THE NEED FOR A SYSTEMATIC APPROACH TOWARDS PROPERTY MANAGEMENT
22 Sep 2022
Commercial lease management software significantly varies in both the quality and the functionality of its features and capabilities. If we’re investing in software to help manage property, plant, or equipment leases, then we need to be aware of the features and capabilities required to manage the complexity of lease portfolios effectively.
1. Commercial lease management software integrates with the rest of the accounting ecosystem
A Lease Portfolio contains the details of a collection of Lease agreements on properties scattered across different locations.
Lease Portfolio Management involves multiple components that need processing.
● Tracking important Lease deadlines
● Keeping up with rent amounts, charges for CAM and other utilities, rent increases
● Sending notification alerts
● Preparing reports
● Maintaining documentation
In addition, when companies face higher production or customer demands, they tend to increase their commercial portfolio, thus adding more responsibilities.
Hence managing the copious amount of tasks requires a systematic approach.
A systematic approach entails pre-defined notions and strategic pathways that add benefit while undertaking the administration process.
Traditionally Lease Management was not a priority and was restricted to just paying rents on time. But with the introduction of accounting standards adding to the complexity of portfolios, the demand for Lease Management has surged.
Challenges faced in the Property Management
Handling Lease Management inefficiently might cause a lot of trouble. A decentralised Lease Management system lacks control, which makes it prone to manipulation by any third party. Poor management of the finances surrounding Leases may risk exposure and lead to a higher cost of capital.
If the stakeholders miss the deadlines for the end-of-Lease term or fail to pay rent on time, they have to pay extra as a penalty.
The data surrounding the Leases also need proper security.
Running Lease administration only with spreadsheets involves rechecking every piece of information to find errors or omissions. Spreadsheets don't offer operational insights or reports from the data, so it's not scalable to the business's growth and development.
Overcoming all the challenges and meeting the demands of each Lease in the portfolio is necessary for the smooth running of Lease management. Thus a systematic approach could be beneficial in all the ways required.
Benefits of a Systematic Approach
There are many advantages to adopting a systemised method to control Lease administration. A systemized process involves Lease management software that assists in many tasks, which provides a valuable aid in the administration process.
Here are some of the substantial benefits availed:
Rental Data Management
A Lease Portfolio consists of several pieces of data, including information on Lease renewal dates, rental payment deadlines, expiration and termination of the Lease, monthly financials, etc.
Hence, a system that sends timely notifications or alerts automatically can fruitfully help the stakeholders.
Monthly or weekly reminders for rent or other utility payments, set by the stakeholders according to their comfort, help them control their Leases more efficiently.
The reminders can be sent as either emails or messages, depending upon their needs.
A substantial benefit of a systematic approach is the data security offered by the software applications.
When the data is stored and managed in the cloud, it is protected with SSL encryption to prevent unauthorised access.
In addition, we can back up data regularly according to our convenience.
The data generated from the Lease portfolio can be abstracted to obtain insights that might benefit the property.
Using the abstracted data, we can generate automated reports that provide meaningful inputs that help with various aspects of property management.
These reports also are used in making significant decisions that affect the business.
Assists in Accounting Standard Compliances
A professional Lease Management administration ensures to assist a company in adhering to accounting standards and legal compliance with the law.
Accounting standards issued by the government expect mandatory compliance. There are so many complex procedures in accounting to the standards.
Hence these complexities are resolved with the help of an organised path laid out by employing a professional Lease Management Software Like LP 365, which aids the process and document submission procedures ensuring any company is accounting standards compliant.
Makes Documentation Automated
It is easier to handle documents related to a handful of properties manually.
But when it comes to a Lease Portfolio, several documents of the different Leases come into the picture. Consequently, it becomes difficult to manage the abundant amount of documentation manually.
Hence a comprehensive system that enables storing of e-documentation in a centralised data repository and allows easier accessibility from anywhere and anytime might prove beneficial.
Administers and Protects the Finances
The foremost advantage of using a controlled system is that we can track the money spent to manage our Leased properties.
In managing a portfolio, paying for rent, CAM, electricity, taxes, and other utilities are the general expenses.
Consequently, managing the finances for the several properties in the portfolio becomes arduous.
Hence a systematic procedure that handles all the finances of the portfolio, and the one that generates the invoices and bills for every amount spent, can monumentally benefit the stakeholder.
How to opt for a suitable approach for property management?
A systematic approach involves following a standardised path that dissolves the complexity in the management.
A Lease Portfolio management contains countless tasks which are complex and time-consuming.
Property Management Software that performs the tasks related to the administration can alleviate the hindrances.
By providing a strategic approach to handling the chores, Lease Administration software adds value to the stakeholders.
Choosing the best approach that suits our needs from the plethora of options can be challenging. But keeping our demands and needs in mind and searching for what caters to the same can help us find the appropriate solution. Researching more about the product before adapting it can benefit us in the long run.
Lease Portfolio 365
Lease Portfolio 365 is SaaS-based cloud software that simplifies property management. It is a Lease Management software that provides you with the following assistance:
● It facilitates easy retrieval of the Lease/Rental agreements.
● Stores and manages valuable data relevant to rental agreements in a cloud environment.
● Provides features that help to understand the property by precisely locating them through Geo-coding.
● It sends alerts and notifications for rent payments, Lease renewals, terminations, etc.
● The software helps with rental maintenance, utility invoicing, and finance handling for Lease agreements.
● LP365 supports efficient report generation that delivers meaningful inputs on various aspects like Lease type, renewals, terminations, escalations, alerts, notifications, etc.
● It easily integrates with any application specific to Legal, Admin, and Accounts.
● With the Lease Abstract report, complete end-to-end information of any given single lease starting from its general Information, Area, contacts associated with it, Financials, Options reflecting key dates, Clauses and special clauses information such as Security deposit, Fitout & TI allowance, Repair & maintenance, and Keynotes is available in just a few clicks.
In addition, it enhances the portfolio by assisting with rental data management, invoice creation and management, revenue share management, document management, contacts management, expansion management, and much more.
To know more about the services offered, do visit LP365. Also, to avail free demo, click here.