Lease Management
Lease Management, sometimes referred to as lease administration, is the day-to-day execution of tasks related to a company’s lease portfolio. There is no single approach to lease management. It can involve reporting, document management, coordinating between stakeholders, accounting, and a myriad of administrative tasks. The process starts with the lease abstract and ends with reporting and audits.
What is Lease Administration?
- Migrating all data to a central location and create the abstract.
- Secure data storage, while still being easily accessible.
- Determining trigger points, important dates, insurance needs, discount rates, breach of lease concerns.
- Determining if increases have been done properly.
- CAM audited correctly.
- Produce Audits, Disclosures and supporting documents for Various Compliances.
- Determining the one person, or in this case, the one party responsible for Lease control
- Audits and Reporting
What’s Next?
First you need a contract with a qualified Lease Administrator. If the person you are talking to is not a commercial Real Estate Broker, stop there and go on to another company. Make sure the party you are speaking to can represent you in all facets of the lease. You are not required to use your Lease Administrator for Lease negotiations (although you should), but they surely must be able to understand you and your broker’s needs and assist him or her successfully.
Your administrators next assignment is the lease abstraction; the process of compiling the key details of a lease into an easily readable format, known as a lease abstract. The abstract contains assets details, such as a serial number, dates, or address, clause specific information, points of contact, financial details, and other data that you will need in meetings with principals parties. A simple Excel spread sheet is just not enough anymore.
Now What?
Once the lease commences all the details kick in. Insurance policies, due dates, projects dates, late fees, deposits, refunds, CAM Charges, percentage rents, increases, required notices, and on and on… Several of these are tied to costs and/or fees. Simply missing a date by 24 hours can cost you thousands of dollars or even prevent you from exercising that necessary option.
It can be amazing to learn that the bigger you get, with the more people in charge of your leases and accounting can INCREASE the likely hood of overpaying your rent.
We Are Here For You!
We have helped a nonprofit (LESSEE) locate a potential $160,000 in over paid rent, over 5 years due to a Landlords incorrect CPI calculation.
We have helped a landlord (LESSOR) with a national credit tenant who continued to overpay their rent for EIGHTEEN months, costing the tenant thousands, and the Lessor hours of time with letters, follow-up; Ultimately we got the tenant to agree to let the Landlord keep some of the over payments.
High Volume Businesses & Cost Savings
Businesses with a high volume of real estate leases; think Hertz, or Vons, typically have a real estate manager and even a specific division who oversees all of their leases. Companies with a large number of equipment leases; here think hospitals, and manufacturing, may have a dedicated equipment manager with a single on-site helper. And finally, some companies have a general lease manager to maintain all leases, regardless of type. The person charged with lease management responsibilities can sit under the accounting, operations, or legal departments.
The cost for an entire division, department or even just multiple staff can be incredibly expensive and takes on a great deal of liability (workman’s comp, insurance, health care, etc.). Don’t even get us started on those you call 1099 contractors and all they do is work for you – talk about some real liability.
We believe that we can take this liability off your plate, assign folks who specialty is lease and lease negotiations and cut your cost DRAMATICALLY!
If you have 5 or more Lease you need to be thinking about a more sophisticated solution, we can get your cost per lease down to $300 per YEAR.
- No tax on the number,
- No workman’s comp on that number,
- No 401K contribution on that number,
- No Sick days
- INSTEAD Spend that money on employees that GENERATE Revenue, and just a little on us.