is more accurate forecasting, saving time and money. The tenant receives an immediate response to his request, thus improving customer satisfaction.