Case Study: RE BackOffice helps America’s leading mid-sized retailers of the largest communication brands to save more than $140,000 annually with effective and efficient Lease Administration Services

 

This week we share a case study that discusses how RE BackOffice helps America’s leading mid-sized retailers of largest communication brands to save more than $140,000 annually with effective and efficient Lease Administration Services. Some of the key challenges faced by our clients include-

  • High cost of hiring, training and retaining lease administration resources
  • High rate of attrition affecting lease portfolio management and timely updates
  • Financial losses due to missed opportunities and underutilization of assets resulting from decentralized, fragmented and inaccurate lease data.
  • Lack of qualified resources to conduct regular audits to identify discrepancies and possible cost savings

Find out how RE BackOffice helps these clients overcome these challenges with its efficient and effective lease administration and accounting services.

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About RE BackOffice
RE BackOffice is a strategic partner providing end-to-end lease administration and accounting services providing scalable, affordable and accurate lease accounting and administration services to make your lease portfolio management more efficient. Contact us today to learn how you can leverage our experience and expertise to drive revenue and cost savings by optimizing your lease portfolio management process.

Is your lease abstraction set-up accurate?

 

You know how important it is to keep your lease portfolio up-to-date. You probably even have resources in-house to help you stay on top of your lease portfolio. But, what about accuracy? Are you capturing the right data fields? Any investment in your lease administration process won’t pay off if your base data is incorrect. So, how do you go about ensuring your core lease administration process is on-track? Here are a few things to consider-

Your lease abstraction template

You know lease abstracts play an important role in helping you understand the key elements of your leases. Plus, they come in handy when you need quick access to the critical lease elements at the time of strategic decisionmaking. However, you need to ensure that your abstraction template captures all the relevant information. While some core fields such as rent, options, key dates, etc., are needed irrespective of what industry you belong to, there may be fields that are important for your business or industry in particular. Apart from such fields, there may be certain, less common clauses in some leases that must be captured. So, the first step to ensuring you are capturing the right data is a) Being able to identify what data matters to you and b) Having a template that caters to your needs by capturing that information.

How is the data captured?

Once you have the right template in place, the next step is to set guidelines for data capture. You want the data abstracted to be complete, yet concise. Your lease abstract should read like an abstract, highlighting the key elements of a particular clause. It shouldn’t be a copy-and-paste exercise, including all of your lease terms into your template. This approach defeats the purpose of lease abstraction. 

What role will technology play in your lease abstraction and administration process?

At the outset, you need to be clear on the role technology will play in your lease portfolio management process. There are automated lease abstraction software tools in the market, that extract key information from leases and populate them onto a predefined template. While automating the lease abstraction process can offer considerable benefits in terms of lower turnaround time and resource costs, it cannot completely replace the human element. Lease abstraction and administration requires analysis of leases and related documents to arrive at accurate and most-useful data sets to help you drive critical business decisions concerning your real estate portfolio. 

An experienced lease administration vendor who specializes in the initial process setup can help you ensure your lease administration and abstraction processes are set up properly. They can add value to your lease portfolio management process by

  • Conducting a review of your existing data capture mechanisms and templates for accuracy and usefulness. 
  • Evaluating your current process and cadence and offering guidance on how you can make it more efficient
  • Suggesting changes to your existing lease abstraction templates to help you optimize your existing templates

About RE BackOffice

RE BackOffice, Inc. is a premier provider of strategic commercial real estate back-office functions, including lease abstraction, lease administration, and real estate marketing services. Since 2006, REBO has been a trusted partner to top-tier commercial real estate companies, retailers, and service providers seeking a strategic advantage. Whether managing a portfolio of leases or providing graphic support through stacking plans, renderings and websites, RE BackOffice’s team of professionals is dedicated to delivering high-quality services and optimal ROI to our clients. At RE BackOffice, your back office – is our front office.

 

Looking to increase the efficiency of your business? Lease audits are a good place to start!

Right now, businesses across the globe are facing huge challenges. The COVID-19 pandemic has resulted in an enormous loss of income to businesses and the pressure to operate efficiently is higher than ever before. Businesses are adopting various measures, including drastic pay-cuts and lay-offs to stay profitable or even just to stay afloat.  Another option that can contribute significantly towards lowering operating costs and boosting efficiency is lease audits.  

Lease auditing is the process of analyzing the key terms of the lease and related documents to ensure the landlord has billed the tenant accurately and not overcharged them in case of expenses such as tenant’s share of operating costs, taxes, utilities, CAM, rent escalations, per-square feet rent calculations, etc. Other than these key areas, lease audits also help ensure key opportunities such as renewal, expansion options are not missed out. An effective lease audit entails a thorough review of various documents apart from the lease itself, including invoices, bank statements, payment receipts, and even documents in the public domain, at times. 

Lease audits offer significant benefits to both the Landlord and the Tenant. Landlords usually perform lease audits to ensure they are not under-charging their retail tenants that have percentage rent clauses in their leases. However, lease audits are especially important from the tenant’s perspective, primarily because the onus of identifying and reporting incorrect charges lies with the tenant and not the Landlord. Moreover, most leases have a timeframe within which erroneous billing must be reported. If the timeline lapses, the tenant is deemed to have accepted the charges levied upon them. Further, if the lease has a clause wherein the charges are escalated based on the previous year’s charges, then the escalation will be applicable on the inflated amount and the cycle continues causing the tenant to lose thousands of dollars annually. There have been cases where lease audits have helped tenants cut their operating expenses by as much as 70%! 

When businesses sign a lease agreement, a lot of thought has gone into it in terms of determining the financial viability of the lease. Somewhere down the line, perhaps due to lack of resources, on-going maintenance of the lease takes a backseat and the inaccuracies creep in so silently that businesses fail to realize that the lease is no longer in line with their expected ROI projections. A lease audit can help fix this. If you are short on resources to perform yearly lease audits and related tasks, it makes sense to collaborate with an experienced lease administration vendor who can offer these services for you. Most tenants see that the ROI on their lease audits often outweighs the expense it entails by a great deal. 


About RE BackOffice

RE BackOffice, Inc. is a premier provider of strategic commercial real estate back-office functions, including lease abstraction, lease administration, and real estate marketing services. Since 2006, REBO has been a trusted partner to top-tier commercial real estate companies, retailers, and service providers seeking a strategic advantage. Whether managing a portfolio of leases or providing graphic support through stacking plans, renderings and websites, RE BackOffice’s team of professionals is dedicated to delivering high-quality services and optimal ROI to our clients. At RE BackOffice, your back office – is our front office.

3 Things to look for when outsourcing your Telecom lease portfolio management

Leases by themselves are complex but critical business documents. Getting leases abstracted and managed accurately and efficiently directly benefits the bottom-line. While companies may have their own lease portfolio management teams in-house, a significant number of them tend to outsource at least some part of their lease portfolio management function. This trend is increasingly catching up with the telecom industry players as well, as they realize the benefits of having a vendor specialized in lease portfolio management take care of their cell-tower leases. However, when it comes to telecom lease abstraction and administration, there are a few key areas to consider before you zero-in on a vendor to manage your cell-tower lease portfolio. This blog post tells you what they are.

Experience

When we talk about bringing an experienced cell-tower lease abstraction and administration vendor onboard, we have to look at it from 3 angles. 

  1. Overall lease abstraction and administration experience- It is important that the vendor you choose is well-experienced in lease abstraction and administration on the whole. Though cell-tower leases have their specifics, the basics of lease abstraction and administration remain the same. 
  2. Experience in lease abstraction and administration of cell-tower portfolios:  An experienced vendor who has a thorough understanding of key elements of cell-tower portfolio management such as Due Diligence requirements, SLAs, zoning permits and acquisition documents will be able to add more value.
  3. Software experience: Your new vendor should have had hands-on experience working on your lease administration, accounting and telecom document management software.  Their industry-specific lease abstraction software experience will enable them to offer you quick turnaround times for your tower lease administration and abstraction projects

Proficiency in multilingual lease abstraction

This is important if you have cell-tower leases of different languages. Working with a single lease abstraction and administration vendor who can manage all your leases regardless of their language will add to the efficiency of your cell-tower lease portfolio management process.

Accuracy

This is obvious and of course, expected from a reputed, experienced telecom lease abstraction and administration service provider. But, you’ll be surprised to learn that there are very few such vendors in the market who will be willing to guarantee 100% accuracy on their services. And, with something as critical as your telecom leases, you don’t want to be less than 100% sure!

So, there you go! Make sure you consider these 3 things before you outsource your telecom lease portfolio management to a vendor.

6 questions to ask your lease abstraction and admin vendor before you sign them up

In our last post, we discussed the 3 things to look for when outsourcing your telecom lease abstraction and administration project. This week we talk about 6 questions you must ask your vendor before you trust them with your cell tower leases.

Question-1: Do you perform all your projects in-house?

Did you know that often lease abstraction and admin vendors outsource their work to other agencies? You should be aware if your vendor also engages in similar subcontracting projects as it can affect you in 2 ways–

  1. Data security and confidentiality: If your critical cell-tower lease data is being shared with someone else, it can have serious consequences. Unless you are convinced of the data security measures adopted by your vendor and the sub-contractors, you can’t rest assured that your data is safe.
  2. Possible delays: If your vendor is relying on someone else to do the actual work, any impediment on the subcontractor’s end will end up delaying your project and result in missed deadlines–something you cannot afford when dealing with critical time-bound, needs-based triggers like Due Diligence and acquisitions.  

Question-2: How big and experienced is your team?

It is important that you ask your potential cell-tower lease abstraction and administration vendor about their team strength and collective experience. These factors play a key role in the quantity and quality of output they deliver. One of the reasons why many telecom companies prefer to outsource their cell-tower lease abstraction and administration processes is because of the scalability and flexibility they get by outsourcing. If your vendor doesn’t have enough staff strength to scale up with you during times of resource shortage, or when you have an exceptionally higher load of leases due to factors such as a new merger or cell-tower acquisitions, then you fail to leverage a key benefit of outsourcing. 

At the same time, be sure to ask about the overall team experience, as this has a direct impact on the quality of output and also on its quantity. An experienced team will be able to deliver high-quality output in a relatively shorter timeframe.

Question-3: Will you collaborate with our other stakeholders?

For the cell-tower lease administration process to be effective, often, the lease administrators will have to get in touch with others in the legal or accounting functions of the landlord or tenant’s business. This is especially true in case of recurring lease administration tasks such as reconciliations, collections, etc., You may even have an in-house lease admin team with whom your vendor may have to collaborate often. Having a lease administration vendor who can do the liasioning for you will make the entire process more efficient and you will be spared the hassle of multiple emails and calls to collaborate with different stakeholders across the country or even the globe, if you have an international presence. 

Question-4: Can you give us client references?

Ask your potential tower lease abstraction and admin vendors for client references. When outsourcing a process as important as lease portfolio management, you want to make sure that your vendors truly place great emphasis on customer delight and creating positive customer experiences. One of the ways to verify that is by asking for client references and testimonials. It is even better if the clients are from your industry.

Question-5: What about client support?

Ask your vendor about their client support set up. Do they offer 24h client support? Are they available on all working days of the week? What about the point-of-contact? Will they offer you a single point-of-contact throughout the course of your project? This becomes especially crucial when you have offices operating from different parts of the world. Having a single project manager to handle your lease portfolio can make the process more fluid, transparent and efficient.

Question-6: Can you customize your service offerings?

When it comes to lease portfolio management, every client, every industry is different and the one-size-fits-all service model won’t work well.  For an outsourced lease portfolio management process to work well, it is important that your vendor caters to your industry-specific needs and customizes their service offering to meet them effectively.


RE BackOffice is a premier cell-tower lease abstraction and administration services provider. Please contact us at sales@rebackoffice.com to learn more about how we can add value to your tower lease administration process.

4 Reasons to outsource your cell-tower lease abstraction and administration

Are you considering outsourcing your cell-tower lease portfolio management process, but are not sure if it is the right move for you? This blog post discusses four most-common reasons why industry-leading cell tower companies are leaning towards an outsourced tower lease portfolio management model.

Here’s how outsourcing your cell-tower lease abstraction and administration process can benefit you.

Infuse flexibility into your tower lease management process

When you outsource your cell-tower lease portfolio management process, you essentially make it more flexible. Your lease administration and abstraction vendor can help you to effectively augment your existing resources if you already have a full-time lease portfolio management team in-house and manage temporary workload spikes–such as those due to an acquisition, merger, or even a resource shortage due to the Holiday season, effectively.

Make your lease portfolio management process more scalable 

You can bring a lease abstraction and administration vendor onboard to supplement your existing team and ramp up your lease portfolio management process while drastically cutting down new resource add-on costs.

Leverage your vendor’s subject matter expertise

Your area of expertise is telecom, while your vendor’s is lease abstraction and administration. So, you benefit from their vast experience and knowledge of industry-wide best practices that they bring to bear while partnering with you.

Meet your timelines efficiently as you are always working at full capacity

Working with an experienced cell-tower lease abstraction and administration vendor helps you ramp your cell-tower lease management process up or down depending on your requirement, at any time. This scalability ensures you never miss a beat managing your cell-tower lease portfolio. Whether there’s a need to fill-in for maternity/paternity leave or a sudden, unexpected, resource turn-over, your vendor is there to bridge the gap.