Getting started with your Lease Abstraction Project? Here’s what you need to know.
You rely on your lease abstracts to make the right business decisions and to stay on top of deadlines and due dates pertaining to your lease agreements. This makes lease abstraction one of the most important processes when it comes to your lease portfolio management. In this blog, we discuss a few things you should consider before you get started with your lease abstraction project.
Know what you are up against
Don’t overburden your team members by underestimating the incremental workload or ignoring knowledge gaps and lack of experience. Thrusting your lease abstraction project on your team without a clear understanding of what is required of them and whether they have the necessary knowledge, experience, time and skill-sets to accomplish the goal will result in botched up, inaccurate lease abstracts that will serve no purpose and perhaps even negatively impact your ability to make the right business decisions.
Leverage technology wherever possible
When we think of lease abstracts, probably the first image that comes to mind is of a lease analyst scrutinizing your lease contracts. But, did you know that the initial perusal can now be efficiently done by deploying AI tools? With the foray of AI into lease abstraction, landlords and tenants alike are leveraging technology to streamline many of the processes involved in lease abstraction. It is cost-effective and also more efficient in terms of time.
Involve parties that can add value
Apart from leveraging technology, you should also consider involving third parties who can add value to your lease portfolio management process and to your lease abstraction project in particular. This includes lease consultants, lease software vendors and lease service providers who specialize in various aspects of lease portfolio management such as lease abstraction, lease administration, lease accounting, lease audit, etc. Such entities can bring value to the table for you, right from the start, including AI technology and the expertise to help you navigate the complexities of the lease abstraction process from day one.
Having an experienced lease abstraction partner even as you embark on your lease abstraction journey can help you avoid common mistakes, unforeseen pitfalls and missed opportunities that you may find difficult or costly to rectify at a future stage.