The Importance of Paying Attention to Ongoing Lease Administration
Is your lease administration process consistent? Tenants often so caught up in their business that lease administration tends to take a back seat. Usually, it is because of one or more of the following reasons:
The high cost of hiring, training and retaining lease administration resources
Lease administration resources are considerably expensive. Add to that the training and retaining costs that accumulate over time, the lease administration process in itself becomes costly.
The high rate of attrition affecting lease portfolio management and timely updates
The lease administration industry is characterized by a high rate of attrition, which adversely affects lease portfolio management. Organizations fall behind on timely updates and lease audits due to a lack of resources.
However, ignoring on-going lease administration and timely lease audits can result in substantial financial losses due to missed opportunities. For example, you fail to identify and rectify erroneous rent calculations or CAM charges, which then get embedded in your lease, term after term.
Tenants without a solid lease administration and audit process also end up underutilizing their assets/rights under the lease due to lack of information. This is often a result of decentralized, fragmented, and inaccurate lease data.
Ongoing lease administration and regular lease audits help ensure that you, as a tenant, don’t miss any critical deadlines or overlook any opportunities such as the right to renew or expand. With detailed reports alerting you to critical dates, action items, and financial discrepancies such as incorrect billing or overcharges across various locations, you will be able to drive strategic business decisions accurately and on time, while saving substantial amounts of money.