Lease Administration

E Smith Realty’s Lease Administration team understands the value of a well negotiated lease. We view our role as an outsourced partner as one in which our lease administration professionals work tirelessly to ensure your lease agreements are adhered to by the landlord. Our team members have performed lease administration for clients in the following product types: Retail, Industrial, Office, Restaurant, and Healthcare. Our team has utilized six different database solutions to provide our world class solutions. When E Smith centralizes your lease information, you will have complete confidence in the accuracy of data to strategically run your business.

Services Included in Lease Administration


  • Creation of web based tenant focused database
  • Abstraction of lease/sub-lease information
  • Scanning and attaching legal documents to the database
  • Reporting on and monitoring critical dates
  • Processing monthly invoices
  • Desktop audits of all operating expense reconciliations
  • Billing and collecting sub-tenant receivables
  • Estoppel review
  • Single point of accountability for all lease administration issues
  • Providing journal entries and amortization schedules to accounting for FASB compliance
  • Providing 10-K disclosure information
  • Generating monthly management reports

Benefit – Return on Investment


E Smith performs desktop audits on all landlord invoices and reconciliations utilizing a comprehensive, detailed process. The return on investment for desktop auditing can be substantial. Over 15 years of tracking results, our clients typically receive in excess of $1.60 in savings for every $1.00 in fees, excluding labor cost reductions. Examples of savings follow:

  • Discovery – $204,000 Savings: A landlord misinterpreted the base year language and overbilled the tenant by $204,000. We worked with in-house counsel and landlord to correct the error. The landlord ultimately adjusted the reconciliation by the entire $204,000.
  • Discovery – $50,200 Savings: While processing payments, we realized that the base year and reduced rent per a lease amendment were not being followed. When set in motion, our reconciliations resulted in a $50,200 savings.
  • Discovery – $15,000 Savings: A landlord neglected to apply a lease specified 5% cap on a client’s CAM billing. We discovered and recovered a $15,000 overbilling while performing a routine desktop audit.

 

Benefit – Mitigation of Risk


  • Critical Date Notification – When we abstract your lease information, we become the responsible party for its accuracy. Through our abstraction input and review processes, your company can rely on the critical dates in the database to manage your business
  • Redundancy of Resources – No longer worry about making the wrong hiring decisions or replacing personnel when they go on vacation, leave of absence or leave employment with your company. E Smith personnel dedicated to the lease administration function will be vetted by our experienced management team. We provide a back-up lease administrator for each account, so you will always have a contact within our organization.
  • Landlord Billing Errors – Reduce the risk of overpaying landlords by allowing lease administration experts to audit the landlord charges and annual reconciliations.

Benefit – Centralized Data Resource


  • Access to real time data for members of real estate, legal, accounting and risk
    management teams.
  • Ability to run straight-line rent calculations and journal entries from central source.
  • 10-K reports available for minimum lease liabilities
  • As new FASB rules become effective, our database solutions will provide the right-of- use asset and liability opening balance sheet entries as well as the amortization schedules and journal entries.

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Under our leadership’s guidance, clients have saved over $50 million from landlord overbillings.  We have assisted over 80 companies with six sigma quality data which can be utilized for making strategic operational decisions.  Accounting departments have benefited by receiving calculations for straight line rents, as well as the journal entries and amortization schedules which allows them to operate more efficiently.

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