Besides being critical to the core of your business, real estate and associated costs can be one of the most significant line items on your profit and loss statement. Failing to properly manage your leases could result in a loss of thousands or even millions of dollars. Whether it be verifying your Common Area Expenses (CAM) or monitoring your lease renewals or benchmarking your costs to peers, the professionals of Florida ROI can help guide you on the path.
What is a lease abstract? It is a summary of an individual lease, which highlights the key points of the lease such as renewal rights, parking, rent increases, expiration, CAM charges, etc
Why do I need it? Lease abstracts can save you time when you need to know the details of the lease. It is a lot easier to survey a 2 page summary than read a 90 page document to find lease specifics, such as items that are included in Common Area Expenses (CAM) or when/if you have renewal options.
What does a lease abstract cover? Everything from monetary obligations (base rent, security deposits, CAM expenses) to special clauses (easement overview, parking rights, which party is responsible for cost of repair or addition to building structure) and key dates (lease term, anniversary, renewal notice, termination notice)
Is this a service for Landlords or Tenants? Both. Some of our landlord clients are not interested in or have determined it is not cost effective to maintain personnel to monitor leases. The reason is similar with our tenant clients. Hiring internal employees to perform lease administration has additional risks (i.e. the individual with all of the knowledge ceases employment and takes that information with them. This could lead to missing key dates before their replacement is fully trained on the operations of your business).
What about CAM reconciliations, key date management? Do you assist us with this as well? Yes, please see below. These are additional services we offer outlined below (Lease Administration)
Is there ongoing support for a lease abstract? If you need ongoing support, please see our Lease Administration Services, below
Please explain what is covered with your lease administration services. This is an a la carte service. The most common services requested are annual assistance with CAM reconciliations, key date monitoring, rent escalator balancing, HVAC vendor supervision and benchmarking costs across the industry to compare your location costs. Tell us your needs and we will craft a custom plan for your business.
Do you save your clients money? In many instances, YES! This is particularly true with annual CAM reconciliations. Identifying improperly charged items are savings we have identified with clients, along with other items, such as real estate tax recapture, HVAC monitoring and industry average benchmarking, to name a few.
