SAP Real Estate Management rapid-deployment solution

Real estate lifecycle management has been playing an increasingly important

role over the past years. This should be no surprise considering that, in most
companies; real estate represents their balance sheets largest financial asset
and is one of their highest operating costs. With this in mind, optimized real
estate lifecycle management can have a significant impact on the bottom
line.
With the SAP Real Estate Management rapid-deployment solution, you can
quickly and affordably implement and automate real estate-related business
processes, letting you manage the entire real estate lifecycle in a strategic
way that optimizes returns for your business. The solution provides support
for end-to-end construction and investment management, lease and space
management, and maintenance and repair. You can develop, construct,
operate, and deploy property and make costs more visible and controllable,
so you can successfully face challenges from compliance, sustainability, and
competitive pressure.
Business scope

Benefits
Achieve operational excellence and greater scalability by automated
process integration, providing a consistent view of your business
Centralize sources to automate complete portfolio insight and support legal
compliance.
Minimize costs and risks through comprehensive monitoring of real estate
processes and operations expenditures
Gain visibility, increase process standardization and integration, and
automate collaboration with service providers operate more effectively and
boost your portfolios profitability.

A. Investment and construction management

Analyze your portfolio, track investment decisions, bid out and award
construction services, monitor projects and contractors, and manage cash for
adequate funding.
1. Investment Planning
- In investment management, the tasks of the asset manager include
capturing and analyzing all investment alternatives and their relevant
details, reviewing proposals and initiating projects, and performing
investment planning across the entire portfolio.
2. Construction Project
- In construction project management, the asset manager is responsible
for keeping construction projects on track, monitoring project budgets,
controlling service fulfillment of contractors and monitoring payments
and warranty related to construction contracts.
3. Property Acquisition
- After the investment planning, budgeting, and approval of an
appropriation request by the asset manager, a property acquisition
contract is closed. The agreed purchase price is the basis for posting to
accounts payable and posting to the related controlling object.
Furthermore, after a fixed asset has been created, the defined
purchase price is capitalized in asset accounting.
4. Property Disposal
- After the investment planning, budgeting, and approval of the related
appropriation request, a property disposal contract is closed. The
agreed selling price is the basis for posting the accounts receivables
and posting to the related controlling object. Furthermore, the defined
selling price needs to be written off in asset accounting

B. Lease and space management

Standardize and automate recurring lease administration activities, such as
rent escalation, renewals, and periodic postings to save time and effort and
free up capacity for more strategic tasks. Accelerate leasing processes and
elevate occupancy and tenant retention rates and their associated revenues.
1. Master Data Management
The real estate manager maintains master data for all objects in the real
estate portfolio. Master data objects include business entity, building, land
and rental objects. Business partners, such as tenant, landlord and service
provider, are also created.
2. Service Contract
The real estate manager makes an agreement with service providers and
energy suppliers regarding the provision of services and energy required to
run his or her properties. This includes caretaking and security services,
electricity provision, and waste removal.

3. Lease-In
The real estate manager agrees on an expense lease for the usage of a
building, land, store, office, or an apartment with a landlord. The contract
details are maintained in the contract.

4. Lease-Out
The real estate manager agrees on income leases for the use of a building,
land, store, office, or apartment with tenants. The contract details are
maintained in the contract.
5. Lease-Out - Free Adjustment
The real estate manager agrees on clauses for free rent adjustment in the
lease with the tenant or the landlord. Free adjustment allows for an automatic
increase of rental conditions based on a fixed amount or a percentage
increase at specific intervals.

Lease-Out - Index Adjustment

The real estate manager agrees on clauses for index rent adjustment
in the lease with the tenant or the landlord. Index adjustment clauses
allow for an automatic increase or decrease of rental conditions based
on changed index levels.
More information

Lease-Out - Sales-Based Rent

The real estate manager agrees on clauses for sales-based rent in the
lease for retail space with the tenant or the landlord. Sales-based rent
clauses allow a consistent definition of sales-based rents as a
percentage of retail turnover or price per sold unit, including grading,
advance payments, and minimum and maximum rents.
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Accounting
The lease accountant creates postings based on the rental fees
maintained in the lease on a regular basis. Accounts payable creates
open items on vendor accounts for landlords. Account receivable
creates open items on tenant accounts, clears open items, executes
dunning, and creates installments.
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Reminder Dates
The real estate manager maintains reminder dates for real estate
objects or a lease in order to monitor critical dates. Critical dates
include reviewing rent adjustments, checking for dunning and payment
blocks as well as reminders for inspections.
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Lease-Out - Renewal
The real estate manager agrees on renewal clauses to a lease with a
fixed end date with the tenant or the landlord.
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Notice
The real estate manager can specify multiple notice rules with contract
terms that lay down different periods of notice for the contractors
(tenant and landlord). Notice can be given for the entire lease contract
or for individual rental objects assigned to the lease contract.
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Overall - Controlling
The controlling business process covers the planning of costs and
revenues at cost element level for real estate objects in your portfolio,
for the respective periods in a fiscal year.
More information

Overall - Reporting
Reporting provides the real estate manager with essential information
on real estate objects and contracts. These reports provide an
overview of master data objects and contracts, values derived from the
cost and revenue postings, as well as planned values.