The situation can become confusing quickly, even when managing a single lease. For managers and business owners who deal with multiple leases at a time, it's easy to imagine how things can get out of hand. Maybe you are dealing with the effects of handing complicated commercial leases and realize the strain it can put on a business? For those without a specialty in law, navigating lease documentation in order to get to the important bits can be very straining. Sifting through the "legalese" and finding the key information pertinent to your business dealings needs to be simplified. Luckily, there is a process called lease abstraction that can help out in this respect.
What is Lease Abstraction?
By definition, lease abstraction is the process of distilling complex lease documentation down to the important bits for any lease. It tells you what is essential in a lease document and why this information is relevant to your operations. Simply put, it's the "what" and the "why" of lease documentation.
A lease abstract gets to the main points of a lease quickly without sacrificing detail. Abstracts can be done by a professional lease abstraction team, but it doesn't have to be complicated. A lease abstract is only as valid and effective as the information you put into and take out of it. Therefore, take time in understanding your lease responsibilities and what the lease document means before doing any lease abstraction work.
What is in a Lease?
The lease abstract process is all about understanding the lease document and what it means. Prior to any lease abstraction, leases should be read thoroughly and understood as best as possible. This can take time and there are often multiple lease documents; the lease abstract information might not be applicable to every lease that you draft up. Lease abstractors must fully understand lease responsibilities, for both the tenant and property owner.
The lease abstract process will distill the most important and frequently used lease information in an easy to read format. It's not meant to be a summary of every lease responsibility, just the main ones that are most important for your business purposes. Lease abstractors will focus on lease dates, terms, lease conditions, lease obligations and lease options. The primary goal of this process is to make financial data, lease clauses, important legal info, expiration dates and more easily digestible so you do not need to become a legal expert to make an informed decision regarding your lease portfolio. Complex leases are broken down into an abstract to make it easier on managers and those who frequently interact with them.
Lease Abstracts: The Details
From there, lease abstractors will distill key information about each of those lease responsibilities into easy to read bullet points that tell you what's important and why it is relevant to your business operations. These pieces of information are then presented in a succinct format that can be referenced at any time.
Lease abstracts can be done by lease abstraction software, lease abstract teams or on one's own with lease contracts. Each option has its merits and drawbacks. For example, some SaaS lease abstraction solutions don't offer enough detailing to replace a lease abstraction team or more complicated lease abstract work. One must consider the job they need to be done, the cost of each option and what they have time for before deciding on digital lease abstraction solutions or working with lease abstract teams.
If you need lease information simplified and abstracted for your business, whether it's lease responsibility or lease dates, consider hiring a team well-versed in lease abstraction to get the job done. iLease Management offers a lease abstraction service to capture all the key data from your hard copy leases into a format that can be then manually entered or programmatically imported into the iLeasePro lease accounting and lease management solution.
What Are The 4 Steps in the Lease Abstraction Process?
iLeasePro follows a 4-step lease abstraction process in order to obtain the best and most useful results for users.
Definition of Requirements
- This steps kicks off the process. The client works with an iLease Management specialist to determine custom requirements. They are matched with a lease abstraction project lead who guides them through the collection of critical information and the timeline of deliverables.
Acquire Lease Information to Abstract
- Next, the client provides the critical lease documents. This is done easily and securely through the iLeasePro portal, or shared drives of their choice. Our lease abstraction support services are here help and address any questions you might have about specific provisions.
Creating Lease Abstracts
- Now the real work begins as iLease Management experts begin the lease abstraction process. Our team reviews and lets the client know about any missing documents they'll need to provide. Once the basic information is provided, the iLease Management expert will then provide a sample abstract with the client for review. All relevant information, critical dates, and key lease data are included. The abstract offers key points of the client lease documents in simple, easy-to-follow language. All throughout this progress, the client will meet with the iLease Management point of contact to discuss key data points and essential elements of the process. This saves time on both fronts and is an essential component of our lease abstraction services.
- The final step of our lease abstraction services. After your lease documents are reviewed and properly abstracted, final abstracts are delivered in the format defined during Step 1. Our lease abstraction support services are always available after final delivery to ensure completion of the project and that client needs are met.
How Does Lease Abstraction Integrate with Lease Administration Software?
For clients using or looking to use iLeasePro as their lease administration software, our lease abstraction process works hand-in-hand with existing systems. We make it as simple as possible to manage your entire lease portfolio. Our experts work to understand critical data from your lengthy lease agreement and take on the time consuming task of extracting key information for you. Then when the abstract of your commercial lease documentation is complete, it is added to the template of your choice, whether that be iLease Pro, another lease management solution, or in a Microsoft Word or Excel document in an access database.
Work with iLease Management on Your Lease AbstractContact Us
When it comes to working with lease abstraction professionals, look no further than iLease Management. Our lease abstraction services are available for all lease types, on both the personal and commercial side of your leasing needs. Whether you're looking to lease an apartment or lease a tractor trailer, we've got you covered. We offer lease abstracting services in every state across the country and understand what it takes to help our valued clients. For questions, our lease abstraction support services are always available. Please reach out via our online contact form. We are always happy to help.