Lease management means tracking and optimizing every aspect of the portfolio of your leased assets. This process can help you reduce the expenses associated with leasing and it will make your portfolio organized and appealing. Leasing assets doesn’t only include real estate but also technology, vehicles, and assets that you control as part of service agreements.
Leasing requires coordination between teams doing negotiations, administration, and accounting. Lease management is important because the new law requires the leased assets to be included on balance sheets and has a direct impact on financial reporting. These changes can add value to the entire leased portfolio and have a big effect on the outcome of reports. At the same time, risks are associated with poor lease decisions and you should pay more attention to proper lease management. This is where online lease management comes in. Managing leased assets online can help lessen the risks and processes. Here some of the benefits of online lease management:
Finding better tenants
The tenants that you manage are important because the overall condition of the property depends on the type of people that will be using it. Online, it will be easier for you to find trustworthy tenants. You can simply post vacancies online and check out the profiles of those who are interested.
You can also easily filter out tenants that you think don’t fit the criteria of the tenants that you are looking for. There are online systems that can help you with reference verification and do background checks on your behalf.
In creating an online lease agreement, it will be easier to review and fix errors if there are any in your templates. You can avoid printing a couple of copies and have it reprinted again because of the error. At the same time, it will be easier to access the records and financial reports. You can simply access all of the information in the database online.
Aside from the agreement, you can also easily collect rent from your tenants. You can offer various payment options and have them pay you online. It will be convenient for you and your tenants as well. This doesn’t only save you space for the ledgers but also increases the accuracy of the records. Online leasing management also enables you to keep track of your finances and helps you better budget your money.
Easier to renew
When your tenants are planning to stay and renew their contracts, it will be easier for you to have the agreement ready. All you have to do is send them the contract and have them sign it. Gone are the days where renewal takes days and weeks, instead, you have this process done in minutes.
Having everything online will be easier for you to access information. You can easily send the contract and collect rent without ever leaving your place. When there are problems with the property, you just have to call them or contact them online, and no need to give them a visit. Online leasing management can help shorten the time that will be spent going from one place to another.
With all the many benefits of online lease management, it will be best to improve the processes for the departments to coordinate well with each other. When all the departments are not aligned there will be inconsistencies with lease decisions, scattered data, and often overpayment of lease expenses due to lack of organized records and audit capabilities.
To effectively manage lease, it’s better to do a cross-functional collaboration and centralize the access data and management tools. This process can be done by following these easy steps:
It will be best to gather all the lease data and put it in a central repository. This will help create single storage for data and can assist with the audit trail for all lease decisions and changes. You should choose a good software platform and allow it to centralize all data related to lease contracts and provide tools for automating lease administration and auditing processes.
With a centralized database, the payments can be scheduled, creating journal entries because everyone on your team is working on the most current data. This will also eliminate data integrity problems that can happen when data is moved between systems.
Update leasing policies
Since all of the data is already in one place you can easily analyze the data and know which leases are working well, which ones are costing you more money. These insights can help you standardize the leasing decisions and policies across your team.
The people in your team should fully understand the policies for leasing to create cost-effective ways of managing the leased assets.
Update leasing acquisition
Aside from leasing policies, you should also ensure that the accounting team always has accurate lease information in the balance sheets and financial reports. You need to establish standard practices for every group of new leases, document lease changes and improve when handling lease terminations. Minimize the burden of the financial team making sure that the online leasing management system can be modified according to your needs.
Customize online leasing management system
There will be a lot of changes that need to be done when planning to centralize the database of your leased assets. You need to make sure that the leasing management system can be customized according to controls that are required for your processes. The management system should be able to document the terms, audit trail, late fees, payments, and overpayments.
You can manage your property and assets with ease by finding reliable online property solutions. You must select people who are not only trustworthy but also experienced in doing the job. The same also goes for property management. You must also get in touch with the right business for your property management needs and select the ones that are also experts in the field. You can opt to look out for an all-in-one property lease and lifecycle management software, which will help you automate certain activities and simplify your tasks further.