Enhancing Efficiency: Streamlining Lease Administration Processes
Lease administration is sometimes also called lease management. It covers the process from the inception of the lease through the lease lifecycle. Fromrecording the lease, billing, collecting dues, to termination, and return ofassets.Focusing on documentation, leasing system capabilities, compliance, and audit can help lessors. Lessors enhance efficiencies by streamlining their processes.
Documentation
Standardized Templates
Use of standardized language, terms, and clauses ensures consistency. It also minimizes errors during the drafting process. This also helps in avoiding
customer-specific exceptions, difficult to track or enforce.
Digital Signatures
eSignatures or digital signatures reduce manual intervention. Speeding up the closing process simplifies document execution.
Centralized Documentation Repository
Storing all lease-related documents in a central repository. Giving the required people access to the documents they need to refer to immediately.
Good document repositories have access controls and permissions. It prevents misuse or accidental deletion of records.
Document Version Control
Applying version control is important to track changes, updates. Ensuring the use of the latest agreements. At times, prior versions may need to be
referred to for clarification.
Leasing Systems
Lease Tracking Systems
Lease tracking systems help you manage key milestones, deadlines, and renewal dates. Minimizing manual effort and oversight.
Cloud-Based Systems
A cloud-based system reduces the effort of maintaining system’s infrastructure. With the growth and pervasiveness of the internet access and
speed is not a concern.
Integration with Other Systems
A lease administration system is not standalone. It needs to integrate with other systems. Systems for origination, credit decisioning, inventory
management, tax, depreciation, and accounting. Integrations allow lessors to leverage the best solution fit for purpose.
Real-Time Reporting Dashboards
The speed of change applies to measuring performance, evaluating options and compliance. These can be achieved with real time reporting dashboards.
Automated Cash Cycle
Automating the generation of due statements and payments speeds up recoveries. Minimize errors that result from manual intervention.
Customer & Vendor Self-Service Portals
Both customers and vendors require access to information immediately. Enabling self-service portals reduces the impact on support teams. Enabling them to focus on value-added services.
Access on the Go
Team members, customers, and vendors in the leasing process need information on the go. Enabling them to access information through mobile
or tablets is effective.
Automation & Compliance
Workflow Automation
Simple and automated workflows ensure processes are followed. While maintaining speed and efficiency. This applies to approvals, amendments,
reviews etc.
Notifications
Generating automated notifications is critical. Important tasks like expirations and adjustments need timely action and compliance.
Compliance
Setting up a calendar to remind people of compliance deadlines is critical. The need for compliance is increasing every day.
Audit Tools
Audits are required by regulators, investors and for reporting. Putting the relevant tools in place initially minimizes disruptions to the business.
Collaborative Communication
Enabling all types of communication includes:
One way broadcast from lessor, ticket logging system by lessee.
Two-way online communication with lessee, internal teams and stakeholders with simplify interactions.
Efficiency of lease administration includes multiple elements. It is a combination of having the right technology for developing and refining
processes. Continuous training, and reinforcing the processes is required.
