Things to Consider when Finalizing your Lease Abstract Templates
Lease abstraction templates are a key part of any lease administration endeavor.
Lease abstracts play a key role in simplifying the complexity of leases and helping you scale by making it easy for you to manage the volume of leases in a portfolio. However, for your lease abstracts to serve their purpose effectively, your lease abstract templates need to be accurate.
Lease abstraction templates are the backbone of any lease abstraction project. Hence a lot of thought and foresight needs to go into their development. The one-size-fits-all approach to lease abstraction templates doesn’t work well, because each lease is unique. Though quite a few key terms and financials (such as rent-rolls, important dates, notice period, etc.) are universally considered important, there may be many other clauses that are important from the perspective of a particular lease, industry or tenant-landlord relationship.
If you are considering outsourcing your abstraction process to a lease abstraction vendor like Mohr Partners, then one of the things for you to consider is the firm's knowledge and experience in terms of the template definition. Abstracting the key data points from a lease onto a template is not a difficult task, but identifying which data points are important and need to be captured certainly is, as it brings the lease abstraction service vendor’s judgment and industry expertise into play.
Another aspect to consider when finalizing your lease abstraction template is the amount of data that needs to be captured. Sometimes, in a bid to ensure no information is left out, some lease abstractors tend to copy-paste entire clauses into the abstract, rendering the lease abstraction virtually pointless. What’s the use of getting a lease abstracted if the lease abstract is more or less a copy-and-paste version of the original lease!
Pick an experienced lease abstraction vendor that will be able to offer you guidance and help you finalize a lease abstract template that’s right for you. The vendor should be aware of the nuances of your business or industry. For example, someone who is well-versed in retail lease abstraction would know retail-specific clauses like percentage rent, right to audit, etc., and how they need to be captured. Apart from bringing its overall industry knowledge and expertise to the table, your lease abstraction vendor must be willing to sit down with you and understand your specific business needs and help you identify what clauses of the lease will be of importance to you, in particular.