Lease administration is a department that usually falls under an organization's

real estate department.[1] Lease administration involves receiving rents from

facilities they own and paying rent for the facilities they lease, and other
activities. It has become an integral part of the accounting, administrative, and
legal requirements normally associated with a real estate portfolio. Job
responsibilities for lease administrators and real estate professionals include:
lease review and abstracting, accounting and processing, lease audits, CAM charges,
lease renewal options, repairs and maintenance, information management and
reporting, occupancy cost analysis, operating expense review, and document storage
and maintenance.

Once a lease is in place, lease administrators continue to manage and monitor

rental payments, coordinate any tenant alterations, and handle lease amendments
when necessary.

Depending on a corporation's departmental structure, lease administration or lease

management can make up just one department under the umbrella of a corporations
real estate structure. Other departments may include facilities management, real
estate accounting, construction, and property management.

Lease administration can be handled either internally or through outsourcing. The

sizes of the organization's portfolio and the corresponding complexity of creating
automated management and accounting systems are factors that influence an
organization's decision to perform lease administration in house or to outsource
the function.

Contents [hide]
1 Lease Abstract
2 Software
3 Organizations
4 References
Lease Abstract[edit]
Lease management requires the extraction of key information from the lease
agreement document into what is called a Lease Abstract, which is a summary of
essential terms of a leasehold agreement of real estate.

A lease of real estate, regardless of the country or state of jurisdiction,

fundamentally comprises clauses that define the commercial terms, legal terms and
functional terms of the transaction.

A Lease Abstract is prepared upon the execution or commencement of the agreement to

provide a more simplified, easier to use and shorter reference point for
administering or managing the lease.

Software[edit]
Tenant-oriented software for lease administration was available in the early 1980s.

Later developments in this industry led to the release of cloud software

applications which provide a web-based platform and are usually priced on a
subscription basis with minimal if any capital expense cost and monthly or annual
fees.

More advanced lease administration software systems provide extensive bolt-on

functionality such as charting, mapping, demographics, project management, contract
management, asset management and business intelligence reporting.

Since 2010 the pending changes to the U.S. Financial Accounting Standards Board and
International Financial Reporting Standards lease accounting standards that are
proposed to treat real estate leases as capital and not operating leases has seen
an increase in the take-up of software systems by both tenants and landlords.