Lease Abstraction – Understanding Real Meaning
Whether abstracts are needed for a single building or an entire portfolio, Complete Legal Outsourcing’s lease abstraction process is scaled to meet all client needs. Lease abstraction relates to abstraction of important and relevant data from a lease document that has been signed by the Landlord and the Tenant. In simple terms, we can define abstraction as the process of making things simple and precise. The abstraction team at Complete Legal Outsourcing has the expertise to abstract leases into any desired format, including direct input into accounting software or Microsoft Excel/Word. A lease abstract is a summary of specific and crucial information from an extensive lease document and makes useful data available to review the key points easily. The lease abstract acts as a condensed version of the original lease document. The abstract summarizes important information from the lease and tells the reviewer where to look for detailed information.
A Lease contains important data like the date of commencement, total area that is to be leased, term of the lease, subletting options, the rental amount, provisions of holdover, etc. which are crucial to all leases. However most of the content of a lease is not relevant and is not needed on a daily basis. The content of a lease can vary from couple of pages to hundreds of pages as per the requirements of the Landlord and the Tenant, and to flip through hundreds of pages looking for the exact information can be a tedious and a time consuming task. Thus abstraction reveals only the required information crucial to the business and hides the unnecessary data.
The process of abstraction steps in here which provides a precise summary of the important and relevant information from the lease documents so that all the important information is available at one’s fingertips resulting in saving precious working hours.
A useful lease abstract is one that is short and simple. Ideally an abstract serve as a road map that helps in navigating the lease document. The contents of leases vary as they are based on the specific details that the lease document contains. Some important items that appear in most abstracts are the tenants’ and landlord’s names, lease term, square footage, address, base rent, rent escalations and percentage rent. Preparing a good and useful lease abstract needs specific skills. Commercial leases usually contain standard clauses, like alterations, damage, late charge, default, destruction and estoppel. Each clause has precise details that need to be extracted from the lease document to give shape to the contents of the abstract. Understanding commercial leases is an important so as to understand what information is crucial and needs to be extracted.
It is also worth mentioning that all the financial data of the lease deal are documented in the abstract, which makes it advantageous for property investors or lenders. Providing a lease abstract rather than a full lease text also saves time and money for those who need to perform due diligence on the property for a potential sale or acquisition. Commercial property transactions have become very complex and require detailed commercial leases with clauses that cover various details.
Many offshore service providers provide contract-and-lease-abstraction-services to the clients based across the globe. The data thus abstracted is done so as per the client’s instructions so as to fulfill their requirements. At times, a tailor made solution is provided so as to ensure that the client requirements are met. The reason commercial leases are abstracted is to assist a leasing agent, lease administrator, and maintenance or property manager locate frequently referenced items in the lease without the need to refer to the original lease document. Commercial leases usually include a large degree of legal language that makes it difficult to quickly find crucial lease data. The abstractor simplifies the language so that it can be understood by common masses who do not have a legal background.
Lease abstraction process is an essential component for effective data management. The abstraction process makes it very easy for the busy executives as they can glance at the much needed information by flipping through a couple of pagers rather that reading the entire lease. Whether the client requirement pertains to a lease abstracts to be prepared for a single building or a turnkey lease administration process for the entire portfolio, Complete Legal Outsourcing’s lease abstracting, and administration services can be scaled to meet all needs. Complete Legal Outsourcing maintains a standardized lease abstraction process, ensuring consistency, accuracy and uniformity.
As we all are aware that the concept of outsourcing is not new. Outsourcing is considered as an important tool for business growth in the modern era. The offshore service providers have mastered the art of abstraction and are now successfully catering to the businesses located across the globe. Abstraction is preferred by the businesses also as it saves time and money as abstraction if done in-house proves expensive when compared to offshore service providers.