Taking the pain out of lease administration
Having yet another tenant on the phone complaining about billing mistakes? Wasting precious time retrieving the data you need? Or generally overloaded with lease and rental contract management?
Rest assured, you are not alone. A siloed approach to lease administration – using multiple spreadsheets or non-integrated software tools that necessitate many manual interventions – is bound to result in errors and inefficiencies.
Let’s review the 5 essential issues that you need to address – in an integrated way – to increase throughput:
- Getting control over the contract life cycle (creation, renewal, lease breaks)
To stay in control of lease management you will need to store and retrieve all contract data in one place and manage them centrally. Contract management should be supported by an underlying system with configurable workflows, statuses and notifications. This allows you to put safeguards in place so that you are notified when contracts are due and can take action on that notification (renewal, extension, transfer, utilities metering, security deposit release, etc.).
- Invoicing of fixed and variable rent, indexation and service charges
To stay on top of things, it’s important to streamline the financials. Create an automatic billing process based on pre-defined cost allocation. Make sure you can handle both fixed and variable rent – the latter can be based on many different criteria such as revenue, shop traffic, etc. Automate the calculation and automatic adjustment of rental payments in relation to a benchmark rate, such as the consumer price index. Automate the settlement of service charges by splitting up properties into units (vacant, usable or shared space) to determine cost distribution between tenants and owners.
- Avoiding manual errors and time-consuming disputes
Human errors (rental invoices, settlement of service charges, etc.) lead to tenant complaints. If you don’t have quick access to the relevant info it may cause lengthy discussions. You can identify and eliminate potential risks and human errors by automating processes. Centralize all contract information and make the data easy to update and to retrieve. Reliable, easily accessible data will put a stop to drawn-out discussions with tenants.
- Efficiently executing contract-related tasks (inventory, energy metering, repairs, etc.)
Building management and lease administration generate a lot of tasks. A comprehensive lease administration solution should therefore allow you to integrate with work order management. Template-based, configurable work orders accessible on mobile devices and containing tailored checklists will greatly help your team in the execution of all tasks linked to property management, such as repairs, inventory, energy metering, etc.
- Managing projects linked to contracts (reinstatement, refurbishing)
Especially at the end of a lease, tasks can grow into projects that require planning, tracking and reporting. Property management should therefore link contract management to project management, enabling to effectively plan and track refurbishing projects or the reinstatement of a building at the end of the lease.
The bottom line is: Integrated property management – through automation and better visibility into contracts – will help you successfully process a huge amount of lease contracts in less time, freeing up more time for what really matters: improving the yield and occupancy.