Whether you are leasing a single property or an entire portfolio, contract, payment and other logistical details can stack up fast. What starts out as a plan to invest, manage and otherwise grow your real estate empire can quickly become an overwhelming logistical nightmare as you attempt to keep up with terms and conditions, lease termination dates, rent projections, security deposits, maintenance terms and a myriad of other logistical minutia. Enter the lease abstract.
What is a Lease Abstract?
At its simplest, a lease abstract is a summary of the important, must-know terms, definitions and specifics of a given lease contract. As real estate lawyers’ hourly rates have risen over the years, so have the myriad of conditions, paragraphs of legal jargon and number of unintelligible “refer to sub-paragraph A for the definition of Term B as applicable to XYZ” type clauses increased in commercial real estate contracts.
Getting Down to the Nitty Gritty
A professional lease abstract will define the key terms you need to know before signing on the dotted line, saving you time, money and headaches down the line. If you’re leasing a property, having a professional prepare a lease abstract can help break down your extra obligations such as property repairs, upkeep of common areas or any requirement to contribute to security or ability to improve. It will also ensure your landlord doesn’t try to sneak in any common, but expensive, hidden clauses such as mandatory contributions to property upgrades or gold encrusted lawn gnomes. (Editorial note: we made the bit about gnomes up. As far as we know, no one has put this clause in their lease agreement yet, but you get the point.)
Individual Properties or Entire Portfolios
Managing, reviewing and complying with the terms of a single lease contract is difficult enough. Now imagine managing an entire portfolio of properties. From the lessor side of the table, a quick and easily readable lease abstract template for each of your properties will let you quickly locate key terms and effectively manage your properties. For lessees, the best lease abstracts will allow you to quickly respond to demands of your landlord. A lease abstract can also help you answer questions affecting your business such as termination dates and rent increases, and provide a go-to resource for any sublease or assignment issues down the road.
The Quarem Advantage
While a lease abstract may seem like an arduous task for busy administrators trying to juggle multiple tasks, there are solutions to streamline your day-to-day operations by opening up the world of potential you have in front of you with your laptop, tablet and phone.
If you’re ready to explore beyond familiarizing yourself with a lease abstract and actually implement solutions to streamline property management operations and improve productivity then check out Quarem Vantage or contact us today.
The Wrap Up
Overall, lease abstracts are a handy tool whether you are on the owner or renter side of a property transaction. They break down legal jargon, identify key clauses, and can potentially integrate with other existing software databases simplifying and streamlining property management.
