Management of debtors' properties

[former_member772501]

Hie Experts

My client  was owed money by property  companies. It was then mandated  by the government through  an Act to manage the properties owned by its debtors and recover it debts from the rental it collects.  After recovering its debts it will surrender the management of the property to the owner. This means my client carries out all the real estate processes for these properties from lease management to rental collections.

The clients need these processes to be mapped in the SAP system.

Apart from managing its debtor's'properties it all manages its own property.

How best can I map the processes of the management of debtors' properties.

Jerry

[former_member196871]

Hi Jeremiah,

You can explore your options in SAP RE-FX - Third Party Management functionality, it allows you to create a mandate company code within your system which lets you maintain assets and property master in that separate entity and not in your company. You (the company) act as a manager for that property while it belongs to a third party.

This solution actually is actually meant for property managers who manage the accounting functions of the other owners and manage their assets separately in one's system.

What I understand from your case is that you do not need to manage the assets or accounting of the owner, rather you are just leasing out the property and collecting the whole rent until the debt is recovered. If that is the only scenario and you don't want to settle some part of the revenue to the actual owner of the property, you can go for a simple Lease-Out contract scenario.

Best Regards,

Hardik Sharma