Lease administration is a commonly used term, even though it is rarely understood in its entirety. As commercial property managers/owners you realize that managing leases is an integral part of your company’s operations. And lease administration is not a one-time task, rather it is a continuous process that allows you to manage and ensure all the lease obligations are met successfully.
After the introduction of new lease accounting standards (FASB and IASB), lease administration has evolved into a rather layered, integrated and complex process. And to meet these new requirements companies are increasingly implementing lease administration software to track, monitor and manage lease data for both residential and commercial properties. Right from accounting, inspection, maintenance to reporting, these software solutions are designed and developed to support property managers to handle every aspect of lease administration. And yet, there are large number of companies who are still struggling to streamline lease administration even after using a software solution. Here’s why?
One size does-not fit all
There are plenty of property management solutions that are available off-the-shelf. However, it may not deliver the same solution for every business. Cookie cutter tech solutions rarely work in processes that demand nuanced, meticulous, and consistent management of data and every other related aspect. Therefore, to begin with, wrong lease administration software implementation can not just defeat the purpose, but compound your operational challenges and pressures.
Moreover, software solutions are way more expensive especially if you have a small or a medium-sized business. And if you fail to implement the right system it can make the process even more time consuming and complex. Add to this, you would need to additionally invest time and money in training your resources how to use the software. And based on the level of readiness of your in-house employees, it may further make it challenging to use the software efficiently and to its full potential.
Reorganize and focus on process improvement
You can always choose a property management system based on the scope and project and one that will suit your business the best. Having said that, it is the operational process that you really need to streamline to ensure consistent management and performance. With leases moving into the balance sheet, companies, will need to establish more robust and higher level of scrutiny of processes surrounding lease lifecycles and lease management.
In addition to a software solution, what real estate companies really need is to reimagine the process to efficiently handle lease bookings, terminations, extensions, and negotiations. However, changing processes require extensive work – right from gap analysis to understanding and implementing improvement efforts and relevant solutions that will help drive the processes up the maturity curve. Instead, a more practical, cost effective approach is to engage services of lease experts.
Opt for lease administration services over software
The reason for choosing lease administration services over software is data accuracy and consistency and access to a readily available matured administration process that combines right technology and resources. Most companies lack the capability to source critical real-time information to drive meaningful portfolio analysis and make effective strategic decisions. An experienced vendor combines years of expertise along with right software solutions to ensure efficient data management. In addition to this, since the vendors core business function is to manage lease, their processes are tuned and optimized to ensure high operational outcomes coupled with timely and accurate reporting abilities.
Another major advantage is access to skilled, qualified and experienced talent that allows you to easily meet scalability demands of a growing portfolio. Last but not the least, vendors also provide superior cost management services as they help recover expenses across tenants, maximizing receivables and in turn profitability.
Springbord has been providing comprehensive lease administration services for years. Our relentless focus on data quality, accuracy, and integrity helps ensure delivery excellence and drive profitable business outcomes. To know more how we can help you achieve your business goals, talk to us today.