Identify Anomalies in Real Estate Expenses
The Challenge
A lease administration department has two people managing a 300 lease portfolio, one of which is responsible for abstracting, invoice verification, reporting, renewals and terminations. Basic lease abstracts and financial data are managed in a highly customized Microsoft Excel file.
When landlord invoices are received, they are verified against the lease using the process below. Once rent charges have been verified they are filed for accounting to manually key into accounts payable.
While the department works as efficiently and effectively as possible, they recognize the limitations of their resources and tools. The lack of an automated system and centralized recordkeeping for critical dates, lease terms and finances makes it difficult and time consuming to identify variances, verify accuracy of landlord bills, and make payment in a timely manner.
The Visual Lease Solution
Visual Lease provided robust and easy to use reports that could run year over year comparisons of real estate expenses, making variances and anomalies easy to find and remedy. Variances could be easily researched using the lease terms, documents and abstracted lease terms in Visual Lease. In addition, current and historical financial data for existing and expired leases are easily accessible for desktop audits and forecasting.
Here is a comparison of lease administration expense management and accounts payable process with and without Visual Lease:
| Without Visual Lease | With Visual Lease |
| Reactive process based on when changes to the bills are received from the landlord | Proactive process notifies and alerts of upcoming changes to stepped rents, CPI increases and more |
Find Previous Bills
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All data easily accessible and fully reportable |
| Compare year over year or month to month expenses manually or with excel | Compare easily in Visual Lease Financials or Reports |
| Find applicable clauses in lease by reading through each section | Interpreted lease terms at your fingertips through Visual Lease Abstracts or Reports |
| All expenses must reviewed monthly which is repetitive and time consuming | Known expenses entered only once in to Visual Lease |
