PeopleSoft Real Estate Management Overview Part 8: More Lease Controls & Options

Editor’s note — here are all the posts in this series for easy reference:

Hi again, everyone. We’re going to pick up where we left off last week, which means we’re doing to dive into more lease controls within PeopleSoft Real Estate Management (REM). Up first: Percent Rent.

Percent Rent

The Percent Rent option enables you to utilize leases with variable rent based upon user defined formulas.  It also allows you to create a lease with both a variable and a fixed and portion.

As outlined in PeopleBooks, Percent Rent enables you to negotiate a lower monthly base rent in exchange for a portion of tenant sales using thresholds. More specifically as sales amounts reach specified thresholds, called breakpoints, the percentages can be set to change, thus altering the amount of the final rent amount over a range of sales outcomes. For a breakpoint, the rent can be a fixed amount, a percentage of sales, or a combination of fixed amount and percentage.

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Region codes

Regions may or may not be physical entities or geographical areas.   As delivered, Real Estate Management allows you to classify leases by different user defined Region Codes which are then further classified by Region Categories.

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User Defined Fields

Because different businesses have different reporting needs, Real Estate Management offers up to 10 user defined fields to meet your organization’s reporting and analytical requirements.

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Economic Index

You can set up the economic index values so that lease rent amounts or miscellaneous fees increase from time to time or from year to year based upon a pre-stored index. You can load established index values such as the Consumer Price Index (CPI) or create your own index.

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Manual Fee Types

You can create Manual Fee Types to classify ad hoc payments for things such as repair of a broken window, rekeying a lock for an office, or items not related to the monthly operating expense fees.  Additionally you can use Manual Fee Types to specify special transaction processing rules in PeopleSoft Billing or PeopleSoft Payables.

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Operating Expense Categories

You can create Operating Expense Categories to classify recoverable expenses that are incurred for general operations and maintenance.  Operating expenses are also commonly referred to as common area maintenance (CAM).  Just as with Manual Fee Types you can use Operating Expense Categories to specify special transaction processing rules in PeopleSoft Billing or PeopleSoft Payables.

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Approval Workflow Framework (AWE)

With version 9.1, Real Estate Management System now leverages PeopleSoft Approval Workflow Framework (AWF).  Delivered Real Estate workflow functional areas (setup at BU level) are listed below.  In addition these approval processes can all be configured to meet specific and detailed business requirements:

• Lease Status Monitoring
• Sales Amount Monitoring
• Operating Expense Monitoring
• Lease Clause Monitoring
• Critical Date Notification
• Transaction Queue Monitoring
• SAR Approvals
• SAR Finalization

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This concludes this week’s Real Estate Management overview.  Though we covered numerous General Definitions and Financial Terms setup options, we only covered a very brief cross section of the available system functionality.  We also discussed the Site Acquisition Process (SAR) and Approval Workflow Framework (AWE).  In our next Real Estate Management overview we will discuss further details on Payables and Billing integration, Operating Expense Audits and Reconciliation, and Security Deposit functionality.

Until then, see you next time. Thanks for reading, and as usual, please don’t hesitate to reach out with any questions.