Lease management or lease administration is the day-to-day execution of tasks related to a real estate company’s lease portfolio. This process involves reporting, document management, budgeting, coordinating between stakeholders, along with a host of administrative duties.
Lease management simplifies the complete process of property management, creating a reliable system that is designed to enhance your planning and project management.
The current challenge faced by real estate companies
It is important to note that lease abstraction requires a meticulous and careful approach to ensure your lease abstraction is accurate. A single error can jeopardize the business. To avoid such risks, real estate companies are benefiting from outsourcing lease abstraction, allowing them to avail expertise at a reasonable cost while maintaining high accuracy in lease abstraction.
Why real-estate companies outsource lease abstraction
1. Optimal Resource Utilization
By availing the help of professionals, real-estate companies free up in-house realizes to engage in more high-value, strategic work that drives business growth. Third-party service providers provide a host of customized services, all designed to support legal, financial, and business provisions, as per your requirements.
2. More Cost-effective
Lease abstraction is a complex and time-consuming exercise that requires skill, efficiency, and man-hours. Managing this process in-house can prove to be an expensive exercise that does not guarantee accuracy or completion within the stipulated time frame. On the other hand, outsourcing to specialists, allows businesses to manage their workload and expand their in-house lease administration capabilities without hiring additional resources, investing in training, or creating processes and checks. Outsourcing is a flexible, feasible, and scalable option.
3. Improved Compliance Management
Third-party solution providers help generate Financial Accounting Standards Board (FASB) reports and disclosures monthly that are audited and verified by expert lease accountants. By ensuring proper governance and financial reporting compliance, you eliminate risks of non-compliance and related cost overruns.
Different lease administration services you can outsource
Property managers, commercial real estate owners, retail managers, and real estate investment trusts can outsource various lease administration services to support portfolio management and compliance.
A few of the lease administration services are:
- Lease extraction: Collecting, standardizing, and summarizing unstructured data into an easy-to-read format that can be quickly analyzed.
- Lease Accounting: Simplify your data management process to ensure FASB compliance. Reduce overhead costs and turnaround time to increase efficiency and overall profitability.
- Property Accounting: Minimize administration expenses and focus on primary and strategic business initiatives, while ensuring efficient management of accounting data. Cenza offers expert accounts payable and accounts receivable services customized to meet your business needs and operational efficiency.
- CAMS reconciliation: Common Area Maintenance (CAM) Reconciliation and to allocate recoverable expenses accurately across tenants, maximizing receivables and improving overall profitability.
- Lease Audit Services: Ensuring billing accuracy in compliance with lease terms and identifying financial errors, plus payment recovery.
- Due Diligence: Extracting crucial details such as the deed of trust and promissory note, identifying anomalies, and tapping into revenue opportunities.
- Lease Data Migration: Converting, migrating, auditing, and integrating lease data with popular accounting, financial, and property management systems.
- MRI Software
- Visual Lease
- Lease Harbor
At Cenza, we analyze existing systems and processes, convert and migrate end-to-end existing data. We clean, process, and enhance data to eliminate corrupt and incomplete information, ensuring a comprehensive and accurate database.
Get a specialist who is experienced in handling all the new real estate systems including Yardi, MRI Software, Nexus Systems, JD Edwards, AvidXchange, and Argus, and can even work on home-grown applications.
The Cenza Advantage:
With over 20 years of experience in managed services, artificial intelligence, and contract lifecycle management (CLM) software migration, Cenza’s team of professionals can help you build and manage complex and expansive real estate databases with profitable business outcomes. We’re ISO 27001 certified, GDPR compliant, with an unrelenting focus on accuracy and deadline compliance. Our team is trained on the following tools to help you achieve optimal asset and portfolio management results.
To learn more about our range of real estate services and how we can drive profitability for your business, schedule a call today.