What is apportionment loss risk in SAP RE - Real Estate Management?

SAP Term: apportionment loss risk

• Component: RE

• Component Name: Real Estate Management

• Description: The risk of diminished revenue arising from problems such as overdue rent, apportionable costs, or vacancies. You can compensate for this risk by charging a percentage surcharge on the settlement result.

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• Key Concepts: 
  Apportionment loss risk is a concept in SAP Real Estate Management (RE) that refers to the risk of a tenant not paying their rent or other fees. This risk is apportioned between the landlord and tenant, with the landlord taking on the majority of the risk. The apportionment of the risk is determined by the terms of the lease agreement. 
  
  How to use it: 
  In SAP RE, apportionment loss risk is managed by setting up a lease agreement between the landlord and tenant. The terms of the agreement will determine how much of the risk is apportioned to each party. The landlord will typically take on more of the risk, as they are responsible for collecting rent and other fees from the tenant. 
  
  Tips & Tricks: 
  When setting up a lease agreement, it is important to consider how much of the apportionment loss risk each party will take on. It is also important to ensure that all parties understand and agree to the terms of the agreement before signing it. 
  
  Related Information: 
  Apportionment loss risk is closely related to other concepts in SAP RE such as rent collection, tenant management, and lease management. Understanding these concepts can help landlords and tenants better manage their apportionment loss risk.