Bad data can cause some huge mistakes. Take Norway’s invasion of England in 1066 AD, for example. The King of Norway, Harald Sigurdsson, received bad data from his recon team, who had concluded that English troops were not at the town of Fulford—where he and his army had paused after a victory.
Because of this bad data, the king ordered his men to take off their armor and rest. When English troops (who were nearby) attacked, the vulnerable invaders were easily defeated and Norway had to retreat from England.
Similarly, CRE mistakes are easier to make with your lease database. Here are a few examples of them, and how they can be avoided.
1. Inaccurate Data
As illustrated above, inaccurate data can have big ramifications. It’s one of the most common pitfalls in lease database management, whether it’s missing lease terms, incorrect financials or outdated tenant details. These inaccuracies can lead to costly errors and compliance issues. To avoid this mistake, prioritize data entry procedures—and automate them with software solutions, if possible.
2. Lack of Standards
A lack of consistency can hinder data analysis and have negative consequences with decision making. Without standardized practices for data entry and classification, not only is navigating your database more challenging, but it leads to confusion as well. To address this issue, establish clear guidelines for data standards like lease templates, naming conventions and coding schemes.
3. Failure to Document Correctly
Especially when it comes to modifications and amendments, lease documentation is key. Failing to do so can result in discrepancies between the lease database and actual terms, causing misunderstandings and disputes. To mitigate this risk, ensure all modifications, amendments and other changes are promptly recorded—with clear references to dates and original terms.
4. Inadequate Security
Without robust data security measures and access controls in place, your lease database is vulnerable to unauthorized access, which could lead to data breaches and compliance violations. To safeguard your data, implement encryption protocols, access controls and user authentication mechanisms—or choose lease management software with all of these security features already in place.
5. Poor Accessibility
Not being able to update your lease database when you’re traveling can be another big mistake, as you can potentially forget to update them or have long lapses between updates. This is why it’s crucial to choose a platform that is preferably cloud-based and accessible anytime, anywhere and on any device (like Quarem).
If you’d like to see how Quarem’s commercial real estate software helps you avoid these mistakes with your lease database—and other issues—request a demo today.
