What is more critical in the operation of a commercial real estate firm than Lease Administration? What safeguards property performance?
A lease administrator will work very closely with a property management team. He or she will be responsible to check and monitor critical lease dates which would include:
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Rent reviews
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Rents in arrears
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Communication with tenants
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Insurance notices
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Defaults on leases/their terms and conditions
One of the best ways to accomplish these responsibilities is by utilizing a commercial real estate software system, whereby all properties, tenants and information would be entered into its system and monitored.
But what should this software compose of in order for a Lease Administrator to effectively do his job?
It depends on what the goals are. What does the company want to achieve and what type of client is it representing? It is definitely critical to a property management firm to have its lease database and document library in perfect order in that the security of all documents, especially the originals, be protected against theft and fire. This happens with the choosing of a diligent lease administrator.
Both landlord and tenant can benefit from the proper lease administration because it is such an essential component of the performance of commercial real estate. It makes available the opportunity to monitor the property’s future and to increase the cash flow. Lease administration should definitely exist in every respectable commercial real estate firm, as it is truly a process of support for the investor who has complex properties and numerous buildings.
The Lease Administrator works beyond the duties of property management. If you are a Lease Administrator, it is your duty to advise the firm of the issues of leases, which can impact the cash flow of the business over time. It is your job to check all the processes of rent reviews and lease options. Every one of these practices can affect the company’s cash flow.
So, what tips can help a person be a good Lease Administrator?
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That person would have to be diligent to systems and processes
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Real estate experience on similar properties
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Understand and have the knowledge of lease documentation
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Learn about the commercial real estate software that will enhance productivity and effectiveness of the firm
The right person will be the right hand of the property manager, doing the right job, for the right outcome. Choose your Lease Administrator well.
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