A complete lease can be filled with legal word jargon and complex language. It can end up being a nightmare for you if you are not trained to understand these. Getting a concise summary of the lease makes life much easier for a property manager. Finding comprehensible information and data from huge volumes of papers can be a huge logistical roadblock.
That is exactly why more and more real estate companies are outsourcing their lease abstraction work. This requires highly skilled professionals who know leases inside out. Within this CRE leases are even more intense due to the sheer volume of data work. Abstracting core information from this is a humongous task in itself. Getting a properly skilled lease abstraction partner to do this reduces the chance of gross human errors and benefits your growth.
Reasons to Outsource Your Lease Abstraction
JLL’s Future of Work Study (2018) says that globally more than 42% of commercial real estate firms outsource more than 50% of their lease abstraction work. The participating real estate managers in this study said that this is mostly to get more efficient workers to do the job without employing them full time. They also mentioned that it helped them cut costs quite subsequently.
Maximum Resource Utilization
When you outsource lease abstraction work to outside partners you save a lot of time for your in-house staff. We can use this staff and get them reassigned to important front office work that can help scale your business. This is probably one of the biggest reasons why in the UK more than 48% of companies have outsourced its work to outside firms.
Outsourced lease abstraction firms will also customize every document based on client demands and help better your credibility. These custom documents are simplified and easier to comprehend and helps you draw faster data based conclusions.
Effective and Authentic Portfolio Management
All the relevant data and information accumulated from the lease forms the basic structure for an authentic property portfolio. Crisp and consolidated information like termination clause, contractual obligation, maintenance, liabilities etc are put together in simple terms by any lease abstraction partner. This will help better assess risks, expose to liabilities and also help plan further action. Especially when a CRE has to manage multiple clients under their portfolio.
The KriyaGo team has the right set of experts to help you streamline your lease abstraction work. We are here to better this complex work with the best of software and custom features for your specific business needs.
Extremely Cost-Effective
If you get an internal team to do the lease abstraction work, especially when the volume of work is high in a CRE, the overhead cost is high. You must hire a team of experts, and pay them huge salaries, train them and constantly keep at it to get the work done. When you get back office outsourcing services for your lease abstraction you only pay for the services you take. You do not need to keep paying a team of experts as full-time employees even when there is no work. Outsourcing also becomes highly time effective when you skip out on the basics like hiring and training new staff.
Keeping Up With All Compliances
An outsourced lease abstraction service has to provide you with all monthly reports and disclosures that you need for the Financial Accounting Standards Board (FASB). They will also help you dive deep into the fine prints of these reports and analyse the data to get better results. This helps you mitigate all risks of non-compliance and penalties and fines. Having access to such expert lease accountants will also help you better the other financial services based on the data findings.
Quicker Work Turnaround
When you partner up with a firm who provides such super speciality services, their work turnaround time is bound to be much faster. Much more accurate data is extracted by outsourced audit accountants because they are solely dedicated to your project. An in-house in-experienced team will not have the right experience to provide you with the right results at the correct time.
This will also set your work tone right with all your tenants increasing your credibility and that will eventually reflect in business growth.
High Level of Data Privacy
A CRE has huge amounts of bulky data, hundreds of pages filled with complex legal terms. But that does not mean the content is not important or does not have usable data in it. Data accuracy is even more important because human errors skyrocket when working with complicated documents. This is exactly why an expert team can help you extract error-free data from these huge piles of complicated paperwork. All CRE are required to get accurate lease abstracts to fulfill their other financial obligations on time and avoid penalties.
Market research says that on an average businesses lose more than 20%of their yearly revenue due to wrong data work. Do you still think you can afford to get the lease abstraction with an experienced staff? You might want to rethink that decision a little.
As an additional benefit all your data will be confidential with a lease abstraction partner and under constant security checks. They will also back-up your essential data and you can easily do away with the fear of data loss from there on.
Summing Up
Is all the heavy paper getting the better of you? Struggling to keep up with the complications of lease abstractions and audits? Let the KriyaGo team take care of that. Our team of lease abstraction experts have just the right expertise to get the work done. No more breaking sweat over pilling up complex lease documents.
Be it commercial real estate leases or residential real estate leases, our team can customize strategy and leadership based on your specific needs. Not only this, we take care of all tedious back office work with our team of experienced staff. Get in touch with us to understand more about our back office outsourcing services. We are here to guide you on your path to simply all lease-related problems your real estate business might come across.
