Tips and Tools for Lease Administrators
- January 24, 2019
- By Admin: Jamey Konicki
Lease administration in the operation of a professional commercial real estate office is critical to property performance and landlord services. It commonly lacks in the smaller real estate office with few experienced people doing a variety of tasks.
The lease administrators work closely with or as part of the property management division. The role of the lease administrator is to check and monitor the critical lease dates. That can and should be:
– Rent reviews
– Tenant communications
– Insurance notices and currency certificates
– Refurbishment requirements
– Default terms and conditions
– Make-good requirements at the end of the lease
The only way to achieve this control is through a computer-based software system that is specially designed for commercial property. All properties and tenants must be entered into the system. Read more about bukit jalil property here.
As always, the strength of a property monitoring system and software is only as good as the data that was entered in the first place. ‘Rubbish in and rubbish out’ can be the worry of many a landlord and property manager. This also says that you should never regard a computer-generated report from another property agent or landlord as correct. It must be checked in all critical aspects if it is to be relied on in property negotiations.
Software for this process can range from the cheap to the expensive. So what software do you need? It all depends on what you want to achieve and the types of clients that you act for. The larger and more experienced clients such as corporates, fund managers, investors, and tenants will need versatile reporting on:
– Cash flow
– Lease dates
– Arrears controls
– Lease terms and conditions
– Inventory and capital items
– Income and expenditure reporting
Lease administration can be a real point of difference in client service and particularly so if the client has a broad portfolio of property in scattered locations.
In a larger real estate agency like property company in malaysia, you design your lease administration services as a point of difference in your commercial property market offering and provide service residence in kl. This is how:
Lease Portfolio Optimisation across some properties. This is the management, measurement, and recommendations made to improve the performance of lease and property portfolios. In portfolio management, the real skill sits in balancing cash needs and flows so that the landlord is not inconvenienced. The management of vacancies and the reduction of vacancy impact on the landlord is a strategic part of the process.
Lease Administration is the backbone to property performance. This is the lease administration to reduce landlord risks and increase property performance from existing leases. The terms of the contracts should be carefully administered as dates can be critical and time may be of the essence in some lease circumstances. If you miss a year, you may not be able to reactivate the issue.
Lease accounting. This is rent, rent reviews, outgoings, arrears, budgets, and recovery of all monies as allowed from the tenant. These are the critical dates of rental change or default. They must be watched and especially when ‘time is of the essence.’
Automated reporting and customized advice leading up to critical lease dates and events to reduce risks and costs. This can be done concerning the annual budget approved before the beginning of the year.
Lease database and document library are critical to property management. The security of all original documents needs to be planned and protected. All original documents should be in a secure fireproof location. Digital copies can be retained for property manager and landlord use.
So lease administration is fundamental to professional property management services. Landlords and tenants both benefit from the well-structured lease administration program.