Effectively managing lease administration is a key to maximizing a real estate portfolio of any size. The real estate market is changing rapidly. Stakeholders expect more, lease accounting practices are changing, and reporting needs to be done in real time. Mitigating risks, saving money, and reaching organizational potential are primary objectives of lease administration. In order to stay current and viable, real estate lease administration software needs to provide the ability to manage costs proactively, strategically plan and optimize each portfolio, increase the efficiency of the organization, and enable fulfillment of compliance requirements.
No organization can afford to allow its cost management practices to be passive. Regular evaluations should focus on reviewing rents against the terms of the lease and the actions taken in the portfolio, and proactive monitoring of landlord charges. By performing audits and reviewing invoices against lease terms, a company can avoid overpaying on obligations and make sure its tenants are receiving the full advantage of the terms of their leases.
Real estate lease administration software should provide data that is accurate and easy to access in order to make sure all portfolios are aligned with the strategies of the organization. Integration of lease data management with the key functions and planning of the organization is crucial for success. Effective linking of date reports to business plans and portfolio reviews can create the preemptive managing of lease options toward organizational objectives. Having alerts set up well in advance of renewals can eliminate penalties and costs associated with unplanned moves and tight construction phases. The drive of this level of lease administration is the ability to integrate the information from the portfolio with the organization’s strategic plan in order to enable future plans and forecasts.
In order to achieve the organization’s best efficiency, lease administration functions must be adaptable to the realities of the industry, provide analytical support, and have the ability to be shared easily within the organization. Meeting standards with easily understood and smoothly transferred data as well as a platform that is user friendly is critical for any lease administration software to be able to improve efficiency and meet organizational needs.
Compliance continues to be a primary function of lease administration as well. Simplifying processes and increasing transparency help to ensure that all requirements are fulfilled and the organization is prepared for audits. In addition, potential changes to lease accounting that are in discussion by the FASB and IASB will increase the organizational obligation to reevaluate expectations for lease accounting practices, especially among organizations with large portfolios.
Get real estate lease administration software at Datanet to manage your costs, increase portfolio optimization and organizational efficiency, and prepare to fulfill current and future compliance requirements smoothly. Real estate lease administration software can keep you on top of the market.
