Lease abstraction is a valuable tool for investors who own more than one commercial rental property in Murray, Utah. They help you get an overview of your properties' performance so you can manage them better.
The process involves compiling a lease abstract for each property. These documents simplify and condense pertinent parts of the lease agreement.
It's easy to understand a lease abstract, but it's not so simple to put one together. Most landlords hire lease abstraction services to do this part for them.
Read on to find out why you should consider this property management service, too.
Better Use of Your Resources
The lease abstraction process includes several detailed and complicated steps. These are:
- A comprehensive review of lease documents
- Identifying key clauses, terms, and conditions
- Summarizing complex language into simple terms
- Categorizing information under various headings
- Compiling the lease abstract
- Review and verification process
It's important to review and update the lease abstract regularly, especially when you amend the lease or in cases of legislative changes.
Hiring a lease abstraction service means you don't need to use any of your in-house resources to carry out these time-consuming steps.
More Accurate Data
Any error involving personal, financial, or technical data when analyzing commercial property lease abstracts can cause major problems. Professional lease abstraction services have the expertise, experience, and sophisticated software to avoid these mistakes.
Compliance and Confidentiality
Lease agreements contain sensitive personal and financial information related to your rental property. Lease abstraction services offer a confidentiality guarantee to protect you from damaging data leaks.
You're also assured that your leases will be vetted in line with prevailing standards, like ASC 842, GAAP, IASB, and more. A lease abstraction service can reveal any non-compliance and help you get back on track.
Lease Abstraction Services Save You Money
Lease abstraction services might seem costly upfront, but they can save you money in several ways.
For starters, you won't need to pay for lease abstraction training for existing personnel or face costly time delays while inexperienced workers attempt to complete one of these complex analyses.
Greater accuracy ensures you avoid delays due to errors, omissions, or miscalculations while planning a strategy.
What Can You Learn From Lease Abstraction?
Professional and accurate lease abstraction has several benefits for commercial property landlords. This information can help you:
- View critical parts of a lease at a glance
- Compare leases more efficiently and effectively
- Detect missing information or inconsistencies quickly
- Plan for lease extension terms more effectively
In short, lease abstractions help you focus on key deadlines, clauses, and obligations that significantly affect your business.
Get on Track With Lease Abstractions
Lease abstractions are a critical procedure for multi-property commercial landlords. Lease abstraction services help streamline this function and ensure accuracy, cost savings, and data security.
PMI Wasatch Front can help you enjoy the benefits offered by this business tool. We are supported by over two decades of real estate experience.
We also offer a full range of property management services, including financial and reporting functions. Speak to a property manager today to find out more about lease abstraction services in Murray, Utah.
