Rent abatement application automates contract renegotiations

Leading property group quickly deploys an app in response to changing regulations during the COVID-19 pandemic. 

  • Clock
    2.5 months
  • People
    3 developers
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Reduces contract abatement time from 5 days to minutes, enabling high volume processing

Vastly improves user experience

Intelligent rules engine recommends compliant abatements as regulations change

Increases transparency and governance

First version live in just 3 weeks, built to adapt rapidly to ongoing regulatory changes

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 When COVID-19 hit, we had days, not months, to renegotiate thousands of tenancy contracts under brand-new legislation. The digital solution PhoenixDX delivered made the whole process far more efficient and significantly reduced our risk. It was exactly what we needed, exactly when we needed it. 

Head of Strategy
Diversified Property Group

About the organisation

Industry: Commercial Real Estate

Our customer is a diversified property group that owns and actively manages a $26.9 billion portfolio of high-quality Australian real estate, including offices, logistics and retail assets.

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The challenge

When the Federal Government released the COVID-19 Commercial Leases Regulation, one of Australia's largest property groups faced a significant challenge. Over 3,000 existing contracts needed to be renegotiated under new legislation, fast. If they could not renegotiate these contracts promptly, the company would have been exposed to revenue loss, litigation issues and relationship friction with their tenants.

The existing rent abatement process relied on manual processes - taking up to five days per negotiation with no visibility, no auditable approvals, and no way to scale. Data was spread across four separate systems, including SAP and Salesforce, making extraction and reconciliation slow and error-prone. The company needed an automated solution that could be deployed almost overnight and continue to adapt as regulations evolved.

 

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The solution

The company partnered with PhoenixDX to design and deliver the first version of the solution in just three weeks. Staff could interview tenants directly within the application, with an intelligent survey engine automatically recommending the appropriate abatements based on the latest regulations and commercial rules.

A centralised rules engine could be updated in real time as regulations change, keeping the solution compliant without requiring a rebuild. Integration with legacy systems, including SAP and Salesforce, provided a complete view of each tenant's revenue history and previous abatements, while an automated workflow ensured all steps are completed and approvals obtained. Amended tenant agreements and supporting documents were generated and archived automatically, providing a fully auditable record of every negotiation.

The results

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Reduces contract abatement time from five days to minutes, enabling existing teams to manage without additional staff.

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Automated regulatory rules ensure correct abatements are always recommended, ensuring compliance.

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Tenants were supported quickly and professionally during the crisis, reducing friction and maintaining relationships.

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Avoids cost of recruitment, training, and manual error remediation via an auditable digital workflow. 

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A unified data layer integrating SAP and Salesforce provides a reusable foundation for future digital solutions.

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The organisation now has a fast, adaptable platform that demonstrates the tangible value of automation.

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