Commercial real estate (CRE) professionals often rely on lease abstracts to summarize the key terms and conditions of a lease. However, lease abstracting is a complex process that requires a thorough understanding of lease agreements and legal concepts. Many CRE pros make mistakes in lease abstracting that can have serious consequences for their clients.
Unfortunately, many of us don’t realize we’re doing something wrong until we see a better way to do it. In light of these, here are a few lease abstracting mistakes to avoid for your commercial real estate properties.
Data Entry Errors
The potential mistakes from entering data manually cannot be understated. It’s easy to either overlook or make mistakes with everything from reimbursements and clauses to deadlines and tax information. If you’re still entering data yourself, an investment in commercial lease abstracting software could pay off in accurate, automated and valuable data.
Inaccurate Information
Typos and entry errors aren’t the avenues to inaccurate data, however. You might be missing information or it’s inaccurate due to your sources. Or, it might just not be real-time, updated data and the information you’re viewing isn’t accurate. Either way, make sure your lease abstracting processes include some sort of way to verify information is up to date.
Hard-to-Find Details
Maybe you can view certain high-level lease abstracting information, but digging deeper is a pain. You either can’t find the information, don’t trust it or it’s not even a feature in the commercial real estate software you’re using. With Quarem, however, it’s easy to organize and find your lease abstracting documents and information.
Tax Issues
This unfortunate mistake isn’t usually discovered until you make it the first time and it’s too late. Simple data entry errors are one way, but not being aware of lease accounting standards and related news, events and changes coming down the pipeline can also affect you if you aren’t prepared.
Lack of Technology
One way to mitigate these mistakes is by adopting the right lease abstracting software. With a CRE software solution like Quarem, you can ensure your data is accurate, up to date, easy to find and in compliance. It’s a smart technology investment that should be on any commercial real estate professional’s radar.
Now that we’ve covered what many CRE pros get wrong with lease abstracting, don’t make these same lease abstracting mistakes. To see how Quarem can make your abstracting more effective, efficient and accurate, request a demo today.
