What is risk of rent loss in SAP RE - Real Estate Management?

SAP Term: risk of rent loss

• Component: RE

• Component Name: Real Estate Management

• Description: A threat of reduced revenue due to irrecoverable debt related to rentals, leases, payments, and surchages or due to vacant rental objects.

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• Key Concepts: 
  Risk of rent loss is a concept in SAP Real Estate Management (RE) that refers to the potential for a tenant to not pay their rent. This risk is calculated based on the tenant's creditworthiness and other factors, such as the tenant's past payment history. The risk of rent loss is used to determine the amount of security deposit that should be collected from the tenant. 
  
  How to use it: 
  In SAP RE, the risk of rent loss can be calculated by entering the tenant's creditworthiness and other relevant information into the system. The system will then generate a risk score, which can be used to determine the amount of security deposit that should be collected from the tenant. 
  
  Tips & Tricks: 
  When calculating the risk of rent loss, it is important to consider all relevant factors, such as the tenant's creditworthiness and past payment history. Additionally, it is important to ensure that the security deposit collected from the tenant is sufficient to cover any potential losses due to non-payment of rent. 
  
  Related Information: 
  The risk of rent loss is closely related to other concepts in SAP RE, such as rental contracts and security deposits. Additionally, it is important to consider other factors such as market conditions and local laws when determining the amount of security deposit that should be collected from a tenant.