Is it Important to Have a Lease Administration Team?
September 13, 2022
OHI
Lease administration is instrumental in the effective management of risks, lease terms execution, recoveries, and accounting, which opens up huge cost-saving opportunities and provides you immense control and authority over lease portfolios.
People frequently find themselves in a precarious situation without lease administration, where the landowner has complete influence over the terms and conditions. This fact itself states the significance of administering leases.
Although lease management is an administrative process, it is demanding, time-consuming, and necessitates devoted effort and resources. Hence, outsourcing lease administration team and services have picked up in the industry in the past few years.
Let’s dive deep into the advantages of having a dedicated lease administration team.
1. Prioritise Your Primary Business Operations
You can better concentrate on your key business operations if an outsourced team handles lease management. The process of administering leases takes a lot of time and requires constant attention.
Despite being a crucial task, it is nonetheless an administrative task. As a result, partnering with a professional lease administration team enables you to open up your valuable time, concentrate on growth strategies, and ensure effective lease portfolio management.
2. Optimise Efficiency and Adaptability
You can not only fulfil the needs for business scalability with a committed team managing lease administration but also enjoy the flexibility to boost responsiveness and agility to cater to business requirements effectively.
The most prominent feature is that you get full liberty to upscale or downscale as per the existing market dynamics quite quickly and efficiently.
Furthermore, having a specialist team affords you access to professionals who can assist you with any challenge the moment it surfaces.
3. Save on Costs While Mitigating Operational Risks
Considering the broad spectrum of risk elements associated, improper management of a lease portfolio could be enormously detrimental to a firm’s operations and financial health.
Missing payment deadlines, erroneous common area maintenance (CAM) information, faulty lease abstraction, and missed recoveries can all have long-lasting complications and consequences.
Various procedures are involved in administering a lease. That’s why preparing a lease document is an ideal practice for managing a lease without headaches.
When properly governed, it can assist you in optimising the lease operations and guarantee that you fulfil every lease commitment as per the terms and conditions within the specified time.
As a result, the team can help you save on hidden costs and late payment charges.
4. Enhanced Lease Data Management Services
Improved lease data management with effective structuring and convenient processing is ensured when you employ a specialised lease administration team with access to powerful software capabilities.
You can be confident in leasing data abstraction, storage, and timely management while availing of the services of an outsourced provider.
In addition to streamlining and refining operations and portfolio management, effective lease information management also renders lease data accessible for extensive analysis via augmentation and standardisation procedures.
It facilitates information gathering, analytics, and the extraction of valuable, actionable business insights.
Conclusion
Systematic, streamlined, and reliable lease administration will constantly keep you in the loop with reminders about key dates and clauses in advance, enabling you to make wiser judgments rather than needing to rush into matters.
Therefore, a crucial component of lease management is employing a qualified, competent, and experienced team for lease administration.
About
OHI is a sixteen-year-old real estate services company working with 75+ commercial and residential real estate developers, funds and property management companies across USA. Our deep expertise in real estate accounting, financial analysis, lease administration and asset management has helped clients cut associated costs by 40-50%. We currently provide these services to a portfolio of 100,000 units across clients.
