A company scrambles to adapt to ASC 842 lease accounting changes being evaluated by a variety of software choices and third parties to help comply with new standards. Lease administration services play an important role in accounting compliance. Although the basic lease administration focuses on quality data management, advanced lease administration can do more by allowing companies to reduce risk, safeguard resources and allow for emphasis on basic business objectives.
With companies that are looking for ways to control costs and save money, many are turning to their commercial real estate obligations. While looking for ways to negotiate or get out of space that is not needed is the first thing that comes to mind, many companies lose the opportunity to take advantage of the lease administration to save money more manage one of the biggest costs in their financial statements.
As a real estate portfolio of companies grows, the risk of losing data and lost costs increases. Utilizing experienced external partners can achieve these important tasks for many companies. Lease administration is a source that is often used by companies with various locations. When companies grow, wrapping their arms around their lease portfolio becomes increasingly difficult. It reaches a point where the company finds itself at a crossroads. Do you employ more people, invest in software solutions, and delegate valuable resources into managing leases, or do you work with a professional third-party lease administration partner to handle the responsibility? Here are 10 advantages to partnering with a professional lease administration partner.
1. Get access to expert teams
A good lease administration partner will have a team of real estate responsible for every account. They act as an extension of the client team, sharing similar goals for the client’s success.
2. Increase knowledge to help reduce risk
The expertise and experience of lease administration mean that the partner knows the exact requirement and where the hidden key dates can be found in the lease, avoiding too common errors when the critical lease date is missed.
3. Expertise in difficult real estate and account situations
Experienced lease administration partners have existed around the block several times and have faced various situations that might be confusing for anyone who is not an expert in the real estate field. With the knowledge learned from past experiences, lease administration partners can advise a business on various difficult problems that affect the real estate and accounting team.
4. Stay focused on the most important
Outsourcing a lease administration allows clients to focus their valuable time and resources on the core business objectives.
5. Save money
Apart from a high level of expertise, outsourcing costs are often cheaper than alternatives to employ or realize additional employees to perform functions.
6. Input and comprehensive data reviews
Although the client team can have time to enter the initial data, good lease administration partners have many examiners who can provide clients with confidence in accuracy, coherence, and completeness of data. One person should not be a single guard of important information that represents one of the top financial costs for your company.
7. Having access to broad infrastructure
A lease administration system can require a decent investment of more than six numbers for many companies. Lease administration partners have often been invested in the resources needed to ensure the success of the lease administration that clients can use to avoid their unnecessary capital investment.
8. Reduces the risk of lost tribal knowledge
By relying on a proven lease administration team, the company can avoid the risk of losing the continuity of knowledge that comes with the change of in-house employees.
9. Reduce the mistakes of CAM Charges
A good lease administration partner will examine each CAM reconciliation and budget to confirm that these costs are accurate and in line with lease and industrial standards.
10. Have information at your fingertips
Every month, reports that contain portfolio information must be sent to the client. A perfect lease administration partner is easy and fast access to answer any questions that arise and help clients in making critical lease decisions.
The advantage of hiring trusted lease administration partners to handle business real estate portfolios can be very valuable. According to instantly have a team of industrial experts, have access to lease information 24/7, having an outsourcing team that focuses only on the interests of their customers is an important aspect that each company must take into account when trying to maintain a large or developing real estate portfolio.