right-of-use lease option (ROU option)

A time-sensitive action that is written into the lease agreement. A lease right-of-use option grants particular rights to a tenant, such as the right of first refusal to buy the property, the right to rent space that becomes vacant, the right to extend the lease, and the right to contract the lease.

Right-of-use options are stored in the Lease Options table and are assigned to records in the Leases table. You can assign options to leases using the Lease Portfolio Console, Lease Classification Wizard, or the Portfolio Edit Wizard.

The following types of lease options require that the user reclassify the lease for FASB ASC 842 compliance. When you make changes to options of these types, the system automatically submits the lease for re-evaluation.