How to Create a Leasing Contract for Employees in FalconPro Real Estate Software

How to Create a Leasing Contract for Employees in FalconPro Real Estate Software

Introduction

In some real estate scenarios, companies rent flats for employees without charging rent or with discounts. FalconPro Real Estate Software handles this through two methods:

  1. Without financial impact: No revenue/expenses recorded.
  2. With financial impact: Rent recorded but adjusted as an expense.

This guide explains both methods.

1. Method 1: Employee Leasing Contract Without Financial Impact

Use this method if:
✅ The flat is marked “occupied” but generates no revenue/expenses.
✅ No financial transactions are created.

Steps to Create an Administration Contract:

  1. Go to Leasing → New Contract.
  2. Select the flat and employee (tenant).
  3. Choose contract type: “Administration” (or create a custom type).
  4. Enter the flat’s value (for reference).
  5. Disable installments: Click Auto Installment → Remove generated installments.
  6. Save.

Outcome:
❌ No vouchers, revenue, or expenses.
✅ Unit marked “occupied” but excluded from financial reports.

2. Creating a Custom Contract Type for Employee Leasing

If “Administration” isn’t available:

Steps to Add a New Contract Type:

  1. Go to Administration → Master Files → Property Management.
  2. Select Contract Types → Add New Type.
  3. Name: “Employee Contract”.
  4. Disable installments and revenue generation.
  5. Save.

✅ Now select “Employee Contract” when creating leases.

3. Method 2: Leasing Contract With Financial Impact

Use this method if:
✅ Rent appears in revenue but is adjusted as an expense or salary deduction.

Steps to Create a Normal Lease Contract:

  1. Go to Leasing → New Contract.
  2. Select flat and employee (tenant).
  3. Choose “Normal Leasing Contract”.
  4. Enter full rent (e.g., 24,000 AED/year).
  5. Generate installments as usual.

4. Adjusting Rent as Expense or Salary Deduction

Adjustment Options:

  • Company Expense: Record waived rent as an expense.
  • Salary Deduction: Deduct partial rent from the employee’s salary.

Steps to Adjust Rent:

  1. Go to Receipts → Select the lease contract.
  2. Choose the installment to adjust.
  3. Select adjustment method:
    • Salary Deduction (link to payroll).
    • Company Expense (link to expense account).
  4. Save.

✅ Revenue is recorded, but adjustments reflect accurate costs.

5. Deciding Which Method to Use

Criteria Method 1 (No Financial Impact) Method 2 (Financial Impact)
Revenue Generation ❌ No ✅ Yes
Expense Tracking ❌ No ✅ Yes
Installments ❌ Disabled ✅ Enabled
Financial Report Impact ❌ Excluded ✅ Included

Tip: Consult your auditor to choose the compliant method.

6. Conclusion

FalconPro allows flexible employee leasing contracts:

  • Method 1: Simplifies accounting (no financial impact).
  • Method 2: Aligns with audit requirements (adjustments via expenses/deductions).

FAQs

1. Can I change an administration contract to a normal one?
❌ No. Create a new contract instead.

2. What if installments are accidentally generated?
Cancel the contract and recreate it as an administration type.

3. How to track employee-occupied flats?
Use Reports → Filter by Employee Leasing Type.

4. How to include rent in financial reports?
Use Method 2 and adjust via expenses.

5. Who decides the method?
Your auditor or financial manager.

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