Rookies. We’re all one at some point, right? While learning and making mistakes is part of growth, making the same mistakes others have made in the past isn’t a wise idea. This is especially true in the world of commercial real estate—lease abstracting, in particular.
From tax errors to missed reimbursements, there are mistakes that are usually limited to newbies (or those not paying close attention). Here are six of them:
1. Missing Deadlines
There are more deadlines than you might think when it comes to lease abstracting. There are critical dates and regular bills to think about, but you also have deadlines for things like objecting to tenant capital improvements. Then there are lease clause deadlines, which you need to address before they go into effect. Missing deadlines is easy if you’re new, but it can impact your future prospects.
2. Overbilling Tenants
CRE is a fluid industry sometimes, especially when it comes to financials. Leases are often changing, lease terms can vary by tenant and many CRE pros are juggling multiple properties. Confusing one building or tenant with another is a rookie mistake, but one that can be avoided if your billing and property data is accurate and updated.
3. Making Tax Mistakes
This is another area that new CRE pros don’t tend to think about until it’s too late. You need to prepare for tax season from the first day of the year, meaning you have to be organized with your data and account for any industry or regulatory changes. Fees for tax errors can add up, so make sure you know your tax laws and what’s required.
4. Misplacing Documents
Not being able to quickly find a document is inexcusable these days. Just because you’re new doesn’t mean you have to do things like your peers. If your fellow CRE pros are still using spreadsheets and manual documents, that just means you’ll have an advantage if you have a superior document management and storage system.
5. Missing Reimbursements
Dates, clauses and taxes aren’t the only thing you need to track. Commercial real estate is a big, complex industry that can overwhelm newcomers, but you can stay ahead of the game if you’re organized and tracking what you need to track. Reimbursements are a perfect example, as they’re easy to miss, but can play a big part in your profit-and-loss statements.
6. Not Utilizing Technology
Finally, not utilizing technology is a rookie mistake no CRE pro should make. With advancements in commercial real estate software technology, you can automate many of the tasks that are prone to mistakes caused by human error. Your lease abstracting data will be clean and organized, letting you focus on other aspects of your new role.
If you’d like to learn more about how Quarem can help you avoid lease abstracting mistakes like these, request a demo today.
