What is lease management?
Lease management refers to all the activities involved in running a portfolio of properties and their associated tenants, but can also involve lease portfolios of vehicles or products. The process can involve a broad range of necessary tasks to satisfy stakeholders and tenants/customers and keep to the terms of the lease.
A lease is written up and finalised using several steps:
Creation and procurement - This involves drawing up the terms of the contract and gaining approval from senior stakeholders.
Storage - The completed draft of the lease is stored securely for future use.
Abstraction - Each lease is summarised in a quickly readable format for ease of use, including information such as the address and serial number.
Onboarding - The property or product is readied for use, and the customer details are inputted and any alterations are discussed. Practical tasks like exchanging keys happen here.
Once a lease has been completed and is in use, there are even more tasks that need carrying out. Some of the most common include:
Terminations and renewals
Lease audits can be a useful way to verify whether all invoices have been paid, or even if there are any overpayments, as well as providing information on the leasing process across your entire portfolio. This can be useful when deciding whether to expand your portfolio, when budgeting for the future, and when planning advertisements for future tenants/customers.
These lease management tasks may be the job of one person, such as a real estate manager or equipment manager, or there may be a variety of people whose role involves some degree of lease management.
Whether this role is filled by one person or is more collaborative, the right lease management solution can help make the process simpler.
What is lease management software?
Lease management software is a way to store information about leased properties or equipment all in one place, including all the necessary financial, legal and general information associated with it.
Whether it’s property management software that’s used to manage a real estate portfolio, or software for equipment lease management, the right software can save you time and money.
Some features that are common to most types of lease management systems include:
Cloud information storage
Secure document storage
Virtual signature and verification options
Safe document transfer
Specific property management solutions may include more sector-specific features for real estate investors. Options for processing macro property data, like floor plans and square footage, can be useful for property managers, and operating information such as staff and workspace data can be useful to include for commercial property management.
Lease accounting software is useful for controlling outgoing costs, such as property/equipment procurement and maintenance, and incoming payments. There is often the option to integrate this software with your pre-existing spreadsheet system. This software helps you comply with lease accounting standards such as ASC 842.
What lease management software is on the market?
There are a variety of highly-rated lease management software options available on the market. Depending on your specifications, some may be more suitable than others.
Nakisa lease administration
This management solution is accounting software with additional reporting capabilities. It aims to streamline the lease accounting process and is big on regulatory compliance with IFRS 16 and ASC 842.
This asset management software is aimed at mid-sized organisations and above, and isn’t sector-specific; it’s suitable for real estate assets, vehicle fleets, equipment and more.
ZenTreasury lease accounting
Another asset management solution with a focus on lease accounting, ZenTreasury is a cloud-based option that helps you achieve IFRS16 compliance whilst dealing with all your accounting and portfolio management needs in one place.
Their IFRS16 calculations have been validated by an international audit firm.
For management software designed to simplify the lease management process that’s suitable for a variety of sectors, this is an option to consider.
AppFolio property manager
If you’re looking for cloud-based property management software built for property managers, AppFolio could be for you. Whether you run a portfolio of corporate real estate, or your focus is on residential-based property management, this software is designed to help.
This software solution includes features for virtual property inspections, online applications, and a host of other application-based lease management features that save you time.
If you specialise in commercial real estate, or manage a portfolio of 50+ properties this could be the tool for you.
This is software aimed at real estate lease managers that want to access their portfolio information from anywhere at any time.
Their lease management software also focuses on accounting compliance, including IFRS 16 and ASC 842.
Commercial leases and multi-family residential properties are their specialties.
This company has designed their software for organisations focused on gaining lease accounting compliance as quickly as possible. They can help with ASC 842, GASB 87, and IFRS 16 compliance.
With capacity for real estate, equipment, and fleet management, this platform is suitable for a variety of sectors.
Visual lease prides itself on providing top-quality customer support and training.
How do I choose one lease management platform?
With so many options to choose from, it’s difficult to decide which type of lease management software is best suited to you. You may want to consider the following.
If your portfolio contains a variety of medical equipment leased out to patients, or a van fleet leased to a courier company, lease management software aimed at property development companies may well not be suitable.
Consider whether a generic software product will fit your needs, or if there’s a sector-specific option on the market that has extra features that might benefit your organisation.
A lease management solution that doesn’t work well with your pre-existing software is going to make the everyday running of your portfolio more complicated than necessary. When choosing a software option, make sure to research whether it is designed to be used with your current system and contact the company directly if you’re unsure.
Online and offline features
It may be important to you that your lease management software can be used offline, or you may be happy to rely on an option that requires connectivity to function. Offline options may require you to have your own backups and the associated storage capacity, whereas online options may be happy to store your information and backups on their cloud system.
You may need help with accounting compliance, assistance with moving your systems over to the new software initially, or technical issues may arise further down the line. A helpful company with online and offline support features can make the world of difference in dealing with these issues, and reduce the impact any problems have on your business.
Before opting for one software, take the time to find out what sort of customer support the company provides.
Safety and security
If the information for your entire portfolio will now be stored in one place, you want to make sure it’s secure. Read up on the features the software will provide in regards to safety, and that you’re happy they will give you enough protection.
Official certification and product reviews can be a good way to find out what other professionals and customers have to say too.
Price may be one of the most limiting factors when choosing lease management software. Some companies may offer a free trial to entice you initially, which can be a good way to get an idea if a product is a good fit for your needs without affecting your budget.
Many products are purchased via monthly payments, which reduce initial outlay, but means you’ll constantly be spending money whilst you want to continue using the software. There are also options to purchase the software outright, usually from software development companies who create the product for you; this may cost more initially, but can save you money in the long term.
Learn more about custom lease management software
Custom lease management software involves a software development company creating a software product specifically for you to meet your individual specifications. Usually, you agree on a budget upfront, which includes licensing of the product to your organisation once completed, so there aren’t ongoing monthly costs.
A tailor-made product can include all the features you need, without any unnecessary additional features to confuse you and your team.
Whilst there may not be the option to have a free trial, there’s no need for one when the product is designed specifically for your business needs. You can guarantee the software will be compatible with your pre-existing system as it will be tested alongside it during development.
Laracle can develop your lease management software
Laracle is a software development company that specialises in creating bespoke software products to meet your company’s needs. None of our products are ever recycled or reused, but created from scratch for each client to give unrivaled usability.
As the software is just for your business, we can help to modify it to meet your requirements as your portfolio grows and expands, meaning it’s always up to the task.
If you’re interested in hearing more about the bespoke lease management software we can create for you, contact Laracle today.