CRE occupiers generally have to deal with a large number of lease agreements, sometimes scattered across the globe. Without proper lease management, companies are at risk of making costly mistakes. Some of these mistakes happen when missing critical dates in the commercial lease. Luckily, we now live in a day and age where technology makes it simpler than ever to stay on top of lease administration and critical dates.
In commercial leases, critical dates are points in time where the lessor or the lessee has to perform certain tasks. If a critical date is missed, it can lead to losses, which makes tracking them in a centralized solution very beneficial.
So, what are some of the critical dates to track in commercial leases? And how can lease management software help? Find out below.
Lease Expiration
As it turns out, missing the lease expiration date is one of the biggest nightmares for stakeholders in real estate. As the portfolio expands and goes global, it is hard to keep track of multiple expiration dates. Professionals mostly focus on other aspects than lease management, as it may seem unproductive. Moreover, a single individual can’t keep track of all these dates without the help of a comprehensive lease tracking solution.
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As a result of missing lease expiration dates, you lose negotiation power and the ability to make better deals once you miss critical dates. Thus, you must integrate lease management software to streamline the process of keeping track of expiration dates.
Property Insurance
In any lease agreement, the lessor usually decides what insurance policies must be taken care of by the lessee. And all insurance policies related to properties have critical dates of expiration and renewal. Therefore, both parties need to make sure that the property is always covered by insurance. Thus, tracking these dates is essential to prevent unforeseen losses or breaching the contract terms.
Rent Related Dates
Generally, percentage rent reconciliations occur at the end of the year. However, lease agreements specify that if you have time, or a window for preparation, to submit calculations ahead of time and not wait until the last minute. Also, you can even set reminders for when to complete your calculations.
Using lease management software can help you avoid entering data manually. Automated alerts, reminders and notifications can help save a lot of time for your team, as well. Yardi Corom’s lease management software allows you to set reminders for multiple activities, all at once.
There are also email templates you can use within the software, which include sections, such as subject line, header, footer and body of the mail. Additionally, elements like tags and tokens can also be used. You can then set up notifications with a certain frequency and special roles attached. After reviewing the setup, you can schedule the time slot to avoid any possible clashes. For more details regarding other features of Corom lease management software, visit https://www.yardicorom.com/lease-management-software/.