How lease administration teams can adapt to changing workplace dynamics
Nearly every industry is experiencing high turnover at the moment, and the commercial real estate sector is no exception. New workplace trends like the Great Resignation have led to a high level of employee churn, disrupting essential processes and tasks within the business.
Companies across multiple sectors are losing key individuals who have considerable influence and knowledge of portfolio management, and it can take months to backfill the positions and train new talent for the job. For many organizations, high turnover is leading to huge losses within their knowledge base, and such losses can result in strategic projects becoming stagnant and the inability of your real estate firm to act on new opportunities in a timely manner.
Prevent experience gaps on your leasing team
With the loss of accomplished talent on your leasing teams, critical lease administration and accounting projects can grind to a halt. How will your property make sure that all the important leasing tasks get completed? Compliance deadlines and key lease dates won’t wait until you find the right candidate – your team still needs to handle lease administration, lease accounting, and abstraction.
For small real estate teams, losing an employee to another organization or to retirement can have devastating consequences. It’s difficult for the remaining team members to stay focused on strategic business goals when they are having to perform tasks that were previously completed by someone else. This is where the value of managed services for lease administration and accounting comes into play.
Grow your portfolio with outsourced lease administration
A key action that forward-thinking real estate executives have recently taken is to outsource more mundane, time-consuming lease administration projects. If someone leaves your organization, the outsourced lease administration professionals are still there to make sure nothing falls through the cracks. Current employees are empowered to spend less time doing busywork and more time focusing on important projects, satisfying them and solidifying their value to the team.
By narrowing the focus of in-house resources, any leasing projects you outsource would lead to a reduction in costs and boost morale for your core real estate and finance teams. Additionally, you are increasing flexibility amongst your full-time workforce by reshuffling various leasing projects so that employees can have a greater impact on the company.
The benefits of using outsourced lease administration services can be seen in multiple ways:
- Ensure compliance with FASB/GASB regulations
- Stay up to date with compliance standards
- Find opportunities for costs savings and avoidances
- Gain insights into data that drives your needs and objectives
Further, leveraging lease accounting and auditing services can help your team simplify tasks:
- Lease abstraction services that can help you extract, analyze, and store critical leasing data
- An accounts payable team can centralize and streamline rent payments to your landlords, even for charges concerning your utilities and facilities
- Dedicated lease auditing services are capable of reviewing lease clauses to give you a true understanding of all your property costs
- Centralized lease administration and accounting services help simplify your portfolio to help your team make critical leasing decisions
How does your business benefit?
By using flexible leasing services and outsourcing your non-critical projects, your organization will experience long-term value through the time and money you save, as well as the agility your business will gain as a result.
With a reliable lease administration team, you’ll be able to:
- Mitigate occupancy risks when managing your lease audits
- Make the most of your leasing data from reliable lease abstraction
- Avoid rent processing errors
Overall, combining your leasing team with a flexible and dedicated outsourced team will help your organization save money, utilize key industry knowledge, and increase project bandwidth – ultimately reducing the impact of employee turnover on your business.
Frequently Asked Questions
What is a lease management system?
A lease management system enables your real estate organization to pull all the lease information from across your portfolio into one centralized system capable of tracking any metrics that pertain to your business.
Why is lease administration important?
Lease administration helps organizations with large or complex portfolios make data-driven financial and strategic decisions and remain in compliance with all necessary regulations.
How do you manage a lease?
Managing your leases requires a set of processes and procedures designed to keep the information in your leases at the heart of your finance and accounting strategy. Managing a lease is how you ensure your business is operating within the contractual requirements agreed upon by both lessor and lessee.
What is lease administration and abstraction?
Lease administration is the act of performing daily tasks that pertain to the lease agreement binding a landlord and tenant. Lease abstraction occurs when valuable terms and information are pulled from a contract and used in everyday processes across your business.
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