The lease administration process involves handling financial transactions such as rents, renewals, taxes, insurance and other expenses or income and making sure they are taken care of on time, ensuring all information is accurate and stored properly and sending notification of any missing information or late payments.
But for smooth operations and effective cost savings, an efficient lease administration process is vital. That said, lease administration can be a complex process and companies usually don’t realize that their lease administration process is broken or out of hand until it’s too late. Let’s look at some common problems –
- Maintaining data accuracy and consistency as and when leases are amended.
- Training existing staff or hiring new ones to function as lease administrators.
- Updating existing systems to ensure data is captured and stored in a more versatile & centralized system.
- Inability to provide real-time data to ensure critical dates for renewals and options are not missed.
The good news is that this situation is totally avoidable and reversible. This is how –
Lease administration team – companies need to build a team of lease administrators – either by training their existing staff, hiring new ones with expertise or by simply outsourcing the task- who can responsibly implement the lease administration process.
Lease administration software – companies need to invest in an efficient lease administration software to automate notifications, reporting, invoicing, quick access to important lease data, track and update changes. Here are some tips to choose the right lease administration software.
Timely action – Protocols need to be identified and set in order to identify and fix any errors resulting from non-adherence.
Maintaining the integrity of the data – Accurate lease data should be abstracted and maintained and proper quality review process needs to be implemented.
Accounting changes – companies need to be abreast with any changes in the accounting standards to ensure compliance with statutory regulations.
At RE BackOffice we can help you with technology consulting, implementation of lease administration services, lease abstraction and more. For more information contact email@example.com or visit our website www.rebackoffice.com or call 412-567-0010.