Renewals are a key component of your lease agreements. Lease renewals present you the opportunity to get out of leasing situations that are not in your favor, while allowing you to reap the benefits of really great lease deals. Renewals also offer scope for renegotiating lease terms and conditions. Missing out on lease renewals can mean termination of the lease, which, when unforeseen can be a huge financial loss for the tenant. In our blog this week, we discuss some best practices that you can adopt when it comes to lease renewals. Following these best practices will ensure you make the most of your lease renewal options and enjoy better ROI on your leases.
Critical date monitoring for renewals
In order to benefit from a lease renewal option, you need to exercise it within the timeframe stipulated in your lease. Make sure you invest in a lease administration software platform which captures important dates such as the last date for exercising lease renewal options, and also generates alerts in a timely manner so you have the time to think through, calculate and take a well-informed decision regarding the renewal. This process ensures you don’t miss out on the opportunity to renew your lease.
A quick lease review
Lease renewals are a great time for a quick lease audit and review. Using your lease abstracts, you can quickly go over the key financial and non-financial clauses of your lease and decide if you should be negotiating on any of those. This is a good time to make amendments or include any addendums to your existing lease. You could also get a financial modeling done on your lease to compute the long term ROI on your lease, helping you determine if the renewal is a good fit for you.
Get assistance if you are overwhelmed!
While it may sound easy, it becomes complicated when you have a large lease portfolio. When you have thousands or even hundreds of leases with different renewal dates and varying terms and conditions, it can get overwhelming. If that sounds familiar, you should reach out to a trusted lease support service provider who can take care of this for you. A lease administration services provider will have a large team of experienced lease administrators who can help you stay on top of your lease portfolio irrespective of its size.
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.