Adding end-of-lease terms
On a lease contract, end-of-lease terms specify what happens when the lease term is up. Use the End of Lease tab on the Lease Contract form to provide this information. End-of-lease options usually include opportunities to renew the item, and to return, upgrade, purchase, or buy out the remaining lease.
To add end-of-lease terms
- Open the lease contract.
- Click the End of Lease tab, and complete the following fields:
Planned End of Term Action
Select an end-of-lease term action from the list.
Specify the residual value of this lease. The residual value is the value you can purchase the item for after the lease expires.
Lease Rate Factor
Specify the expected percentage increase for this lease contract payment.
- If BMC Change Management is installed, complete the fields in the Change Types area, and complete the End of Lease and Renew Lease fields.
- If you want someone to take action when the lease contract expires, you can specify that a change request be created when the lease expires. Specify the change request by relating a change type to the contract. For example, if you select a change type named End of Life (EOL) Renew Lease, this change can trigger the creation of a change request. The change request can contain tasks that need to be performed to renew the lease.
- Depending on the end-of-term action you take, different fields appear below the End of Lease field. If you select Renew, a Renew Lease field appears. If you select Return, a Return to Lessor field appears. If you want someone to take action when a lease is renewed or returned, relate change templates from these fields.
- Click Save.