Lease abstraction can impact the business in strategic ways

SKJ Juris Services Pvt. Ltd.Management

Apr 22, 2020 (2 months and 19 days ago)

79 views

Lease Abstraction- The process of extraction of critical as well as vital information and dates from huge sets of rent/ lease agreement for better comprehension. Lease abstraction has become immensely popular amongst the real estate tenants and landlords, both individual and corporate and has a very good track record for providing great returns in business. But how will a process of filtration of information help to impact businesses?

Lease abstraction can impact the business in strategic ways

Lease Abstraction
-

The process of extraction of critical as well as vital information and dates from huge sets of rent/
lease agreement

for better comprehension. Lease abstraction has become immensely popular amongst the real estate
tenants and landlords, both individual and corporate and has a very good track record for providing great returns in
business. But how will a process of filtr
ation of information help to impact businesses?

What does
Lease
abstraction

help firms with?

Lease
abstraction aids firms
to
encapsulate the financial as well as legal terms and conditions
of
a
le
ase with important
dates and relevant clauses. Tracking all of them through voluminous records entices higher probability and larger human
errors into play. This is why the lease abstracts are such an asset to the company if they have been outsourced by a
third
-
party and reviewed numerous times.

How Lease Abstraction will lay an impact?



Efficacious Property Management: A firm that holds more than one real estate is more prone to skipping critical
dates of properties. A proper record of all the properties in

a more compact manner will lead to minimizing
chances of incurring any kind of penalty, or legal action. Through this, firms can avoid termination of contracts,
sudden evictions, and relocations which hamper their business adversely leading to better prop
erty portfolio
management. An outsourcing firm sometimes acts as a firm’s property manager too, if required.



Improving efficiency: If lease abstraction is outsourced to an experienced third
-
party, the workforce which
needed to be devoted in this hectic and

time
-
consuming task can be utilized for devising growth plans for the
firms, or daily routine tasks, improving the efficiency manifolds. Outsourcing will help in quick delivery of the
abstract in a much shorter period with better quality assured. Employin
g experts always improves the efficiency
of the processes.



Cost
-
efficient: Lease abstraction needs huge investments of time, resulting in more pronounced expenses. Also,
this process can’t be carried out by untrained professionals, so training will pile up

the expense further. On the
contrary
,

outsourcing firms specialize in these domains through the integration of the latest technology and well
trained and experienced team of professionals delivering great quality every time with much lesser costs.



Audit:
The outsourcing firms just boil down the facts as in the agreements. They conduct a proper audit of all the
new and old properties, ensuring that there is no abnormality involved. These audits can be done periodically
which can be customized by the mutual
agreement of firms and outsourcing companies with satiating other
financial reporting requirements if any.



Capitalization of reports: Through the regular and periodic reports of real estate, firms can optimize their plans.
They can identify the over
-
perfor
ming assets from underperforming ones and respective measures are taken.
Diversifications and strategies are largely influenced by these reports.

Apart from the above
-
mentioned
benefits
, lease abstraction helps to find out terms and conditions which have h
igh
intrinsic and ethical value
that can be
utilized in future acquisitions. The clauses in event of any misfortune/ damage are
also the picks from the abstract, which have a deep impact on realization and minimization of losses. Moreover
,

getting
in touch

with a good lease abstract outsourcing firm will help firms to compare their terms with the market and adjust
according to them. One of such prominent firms which have an impeccable record in providing lease abstraction services
is
SKJ Juris
.