What is ownership factor in SAP RE - Real Estate Management?

SAP Term: ownership factor

• Component: RE

• Component Name: Real Estate Management

• Description: A conversion factor for the ownership share of real estate. It specifies the lowest fractional share on which the split property ownership value is based. &EXAMPLE& Owner A owns 17/100, and owner B owns 83/100 of the property. The ownership factor is 100.

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• Key Concepts: 
  Ownership factor is a term used in SAP Real Estate Management (RE) to refer to the percentage of ownership of a property. It is used to calculate the amount of rent or other payments that each owner of a property is responsible for. 
  
  How to use it: 
  The ownership factor is used to determine the amount of rent or other payments that each owner of a property is responsible for. It is calculated by dividing the total value of the property by the number of owners. For example, if a property has three owners, each owner would be responsible for one-third of the total rent or other payments. 
  
  Tips & Tricks: 
  When calculating the ownership factor, it is important to consider any additional costs associated with the property, such as taxes or maintenance fees. These costs should be divided among the owners in proportion to their ownership factor. 
  
  Related Information: 
  The ownership factor can also be used to calculate the amount of capital gains tax that each owner is responsible for when selling a property. The capital gains tax is calculated by multiplying the total gain from the sale by each owner's ownership factor.