Effective lease administration must utilize best-in-class processes and procedures from start to finish, lest costly errors reverberate through the portfolio.
Drawing on our in-depth knowledge of property management, real estate law, accounting, technology, and regulatory reporting requirements, MBG Consulting’s streamlined processes have been perfectly crafted to take each lease from negotiation (with lease language input), to execution (assuring process completion and document execution), to on-going lease administration where all liabilities are reviewed, corrected, verified for compliance, processed, and disbursed on time, every month, without fail. Selected features of our lease administration include:
MBG Consulting can help you build a robust, durable abstracting program that captures strategic data and reflects organizational priorities, all while conforming to current and developing industry standards with 100% data accuracy.
We can maintain digital and physical archives of all lease documents as well as manage ongoing correspondence with landlords and subtenants. We can also track insurance certificates, estoppel certificates, SNDA agreements, and other mission-critical documents and data.
Our proactive desktop review process is a vital tool for the identification and resolution of potential issues and concerns before they escalate. Honed through years of experience, our ability to catch errors early allows for the immediate recovery of savings. We scrutinize each and every expense line item appearing on rent invoices – we do not want to leave a cent on the table unrecovered in our the quest to assure that all costs are supported and 100% compliant to the lease language.
Critical Dates Tracking
We track and report critical dates and issues such as expirations, option windows, security deposits, etc. Critical datapoints can be monitored via reporting options as well as email notifications according to client preferences. We can issue follow-up notifications if action is required. As an example, we can set up alerts for the reservation of audit rights, which would continue on a scheduled basis until the appropriate stakeholder confirms in the database that the reservation of audit rights has occurred.
Rental Payment Processing
We scrutinize each and every expense line item appearing on rent invoices to assure that all costs are supported and 100% compliant to the lease language before proceeding with the rent approval process. Once approved, payment data can be seamlessly transferred to your internal accounting system. We are also fully capable of handling the payment function through electronic funds transfer (EFT) or physical checks as desired.
We prepare standard SOX reporting outputs such as landlord invoice reports, variance reports, draft rent payment reports, final rent payment reports, rent payment approval reports, and critical date tracking reports. We can also generate custom reporting that amplifies the functionality of your data and supports C-Suite decision-making.
Security Deposit Tracking
Tracking deposits both for client leases and any income-producing tenants is a standard process for MBG Consulting. We include specific abstract clause entries, monitor a comprehensive security deposit list and report on all completed, pending, and future amounts. Once a check is received, we scan and upload it into the lease administration database for future reference.
TI Allowance Tracking
Tenant improvement allowance tracking can result in substantial opportunities cost avoidance and cost savings. We work with our clients to develop and implement streamlined processes to identify, monitor, and collect Tenant Improvement Allowance funds.
Our best practices for quality assurance and consistent implementation of Sarbanes‐Oxley (SOX) standards have been cornerstones of our company since its inception in 2002. All of our services are driven by our stringent, unwavering dedication to quality including: commitment to 100% data accuracy; monitored access to data; segregation of duties; data and process checklists; scheduled and ad-hoc process reviews; and rent payment reporting and approvals.
We can produce automatic budget reports that capture portfolio’s expenses in their entirety (fixed and variable, contractual and non-contractual) for any future 12 month period, and organize the data by location, by month, by expense type, charge account and cost center, and allocates the total to the % allocations that each cost center and charge account are associated with. The data also can be exported to other systems for further editing and refinement. The data also can be exported to other systems for further editing and refinement. Our budgeting accuracy consistently ranges from 95% to 99%.
For years, our lease administration process has been operating under the high standards that the FASB will soon require all to follow. These include standardized lease abstraction processes and careful monitoring of lease critical dates, options and expirations, rent liabilities and pertinent rent escalations. Because of our forward-thinking approach, our clients will transition to the new standards with minimal disruption.
We provide full management of sublease contracts including billing and rent collection, delinquent account tracking, and pass-through of operating expenses, utilities, work orders and other similar charges payable under the master lease. We also provide sublease reporting, administer subtenant insurance certificates, and provide termination and surrender notices as needed.
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