Getting lease abstract services helps you to get relevant data from a lease document. This is usually signed by both the tenant as well as the landlord. Furthermore, these services have gotten enough recognition during the present time. The better these services, the more efficient your data management will be. Now, let’s understand the basic definition of lease abstraction and its role in the management of data.
What Does a Lease Comprise of?
Tenants have to sign these leases for both business establishments as well as residential settlements. With a lease abstract, you can get a summary of all the important information included within the lease, which otherwise are complicated and difficult to comprehend for laymen.
For the most part, it combines relevant data like commencement date, subletting options, the rent amount, area getting leased, and more. Go through the following points to find out the details included in a lease abstract.
- Tenant’s name
- Landlord’s Name
- Terms of the lease
- The amount of square footage leased
- Space number
- Base rent
- Percentage rent
- Documents listed for modifying the terms of the lease
Generally, the number of pages in a lease depends on the provision of both the tenant and the landlord. Hence, it could either be something between a few pages to more than a hundred pages in length. However, some portions of the lease are unnecessary, and people do not need to go through it periodically.
What is the Importance of Lease Abstract Services?
A lease is an important document for an individual not only for their understanding but also for financial requirements. Due diligence is done whenever a person buys a commercial property, and an abstract of the lease can help him understand the details that are important. It is certainly important for the buyer himself as it requires him to check the property aspects and property lease status from time to time.
The information that a lease abstract holds is the complete history of transactions and negotiations associated with the lease/property. One can surely consider it efficient for both auditing and administration of the lease throughout its lifetime.
Availing lease abstract services can be considered important for both the investors as well as the lenders. This is due to the fact that all the financial data is carefully specified in the abstract of the lease itself. Moreover, it is considered time saver for the busy people involved in the agreement.
People who have to conduct due diligence of a property can directly opt for the abstract rather than reading the entire text. In addition, a lease abstract can also be beneficial in settling the complexity of commercial property sales.
Also, a fusion of both lease abstract services and data management is highly beneficial for efficient business progression..
To summarize, we can say that lease abstraction is an efficient process to render significant, useful information from the whole lease document. There are numerous professionals currently available that help you to get precise lease abstraction services.
OHI is a fifteen-year-old real estate services company working with 50+ commercial and residential real estate developers, funds and property management companies across USA. Our deep expertise in real estate accounting, financial analysis, lease administration and asset management has helped clients cut associated costs by 40-50%. We currently provide these services to a portfolio of 50000 units across clients.
We invite you to experience leasing and accounting outsourcing through us.