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

SAP Term: rent capping

• Component: RE

• Component Name: Real Estate Management

• Description: A limit that can be set on the how much the condition amount of a contract or a rental object can be increased. Usually this cap is determined by law.

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• Key Concepts: 
  Rent Capping is a feature of SAP Real Estate Management (RE-FX) that allows users to set a maximum rent amount for a particular property. This feature helps to ensure that the rent amount does not exceed the predetermined limit, thus protecting the tenant from excessive rent increases. 
  
  How to use it: 
  To use Rent Capping, users must first define the maximum rent amount for a particular property in the system. This can be done by entering the maximum rent amount in the “Rent Capping” field of the property master data. Once this is done, any rent increase requests for that property will be automatically checked against the maximum rent amount and rejected if it exceeds the limit. 
  
  Tips & Tricks: 
  It is important to note that Rent Capping only applies to rent increases and not to new leases. Therefore, it is important to ensure that any new leases are negotiated within the predetermined maximum rent amount. Additionally, users should also be aware that Rent Capping does not apply to any other charges such as service charges or utilities. 
  
  Related Information: 
  For more information on Rent Capping, please refer to SAP Help documentation or contact your local SAP support team. Additionally, there are several online resources available which provide detailed information on how to use this feature in SAP RE-FX.