Real Estate: Notice

This Business Scenario Map shows a typical notice processing scenario to terminate a lease contract. It demonstrates how the real estate manager can respond quickly and efficiently to the tenant's notice and need to vacate the real estate object he is currently occupying. The definition of the notice procedure and rules at the time of contract conclusion clarifies what needs to be done, by whom, at the right time. The documented process means that the tenant is aware of the procedure, and the real estate manager is able to provide an optimal service to his tenant. Results include increased responsiveness and higher customer satisfaction.

Show Document Flow

Business Benefits

Saves money - no payment of additional rent

Information transparency

Increased customer satisfaction

Tenant

Real Estate Manager

Submit notice

Vacate rental object

Receive rental deposit

Check notice rules in contract

Check open items

Inspect rental object

Release contract deposit

Confirm notice

Advertise vacant space

Business Benefits

Accurate mapping & recording of lease

Automated processes

Reduced administration costs

Seamless integration

Optimized rental process


Real Estate: Notice SAP Real Estate Management incorporates all functions necessary for optimized lease management. This includes lease creation and processing, object, partner and address management, extensive date and deadline management, as well as the management of follow-on processes once the lease has been created. This provides for a complete overview of all-important contractual information. This Business Scenario Map demonstrates the notice process to terminate a lease contract. The notice term and rules are defined in the lease agreement at contract conclusion. Comprehensive date and deadline management features help to keep track of contract terms, options, renewals, adjustments, resubmissions, notice and other key dates. Notice can be given for individual objects assigned to the contract, or for the contract itself. The tenant submits notice to the real estate manager for the object he is renting. The length of the notice period depends on the notice rule defined in the contract. Once noticed is received, the real estate manager checks the notice rule defined in the contract and can accept the tenant's wish to vacate the rental object. Seamless integration to SAP Financials means that the real estate manager can immediately check to see if the tenant has any open items by referring to the tenant's customer account. Correspondence is sent to the tenant to confirm notice and to inform the tenant of his customer account. The tenant and real estate manager also set a date for the inspection and handover of the rental object. Both parties are informed of all important dates and necessary actions, providing complete transparency of information and increasing customer satisfaction. The contract end date is calculated and when the notice term is complete, the rental object is vacated. The security deposit paid for rental can be released to the tenant, and the real estate manager can advertise the vacant space for rent. This maps a complete end-to-end optimized rental process. SAP Real Estate Management also supports the landlord-driven notice procedure.