Property Works explores the differences between business operators’ perceived needs and their actual must-haves in lease-management software
When it comes to being a multi-unit business operator, keeping tabs on data for every property can seem like an uphill battle. The problem is made worse by relying on rigid spreadsheets which are not shared between departments.
Here, Property Works takes a closer look at the disconnect between what business operators often think they need from a lease-management software versus the features that are truly the most beneficial.
Lease-Management Software vs. Excel
The most popular spreadsheet application is, of course, Excel. It is familiar to many of us; in fact, a PWC survey found that 54% of those surveyed utilized desktop applications (spreadsheets) to account for their leases. Truth is, unless you only have one or two leases to manage Excel does not offer sufficient reporting and tracking capabilities to ensure your business remains compliant and no data slips through the cracks.
“Many times, clients depend on Excel because they started out small,” says Trisha Cuda, Property Works’ Vice President of Operations. “But as they grow, and they’re tracking on an Excel spreadsheet all of the critical data, their payments, scheduling—things get missed. And that’s where you start to get in trouble.”
Many complexities come with lease management such as the need to accurately track base rent, CAM, insurance, taxes, abatements, deferrals, lease schedules and reconciliation reports. Business operators should be able to modify entire reports based on new agreements, as well as easily audit reports. This is why utilizing a software specifically built for lease management is so important. Property Works offers a fully customizable software system and suite of services to ensure everything lease related stays on track.
“We read every single piece of data, then put it into our software to make it function,” Cuda says, “so you can glean all of these important things without having to read a million pages.”
This type of flexible technology platform will not only provide automated alerts so you don’t miss critical dates and dollars, but save your company precious time, money, and resources. By housing all of your properties’ data in a streamlined place, business operators can better understand their financial position as a whole, and in so doing make more sound decisions for the future.
Beyond Software Expectations
What is it that most business operators think they need from lease management software, as opposed to what would actually benefit them the most?
The answer, says Cuda, is two-fold. Lease-management software such as Property Works’ should not only offer the basic alerting system clients want most, but a portfolio-wide consolidation of the accounting and real-estate departments.
“What really saves companies money and takes them to the next level is the integration of accounting with real estate,” says Cuda. “Using our software, you can dive into the data of either the accounting or real-estate side of your entire portfolio in one centralized platform.”
Additionally, business operators often believe that all they need from their software is a way to track upcoming payments and due dates. While such capabilities are paramount, businesses also heavily benefit from from the following features:
- Separation of Non-Lease Costs: Managing properties not only comes with lease associated fees like base rent, but also with non-lease components such as insurance, property taxes franchise agreement royalties, etc.
- Tracking of New Lease Terms: With abatements and deferrals on the rise, business operators should be able to accurately track new lease terms, pause rent midstream, and create unique repayment terms.
- ASC 842 Compliance: Sophisticated software should enable you to track and calculate finances for ASC 842 compliance, insurance requirements, and overall lease accounting across your portfolio.
- Generation of Auditable Data Trails: Consistent calculations and portfolio-wide data consolidation remove the risk of human error and make disclosure easy.
Many business operators may be under the impression that lease-management software is too expensive. The truth is that the cost of such technology is well worth the reduction of compliance risk, missed payments, staff time and department separation.
“Having all of your data in one place, where everyone in your company can go in and see the same information, is vital,” says Cuda. “It is always up to date. No one is duplicating their efforts.”
And unlike other lease-management companies, Property Works will never offer an attractive entry fee just to trap clients in costly and hard-to-escape contracts. Rather, we work closely with you to deliver on-demand and fully customizable solutions with transparent pricing.
Ultimately, having reliable lease-management software is vital to running a successful multi-unit business. The importance of tracking finances portfolio-wide, reducing risk, forecasting expenses, and analyzing your data in one comprehensive platform cannot be overstated.
Request a Demo
Reach out to Property Works to schedule a demo. Our team is available to answer questions and work to develop a solution that best fits your business.