More and more commercial real estate professionals are realizing how lease administration software can improve their net operating income (NOI). Whether you are managing a portfolio of commercial properties, office or retail spaces, the right application can both save and make you money. With focus on your bottom line, here are the top seven ways lease administration software can improve your NOI.
1. Make Money by Saving Money
Lease administration software is designed to save money by cutting into your administrative overhead. As you know, document management can become a real bother over time and create administrative log jams if not properly managed. Lost time is lost money.
When the right lease administration software is applied to your practice, you can more effectively streamline document management while also automating important dates, notifications and even reminders about compliance issues. Rent collections, lease expirations and renewals as well as maintenance requests will be automatically tracked for you. This means you can cut staffing costs and free up your team to get more done in less time.
2. Improve Rental Collection and Notices
Rent collections and notices can, and should, be automated. However, it’s more than just that. With the right lease administration software, you will be able to avoid underbilling or missed rent escalations. When tenants are billed correctly and on time they are more likely to respect their lease agreement and your payment schedule. When it comes to keeping your accounts in the black, consistency and communication are both key.
3. Automated Invoicing and Financial Management
If you have not experienced automated invoicing then you need to consider this time-saving benefit with lease administration software. With the right application you can also track payments and expense reconciliation. In fact, with improved financial assistance, you will be more able to track your overall income and expenses. From individual tenants to your overall monthly operation, watching your money has never been easier.
4. Improve Tenant Relations and Retention
When your lease administration software streamlines your overall efficiency and productivity, this allows more time to better acquaint yourself with tenant needs and retention. With a more effective avenue for communication, tenants will generally be more satisfied, which reduces vacancies and tenant turnover, ultimately adding to your net operating income.
Your lease administration software can also help you to more effectively screen potential tenants. Automation tools can minimize risk by screening tenants’ financial histories. This means you will be able to determine whether or not a specific tenant is a good fit for your commercial property and business profile. This is a big step forward when it comes to sustaining tenant relations and expectations.
5. Real-Time Data Means Real-Time Money
These days data is king to the commercial real estate professional. You can’t make informed decisions without it. Lease administration software can corral your data and make it accessible to your CRE team in real time and across multiple platforms. This will provide deeper insight into your portfolio’s strengths as well as potential vulnerabilities.
When your secured data is centralized and immediately available no matter where you are, it will help you and your team to make more informed decisions in the moment. You will also be able to more effectively identify underperforming assets and potential cost inefficiencies.
6. Achieving Compliancy Has Never Been Easier
Keeping up with lease clauses, critical dates and various obligations is easy enough with the right lease administration software. However, staying compliant with FASB and ASC 842 accounting standards can keep an accounting team busy. You need an application that can quickly iron out compliance issues while also juggling a number of other commercial real estate regulations.
CRE pros know that keeping up with regulations can become problematic. As a few quick examples, there are laws regarding environmental safety, fire safety and occupancy limits. Property taxes and assessments must also be taken into account. Failure to properly check each and every one of these boxes could result in fines and penalties as well as possible legal actions or, in extreme cases, a forced closure of a commercial property. With the right lease administration software at your fingertips, you will be more able to get on top and stay on top of these many regulatory issues.
7. Keeping Your Audits Simple
Audit. The word alone can make an entire accounting team flinch. No one cares for audits but they are necessary when it comes to establishing transparency in your commercial real estate business. There’s also the matter of keeping up with your shareholder reporting requirements, when applicable. It’s a lot to take in. If you’re looking for a lease administration software that can take the sting out of audits and financial reporting, then you’re one step closer to achieving the dream.
Quarem is a revolutionary lease management software platform that can do it all. From improving tenant relations and communications to evaluating real-time performance data to simplifying compliancy and expenses, Quarem stands tall over its competitors.
Our secure cloud-based platform means that your team will have access to your entire operation. As a result, you will be able to make key decisions and resolve problems more efficiently. Quarem will also save you time and money by keeping your team up to date with daily notifications and reporting – all in an effort to improve your NOI through expertly crafted lease administration software.
If you’re looking to simplify or streamline your commercial real estate operation then you need an application that can keep up with your high standards and expectations. Schedule a free demo to see how Quarem can help boost your net operating income.
