What is stable value clause in SAP RE - Real Estate Management?

SAP Term: stable value clause

• Component: RE

• Component Name: Real Estate Management

• Description: Under German law, the linking of rent changes to a specific index. The Land Central Bank must authorize this.

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• Key Concepts: 
  A stable value clause is a contractual agreement between a tenant and a landlord in SAP Real Estate Management (RE). It is used to ensure that the tenant pays a fixed rent for a certain period of time, regardless of any changes in market conditions. This clause is beneficial for both parties, as it provides the tenant with financial security and the landlord with a guaranteed income. 
  
  How to use it: 
  In SAP RE, the stable value clause is set up in the contract master data. The clause can be used to define the fixed rent amount, the duration of the agreement, and any other conditions that must be met. Once the clause is set up, it will be automatically applied to all future rental payments. 
  
  Tips & Tricks: 
  When setting up a stable value clause in SAP RE, it is important to ensure that all conditions are clearly defined and agreed upon by both parties. This will help to avoid any misunderstandings or disputes in the future. Additionally, it is important to keep track of any changes in market conditions that may affect the fixed rent amount. 
  
  Related Information: 
  The stable value clause is just one of many features available in SAP RE. Other features include lease management, asset management, and reporting tools. For more information on these features and how they can be used to manage real estate investments, please refer to the SAP RE documentation.