Lease abstraction is the process of extracting key data from lease agreements and summarizing it in a standardized format. Lease abstraction is a critical aspect of lease management as it helps to ensure that important lease-related information is easily accessible–without having to peruse the entire lease to get access to the lease data in question. In this blog post, we will explore some best practices for lease abstraction.
Define the key fields
The first step in lease abstraction is to define the key lease data points that need to be abstracted. This usually includes all financial fields and some important non financial fields.
Tip: It is a good idea to collaborate with an experienced lease abstraction and administration vendor who can help you define the key data points (Learn More)
Standardize
The next step is to decide on a standard format for capturing the critical lease data. Standardization brings about consistency and consistency is very important in lease abstraction. Creating a lease abstraction template and using that to capture the critical data points from your leases can help you standardize your lease abstracts faster.
Tip: Deploying an Ai-based lease abstraction software can bring about a lot of consistency to your lease abstraction process. (Learn More)
Review and verify data
Once the lease abstraction has been completed, it’s important to review and verify the data. This includes verifying lease terms, rent, and any other critical data that has been extracted. Reviewing and verifying data can help to identify any errors or discrepancies in the lease agreement, which can be corrected before they become a problem.
Ensure your lease abstracts are updated
Lease abstraction is not a one-time process. Lease terms and conditions can change over time, so it’s important to update the abstraction regularly to reflect these changes. Lease abstraction should be updated whenever a new lease is signed, when there are amendments or addendums to the lease, and when leases are renewed.
A well-executed lease abstraction process can help to improve operational efficiency and help you enjoy a better lease portfolio ROI.
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 17+ years, to leading retailers, REITs, property owners/managers, and corporate accounts seeking a strategic advantage. All client projects are performed in-house.