The hidden key to lease administration [infographic]
Overloaded with lease contract administration? Missing renewal dates or other contract deadlines? Too busy fixing short-term problems to focus on getting value out of your buildings?
Think about it: Are you even aware of the money you are losing due to the inability to properly track lease contracts?
Stop revenue leakage
Lack of visibility into lease contracts is a real problem in Property Management. The result: inefficiencies, firefighting and revenue leakage.
Lease contracts typically include complex conditions and legal terms. If an individual lease contract already presents a challenge in terms of tracking, how can you expect to stay in control and proactively manage hundreds – or even thousands – of lease and rental contracts?
Integrated Property Management is the solution.
By addressing the underlying processes, Integrated Property Management enables you to gain insight and effectively manage all aspects of lease contracts.
This requires a powerful and versatile software solution. What functionality is provided?
Rental payments, price escalation and indexation
Integrated property management software supports automated calculation and generation of billing requisitions for rent and service charges. This can be done for both standard and all-inclusive contracts. It also supports automatic adjustment of rental payments in relation to a benchmark rate, such as the Consumer Price Index; and takes into account fixed or variable rent escalation based on market evolution (rent review).
Tenant and landlord relations
Integrated property management software enables you to notify stakeholders on contract changes in a timely manner and put an end to time-consuming disputes by automating cost chargebacks.
Contract renewal and renegotiation
To stay in control and monitor the progress of contracts, you require a 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, rent review).
Settlement of service charges
You want to automatically allocate common charges to tenants. This implies splitting properties into units (e.g. vacant, usable, or shared space) to determine the cost distribution between tenants and owners. The system must also take into account advance service payments (cleaning, catering, energy consumption).
Variable rent and concessions
Integrated property management software lets you easily manage minima/ maxima and prepayments. It also enables you to deal with variable concessions or rent that is calculated as a percentage of the tenant’s sales turnover.
Reinstatement and refurbishing
Integrated property management software offers the ability to link contract management to project management. Thereby allowing effective planning and tracking of refurbishing projects or the reinstatement of a building at the end of the lease.
To ensure legal compliance with maintenance and other requirement, checklists relating to compliance should be managed in a central repository to drive the required tests and audits. It is also critical to keep a full log of performed compliance tests, identified deficiencies and associated documentation to facilitate compliance reporting.
Tenancy reporting and forecasting
Given the financial impact of real estate for large organizations, it is essential that property managers have a clear history tracking and effective output on occupancy rates and other key financial parameters. This requires flexible reporting and dashboarding to monitor performance and forecast trends.
Do you think your organization could benefit from Integrated Property Management?