Growing from 20 to 200+ locations is a huge achievement, but it also exposes cracks in operational systems that weren’t designed to handle scale.
If your lease management process was built for a small, manageable portfolio, it likely relied on a few key people, scattered spreadsheets, or shared drives. That might have worked when everything fit in your head or your inbox, but expansion changes everything.
Suddenly, that same process becomes a liability:
- Missed renewals
- Overpaid CAM and taxes (Avoid CAM Overcharges: The Essential Lease Clause That Could Save You Thousands)
- Delayed openings
- Accounting and compliance errors
We saw this firsthand with a recent client who brought us in after a major acquisition. Their real estate and accounting teams were overwhelmed, so we sat down together and walked through a list of critical items. Before your next acquisition, go through this checklist and identify any potential gaps the increase in locations may create.
1. Centralization: Are all leases stored and accessible in one place?
If your data lives in inboxes, spreadsheets, or individual inboxes, you’re exposed. Leases and amendments should be housed in a secure, searchable system accessible to real estate, accounting, and legal.
2. Abstracts: Are all newly acquired leases abstracted?
Abstracts should be created (or verified) post-acquisition to ensure you fully understand your obligations, options, and termination rights. If you’re relying on seller-provided data, be cautious—errors are common.
3. AP Setup: Have recurring and one-time charges been integrated into your accounting system?
Delays in AP setup can cause duplicate payments, missed bills, and landlord friction. Make sure your new leases are fully loaded into your rent roll, with GL codes and vendor mappings in place.
4. Critical Dates: Are renewal, rent commencement, and termination dates tracked with alerts?
Without automated alerts, key dates get missed—and missed dates cost money. Double-check that escalations and renewal windows are in your system.
5. License and Permit Transfers: Were all utilities, business licenses, and permits successfully transferred?
Don’t assume everything transferred post-acquisition. A missed alcohol license renewal or expired health permit can shut down a location. If you’re wondering about the impact, check out Why Outsourcing License and Permit Renewals is a Smart Move.
6. ASC-842 Compliance: Are your accounting teams ready for remeasurements?
If you’re managing lease data separately from your accounting software, you’re likely doing remeasurements manually—or not at all. That creates risk for audits and compliance.
7. CAM and Tax Audits: Are you auditing occupancy costs across all locations?
New landlords, new reconciliation terms. Auditing CAM and tax passthroughs is critical to avoid overpayment.
8. Landlord Communication: Who owns the relationship?
As your footprint grows, someone needs to manage landlord touchpoints, renewals, repairs, overcharges, etc. If this is split across departments, you’re likely duplicating effort or missing opportunities.
9. Project Integration: Are remodels and new builds tied into your lease system?
For organic growth, make sure your development pipeline integrates into your lease management process, so a construction milestone doesn’t trigger rent before the site opens. And if you’re planning an acquisition, don’t miss Who’s Handling License & Utility Transfers After an Acquisition? We’ve Got It Covered.
Why It Matters
Unchecked, these gaps lead to:
- Surprise escalations or penalties
- Payment errors and audit risk
- Delays in openings or rebrands
- Poor landlord relationships
- Inefficiencies across real estate, legal, and accounting
In short, they eat into your margins and slow down your growth.
How Property Works Helps
We specialize in helping multi-unit operators handle exactly these challenges. Our platform and team handle:
- Full lease abstraction and AP integration
- Critical date tracking and alerting
- ASC-842 reporting and remeasurements
- License and permit renewals
- CAM and real estate tax audits
- Development project integration
Whether you’re onboarding 20 new leases or 2,000, we’ll help you scale without falling behind operationally.
