If you are considering outsourcing your lease abstraction process, then it is because you already know the benefits of hiring a lease abstraction company to abstract your leases.
Outsourcing lease abstraction
- Offers you significant cost benefits
- Ensures you stay on top of your lease portfolio, no matter how short-staffed you are on the lease portfolio management front
- Allows you to benefit from the expertise and industry experience of your lease abstraction vendor
However, in order to actually enjoy these benefits, you should pick the right lease abstraction vendor. One of the many things to look at when considering a lease abstraction vendor is their experience. Generally, clients tend to look at the number of years the lease abstraction vendor has been in the business. While experience in terms of industry-years is certainly a major factor impacting lease abstraction vendor selection process, it shouldn’t be the only one. The element of experience has multiple aspects to it. When looking at your lease abstraction vendor’s experience, two other areas to consider are, if they have experience.
Serving both, landlord & tenant
Has your lease abstraction vendor worked with both tenants and landlords, or, is their experience largely limited to one of them? Leases are complex legal documents. You need someone who understands complexities and nuances of your leases that represent the culmination of negotiations between lessor and lessee. A lease abstraction vendor who has experience working with lessors and lessees over the years has a much broader perspective than someone who has been typically involved only with one side, such as the Landlord or the Tenant. Such a vendor will be able to bring their rich and diverse understanding and expertise into your lease abstraction project, driving maximum value for you.
Serving clients from your industry
Every lease is unique, and leases pertaining to each industry have their own nuances. When picking a lease abstraction vendor, you might want to consider someone who has experience working with clients in your industry. This is especially true in case of industry verticals like Cell-tower, healthcare, retail, etc, where there are a lot of industry-specific clauses and documents such as Tower co-location agreements, HIPAA regulations impacting the lease liabilities, percentage rent, and related audit rights, etc.
Taking a second look at the experience criterion from these two additional angles that we discussed will help ensure you pick a lease abstraction vendor who is able to abstract the key elements of the lease that you actually need in order to make better operational and strategic decisions; accurately, consistently, and fully.
Rebolease.com, powered by RE BackOffice, Inc., is a premier provider of lease abstraction, administration, 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 strategic advantage. All client projects are performed in-house. Please contact us today to learn more.