Streamlining Lease Administration Processes.

Lease administration is sometimes also called lease management. It covers the process from inception of the lease through the lease lifecycle and termination i.e. recording the lease, billing and collecting dues, notifications, mid life changes, termination, renewal and return of assets. 

Focusing on documentation, leasing system capabilities, compliance and audit can help lessors enhance efficiencies by streamline their processes.

Documentation

Standardized Templates:

Use of standardized language, terms and clauses ensures consistency and minimizes errors during the drafting process. This also helps in avoiding customer specific exceptions which are difficult to track or enforce.

Digital Signatures:

eSignatures or digital signatures reduce the manual intervention during the closing process simplifying document execution.

Centralized Documentation Repository:

Storing all lease related documents in a central repository, gives the required people access to the documents they need to refer to immediately. Good document repositories have access controls and permissions to prevent misuse or accidental deletion of records. 

Document Version Control:

Applying version control is important to track changes, updates, and ensure the use of the latest agreements. At time prior versions may need to be referred to for clarification

Leasing Systems

Lease Tracking Systems:

Lease tracking systems help you manage key milestones, deadlines, renewal dates etc. minimizing manual effort and oversight.

Cloud-Based Systems:

A cloud-based system reduces the effort of maintaining systems infrastructure. With the growth and pervasiveness of the internet access and speed is not a concern.

Integration with other Systems:

A lease administration system is not stand alone. It needs to integrate with other systems e.g. origination, credit decisioning, inventory management, tax, depreciation, accounting etc. Integrations allow lessors to leverage the best solution fit for purpose.

Real-Time Reporting Dashboards:

The speed of change applies to measuring performance, evaluating options and compliance. These can be achieved with real time reporting dashboards.

Automated Cash Cycle:

Automating generation of bills, statements and collection of payments speed up recoveries and minimize eros as a result of manual intervention.

Customer  & Vendor Self-Service Portals:

Both customers and vendors require access to information immediately. Enabling self service portals reduces the impact on non value added tasks for the support team, enabling them to focus on value-added services.

Access on the Go:

Team members, customers, vendors and other stakeholders in the leasing process are expecting information on the go. Enabling them to access information through mobile or tablets they may have with them, is an effective way of addressing this need.

Automation & Compliance

Workflow Automation:

Simple and automated workflows ensure processes are complied with while maintaining speed and efficiency. This applies to approvals, amendments, reviews etc.

Notifications:

Generating automated notifications for critical and important tasks like expirations and adjustments ensure timely action and compliance.

Compliance:

Setting up a calendar to remind the relevant people of compliance deadlines is critical. The need for compliance is increasing every day. 

Audit Tools:

Audits are required by regulators, investors, and for reporting. Putting the relevant tools in place initially minimizes disruptions to the business.

Collaborative Communication:

Enabling all types of communication, including one-way broadcast from lessor,  ticket logging system by the lessee, and two-way online communication with the lessee, internal teams, and stakeholders, simplifies interactions.

The efficiency of lease administration is a combination of having the right technology, developing and refining the systems followed within the organization and continuous training reinforcing the processes.