What is new urban rent adjustment in SAP RE - Real Estate Management?

SAP Term: new urban rent adjustment

• Component: RE

• Component Name: Real Estate Management

• Description: A new urban lease act that came into force in 2006 in Portugal. It regulates the urban leases and determines the rights and duties of both the tenant and the landlord. It enables the landlord to increase the outdated low rentals of old contracts previous to 1990 to shape the real market value of the building/rental object. The main precondition is to reach good or excellent condition of the building. The conservation level is based on the current condition of the rental objects or buildings, which influences the calculation of rent adjustments. In Portugal, it is known as 'Novo Regime de Arrendamento Urbano' NRAU.

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• Key Concepts: 
  New Urban Rent Adjustment is a feature of SAP Real Estate Management (RE-FX) that allows for the automatic adjustment of rent payments based on changes in the local market. This feature helps to ensure that tenants are paying a fair and equitable amount for their rental property. It also helps landlords to keep up with changing market conditions and adjust their rental rates accordingly. 
  
  How to use it: 
  To use the New Urban Rent Adjustment feature, landlords must first set up a rent adjustment plan in SAP RE-FX. This plan will define the parameters for how the rent will be adjusted, such as the frequency of adjustments, the type of adjustment (percentage or fixed amount), and any other conditions that must be met before an adjustment can be made. Once the plan is set up, SAP RE-FX will automatically adjust the rent payments according to the parameters set in the plan. 
  
  Tips & Tricks: 
  When setting up a rent adjustment plan, it is important to consider both short-term and long-term market trends. This will help ensure that tenants are not overpaying for their rental property and that landlords are able to keep up with changing market conditions. Additionally, landlords should consider setting up multiple plans with different parameters so that they can adjust rents more quickly if needed. 
  
  Related Information: 
  For more information on SAP Real Estate Management (RE-FX) and its features, please visit the SAP website at https://www.sap.com/products/real-estate-management.html. Additionally, there are many online resources available that provide detailed information on how to use SAP RE-FX and its features, such as tutorials and user guides.