Umbrellas are great. They block the sun, rain and unwanted onlookers from invading our privacy. But these folding canopies are more than just the fabric that sits atop them—they have many moving parts. From the stretchers and top notch to the handle and bottom spring, each component in an umbrella is crucial for its successful operation.
Lease administration is the same way. There are several different services that fall under the umbrella term of “lease administration,” but each is important. Let’s take a look at the different facets of lease administration services and how lease administration software can help.
Elements of Lease Administration
Lease administration is a significant burden when it falls on one or two employees. This burden becomes increasingly heavier as the number of leases you manage increases. To make it worse, not giving each area of lease administration its proper attention can cost resources, time and money. Here are the different elements of lease administration commercial real estate professionals must manage:
● Budgeting: Expenses related to a lease or property can be wildly unpredictable and budgeting annual rent is just the start of what you have to consider.
● Critical Dates: your leases are filled with key dates, like renewal options, expirations, and rent escalations. Missing one leads to loss of money, time, and resources.
● Reporting: Your real estate portfolio is a complex system of moving parts. Do you know every detail for all of your properties or is there information you’re missing?
● Documentation: You might miss details if your documents aren’t easily accessible or stored properly. A lease administrator needs to trust his or her documentation process.
● Accounting: There’s a high amount of attention to detail required for lease administration when it comes to taxes. Are you up to date with the latest laws, expense changes and other accounting processes?
Benefits of Lease Administration Software
As you know, lease administration is complex. So the big question is, as you scale, what are your options? You can either attempt to handle it all yourself (daunting), outsource lease administration services (expensive) or invest in commercial real estate software with lease administration features (valuable). For the latter, here are some benefits of lease administration you’ll enjoy with solutions like Quarem:
● Lease clause tracking: Each of your leases are transformed into living digital profiles. This is where you capture and arrange over 40 key lease points AND you can copy and paste the actual lease language in the corresponding section.
● Income/Expense Monitoring: Monitor the income/expense schedules, security deposits, and late fees of your leases from both the tenant and landlord perspective.
● Data centralization: Securely store and maintain control over every property and leased location, tracking the data related to the physical assets within your space and recognizing patterns or issues before they become a risk.
● Create date reminders: Always know what needs attention and what’s just around the corner with email reminders. You’ll never miss an expiration, option window, or rent escalation again.
● Lease abstracting: How do you identify and organize the key data you need to track? With the help of expert lease abstracting services! Our team will thoroughly review all of your lease documents, abstract the key information, and document the changes brought on by amendments or renewals.
● Secure document storage: Manage all documentation and control who has access to your documents.
● Easy report generation: Organize, manage, and report on just a few, or thousands of metrics related to your leased or owned CRE.
There are many different facets of lease administration services, but they’re manageable with lease administration software. To see it in action, request a demo of Quarem today.