Commercial property is a great investment choice and often provides annual returns of 6%-12%. But commercial property management is no small task.
Even just dealing with lease agreements can involve a lot of work. Things become even more challenging as your portfolio grows.
There are certain things you can do to make things easier and more efficient. Lease abstracting is one of these. Professional lease abstraction services are vital as this isn't something that many people can deal with on their own.
Keep reading to see how working with professionals can make your lease management significantly easier.
What Is Lease Abstraction?
Lease Abstraction is a process that involves extracting, processing, and organizing vital data from leases. Doing this makes it easier to gain visibility over a real estate portfolio.
The data extracted during lease abstraction can provide crucial information. This typically includes things like clauses, rent amounts, and critical dates.
Benefits of Lease Abstraction Services
Lease abstraction can offer a range of benefits, but it's also a very complicated process. If you want to do it right, professional lease abstraction companies can be helpful.
When it comes to investing (be it commercial property or anything else) effective risk management is vital. If your risk exposure is too high, there's a good chance you'll suffer losses.
Lease abstraction makes it easier to assess liabilities and determine the level of risk associated with individual assets. You can then determine if your risk exposure aligns with your strategy and goals.
Time is your most valuable asset, so being able to save time is always ideal. Working from PDF documents and spreadsheets can make lease management incredibly tedious and long-winded. If you need to find a specific piece of information, it can take much longer than you'd like.
Through lease abstraction, you can quickly extract specific pieces of data. This streamlines the process allowing you to save time, and as this time adds up it can make quite a sizable impact.
Data may be boring, but it's incredibly important. It can inform you of how effective your strategy is, and whether you need to make any adjustments. Being able to observe your lease management processes with detailed data will help you make better-informed decisions.
For example, you could determine your total rent expenses over a period of years. If you want to invest in more real estate, your best approach may be to sell one large property and invest in two smaller ones. Lease abstraction allows you to better understand data, so you can more easily determine if this would be a suitable choice, and how impactful it could be.
Lease abstraction services use modern tools for their work. This helps ensure records are accurate at all times. Manual lease abstraction, on the other hand, can often suffer from human error, and this can lead to inaccurate data.
Managing Your Commercial Property Portfolio
While investing in commercial property can be great, you need to be ready for the challenges that come with it. You'll likely need help from professional lease abstraction services.
PMI Blue Ridge can handle this, and a lot more. Take a look at our Commercial Property Management page today to see more about how we can help.