What is false occupancy charges in SAP RE - Real Estate Management?

SAP Term: false occupancy charges

• Component: RE

• Component Name: Real Estate Management

• Description: A conditional amount paid by a tenant living in a subsidized apartment although his or her income exceeds the stipulated limit. Unlike in a settlement payment, the amount paid out is not paid to the landlord. The condition details can be defined in the rental unit, rather than in the lease-out.

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• Key Concepts: 
  False occupancy charges are a type of charge that is incurred when a tenant does not occupy a property for the duration of their lease agreement. This charge is calculated based on the difference between the actual occupancy period and the agreed-upon occupancy period. In SAP Real Estate Management (RE), false occupancy charges are managed through the RE-FX module. 
  
  How to use it: 
  In RE-FX, false occupancy charges can be managed by setting up a false occupancy charge type and assigning it to a tenant. The charge type will determine how the false occupancy charge is calculated and how it is billed to the tenant. Once the charge type is set up, it can be applied to any tenant who does not occupy a property for the duration of their lease agreement. 
  
  Tips & Tricks: 
  When setting up a false occupancy charge type in RE-FX, it is important to ensure that all relevant information is included in the setup. This includes the calculation method, billing frequency, and any applicable discounts or surcharges. Additionally, it is important to ensure that all applicable taxes are taken into account when calculating the false occupancy charge. 
  
  Related Information: 
  For more information on managing false occupancy charges in SAP Real Estate Management (RE), please refer to the SAP Help Portal or contact your local SAP representative. Additionally, there are several online resources available that provide detailed information on managing false occupancy charges in RE-FX.