Lease abstraction is an essential decision-making tool for tenants, landlords, property management companies, as well as parties engaged in any corporate restructuring tools such as acquisitions, mergers, etc. By organizing the lease data such as critical dates, lease clauses/sections the business operators can ensure that the deadlines for lease renewals, terminations, lease rights and other provisions are addressed in a timely manner. Missing a critical lease date, or not understanding or accruing a potential lease liability and its obligations could result in serious financial implications to a company’s bottom line. A proactive approach to analyzing an organization’s bottom line, lease abstracts provide a detailed summary of the corporation’s operational costs ensuring that their operational costs and obligations are understood.
Benefits Of Outsourcing In Lease Abstraction Process
Outsourcing lease abstraction activities can be benignant to an organization as it helps in gaining new technology solutions, concentrating on core activities, management of bulky lease documents, etc. Thus, outsourcing the lease abstraction services to a lease abstraction company provides corporations with a better understanding of their lease information, as well as the obligations under the lease.