A Corporate Lease Management Checklist
Are you setting your business up for unneeded risk?
Often most conversations with company decision-makers begin with not understanding the needs for basic lease management. They don't realize the true risks they are setting themselves up for. Here's a helpful checklist to understand if corporate lease management may be needed if you are planning on growing.
Can you retrieve any lease document, clause, amendment, certificate of insurance, or other related piece of real estate information for every location within your portfolio?
Does your team always remember lease expirations, rent increases, option timelines, or termination rights? Are these always accurate?
If asked, could you produce rent projections for each location for the next month? Year? Term? Could you do so immediately?
Do you know which leases have rent increases annually and what those increases are? Do you know when they occur?
Do you know which locations have pass-through expenses or require tenants to be liable for excess repairs or replacements of capital expenses? Do you know where to find that information?
Who is guaranteeing compliance, ensuring that accounting, billing and payments are reflective of the terms stated in the lease? What would happen if this person left the company?
Do your lease terms and conditions coordinate with your business plans and growth projections?
Have you fully implemented ASC 842 standards to comply with new accounting regulations?
If you can answer 'yes' to all of these questions, then congratulations you are doing great! If not, perhaps we should talk about reducing your risk exposure and organizing your real estate obligations.