Whether you are a small business tenant, large office tenant, or retail chain with large real estate portfolios, lease management is important. In fact, real estate portfolios typically represent one of the top cost-centers a CFO must fret about. Not surprisingly, new leases receive the full lease abstraction service attention they deserve at the time they are signed. When a new lease is confirmed, organizations diligently get it abstracted and entered into their lease portfolio management systems.
However, more often than not, that lease remains in lease abstraction form until termination or renewal comes up. The reality of today puts greater importance on capital intensity while lacking in staff authenticity and responsibility. Organizations tend to treat lease abstraction service in an inconsistent manner. These trends can result in significant economic losses. To this, lease administration specialists such as Eximius BPO remind commercial tenants that there is a golden rule: you need to remember that consistent, on-going lease management is vital to the success of a business.
One important reason why a tenant should be reviewing and updating their lease portfolio is to identify any inconsistencies in CAM expense billing, rent hikes and other operating expenses that the landlord may be imposing. It can be easy to fall behind or lose track of lease updates. Notice periods for termination, renewal, expansion and the right of first refusal are put in jeopardy. Keeping an eye on these dates and executing options at the right time can be monumental in aiding the tenant to get a good deal on the existing leases.
Overlooking these updates can cause detrimental capital losses to a tenant.
Concerned organizations are fearful of the consequences that falling behind on proper lease management practices can impose. To remedy this, many are turning to outsourcing key segments of the lease care equation. A trusted lease administration service such as Eximius BPO can help. Their dedicated staffing service can perform services such as lease abstraction, reconciliations, and lease audits independently or support a client’s existing lease administration resources to remain on top of a lease portfolio’s management requirements. Eximius BPO’s expertise adds value along with improvement to your internal lease administration process.
By utilizing the expansive resources of Eximius BPO, commercial tenants can minimize the possibility of making repetitive errors and correct errors immediately if they are found. Many companies attempting to manage their own leases on top of the pre-existing sales structure of their business fall behind and repeat the same mistakes due to a lack of checking and updating the preexisting lease.
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