Lease software has become an essential tool for managing today’s complex lease portfolios. This is especially true when it comes to new transparency policies outlined in ASC 842 and IFRS 16. The value of lease management software is significant, giving CRE professionals the capabilities they need to operate effectively in today’s business environment.
However, most successful organizations treat lease software not as a replacement for people but as a force multiplier. In the right hands, leasing software can help to streamline your operations and increase revenue while also saving you time and money. Let’s consider a few ways in which human expertise amplifies the true value of lease software.
1. Interpreting Those Gray Areas
Lease software is a black and white operative in a gray world. Sometimes people need to step in to determine variables such as lease vs. non-lease components, evaluate renewal options, termination clauses and variable payments. Poor judgement at this stage can lead to well calculated but fundamentally wrong results.
2. Translating Real-World Contracts into Accurate Data
Leases often contain a number of amendments, side letters, abatements and other clauses that might call for a more human touch. When it comes to processing the data, people are needed in order to abstract complex lease language as well as ensure consistency across busy portfolios. Lease software processes data perfectly but humans are called upon to make sure that the data is correct to begin with.
3. Applying Professional Judgement
Accounting standards are not just about the math. It is a principles-based system and that means that a human element is necessary. Experienced CRE professionals know how to apply accounting policy when it comes to leasing software. They can also align lease software configurations with company-specific policies and anticipate audit questions well ahead of time. Lease software is able to produce those reports but a qualified CRE expert knows how to ensure that those reports stand up to scrutiny.
4. Bridging the Gap
Lease software touches on more than just accounting or contracts. When it comes to bridging the gap between real estate, legal and other departments, it’s up to the CRE expert to coordinate the details of the lease agreement with those professionals. Humans are also required to translate technical accounting details into plain language for tenants and other non-accountants. It’s also up to people, not the software, to train other users.
5. Understanding and Deployment of the Actual Lease Software
A tool is only as effective as the person using it. If you do not fully understand your lease software or have access to a responsive expert who does, you are unlikely to realize its full value. When evaluating lease software solutions, it’s important to look beyond features and recognize the role of real human support, including onboarding, training and ongoing guidance. Partnering with the right lease management software provider ensures you have the support in place to help you maximize software adoption and address operational gaps that even the most advanced technology cannot solve on its own.
In summary, lease software is designed for efficiency, accuracy and scalability. It performs exactly as it is programmed to and can be one of the most essential tools in your business. However, lease software cannot think, judge or explain. This is where human expertise plays a paramount role.
If you’re looking for a robust lease software platform for your business with unrivaled expert support including direct contact with our President John Rice, contact us today, or schedule your free, no-obligation demo.
