Lease abstraction is an important function for any entity with a portfolio of real estate leases, whether industrial, office, retail, residential, or any combination of these types. However, it can be challenging to know whether your lease abstraction results are providing the information needed to effectively evaluate those leases and take action when warranted.
When they’re done well, lease abstracts capture key data from leases, amendments, renewals, schedules, and related correspondence, helping ensure deadlines and obligations are met. However, if data in the lease abstraction isn’t complete or accurate, it can result in missing key dates and deliverables that can increase risk.
Quality Control and Auditing Steps Are Critical
The only way to truly validate the data in your lease abstract results is to have quality control, auditing, and proofreading measures in place. For companies trying to handle what can be a time-consuming and labor intensive process in-house, quality control and verification processes can add significantly to legal costs. Additionally, handling these tasks internally typically means using employees whose primary job responsibilities lie elsewhere. This can lead to inefficiencies as in-house experts are diverted from their other strategic responsibilities.
Firms that choose to outsource lease abstraction realize the benefit of experienced lease analysts and other real estate professionals who are well-versed and experienced in performing the abstraction and validation processes. This leads to efficiencies in turnaround time and processes, cost savings, and quality of the final abstract product.
Regardless of the data output method, lease abstraction results validation should leverage systems and quality control measures to ensure that critical dates and financial information are accurate.
Baer Reed’s expert real estate legal team is experienced and skilled, both at performing lease abstract services, and at validating the results of the abstraction process. To learn more, contact us online or call us at 1-888-433-1990 today.
- On January 8, 2019
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