Lease administration is a key component of commercial real estate, but there is very little available information on it. Searching for lease administration produces plenty of advertisements and a vaguely worded Wikipedia page, but what actually is lease administration? This month, we are breaking down what exactly lease administration means and who needs it.
Components Of Lease Administration
Lease administration is not simply a “one and done” task. ROI offers a la carte lease administration services, depending on what you and your business need. Share what your business’ needs are and we can help. While we can’t tell you exactly what every business needs, there are a few common components.
CAM Reconciliation
CAM stands for “common area maintenance”. CAM charges are fees that landlords add to rent statements in order to ensure that tenants are all contributing to the cost of common areas. Many tenants are frustrated at these costs and want to find a fairer middle ground. CAM reconciliation services help find that middle ground and save tenants money.
Lease Abstract
A lease abstract is a summary of a lease that pulls the most important bits out of the complicated legal language and frames them in a comprehensible manner. It is a huge time saver, often trimming down a one-hundred-page legal document into a two-page summary. Both landlords and tenants benefit from lease abstraction, as it provides quick feedback for all parties on any disputes.
Key Date Monitoring
Tenants and landlords both worry about missing important dates. From payment schedules to legislative changes, there are plenty of important dates in commercial real estate leases. Take the pressure off by having someone there to alert you of upcoming key dates.
Rent Escalator Balancing
Rent escalation is a provision in many leases in which a landlord is permitted to raise the rent annually. Escalation is limited to a specific amount annually. However, many retailers do not realize how much escalation impacts their bottom line until they experience it for themselves. Rent escalator balancing is a service that tries to counteract the negative impact that escalation has. We work with your business to find places in your lease that help you save money, thus balancing the escalating rent.
Who Needs Lease Administration?
Nearly everyone dealing with commercial leases can benefit from lease administration services.
Landlord
Busy landlords who juggle multiple properties find lease administration services very helpful. Lease administration services handle everything from sending out monthly invoices to collecting rent to creating the annual CAM statements.
Retailer
For retailers wondering if the expenses they’re paying are truly their responsibility, lease administration is very helpful. We can help determine what expenses are truly your responsibility, as well as assist with CAM Reconciliation.
