Lease administration consists of various lease-related tasks that must be undertaken to ensure the lease portfolio is up-to-date and also to make sure that the tenants get maximum ROI on their leases. End-to-end lease administration services include various activities such as-
- Ongoing lease portfolio maintenance and management
- Notice Processing
- Critical date monitoring
- Liasoning services
- CAM Audit
- Accounts payable and receivable
- Abstraction of new leases and amendments
- Lease audits to ensure accuracy of existing lease abstracts
However, it companies face a lot of challenges when trying to stay on top of their lease portfolios. Our blog this week discusses some of those challenges and the solutions to them.
#1 Cost-efficiency
Companies with in-house lease administration teams often find it difficult to justify the associated costs. While it is true that lease administration is a very important business function, there are substantial costs associated with hiring experienced lease administrators on the company’s payroll such as training, benefits and other HR-related expenses. Also, companies that hire lease administrators to tide over a temporary resource in requirement, such as during the annual CAM reconciliation period, or for a specific project such as lease data migration into a new platform, or at the time of major mergers, acquisitions or renewals, find it difficult to utlize them effectively after such projects are over.
#2 Resource availability and expertise
Qualified and experienced lease administrators are not only expensive to be hired on company payroll, but also hard to find. Plus, as discussed above, if you need lease administrators to tide over a temporary requirement, it is even more difficult to find someone who is willing to work for you at a reasonable rate, on contract.
#3 Tight deadlines
Most lease administration tasks are timebound. Examples include critical date monitoring, CAM reconciliation, account payables, etc., Companies find it difficult to keep up with the pace at which these tasks need to be completed, especially if they have limited in-house lease administration support.
Outsourcing lease administration is an effective solution to all the challenges discussed above. Outsourcing lease administration and other lease support services to a reputed lease services vendor allows you to-
Enjoy significant cost benefits
By working with a lease abstraction services vendor, you can save on costs that you would incur if you hired lease abstractors in-house, on your payroll. It helps you eliminate training, HR-related expenses and save on lease agreement interpretation and translation costs, as all of these are taken care of by the vendor.
Stay on top of your lease portfolio, no matter how short-staffed you are on the lease portfolio management front
Lease services vendors have a team of lease administrators at their disposal, which means they won’t be overwhelmed by the volume of your lease portfolio even if it runs into thousands of leases, and will be able to deliver on time. Your in-house team may struggle to meet tight deadlines especially if it is a bigger project.
Benefit from the expertise and industry experience of your lease services vendor:
Vendors who provide lease services are specialized in what they do. It is their bread and butter, so they are naturally well-versed in the latest industry trends. They have more experience in handling multiple types of leases and tend to offer better accuracy, relevance, and compliance than in-house lease administrators who comparatively have lesser exposure.
Rebolease.com, powered by RE BackOffice, Inc., is a premier provider of lease abstraction, administration, audit and accounting services. Headquartered in Pittsburgh, PA, we are a global boutique firm, providing high-quality services to top-tier clients across industry verticals, covering every type of lease and on any lease platform. We are proud to be a trusted partner, for 15+ years, to leading retailers, REITs, property owners/managers, and corporate accounts seeking a strategic advantage. All client projects are performed in-house.