What is prevailing rent in SAP RE - Real Estate Management?

SAP Term: prevailing rent

• Component: RE

• Component Name: Real Estate Management

• Description: Condition type based on market rent.

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• Key Concepts: 
  Prevailing rent is a term used in SAP Real Estate Management (RE-FX) to refer to the current market rent for a property. It is used to compare the current market rent with the existing rent of a property, and to determine whether the existing rent should be adjusted. 
  
  How to use it: 
  In SAP RE-FX, prevailing rent can be used to calculate the rental adjustment for a property. The prevailing rent is compared with the existing rent of the property, and the difference between them is used to calculate the rental adjustment. The rental adjustment can then be used to adjust the existing rent of the property. 
  
  Tips & Tricks: 
  When calculating the rental adjustment, it is important to take into account any additional costs associated with the property, such as taxes or maintenance fees. This will ensure that the rental adjustment accurately reflects the current market rent of the property. 
  
  Related Information: 
  The prevailing rent can also be used in SAP RE-FX to calculate other metrics, such as vacancy rates and occupancy rates. Additionally, prevailing rent can be used in conjunction with other metrics, such as market trends and economic indicators, to gain a better understanding of the current market conditions for a particular property.