How can you effectively track lease expirations for timely renewals?

I cannot stress this one enough. I've witnessed our fine industry from a number of perspectives including General Counsel, head of implementation for a lease drafting software, and now management consultant for the industry. The reality never changes; we're managing thousands of lease documents and even more data points - leaving review and tracking up to humans is inefficient and leaves room for error. The companies with a competitive edge are those using these types of software; staff who are already spread thin don't have to track dates manually and are reminded automatically. It frees them up to focus on the tenant relationship and ensures important dates and data don't fall through the cracks.

There are some incredible software and dashboard solutions for this that are only going to become better and more robust with AI; however, the real challenge is for mid-market companies that have a smaller number of leases and no head of real estate managing this. You need to outsource to a provider who runs a light lease admin solution that is cost effective, and can keep an eye on these details for you. If your company is growing by acquisition, you can scale from the smaller/light platform to one of the larger more expensive solutions. Data in one location is critical, even if you have only 5 leases. These platforms have different capabilities, and you need your real estate provider to match you with the one that fits your situation.

Here's the simplest, cheapest, and easiest way - Write it into a spreadsheet!! Mind blowingly simple. No cost. No expensive software licences. Just a simple tool, for a simple job.

This is one of those things that should be “business as usual” But the delay of technology adoption has made this difficult Tracking end dates can be done low code in an Excel Spreadsheet or in existing accounting software…if needed, more robust softwares mentioned above can be researched

Shifting from spreadsheets to automated lease systems is revolutionary for Landlords and Tenants. Embracing this shift is pivotal, offering substantial advantages in terms of operational efficiency and proactive engagement in lease negotiations. Tenant representatives, especially, hold a strategic position in steering away from reliance on traditional Excel sheets. Adopting automated lease tracking systems or contract management software significantly amplifies operational effectiveness, empowering them to take a proactive stance in lease negotiations and renewals. Tenants should heed Landlords' estoppels and SNDAs for potential lease term renegotiation. Modern lease practices foster better negotiations, benefiting Landlords and Tenants.

You can set up a draw put files numbered 1-31 f days of the month) and in each file will be all that is due for that date. You can do this live or on line.

Utilizing a lease expiration schedule, enhanced with AI capabilities, is a game changer. It not only provides a comprehensive view of leases by property and tenant but also allows for predictive analysis and trend identification. This is particularly valuable in dynamic markets, where AI-driven insights can guide strategic decisions and optimize lease management.

This system may seem antiquated however, tracking all your leases on an excel spreadsheet in google docs and you can set reminders for 3 months before expiry. It has worked me for years and also using outlook calendar reminder’s. Old school I know but some old solutions are worth keeping..

In my experience, all managers should be using a lease expiry schedule to help support and determine their lease renewal strategies and input into critical financial decisions. Developing an overall view of lease expiration is critical.

Another useful tool to track lease expirations is to create a lease expiration schedule. This is a simple spreadsheet or document that lists all your leases by property, tenant, unit, rent, term, and expiration date. You can sort and filter the data by different criteria, such as property type, location, or lease length. A lease expiration schedule can help you identify trends and patterns in your lease portfolio, such as which properties or tenants have the highest or lowest renewal rates, or which months or seasons have the most or least lease expirations.

I totally agree with this. You need to stay on touch with client’s regularly and do site visits. This way you know if the location is still the best for when and what condition the space is in and the property. You then can talk honestly on me steps whether it is moving or lowering the rent or potentially updating And getting some TI monies.

Yes, understanding the tenant's position on their lease provides you with great input into your leasing strategy. Being one step ahead helps you better manage your portfolio accountabilities.

This is just a great rule of thumb not only to track renewals but to build a solid relationship with your tenant leading to an enhanced tenant experience. The depth of that experience for the tenant will lend itself to many scenarios, including dispute resolution.

A third tip to track lease expirations is to communicate with your tenants regularly. This can help you build rapport and trust with your tenants, as well as gather feedback and insights on their needs and preferences. You can use various channels of communication, such as phone calls, emails, newsletters, or surveys. You can also schedule site visits or meetings with your tenants to discuss their lease options, such as renewing, extending, or terminating their lease. By communicating with your tenants regularly, you can anticipate their intentions and expectations, as well as negotiate better terms and conditions for your lease renewals.

Yes, I totally agree, connecting with the clients directly very important for future business, lease extension or termination, etc. I phone call, a postcard or email would be a great way to communicate with client

This strategy is so important today. The landscape is changing constantly with new construction. Store poking and closing this will impact your ability to negotiate terms.

A fourth tip to track lease expirations is to monitor the market conditions. This can help you assess the supply and demand of your property type and location, as well as the prevailing rents and incentives in your market. You can use various sources of information, such as market reports, industry publications, or online databases. You can also network with other commercial real estate professionals, such as brokers, appraisers, or consultants. By monitoring the market conditions, you can adjust your lease renewal strategy accordingly, such as offering competitive rents, flexible terms, or attractive amenities to your tenants.

A no-brainer, you must be up to speed with key market conditions to ensure the most up-to-date leasing outcomes for landlord and tenant retention.

This might sound like a daunting task but there are a number of AI-powered solutions on the market that can handle these review-type tasks in a matter of minutes - imagine asking a platform how many of your leases under 10,000 square feet have an early termination clause in the Southeast region and getting an answer within minutes!

A fifth tip to track lease expirations is to review and update your lease documents. This can help you ensure that your lease documents are accurate, complete, and compliant with the relevant laws and regulations. You can also check for any clauses or provisions that may affect your lease renewals, such as rent escalation, renewal options, termination rights, or maintenance obligations. You can also look for any errors or discrepancies that may cause disputes or litigation with your tenants. By reviewing and updating your lease documents, you can avoid potential problems and protect your interests and rights as a landlord.

This article is written from the Landlord's perspective but applies equally to the Tenant's perspective. It behooves Tenant reps to get their leases (and other contracts) off of Excel sheets and into an automated lease tracking system or other contract management software. Push notifications should go out not only at the beginning of the formal renewal window, but also well in advance (e.g., 18 months prior to lease expiration, for terms of 5+ years). Tenants have greatest leverage to renegotiate their leases if they approach the landord with plenty of time to execute a site search. Tenants should also pay attention to their Landlords' requests for estoppels and SNDAs, as these could signal opportune moments to revisit lease terms.

AI Software can be a solution for this. For example Lease.ai by Colleen specializes in Automating and Optimizing Resident Renewals and Retention.