The Importance of Amendment Abstractions
You know the importance of staying on top of your lease portfolio, which is why you have abstracts of all your leases. However, keeping your lease portfolio updated is an ongoing activity and not a one-time project.
Over the years, there are bound to be updates and changes (amendments and addenda) to your existing leases that need to be carefully reviewed and captured in your lease abstracts. The need to stay up-to-date on lease amendments came to light during the peak of the COVID-19 pandemic. During the onset of the pandemic, a lot of retail tenants had to quickly explore the options in their leases that offered them some respite as their finances hit rock bottom due to lockdowns and shelter-in-place restrictions.
But what’s the best way to ensure your lease abstracts reflect the latest amendments and addenda? Even if you already have an in-house lease administration team, they may be too busy managing your lease portfolio on an ongoing basis. Diverting their time and energy to something as mundane as amendment abstraction and updates doesn’t make sense. Plus, amendment abstraction is a one-time project. You won’t need to do it again until you sign new amendments, so bringing new staff on board to handle the temporary assignment is not viable either.
Consequently, it makes sense to outsource your amendment abstraction work to a trusted lease abstraction vendor like Mohr Partners. Amendment abstraction goes beyond just scrutinizing amendments and addendums and extracting key information out of them. Amendment abstraction may involve going through any supplementary document such as side letters, email correspondences, notices, etc., that may impact the key terms of your lease. An experienced lease abstraction vendor will be able to identify these key elements, summarize them and enter those into your lease management system to ensure your records are up-to-date.
Outsourcing amendment abstraction offers you an extra hand to update your lease management system with all the changes included in your newly executed amendments, abatements, or deferral clauses and speeds up the process while allowing your in-house lease management team to focus on the more important lease administration activities.
Whether it is one clause, one amendment, or a whole lease agreement, Mohr Partners is well equipped to do it for you.