For multi-unit operators, back-office teams often operate in silos. This can be especially true when it comes to lease management, leading to inefficient workflows and the potential for costly mistakes.
The Problem: Solutions Focused on One Department
The issue frequently arises from a single department, like accounting, choosing a lease administration solution. This solution might meet their specific needs for generating financial reports and ASC-842 schedules, but it neglects the broader picture. Other departments, such as accounts payable (AP), real estate, legal, and facilities, are left scrambling to find workarounds or implement their own separate solutions. This creates a fragmented system with:
- Redundant Costs: Multiple software subscriptions and vendor relationships can inflate expenses.
- Data Discrepancies: Information scattered across different systems increases the risk of errors and inconsistencies.
- Wasted Time: Chasing down information spread across multiple platforms hinders productivity.
The Solution: Collaboration and a Unified Approach
The key to efficient lease management lies in open communication and a collaborative approach. Here's how to facilitate a conversation between your back-office departments to improve your lease data management:
1. Define Your Needs & Pain Points:
Start by gathering representatives from accounting, real estate, AP, legal, and facilities. Each department should come prepared to:
- Identify their specific needs and daily tasks related to lease management.
- Outline their pain points with the current system (or lack thereof).
- Brainstorm ideal functionalities in a new solution.
2. Focus on Collaboration, Not Competition:
This is not about one department dictating the terms. Encourage open discussion and emphasize the benefits of a unified system. Consider:
- Cross-departmental workflows: How can the solution facilitate communication and handoffs between departments?
- Data Accessibility: How can everyone access the information they need easily?
- Reporting & Analytics: How can the system generate reports that benefit all departments?
3. Identify Core Functionalities:
Based on the discussion, create a list of core functionalities that the ideal lease management solution should possess. This might include:
- ASC 842 compliance and financial reporting tools for accounting.
- Critical date tracking and lease language interpretation for real estate.
- Rent and CAM processing capabilities for AP departments.
- Occupancy cost auditing and CAM reconciliation for real estate teams.
- Easy access to lease documents for legal and facilities teams.
4. Prioritize Efficiency & Eliminate Redundancy:
The goal is to find a single, comprehensive solution that addresses everyone's needs. This eliminates the need for multiple software programs and vendors, streamlining workflows and saving money.
By facilitating these conversations and prioritizing a collaborative approach, you can break down departmental silos and achieve efficient lease management. This will not only save time and money but also empower each department to make better, data-driven decisions.
Bonus Tip:
While researching solutions, consider functionalities that grow with your business. Look for software that can accommodate future expansion and evolving needs.
Remember, open communication is key to building a system that works for everyone!
Property Works has been an industry leader in real estate and lease portfolio management for over 20 years, providing support to companies with multi-unit locations across a range of sectors including restaurant and retail. Since 1996, we’ve handled the portfolios of numerous Fortune 500 companies, as well as small businesses.
Contact Property Works today for more information on the benefits of partnering with us.
