helps to maintain all aspects of managing properties like maintaining lease
related information, recording the lease agreements, calculating of lease rent,
any additional rent, common area maintenance and other charges to be paid by
distributes these functions to different modules like Main Lease, Rent
increase, Variable Rent, Rent recoveries and operating expense. These modules
record information needed to calculate these amounts which are finally charged
to the lessee via the Main lease.
Main Lease :- module records the details
of the lease agreement and records the agreed periodic lease rental and initial
deposits etc. Once the other modules have calculated additional lease rent,
common area maintenance, operating expense and other charges, they are also
added to the Main lease.
Rent Increase :- module
calculates an increase in Lease rental by a percentage or index values per
year. The best example is a home rental agreement where the landlord increases
the rent by a set percentage say a 10% increase in rent every year the tenancy
is continued. This rent increase is calculated on the base lease rent and added
as a separate term into the lease.
Variable Rent :- module calculates
additional rent based on additional usage of the property. For example if a
tenant uses the property more that the regular 8 hours a day or produced more
unit than a certain number, he will be charged additional rent based on this
additional usage. Slabs of volumes can be set as shown in the example below:-
Units 10000 to 50000 charge 10% additional rent on base
Units 50001 to 100000 charge 15% additional rent on base
Units 100001 to 150000 charge 20% additional rent on base
The addition rent thus calculated is added as a separate
term into the lease.
recoveries :- module calculates, apportions and reconciles Common area
Maintenance expense. Common area maintenance costs are incurred in the
operation, management, and maintenance of the common area of a facility. CAM
expenses can include administration, security expenses, parking areas, seasonal
decorations, landscaping, snow and trash removal. The best example would be a
shopping mall where the tenant pays rent for the shop he leases but also gets
charged a proportionate agreed charge for the common area that his customers
use like escalators, rest room, water facilities, sitting areas etc. The
addition rent thus calculated is added as a separate term into the lease.
Operating Expense :- Module helps to maintain agreement as how a tenant pays his prorate share of
operating expense. These are expenses that the landlord incurs in maintaining
the property and they pass some or all of it to their tenants. And the agreements
records the payments to be made to the landlord based on yearly estimated
expenses, reconciles them to actual expense, and make adjustments.
With credit to
Anshu Malhotra, Oracle Support