Lease management can be a difficult task, especially if the lease you’re dealing with commercial leases. One way to handle lease management is to turn it over to a property manager. Of course, if you’ve ever worked with a property manager you may know that property manager management can also be a difficult task! If you want to try your hand at least management, you’d be wise to get your hands on some good lease management software. Good lease management software can help you in many ways.
First, you want lease management software that keeps track of the tenants. With tenants moving in and out it can be a challenge to keep up with which tenant is occupying which unit or which building. Leasehold management software helps by keeping track of personal information, employment information and background information and then associates this information with the tenant’s name, location of the building or unit, rental rate, dates of lease, and the payment history of the tenant.
Second, you want lease administration software that also keeps track of property maintenance and compliance. Often, particularly with multi-family residential dwellings, the difference between being in the red and being in the black is the difference between a well-maintained property and a poorly-maintained property. Lease management software allows you to keep track of routine repairs, meeting state and local compliance requirements, detailed maintenance records including any work that has already been performed and any work that needs to be scheduled out into the future.
Third, you want software that streamlines the paperwork of lease management by generating standard forms like leases and renewal notices. This isn’t an absolute requirement (particularly if you already have your own forms), but it will make your life easier if you have it.
Though not a requirement, it’s a nice perk if your lease management software keeps track of marketing campaigns. Since empty units or buildings can mean a loss in profit, it is important to market the properties effectively and efficiently. Good software can keep very detailed information on each marketing campaign for each rental property. For example, if you have offer a discount of the first three months' rent, lease management software can tell you which units the discount applies to and when the discount should terminate.
Finally, it’ll be really useful to have a software package that handles some routine accounting tasks. Look for software that keeps very detailed transaction information on receivables, payables, and recurring payments, while also monitoring cash flow of each property.