7 How to create Lease Contract

The functionality of Lease Contracts enables users to connect Customers (tenants) to Lease Units. Multiple services could be entered to Lease Contract lines. Lease Contract status to determine if the Lease Unit is vacant, reserved or rented. Data could be modified by creating new versions of Lease Contract.

To create a new Lease Contract:

• Click New Lease Contract action button on the Role Center, from menu or by search.

• Specify Lease Contract details:
  • No. Lease Contract code could be entered manually or filled in by the system automatically.
  • Contract Date, Contract Valid Until. Enter Contract starting and ending dates.
  • Handover Date. Specify the date when a handover of a Lease Unit was.
  • System calculates Earliest Termination date based on Minimum Term and Notice Period fields.
  • Minimum Term. Specifies a minimum term of the Lease Contract, e.g., '1Y' would mean that minimum term is one year, '6M' – 6 months etc.
  • Notice Period. Defines the shortest notice period for the Lease Contract termination.
  • Building No. Select the particular Building to which Lease Unit/ Units of the Contract would belong.
  • Customer details. It is important to select particular Customer. Additionally, it is possible to specify Customer's brand (optional). Further information about the Customer would be filled in automatically with the data from selected Customer's card.
  • Salesperson. It could be specified a salesperson that is responsible for this particular Lease Contract.
  • Contract type. While creating a new Lease Contract, a Contract type (office, residential, retail etc.) could be set. These Contract types would have assigned Contract templates, that automatically creates Contract lines regarding the template.
  • Invoicing Frequency and Delivery Method. Select a suitable invoicing frequency, e.g., monthly, quarterly or a yearly and define the delivery method – by e-mail, post, or delivery.
  • Deposit. Enter Required Deposit Amount and after it is transferred it would be visible on the Actual Deposit Amount.
  • Deposit Term. Specify until when deposit has to be paid.
  • Warranty. If according to the Lease Contract there supposed to be a warranty instead of a deposit, select the Warranty Type you need (it is possible to create warranty types on your own too), specify the Warranty Amount and Valid To date.
  • Assignment Date and Assigned from Customer. Lease Contract could be reassigned to a new tenant. Most of the existing Lease Contract details would be transferred to the new tenant. Original Lease Contract dates would remain, but it is needed to track Assignment Date.

• Add Lease Units and Services to the Contract lines.
  • Service No. Select Contract service(s) from a service list, e.g., rent, CAM, gas, water etc.
  • Description. Detailed information about a Service for informative purposes. This one is taken automatically from the Service card.
  • Lease Unit No. Select Lease Unit for which Service charges would be calculated.
  • Quantity. This field is used for charges that are calculated based on variable specified in a Lease Contract, e. g. parking spaces.
  • Current Unit Area. This would be filled automatically according to the information on the selected Lease Unit.
  • Effective Date, Expiration Date. Select Service validation dates on the Lease Contract.
  • Price. Set the price for the particular Service. If the price was created in advence, it would appear and no further actions are needed.
  • Price type could be chosen from Fixed (fixed price for the whole Area), Area (the amount would be calculated according to the area of the Lease Unit) and Meter (according to the usage). If the price was created in advence, it would appear and no further actions are needed.
  • Price for Period could be set accordingly: Day, Week, Month, or a Year. This field for the price type Meter should remain empty.

• Are important dates as Renewal, Break Clauses and/ or uncategorized Contract Dates. When overdue it would appear in red.

• Sub-leases. This section is for tracking sub-lease information on the Lease Contract. There might be several sub-leases related to one head-lease.

• Insurance. Keep here information on insurance policies procided by Customers.

• Documents. There is a section for uploading documentation related to the Lease Contract. Additionally, document templates in Word format (.docx) could be uploaded to the SOFT4RealEstate system and could be used to gather data from the lease contract directly to the template. It is also posible to send these documents directly from the system - either to the Customer or other team members. More on 11 How to upload and send documents from Lease Contract.

• Lease Contract Contact. Keep Contacts in this list that are relevant only to this Lease Contract.

• All information has been entered and checked, now the Lease Contract has to be released: in the Lease Contract card go to Process and click Release action button.

• Lease Contract status has changed to Released.