Running an organization successfully includes management of various departments and resources. Taking care of the property where the office is setup, accounts to at least 15% of the operating costs of an organization, which is usually done by the property manager / real estate intermediary. With mounting business pressures, managing your commercial property lease and the technicalities becomes a hassle. As property managers, your tenant trusts you to manage their commercial properties seamlessly. But it is in the tenants’ interest that a lease audit be done every year during the tenure of stay in any commercial property.
Lease audit, also known as rent audit, includes the examination of all documents associated with the lease. Lease auditors help clients audit their lease (or their clients’ lease) ensuring non-violation of the terms. Many companies are now looking to outsource lease management for want of better results. Here’s a look into why should outsource your clients’ lease audit to the experts:
- Improved process efficiency – Outsourcing lease audit ensures to put better processes and procedures in place. A dedicated team will ensure all lease terms are met and revisits the terms as and when required to address deviations. Experts working on commercial real estate management handle critical lease issues ensuring clients are not charged for more than what they signed up for. With outsourcing, deadlines, renewals and terminations are up to date, reducing paperwork and load enabling the organisation to focus on the company’s growth.
- Reduced expenditure – Lease audit firms charge a nominal fee for managing your lease audit. This reduces the cost for property managers where staffing and training the personnel is concerned. Overheads of the employees is also cut down when audit is outsources as insurance and other perks are not applicable. In addition to the above, errors due to miscalculation and misinterpretations of the lease terms is reduced, hence saving unwarranted expenditure. Overcharges, unnecessary property taxes and hidden regulations are taken care of in your favour.
- Reduced risks – Having to manage various business processes, lease audit might not be the top priority for your client. This paves way to a lethargic approach. Once outsourced to a company whose reputation is built on this, necessary process is in place and thus mitigates risk. Also, to have a third party (than their own property managers) audit their leases gives a sense of assurance to the tenants.
- Improved global reach – An organization might be spread across various countries and cultures. Lease audit companies have teams working with expertise on global markets, thus avoiding the need for different teams at various locations. Further, they have the flexibility to upsize or downsize the team as per your requirement at various offices.
- State of the art practices – Since the audit companies focus on lease administration and invest on systems designed to aid them, they are likely to follow best practices in the industry today. Continuous surveys help keep track of changing trends and grow with the industry standards. Lease audit tools provide reliable data resulting in effective communication of the issues, if any.
75% of the businesses have vouched that outsourcing lease audit has not only resulted in reduction of expenses, but also cost recovery. A number of service providers crowd the market for you to choose from.
Clients approach trusted real estate intermediaries / commercial property managers, who in turn, outsource the tenants’ lease audit to expert companies such as to Springbord Systems, who have years of experience in auditing commercial property leases. The Springbord team is multi-lingual and multi-disciplinary with knowledge of several regional legal aspects. This ISO/IEC 27001:2013 certified company provides a cost-effective solution and is known to be consistent in their delivery excellence. Know more here0