Property management can be exhausting. You’ll have to deal with tenants, property owners, service providers, etc. Not to forget accounting tasks that never end. Handling these processes can be time-consuming if done manually. Imagine tracking and calling up over 100 or 1000 tenants to inquire about their rental cheques. It will take a while before getting things in order. Also, a lack of visibility into your vacancy rates and ways of addressing them can be costly. US’s vacancy rates rose to 12.4% in the last quarter of 2021 in the office property segment.
High vacancy rates will force property owners to pay mortgages from their own pockets. It will affect your financial performance. You can automate and save time with leasing management software. There are additional benefits of having lease management software for commercial properties. Let’s explore them in detail.
What is Lease Management Software
Tracking every lease agreement and adherence across a broad lease portfolio can be daunting to property managers. Not to mention dynamic regulations that may vary based on region and the need for accurate reporting on compliance. For example, ASC 842 standard requires public and private companies to categorize their leases as assets or liability. Managing several leases with different terms across several regions can be challenging. A lease management software organizes all your leases across your portfolio into a single platform for easy management.
Also, it automates tenant billing and helps you comply with different regulatory requirements. You’ll be able to have comprehensive reporting on tenancy, aging, credit listing, etc. Therefore, lease management software helps you centrally organize your teams and track and evaluate lease contracts. Thus, it drives better collaboration and increases efficient analysis.
Benefits of Lease Management Software to Commercial Properties
1. Ease of Managing Multiple Commercial Properties’ Leases
A lease management system gives you comprehensive visibility on property’s tenancy and leases’ status. You will be able to keep tabs on all commercial properties and associated leases despite the number of units and their location.
Cloud-based lease management allows you to run your commercial property business on the go without worrying about downtime. You can simplify the whole of your commercial properties’ workflow by bringing all your lease portfolios together and managing your tenants from a single platform. You don’t need different tools to manage your properties in other towns and cities. A single platform running on the cloud is enough to declutter and streamline your multiple properties’ management.
2. Powerful Reporting for Your Commercial Leases
Lease management software offers accurate, robust insights and visibility into your lease portfolio. It makes it easy to track and runs several leasing management processes:
- Reporting lease payments
- Handling lease milestones and deadlines.
- Creating schedules for any lease for each property.
- Organizing leasing information for annual audit.
Hence, the lease management software will provide current and accurate lease reports. Other critical reports like aging reports, payment, etc., are included too. Such excellent visibility and reporting allow you to make faster and more accurate decisions on your leases.
3. Perform Advanced Forecasting and Planning
Another advantage of lease management software is in-depth forecasting and planning.
You can model and evaluate future scenarios of complex leases across your portfolio. You can run the forecasting considering territories, property type, etc. For example, you can run lease performance based on property grade type (A, B, etc.) and region in commercial property.
The tool will project your revenues and break-even points alongside other complex factors to determine how your profit and loss statement is influenced.
As a result, you can adjust your operations accordingly to meet your objectives to minimize losses and maximize returns.
4. Smooth Automated Billing and Payments
The lease management software automates the whole billing cycle from invoicing to payments. Rent collection using traditional methods can be challenging for you and your tenants. Tracking payments manually takes a lot of time, and you can easily miss a record when keying it into your spreadsheets.
Offering flexible payment options to your commercial tenants facilitates hassle-free payments. Lease management software makes its payments convenient in several ways:
- It supports mobile and online payments. Your tenants can pay using the most convenient methods to them. Also, it eliminates excuses for not paying rent on time.
- Automated rent payments save you time and energy following up on tenants to pay their rents. They can set up automatic rent payments removing routine filling of forms and cheques periodically.
- Commercial properties managers can be assured of getting rent payment on time through automated billing.
- It has automatic reminders that notify your tenants if they are late with payments. Read more about Auto clicker for Chromebook.
So, the leasing management feature within the property management allows you to facilitate smooth and convenient payments.
5. Saves More Time By Reducing Administrative Work
Reducing your manual management processes through lease management software increases your efficiency too. It will reduce the costs of operations too. For example, automating the billing and payment collection processes saves time and eliminates errors while updating spreadsheets. You can gain complete visibility and control of your company because all tenants, partners, and service providers’ interactions and actions are accessible in a single place.
6. Supports Tenancy Management
A lease management software also simplifies your tenancy management process. It contains all relevant tenant information to facilitate smooth billing and customer service support.
You can easily create, iterate or delete tenancy records according to changes within your commercial property. Similarly, updating your tenant contact list helps avoid blasting messages to former tenants or non-tenants.
A lease management feature is vital for efficient contract management and the overall operation of commercial properties. It automates your billing and payment process leading to convenient, hassle-free payments. Also, you can track tenant contract milestones and support multi-tied property management. You will have better visibility into your operations with enhanced forecasting and analysis. Lease management software, therefore, has efficiency and cost gains.
In short, you can benefit from lease management software through better tenancy management, simplified billing, and powerful reporting. You can make fast, data-driven decisions to increase value on your property.