Managing the lease lifecycle process can not only be a costly drain of your organization’s time and vital resources, it can also be a major liability if not done effectively. As it stands today, the disjointed process is fraught with issues since it remains primarily paper-based and not collaborative in nature. In fact, according to a survey conducted by PwC, 39% of companies still manage their lease agreements and related accounting in this decentralized manner.
In this blog article series, we will explore the top five pain points that many of us encounter on a regular basis with regards to managing the lease lifecycle. Over the next few weeks we will dig deeper into each pain point one by one and discuss how technological advances can help solve and lessen frustration with these complex, time consuming processes. As an introduction, here is a synopsis of those pain points.
#1: Juggling the “Right” Opportunities
Depending on your side of the business, finding the right tenant or the right space to lease is absolutely critical to your success. Without a proven game plan to effectively identify and assess potential tenants or sites, you can wind up spinning your wheels, literally, as you drive from location to location trying to gather and organize information. In what ways can technology help to improve your ability to make confident decisions regarding whether to pursue or pass on that next big opportunity?
#2: Due Diligence Misses
Buyer’s remorse, whether large or small, is an unfortunate situation that everyone in this business has encountered multiple times over. While it is painful in and of itself, it is even more so when we know we should have figured it out or avoided it entirely earlier in the process. How can technology help you to align your organization’s needs in the due diligence process? Is it possible for issues be uncovered earlier in the process so that painful, costly lessons can be avoided?
#3: Who’s on First?
The second law of real estate after “Location, Location, Location” is “Time Kills Deals.” However, we are all busy and to make any money in this business we must have multiple irons in the fire in the hopes that some deals are made. Understanding where you are in the process across multiple deals can be a challenge. What ways can technological advances in the real estate industry help us to overcome these challenges and more?
#4: Missing Key Dates
With in-place leases, the penalty for missing a key date (such as a required notice provision or a renewal option) can be severe. While keeping track of every key date for all of your leases in your portfolio doesn’t need to be overly complicated, it does need to be done right. Can automation help to alleviate these challenges? And if so, how?
#5: Losing Track of the Big Picture
With the vast amounts of data in our businesses, it can be difficult to get a comprehensive and accurate view of many aspects of our operations. While we know it would be a “good” idea to leverage that valuable information, it can be a challenge to harness it in ways that will lead to valuable and actionable performance metrics. What can reporting tools do to help you get a complete picture of your financial and operational position? In what ways can those tools enable you to gauge your performance overall so that you can make better business decisions?
Watch for our first installment in this series to be published in the next few days. Want to explore this topic sooner? Click here to schedule a Discovery Call with our experts to find out how Common Areas can help you simplify and automate your lease lifecycle management process and help alleviate some of these common pain points.