Staying on top of your lease portfolio can be challenging, especially when your lease portfolio consists of hundreds or even thousands of leases spread across the country or the globe. Lease abstracts help by ensuring that all the key financial and non-financial information contained in your leases are available for your use in a clear and concise manner.
But, there’s another key component that helps keep your lease portfolio updated – lease administration software platform. What do you do with all the information provided by the lease abstracts, where do you store the lease data, how do you leverage the data and how do you ensure they are accessible whenever you need them? A lease administration software platform provides answers to all these questions.
Here are a few ways in which a lease administration platform makes the lease portfolio management process simpler, more efficient and effective.
A single platform for all your lease data
Lease administration platforms act as a single repository for all your key lease data. You can store digital copies of your leases, their related documents and the lease abstracts in the lease administration platform. This ensures that all critical information related to your leases is easily accessible and available in one place. And, it is not just for your real estate leases: You can use a single lease administration software platform for storing all your leases and leases abstracts, including equipment leases.
Critical date alerts
Lease administration software platforms have the ability to read the information in your lease abstract template and use it to generate alerts and notifications for critical events such as notices, expiration dates, invoice due dates, renewals and other obligations. This helps ensure that you don’t miss any critical dates. Missing critical dates can have serious consequences, such as penalties or even lease termination.
Standardized lease data repository
Having a single lease administration platform for all your lease abstracts brings consistency to your lease data, as information is stored in a template that’s standard for all leases.
Manage lease expenses better
Lease administration software platforms help ensure your payment schedules are on-track and accurate. They allow you to effectively manage your lease-related expenses and payments such as regular rental payments, percentage rent calculations, common area maintenance (CAM) charges and reconciliations.
Understand your leases better
Modern lease administration software platforms are equipped with various tools, calculators and interactive dashboards that help you understand your leases better. They offer you a 360-degree view of the entire lease portfolio as well as each individual lease. You can analyze the ROI on your leases based on the outgoings connected to them. You can also plan and budget more accurately because you get a clearer prediction of your upcoming lease expenses.
Meeting the compliance requirements related to leases can be challenging, especially if your lease portfolio is large. Lease administration software platforms are now also equipped with the required mechanisms to help you meet the FASB/GASB and ASC 48 compliance requirements.
So, investing in a good lease administration software platform is a must to stay on top of your lease portfolio. But that isn’t enough. You need to have an experienced lease administration partner who can help you optimize your lease administration software so you get the best ROI.