Post on 15-Jun-2015
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What is Lease Administration?
(other than lots of paperwork)
What is Lease Administration?
• Lease Review and Abstracting
• Accounting and Processing
• Lease Audits
• Information Management and Reporting
Paraphrased from Wikipedia entryhttp://en.wikipedia.org/wiki/Lease_Administration
What is Lease Administration?
18%
17%
14%13%
13%
12%
6%7%
Allocation of lease administration staff time
Reporting (18%)Abstracting (17%)Accounts Payable (14%)Budgeting/forecasting (13%)Desktop Reviews (13%)Accounts Receivable (12%)Property Taxes (6%)Other (7%)
Figures quoted from Deloitte 2010 lease administration benchmarking survey
Who are Lease Administrators?
Who are Lease Administrators?
• Tenant Side
• Landlord Side
• 3rd Party (for either side)
Who are Lease Administrators?
Tenant Landlord
3rd Party
3 years: 3rd Party (Tenant)
3 years Landlord-Side
3 years 3rd Party(Landlord & Tenant)
Miles Baltrusaitis
Sr. Associate
“In the wake of the corporate scandals
of the 2000s, increased regulations
have created an elevated focus on the
accuracy of financial statements and
the strength of control systems.”
Why Lease Administration is “Key”
- Scott Tibbo, Expense Management Solutions
“In large organizations, lease
administrators are responsible for
ensuring the accurate administration
of millions of dollars each month.”
Why Lease Administration is “Key”
LANDLORD LEASE REVIEWS
TENANT LEASE AUDITS
66% result in cost reduction
~50% result in cost reduction
Figures quoted from Deloitte 2010 lease administration benchmarking survey
How is Lease Administration Done?
How is Lease Administration Done?
Reporting & Auditing
“System” data used to create reports
Reports compared to Leases for Audit
Payment Processing & Accounting
AP / AR CAM / OPEX calculations
Lease Reading, Abstracting and Review
Identify key financial & legal data Enter data points into “system”
Lease Administration: Step Up from Word & Excel
Step Up from Word & Excel
Aww, Do I have to?
Step Up from Word & Excel
INDUSTRY RESISTANCE
“20% of companies performing lease
administration said they use Excel or
Access to handle lease administration,
rather than software specifically
designed for the job.”
Figures quoted from Deloitte 2010 lease administration benchmarking survey
Step Up from Word & Excel
VARIABLES TO DETERMINE “SYSTEM”
1. Feature Requirements
2. Size of the portfolio
3. Integration requirements (Financial Systems)
4. Ease of Use
Step Up from Word & Excel
• FEATURE REQUIREMENTS- Reporting
- How sophisticated/detailed do you need?- Subject to SOX?
- Document Management- Scanning Lease Documents?
- User Efficiencies- Snippets- Templates - Custom Checklists
- Accessibility- Offshoring/outsourcing- Real-time live data sharing over web
Step Up from Word & Excel
• PORTFOLIO SIZE– Dictates Amount of Workflow and Staff– Desktop Apps do not scale well
• Ever try stitching an Options Report from 600 Excel Abstracts?
Step Up from Word & Excel
• INTEGRATION REQUIREMENTS– Synchronize Financial System data– Avoid re-keying to save time/reduce
errors
Step Up from Word & Excel
• EASE OF USE
– Getting Started vs. Gaining efficiency
– What is staff turnover rate?
Owners managing 250 leases or more had 41% staff turnover in 2009.
Tenants managing more than 100 leases had 42% staff turnover.
Figures quoted from Deloitte 2010 lease administration benchmarking survey
HOW DO WE KNOW ALL THIS?
Three Facets of Realogic
Consulting
SoftwareTraining
How realogic is involved
Consulting
Lease Abstracting
Lease Administratio
n
Software Training
Commercial Lease Fundamentals
Current Solutions
Web-Based Abstracting & Administration
Web-Based Budgeting & Reforecasting
Excel Add-In for ARGUS data Analysis & Reporting
Synchronize accounting data with ARGUS Valuation-DCFTM
• One system for entire asset life cycle
• Reuse data in your Accounting System
• Abstract Non-Lease agreements
• Improve accessibility with web distribution
• Increase efficiency with standardization
• Integrated with accounting systems
• Less re-keying improves accountability
• Audit features let you know data origin
• Finish sensitivity and stress assets quickly
• Imports ARGUS-DCF data into Excel workbook of reports
• Analyze individual assets or portfolios
• Improves analytics with reports ARGUS can’t provide
• Synchronize accounting data with ARGUS-DCF
• Available for one-time conversion or ongoing
• Stand-alone or with
Thanks for coming!
http://realogic.net