Rent to Buy in Real Estate

[former_member772501]

Hi Guru

My construct and lease out buildings. One of there process is a rent to buy process. The tenant will pay a down payment of 10% of  the selling price of the house. The tenants then occupy the property for 18 years making rental payments. After 18  years the house will be fully owned by the tenants.

Is there in process in SAP Real Estate that covers this process

Regards

Jerry

[former_member196871 · Accepted solution]

Hi Jerry,

This could work as follows.

1. Create and maintain a condition type for the down payment amount which would be a one-time-payment.

2. Maintain a condition for the rent to be paid with the specific frequency.

3. Collect and post rent as per the frequency specified by issuing a rental invoice.

4. Maintain a status for the contract post closure of the contract tenure.

5. Maintain the validity of the rental object as the tenure of the contract.

5. Archive the contract & object if necessary.

6. Create a custom program for printing of final transfer of ownership letter for the closed contract (if required).

Best Regards,

Hardik Sharma

[former_member772501 · Accepted solution]

Thank you Hardik