With external factors affecting the real estate industry, many firms are forced to cut corners or press pause on important lease portfolio management functions. Cutting corners can hurt businesses in the long run, creating even bigger risks with a loss of opportunity for cash flow. With sophisticated lease administration services, you can verify your revenue streams, annual reconciliations, finances, critical lease data and safeguard your portfolio’s data in an accurate and timely manner.
What is Lease Administration?
Lease administration is the foundation to many real estate portfolios and serves as an integral part of accounting, administrative and legal requirements that contribute to the successful operation of a real estate asset or portfolio. It includes, but is not limited to: lease abstraction, lease compliance and management, annual reconciliations and information management – all of which can be tedious and time consuming. As there are many moving parts within your property portfolio, it can sometimes be overwhelming to ensure you have the right processes and operational workflows in place.
Choosing the right software
“Choosing the right property management software can seem overwhelming for many property managers” says Property Manager Appfolio, “because you don’t do it very often, you may not even really know what new features to look out for when evaluating a software solution.” There are many solutions available, all differing in features and functionality so it’s best to consider your needs first and use a guide, for example PropertyMe’s step-by-step guide for property management software. Once you have found a solution which works best for you, it’s time to consider lease administration services.
How Lease Administration services can help mitigate risk
As stated in Forbes, “the property management business is a difficult one, but knowing upfront how to avoid or what to do in tricky or unusual situations is sure to curb risk potential. Risk mitigation is a cornerstone to any successful property management business.” Here are 7 ways you can mitigate the risk:
- Gain control over financials through the right property management system (see step-by-step guide above)
- Integrate lease administration and accounting processes with a dedicated team to ensure data accuracy
- Conduct a reconciliation process to minimize duplicate entries
- Justify the ROI with a custom monthly or annual report to prevent cost issues when auditors engage
- Manage an effective workflow such as data modifications or activities such as lease renewals, termination, expansion or contractual changes in residential or commercial lease terms
- Manage and conduct a data review and approval processes by a lease administrator — documented date-stamped communication
- Gather and provide a lease activity in a single report for disclosure
Why Lease Administration services?
Many lease administration tasks such as lease review and abstracting, accounting and processing, lease audits and validations, CAM charges and critical date management could be streamlined - generating cost savings, creating efficiency gains and improving management. We have over 300 lease clients and over 200 lease analysts who are experts in virtually all software solutions serving the industry including: Yardi, AMTdirect, MRI, Tango, AppFolio, and Lucernex so you can trust us with outsourcing your lease administration.