Services Glossary2017-12-19T15:29:33+00:00

Services Glossary

Below is a list of PSG services in the order tasks are performed for a deeper understanding of how we can help you.
New Implementation
PSG will help the Client build a non-proprietary database tool from the ground up. The work begins with file collection and review and establishing connectivity between the real estate and accounting functions.
Software Migration
This type of transition is used when a company has an existing department or provider already performing lease administration and/or accounting on some level and wants to add to it or change it completely.
Quick Start
The simplest transition is for PSG to assume responsibility from an existing group, using the current software platform and processes and work with the client to evaluate each component after the transition.
File Inventory & Organization
Each lease file will be taken apart, sorted, and reviewed for relative completeness. Exceptions such as missing, unsigned, or inconsistent documents will be identified and included on a project report that PSG shall deliver to Client.
Translation Services
In order to achieve a complete database of lease obligations, PSG can coordinate the necessary resources to create abstracts for leases in any language other than English, or for locations outside North America. One of two methods is typically used:
  • Translation and abstracting from translated document (either on line translator software or translation service).
  • In country abstracting by a local bilingual person.
Once conformed to an agreed format, PSG will enter the information into the database and make the image documents available just as with the domestic leases.
Existing Database/Data/Document Review
Following migration or assumption of the database, PSG will review existing data for accuracy and completeness. Exceptions will be noted and presented to Client with resolution recommendations. The existing records will be supplemented as directed by client.
Database (Re) Configuration
PSG will ensure that the database in use going forward has the required modules “turned on” and configured for functionality and availability. The database hierarchy will be changed as agreed and other drop down fields will be set for easy navigation and reporting.
Notice Letters
If requested, PSG will prepare landlord notice letters for Client on Client letterhead indicating that PSG is to be copied on all lease-related document transmittals and official lease correspondence as well as invoices.
Property Data Gathering
For each owned and leased location in Client’s portfolio, PSG will facilitate the gathering of data elements that are not typically found in the lease documents.
Lease Abstracting
Once the files are cleaned up, similarly formatted, and reviewed, PSG will extract data from the files according to the agreed field listing. Abstracts are reviewed for consistency and completeness prior to entry into the database. Whenever interpretation of data is necessary, assumptions are documented and Client’s best interests are considered.
  • Due Diligence/Short Form: PSG will extract only the basic elements of dates, dollars and options.
  • Long Form: PSG will extract basic dates, dollars and options, plus extensive lists of details and clauses.
Database Population
Once the abstracts are reviewed, data is entered into the database. Upon completion, PSG will run a series of reports to verify the integrity of the data. Once the data is verified, PSG will supply the Client user(s) with a secure login and password to access their data.
Exception Documentation
During the abstracting process, PSG will identify exceptions within the documents such as conflicting lease information or errors in mathematics or dates. PSG will take corrective actions where possible to eliminate the exceptions that can be resolved.
Exception Resolution
Exceptions which cannot be immediately resolved will be recorded in the File Inventory. If an exception remains unresolved, detailed information explaining the exception will be recorded in the File Inventory and presented to Client with resolution recommendations.
Document Imaging
All physical files received will be scanned (image only) to create PDF images. These newly scanned files and any existing electronic files will be attached to the appropriate records within the database.
Lease Audit
The review process builds on a logical progression of inquiry starting with basic lease compliance and fairness. Quantitative and qualitative methods are utilized. PSG believes in 3 “levels” of lease audit:
  • Invoice Review: PSG will review invoices to determine that the landlord billed accurately and applied the negotiated terms. PSG will conduct this review by itself for client follow up or may propose further review.
  • Desktop Audit: Errors can be found through analysis without going on site. PSG will review these internally and provide the client with a recommended action plan.
  • Full Lease Audit: If advisable, PSG will coordinate with one of our audit partners to review books/records on site. PSG will keep the process moving and the advisor informed of progress.
Report Development
  • On-Line Reports – Available to the Client user on a 24/7 basis. These reports provide real-time information, dynamic sorting and links to more detailed information, lease abstracts, and imaged documents.
  • Electronic Reminders – As critical dates come up for key portfolio activity, automatic email reminders will be sent to an agreed list of personnel. PSG will follow the activity and ensure that the responsible party is aware of the required activity.
  • Monthly Reports – PSG will provide Client with a standardized monthly report highlighting current database activity, trends, and portfolio alerts.
  • Ad Hoc Reports
Standard Administration Services
  • Application Hosting & Access All Client information will be contained in a separate database that is fully secured with controlled access as defined by Client. The data is backed up daily, and firewall secured. On a reasonable basis, there is no limit to the number of users that Client may allow to access their data.
  • Continuous Document Processing New leases received by PSG will be fully abstracted according to the abstract form in use under this agreement. These leases will be made a part of the active database within 5 working days of receipt. As amendments or other documents are received, PSG will review, abstract and make necessary updates to the active database.In addition to processing documents as received, PSG’s account team will be monitoring the database and reports on a proactive basis, as well as seeking out information or documents needed to complete missing data or resolve open issues. Services required during the project phase and deemed appropriate for ongoing management will also be maintained.
  • Reporting Standard Administration reports include:
    • Canned Reports
    • Master File Listing
    • Critical Date Forecast
    • Rent Report
Standard Administration & Accounting
The greatest value and protection from erroneous occupancy charges can be achieved when ongoing file maintenance is coupled with a monthly proactive invoice review.
  • Landlord Invoice Review On a monthly basis, PSG will review landlord charges to verify that they comply with Client’s contractual obligations (“Critical Compliance”). The scope of Critical Compliance will verify the following:
    • Base rent charges are consistent with lease terms
    • CPI and other index-based increases are mathematically correct
    • Caps in operating expenses and other pass-throughs have been applied
    • Calculations of operating expenses and other pass-through liabilities are mathematically correct
    • The correct Base Years for operating expense and other pass-throughs have been applied
    • The correct pro rata shares of operating expense and other pass-throughs have been applied
    An expected payment report will be created monthly and used to review invoices presented by the landlords. Variances to projected amounts and/or one-time payments will be reviewed against this projection and relevant lease terms. A single, monthly report of recommended payments is presented to the Client for payment or incorporation into their enterprise accounting system.
    As and if received, PSG will review International Invoices and look to compare the invoiced amounts to those expected. Client and PSG will build processes around this function as language barriers.
    PSG’s process includes a “desktop” review of annual tax/operating expense reconciliation. The scope of this review is to request reasonable backup for the billing, verify mathematical accuracy, confirm the appropriate proration for square footage and time, and verify that any negotiated caps, stops, or other limitations have been included. If this review gives reason to believe that expenses have been overstated, PSG may recommend a more complete lease audit to be performed.
    In the event that noncompliance by the landlord with the foregoing is determined, PSG shall use its reasonable best efforts to attempt to correct the same, and obtain refunds or credits for Client, as appropriate (PSG will not approach any landlord without Client’s authorization).
  • Lease Audit – Full Occupancy Cost Review Levels of examination that are outside of the scope of Critical Compliance, including lease audits where appropriate (“Occupancy Cost Review”), will be conducted by PSG in its discretion based upon its evaluation of the value of the issue and the relative effort needed to correct the same. The Occupancy Cost Review will report on the accuracy of line-item calculations on landlord invoices.Upon conclusion of any Occupancy Cost Review, PSG will prepare a report advising Client of relevant findings and conclusions. All potential claims will be documented with appropriate supporting schedules in preparation for resolution discussions.PSG will not approach any landlord for the purpose of obtaining a recovery of any alleged overcharges without Client’s prior authorization. Once the authorization to proceed has been obtained, PSG will complete its analysis and schedule and participate in all conference calls and resolution meetings, as desired by Client. Upon satisfactory resolution, PSG will prepare settlement documents and verify the receipt of any savings.
  • Sublease Invoice Preparation If sublease revenue is expected, the reports and projections will indicate the expected amounts that should be billed and paid. These can be shown independently or as an offset to the lease expense.
    • Billing Each month, PSG will prepare a preliminary billing report with all amounts stipulated by the various subleases in effect. This report will be reviewed and approved by the Client.
    • CollectionsEach month on or about the 10th work-day, PSG will contact any (sub)tenants that have not paid the rent in order to determine the status. Late fees will be posted at this point. Any unpaid balances due at the time of Monthly Reporting will be brought to the attention of Client via an Aged AR report.
    • Banking All subtenant receipts are directed to a custodial lockbox account to ensure rapid collection and posting. Receipts are posted in a GL system that parallels the lease administration records for the (sub)leases and this system is used to age receivables as well as account for all cash entries.
  • Reporting Extended Financial reports include:
    • Standard Reports
    • Executive Summary with Measurements
    • Rent Forecast (For Payments)
    • Electronic Feed for Client AP System
    • Rent Roll Variance / Reconciliation Report
    • Minimum Lease Commitment Report
Administration Additions
Certificate of Insurance Management
PSG will facilitate gathering certificates evidencing the insurance coverage stated in the lease and manage the ongoing process of obtaining renewal certificates at expiration. Automatic reminders will be setup to support this process as well as reporting that indicates outstanding expirations.
Headcount Tracking & Utilization Reporting
PSG can make fields available in the database to record headcount information as provided as well as space utilization (occupied/vacant or office/production etc.).
Other Contract Management
Licenses, easements even equipment leases can all be tracked with a similar approach and with similar benefits. PSG can help integrate a solution and then ensure contractual compliance, proper expense management and that critical activity is not overlooked.
Extended Process Building/Mapping/Documentation
PSG’s senior management is available to assist with this process and “connect” the client’s process with the PSG Procedures Manual on a project basis.
Extended Database and Report Writer Training
PSG will provide initial database training and orientation for new users. Extensive training and/or training required for large groups of users may be better facilitated by the ASP / Database Company and may entail reimbursable charges.
Pre/Post Execution Document Coordination
PSG can help coordinate the documents and administration associated with the leasing and/or renewal process, either separately or within most lease administration databases. Our team will establish the templates and protocol for various pre and post lease activity. Checklists, email reminders for tasks and then cycle timing and robust reporting keep the Client aware of activity and the processes measurable.
Project Management Administration and/or Transaction Tracking
PSG can directly manage or provide user edit access and administrative support for projects such as renewals, construction, or dispositions that relate to active or proposed future locations.
Custom Reporting
The initialization of services will include the development of standard reports that will be used monthly and periodically. Extensive changes may be required or more sophisticated reports needed that entail a longer work effort. PSG will design, format and set up custom reports through the database or other report writer.
Accounting Additions
Pre-Contract Balance Resolution
PSG can dedicate project resources to focus on the research or cleanup of past backlogged activity or exceptions discovered during the project phase. This type of resolution work can take the form of:
  • Researching past AP balances
  • Reviewing past Operating Expense invoices for savings
  • Locating additional or missing documents
  • Revising project abstracts for documents found after the project phase ends and the database is considered to be active.
Tenant Improvement Allowance Verification
PSG will identify the allowable expense per the lease and coordinate with the appropriate party to determine how much was used and what amounts remain to be taken.
Tenant Improvement Allowance Verification
PSG will identify the allowable expense per the lease and coordinate with the appropriate party to determine how much was used and what amounts remain to be taken.
Rent Allocation
The database tool should allow for rent to be allocated across various cost centers and/or business units. PSG will facilitate this process and work with Client to establish the method and process for reporting. PSG anticipates updating these allocations upon initialization of a new lease and then once annually.
Non-Landlord Occupancy Payments
Any occupancy related payments can be administered through the database so that the cost history can become more complete. PSG can coordinate the payment via a payments report or by drafting the checks through the custodial account established for the client.
“Live” Invoice Payments
PSG can provide the actual accounts payable check drafting services in lieu of providing a file of the amounts to be billed/paid by Client. Specifically anticipated in the Elective Prices included are:
  • Recording department codes or other allocation data
  • Setup and maintenance of Vendor 1099 information
  • Maintenance of a custodial bank account
  • One check run per month
  • Reporting to include a funds request, disbursement report and bank reconciliation
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