Technology Integration, Operating Expense Audits, FASB Compliance, Best Practices, Dashboard Metrics, Global Integration – It’s a full court press! The list goes on, the days get longer and the resources don’t always get more plentiful or cheaper. All of these are intertwined, they’re all important, all involved and there are all sorts of companies out there that offer to “help” you, but

Who Do You Trust? What Should You Do First?

It’s enough to cause a certain degree of madness and with it being March, whatever your plans were for the year, Q1 is coming to a close sooner than you think. If the items above were on your list of things to accomplish, there is still plenty of time if you start with the right game plan.

Last month we offered some ideas for “Smart Outsourcing” in lease administration (You can read it here). If outsourcing some of the task work is a possibility for you, those were some great ideas. But if you have to tackle these things internally, how should you handle them?

The good news about lease administration is that much of the work is predictable. It may be voluminous at times, but the work is predictable and cyclical so it lends itself well to planning and procedures. As a result, you can build a foundation from which everything on the list above can be accomplished. It starts with anticipating the routines and building a “Playbook”. From that “Playbook”, which is really just a well-documented set of anticipated standard operating procedures, the routines of lease administration can incorporate new progress and projects can be much simpler.

The “Lease Administration Playbook” can almost write itself if you record what is being done as you’re doing it. Here is a rough outline to get started:

  1. Adding New Locations (Leases)
    1. Abstracting
      1. File completion checklist
      2. Fields/clauses to include
      3. Quality assurance
    2. Move In Processes
      1. Commencement Letter
      2. Prepaid rent, security deposit confirmation
      3. Tenant improvements
  2. Expiring or Terminating Locations (Leases)
    1. Move Out checklist
      1. Surrender clause
      2. Security deposit return
      3. Final Opex Reconciliation
  3. Changes to Existing Locations (Leases)
    1. Abstract revision process
    2. CPI Adjustments or Other Rent Adjustments
    3. Estoppel Review
  4. Rent Payment Processing Cycle
    1. Forecast Expected Rents
      1. LL Billing Variances
        1. New Charges (approval process)
        2. Operating Expense Desk Audit
        3. Dispute/Error Resolution
  5. Subtenant Billing & Collection Cycle
    1. Billing/Invoice Processing
    2. Collections/Delinquency Escalation
    3. Operating/Other Expense Pass Thru
  6. Reporting
    1. Standard Monthly Reports
      1. Monthly Activity Reconciliation (Key Metrics)
      2. Key Date Forecast
    2. Ad Hoc Reporting
  7. Team Collaboration
    1. Reviewing Key Dates (Options, Expirations, MTM Confirmation)

With this “Playbook” in hand, new projects have a bit more framework against which to be administered. Important details and the impact that one change has on another may be more easily seen. Most importantly, the rush of resources and activity required to complete a project will not jeopardize important disciplines that keep payments accurate and key date strategy in focus.