Lease abstracts are critical to effective lease portfolio management. Lease abstracts offer a summary of the key financial and non-financial elements of a lease, allowing the landlord or tenant to have timely access to important lease data without having to look through the entire lease and related documents. However, for lease abstracts to be useful and serve their purpose, these are the most important components you shouldn’t miss.
Accurate
The data in the lease abstracts should be 100% accurate and convey exactly what is stated in the lease document. There should be no room for interpretation or errors in this regard.
Comprehensive
Your lease abstract is a summary of important lease clauses–both financial and non-financial. Your lease abstract must be comprehensive in the sense that it covers all the key terms and captures their essence completely. While there are a few clauses that always find their way into lease abstracts such as rent, renewal options, etc, there may be other clauses that may have to be captured depending on your needs or circumstances. For example, recently, when the COVID-19 pandemic struck, clauses such as Go-Dark, Co-tenancy, Anchor Tenant, Rent Abatement, etc., garnered a lot of importance.
Not missing any critical dates
While this may seem obvious, it is surprising how many lease abstracts miss capturing something as critical as the commencement date. One of the reasons is, often leases are abstracted as soon as they are executed and the commencement date may not have been filled in the original lease document. Such abstracts must be revisited and updated.
In conclusion, if you already have lease abstracts, it is time to take a good look at them and find out where you stand in terms of their utility. Are your lease abstracts serving their intended purpose? A lease audit can help you determine this and also identify the data lacunae and inaccuracies.
Partnering with a trusted lease abstraction service provider like Mohr Partners ensures your lease abstracts are 100% accurate, comprehensive, and complete with no missing data!
