Lease management is the performance of daily tasks that are associated with a company’s lease portfolio. Lease management contains numerous tasks that include:
Each lease has a set of specifications and requirements that need to be done, and there needs to be someone liable for getting all these tasks done.
Online lease management gives lease managers the ability to carry out their lease management tasks online. Through various software platforms, online lease management makes it quicker and simpler for lease managers; while keeping everything organized. By having an online lease management system, all the activities and tasks that need to be done are listed and done online on that platform, which ensures that all required tasks would be done in order.
Generally, lease management involves the tasks that arise after the lease has been established and signed. In order to recognize daily online lease management duties, the first thing that should be recognized is the process of how the signing of the lease occurs.
Traditionally, the final lease contract that was agreed upon first needs to be sent along a path through multiple departments for approvals and signatures. These departments include legal, procurement and finance. After the signing of the lease contract, it must be stored somewhere secure. In most cases, it is stored on an intranet, server, or software. Using an online lease management system, lease managers are able to store the contracts online using secure cloud storage.
Secondly, there is the lease abstraction. It is the process of collecting all the crucial details of a lease into a format that is easy to read. This is also referred to as a lease abstract. With an online lease management, this process could be done quickly, effortlessly, and directly on an online platform/website or mobile application. The details that a lease abstract includes are:
More than just the lease abstract, the lease material has to be listed in a layout that allows for easy reporting, which on numerous occasions is done on a spreadsheet in Excel or by automating the lease contract using software. Following up on all these details using online lease management could help the lease manager track and manage all the activities.
Thirdly, there is an onboarding process… meaning that the asset being leased ought to be seized and activated in order to be able to use it. If any customizations or renovations are necessary, then these activities must also be managed. Individuals that are going to be using the leased asset on a daily basis must be linked with their corresponding lessee. All the details must be followed, managed and communicated; and the use of an online lease management platform could make all that possible in a simple way.
After all the initial steps mentioned previously have been cared for, there are many other activities that need to constantly be managed. During the period of the contract, if any part of the lease changes, then that information needs to be updated. While using online lease management, adjusting lease documents can be done from anywhere hassle-free. When the time comes for renewal or termination of leases, the person liable needs to notify the suitable departments for them to either discuss a new lease contract or arrange for the lease to end.
Additionally, every lease needs to be accounted for. Invoices are required to be treated and paid by the due dates that are set. Leases in real estate regularly contain common area maintenance, which is added to the base rent cost in order to cover maintenance payments. The payments that the common area maintenance cover are:
All these additional costs, including taxes, must be confirmed in the terms of the lease contract agreement.
It is surprisingly common to make overpayment charges when it comes to rent and common area maintenance. Periodic reviews of all invoices, documents, and other significant information are necessary in order to validate that all calculated charges are correct. This assists in the prevention of future risks and mistakes. Normally, lease audits are aimed at common area maintenance costs; however, it can also be used for possible overpayments on lease contracts.
Since lease managers have access to all the crucial details, this provides support to other departments. The departments that participate in the need for leasing reports are:
They require these reports to aid them in making critical business decisions, such as:
Having an online lease management solution would allow for a faster and more secure transfer of information.
The simple answer would be it depends on the nature of the business. The lease management responsibilities could be amassed across several departments. Businesses that encounter high volume real estate leases are likely to have a real estate manager that manages all the business’s leases. In another case, companies that have numerous equipment leases could have a single equipment manager managing all of the leases. Other companies and businesses might have a general lease manager, who would be responsible for maintaining all the leases, irrespective of the type of lease.
Lease management tends to be very collaborative work, notably when it comes to working in large corporations. Lease managers might carry out information among groups that they might never work closely with. Since lease managers are key individuals taking care of and managing information on the ongoing leases, they must be strong communicators and be detail-oriented. These traits are important since lease managers need to oversee every lease that comes by and comfortably communicate with stakeholders about any information that they might need.
Using an online lease management solution helps lease managers track, organize, and manage all the activities that need to be done for the process to run smoothly. Using online lease management, they would be able to store all the needed information in a safe and secure place, in addition to smoothly communicating and sharing reports with stakeholders.
If you’re looking for an online lease management solution, we recommend using RAY. RAY is a powerful online property management and online lease management platform with many useful features. Check it out on https://www.getray.com/.