5 reasons why using Excel for Lease Management is Costing You Money
Why do you track leases? You probably monitor your leases for the very simple reasons of knowing how much you pay for rent; your renewal notification deadlines; and tracking common area maintenance (CAM). The answer to the question of why is fairly simple. It is your answer to the question of how you track leases that determines whether your business is earning or losing money because of your chosen tracking method.
Excel’s Limitations: Ineffective and Inefficient
Yes, using Excel to track your leases is relatively easy, convenient, and cost effective – in the beginning. However, as your business grows, you will quickly realize why excel is a poor choice. Imagine the time and money investment needed to address the following limitations of Excel:
1) No Alert System: Excel cannot alert you of deadlines for renewal options, and when these options lapse your payments can increase. A “small” increase of $200 over a typical 5 year lease results in a total extra payment of $12,000!
2) Payment Errors: Excel increases the likelihood of data entry errors, especially if your rent payments have annual increases.
3) Accountability: If an employee makes changes to your excel spreadsheet, there is no way to track who made the change, or more importantly, what the change was.
4) Analysis: Excel limits your ability to quickly analyze historical and future data. How quickly can you calculate what your net effective rent is for each location?
5) Document Tracking: With excel, you cannot upload lease documents to a central location. You cannot designate a lease in excel to an actual lease document.
As commercial real estate professionals we need to be aware of tools and resources that can help our clients and/or in some cases uses these more effective and affordable tools ourselves. Technology is here to stay and embracing tools that help your business or your client’s business is essential. Large corporations have the staff and manpower to manage their leases, but small businesses have had to rely on excel spreadsheets. Now with products like LeaseQuery, you can manage all your leases, track payments, get notifications for critical dates like renewals and expirations, record accounting entries and pull reports. Best of all, you can access all this information from anywhere with an internet connection, and it is VERY affordable. As a Marketplace Partner we want to offer you the first 5 leases free. www.LeaseQuery.com; the small business solution for lease management.