Contracts & Other Agreements
Contracts are defined based on the location type and on the occupancy of the head premises or sub-premises. These factors determine whether a contract needs to be created, as well as the type of contract. The possible contract types are:
- Head lease: The principal lease for the head premises or the principal leased area. This lease only encompasses the terms that are part of the lease contract. Users can only have one active head lease per premises.
- Internal contract / Other Agreement: An internal contract/agreement (also referred to as a secondary contract/agreement), is created when the legal entity linked to a head premises enters into a contract with another division from the same group for the occupancy of part or all of the principal leased area.
- External contract / Other Agreement: An external contract/agreement (also referred to as a secondary contract/agreement), is created when the legal entity linked to the head premises enters into a contract with an external company for the occupancy of part or all of the principal leased area.
- Other Agreement: Other agreements are created for terms that are not part of the initial lease contract. For example, you may have a separate contract with a janitorial service for your leased office space. Users can add as many other agreements as they would like. Note that percentage rent is not available for other agreements.
The following table lists the different combinations of location type, premises occupancy, premises type (as well as the principal position of the associated contract), and the resulting contract:
|
Your Location Type |
Premises Occupancy |
Premises (Associated Nakisa Lease Accounting Suite Contract) | Resulting Contract |
|---|---|---|---|
|
Owned |
Occupied |
Any premises (Lessee non-lease service contract) |
Other Agreement |
|
Owned |
Vacant |
Any premises (Lessee non-lease service contract) |
Other Agreement |
|
Owned |
Leased internally (lessee is another internal division of the business) |
Head premises (Lessee non-lease service contract) |
Other Agreement |
|
Sub-premises (Lessor contract) |
Internal contract / Internal Other Agreement |
||
|
Owned |
Leased externally (lessee is an external company) |
Head premises (Lessee non-lease service contract) |
Other Agreement |
|
Sub-premises (Lessor contract) |
External contract / External Other Agreement |
||
|
Leased |
Occupied |
Head premises (Lessee contract) |
Head lease / Other Agreement |
|
Sub-premises (No contract) |
No contract |
||
|
Leased |
Vacant |
Head premises (Lessee contract) |
Head lease / Other Agreement |
|
Sub-premises (No contract) |
No contract |
||
|
Leased |
Leased internally |
Head premises (Lessee contract) |
Head lease / Other Agreement |
|
Sub-premises (Lessor contract) |
Internal contract / Other Agreement |
||
|
Leased |
Lease externally (subleased externally) |
Head premises (Lessee contract) |
Head lease / Other Agreement |
|
Sub-premises (Lessor contract) |
External contract / Other Agreement |
Refer to the following sections to learn how to enter contracts in Nakisa Portfolio Management Suite:
- Contracts Summary Page
- Adding a Contract
- Viewing and Editing a Contract
- Activating a Contract
- Contract Versions
- Activity History
- Schedules
- Deactivating a Contract
- Terminating a Contract
- Archiving a Contract
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|
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