Continuing with our series of lease abstraction FAQs we have shortlisted a few more questions that can help better understand the role of lease abstraction and how it can benefit real estate players in driving business, operational, asset, and economic value.
Who needs lease abstraction?
If you are reading this, you probably are looking to get lease/s abstracted. That said, here’s a quick look at who would need lease abstraction services and how it can benefit them for a better understanding.
Of course, first on the list are landlords.
Lease abstracts help landlords access important and critical terms quickly and timely making it easy to manage administration as well as lease portfolio performance. This in turn helps maintain a viable and good tenant-landlord relationship.
Lease administrators or property management companies.
As mentioned above lease management is an ongoing and tedious process, having access to accurate summaries of lease contracts helps streamline operations, provide better and timely services, and ensure a great tenant experience.
Real estate investment trust (REITs) and legal counsel.
Lease summaries can help lenders, buyers, or investors as well as lawyers gain visibility into key tenant provisions, understand liabilities and limitations, conduct a quick due diligence, and assess risk factors in a timely and efficient manner.
Lease accountants.
Considering the new lease accounting regulation, having access to accurate and up-to-date financial information related to lease portfolio is absolutely invaluable in not just ensuring timely accounting but also compliance.
Why do lease abstracts reduce my legal exposure?
Lease abstraction when done efficiently helps stakeholders access important lease information as and when needed. It helps extract, interpret, correlate and summarize critical lease information in a user-friendly format. The data becomes easily searchable and accessible which means you have complete visibility into contractual liabilities and financial information related to your lease portfolio, which enables you to make informed decisions and ensure timely action, minimizing risk of non-compliance or any breach of term.
How does outsourcing lease abstraction services help enhance operation efficiency?
Specialized service providers bring extensive industry experience, technical know-how, and skilled resources to the table. By outsourcing, you get access to these capabilities at a fraction of the cost needed to set it up in-house. Plus, the advantage of experience backed by proficient processes and advanced technology tools enables service providers to ensure lease abstracts are consistent, accurate, up-to-date with the latest data. They help reduce human errors in identifying, interpreting, and using lease terms, minimize the time needed to browse through hundreds of pages of lease contracts, while ensuring lease terms are executed with great efficiency, helping you better manage your lease portfolio.
