Understanding Options and Critical Dates

There are a variety of milestones and events that can occur throughout the life cycle of a lease. Usually, these events are in response to a clause or option that is written into the lease. Lease related events often require one or more persons to carry out a task that is related to the execution of the lease, usually on or before a critical date. The PeopleSoft Lease Administration system provides a number of features that enable you to manage these events and inform interested parties of the due dates of these events. The key concepts that the system uses to track lease related events include:

  • Options

    An option represents a real estate related event, option or milestone. You can define a common set of options as part of your setup data. When a site acquisition request (SAR) or lease is created or updated you can assign one or more of the predefined options to the SAR or lease. You can then define the notification recipients and the frequency of the notifications prior to the option date.

  • Critical date

    When you associate an option to a SAR or lease you also need to define the date the option expires. This date is typically referred to as the critical date. Once this date has passed, the option is no longer exercisable. To avoid missing the critical date, you can use the option date to define a start date, an end date and optionally, any number of intermediate dates for notifications to the users. As each date occurs, a notification is sent to the various contacts informing them of the pending option.

    For example, if you have a lease with an early termination option that expires on December 31, 2010 and you want to be notified prior to the expiration of that option, you can define a critical date that begins on September 1, 2010 and ends on December 31, 2010. You can also define intermediate notifications such as every two weeks between the dates defined. A notification is sent to the contact every two weeks between these dates advising the contacts that the Early Termination option expires on December 31st.

  • Critical date template

    Critical date templates enable you to apply similar sets of options and the associated critical dates. PeopleSoft Lease Administration provides a facility that enables you to generate one or more options and critical dates and organize them into a template. You can apply the template to a new or existing SAR or lease, and each option and critical date within the template is copied into the SAR or lease. Critical date templates are reusable; that is, when a template is applied to a SAR or lease, you can modify the options and critical dates on the SAR or lease without affecting the original template.

  • My Critical Dates

    The potential number of critical dates generated by a portfolio can be extremely high. The PeopleSoft Lease Administration application provides a task list, enabling each system user to track their own critical dates. When a critical date notification is sent to users, the system records the assignment in the My Critical Dates page. Notification recipients who are external to the system, such as: landlords, tenants and supplemental contacts, receive outbound email notification only.

Activity

Description

Option Setup & Maintenance

Creates, updates, and deletes options. The options define the set of possible milestones that can be tracked on a SAR or lease within each business unit. Each option defines a notification template to construct the notification messages that are sent to recipients

Critical Date Template Management

Creates, updates and deletes critical date templates. The template provides a default set of options that can be applied to any SAR or lease. Templates can also be preconcerted with a default notification schedule and list of the roles that need to be notified. You can define any number of templates.

Option Assignment

Assigns options to a SAR or lease using either a template or a specific option to define or edit the critical date for each option that you add. When you assign a single option to a SAR or lease, you must also configure the critical date (including the notification schedule and recipient list) manually.

When a template is applied to a SAR or lease, the critical dates are automatically set up according to the values that are preconcerted in the template. Templates can be cumulatively assigned to a particular SAR or lease.

Critical Date Notification

Generates notifications to recipients in response to the schedule defined for each critical date.

Critical Date Task List Management

For those recipients who are internal to the system, describes the actions that are available to manage the list of critical dates to which they are assigned.

Note: A previously completed critical date can be re-activated if the critical date is updated and the action date is extended. To inactivate a critical date, deselect the Enable Notifications check box.