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PeopleSoft Real Estate Management Overview, Part 2

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

This week’s Real Estate Management overview will focus on the “MY INFORMATION” content of the product (here’s last week’s, in case you missed it).  “MY INFORMATION” is a quick review related to the leases in a user’s portfolio.  The two major components that we will focus on are:

  • My Lease Portfolio
  • My Critical Dates

In “My Lease Portfolio” the user is able to search by a number of criteria to quickly return the leases in their portfolio.  As can be seen by in the screenshot below, the search returns every lease that meets the criteria and provides quick access to each lease.  By clicking on the “Lease Details” tab, the user is presented with a hyperlink directly to the Lease setup page.

(click to enlarge)

Moving forward, the screenshot below outlines the major content within the lease setup.  The first tab is the General Information tab.  This page, as described, provides general information about the selected lease such as the lease name, number, type, location, region, and landlord.  Additionally, it quickly outlines the lease timetable for such information as lease terms, the termination date, date of signature and the administrator of the lease.  Finally, general information about the space itself including total area, usable area, rentable area etc.  The user is also able to take four distinct actions on the lease:

  • Manage amendments to the lease
  • View the lease abstract (the lease abstract provides a method to capture and present lease information in a summarized, at-a-glance format)
  • Dispute the lease
  • Expire the lease

(click to enlarge)

The second tab is related to the lease financial information which includes setting up the lease financial terms which are critical to the overall lease processing. The terms that you can define include the rent billing or payment frequency, operating expenses, and miscellaneous rent items.  Additionally you can establish recurring payments or invoices and specify payment and invoice processing dates.

(click to enlarge)

Here is some information from PeopleBooks:

You can establish rent escalations that increase at specific date intervals throughout the life cycle of the lease. When adding the base rent, you can set up a recurring invoice or payment. Then you can create rent escalations using a predefined index or standard stepped increases such as the Consumer Price Index (CPI) or any other index to help determine the rent increase.  Escalations usually occur on an annual basis with an optional defined maximum limit capacity.

With operating expenses, you can set maximum increases by amount or percent. As a tenant, you can audit those expenses annually to ensure continuity of spending. As a landlord, you can reconcile the operating expenses and bill or credit the difference to your tenants.

You can also set up a recurring schedule for miscellaneous rent that can include such items as monthly parking fees, administrative fees, and storage fees and you can establish a recurring schedule to reduce data entry redundancy.

You may also have leases that are set up on a percent rent schedule, where the monthly rent is reduced in exchange for a portion of the tenant’s sales. With percent rent schedules you can upload tenant sales reports to determine the variable monthly rent the tenant pays.

The lease clause page provides quick access to the legal clauses involved in every lease.  It is important that this information is captured and retained efficiently. Here’s what PeopleBooks says about it:

With lease clauses, you can select the clause types and clause sub types to capture and track this information and enter additional related information in a free-form text field. Clause types and sub types enable you to reduce data entry redundancy and also logically categorize the information that you capture. For example, if you have a clause type of Parking and a clause sub type of Allocated Spaces, you can further define the clause with the actual number of parking spaces allocated to the lease. You can also incorporate specific sections of a lease in the Reference field for each clause that you enter, enabling quick reference to the actual terms within a lease.

(click to enlarge)

The final tab we will explore is the “Options and Critical Dates” tab.  Here the user is able to identify options which are used to identify clauses.  From PeopleBooks:

Real estate options can be the same as a clause with a critical date as a reminder to take action for that option. You can define whether you receive a reminder when an action is required. Options are usually associated with critical dates (dates by which the option is exercised) and include lease renewals, terminations, and early terminations.

(click to enlarge)

To further discuss the basics of “My Critical Dates”, here’s more from PeopleBooks:

When you associate an option to a SAR or lease, you also need to define the option expiration date which is typically referred to as the critical date. Once this date has passed, the option is no longer exercisable.  To avoid missing critical dates, you can use the option date to define a start date, an end date and optionally, any number of intermediate dates for users to receive notifications.  As each date occurs, a notification will be sent to the various contacts informing them of the pending option.

In our next installment of Real Estate Management Overview we will focus on Real Estate Management integration and the following week we will take a deeper look at creating leases. If Real Estate Management is something you own are considering owning, stay tuned. We’re going to give you the most complete overview of PeopleSoft REM short of PeopleBooks.

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5 Responses

  1. […] To read about My Lease Portfolio and My Critical Dates in more detail please see REM overview post #2. […]

  2. […] Estate Management overview, we will take a more thorough look at creating leases.  As a reminder, in our second post of this series we took a high level look at creating leases whereas this week we will be taking a deeper view and […]

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