The U.S. Bureau of Labor Statistics (BLS) foresaw projections for Lease Administrators to grow at a faster than average rate of 10% from 2016-2026. Interestingly, Real Estate Sales Agents were projected to experience a 6% rise in jobs in the same period.
Very few businesses possess in-house, a lease administrator’s expertise. Setup from scratch would take significant time and capital. To carry out this specialized function; outsourcing to those who follow the industry closely would be a more efficient way to manage portfolios.
The Lease Administrator has found its niche in the administration world of commercial real estate, where a shortage in communication was starting to make itself felt. Critical to Operations and Accounting teams, the Lease Administrator works closely with the Property Management team to focus on specialized tasks the others couldn’t do as effectively.
A Lease Administrator supplements actions that go beyond the view of the other teams. They range all the way from Property Performance to the Defaulters List and continue well unto Documentation and Legal reviews. Included in the responsibilities are:
Lease Audits, Renewals, & Amendments and Critical Lease Dates.
Accounting and Processing, Insurance Notices, Document Storage & Maintenance, and Lease & Rental Reviews.
Lease Abstracts, Letters of Intent, Client Estoppels and Interpretation of Lease Language, Terms, & Conditions.
Common Area Maintenance Charges, Occupancy Cost Analysis, Operating Expense Review, Monitoring Rental Payments, Arrears, etc. and all actions that impact Cash Flow.
Communication with tenants, Solving tenant alterations, Repairs and Maintenance, and Defaulters’ List.
These tasks hint at an experienced professional honing several skill sets. A good lease admin doesn’t need to be a polymath, just a good administrator in its truest sense. Here’s what to look for:
A well-integrated system of lease administration includes the tools and tech that streamline the process into a smooth pulse.
Initially, tenant-oriented software began in the early 1980s. Developments now have us armed with advanced lease administration systems based on cloud software applications. These are the ones that provide a web-based platform (usually priced on a subscription basis with minimal capital expense cost and monthly/annual fees).
Their extensive functions such as Charting, Mapping & Demographics; Projects, Contract & Asset Management; Business Intelligence Reporting; Database and Document Library; and Industry Updates can greatly advance your footing in Real Estate. Interestingly, there has begun an increase in the adoption of software systems by both tenants and landlords since 2010.
We’ve established how critical it can be to the firm’s future in real estate when it has the power of Lease Administration integrated into their system. In addition to points above, the traditional necessities of having a lease in perfect order; like the security of original hard copies and their vaulting; is solidified through the role of a diligent lease administrator.
Being one of the most exciting roles emerging in real estate today, you may start analyzing your firm’s standing and future based on this special department that you either have or must have soon. We look forward to assisting you every way we can.
Contact us for a customized NO OBLIGATION proposal for outsourcing your accounting activities.