27 Jul Commercial Rent Increases
As a commercial property manager, tracking and enforcing tenant rent increases is an ongoing job responsibility. Manually tracking the rent increase schedule for each and every tenant at every property can get very messy and very overwhelming quickly. When we first started managing properties we used a simple excel spreadsheet to track important lease dates including, lease extensions, terminations, rent abatement period, renewals, and annual rent increases. However, we found after adding a few properties to our portfolio, manually tracking these critical dates was tedious and riddled with errors.
We researched many property software options and found the right company for our needs. Finding the right software that matches the property company’s budget and level of complexity is key. Property software eliminates the human error of manual inputs and missed rent anniversary dates. We maximize property profitability for the landlord with the automation of complex, critical lease calculations.
Great property software providers include Appfolio, Yardi, Buildium, MRI Commercial and more. As property managers, utilizing commercial real estate software has also increased our own efficiency, thereby reducing costs. We have set up notification alerts 90, 60, and 30 days out of a pending tenant rent increase. We automatically send a friendly reminder to the tenant so there are no surprises when the increase comes due. The alerts are all based on having an accurate rent commencement date. We recommend doing a lease abstract to capture and summarize all of the critical lease dates. Communicating a summary of the most important dates of the lease to the tenant, landlord, and property manager helps reduce any confusion or disagreements down the road.
In summary, check out the different software options and choose what works for you. Just don’t track tenant dates manually.
RSS Feed provided by theBrokerList Blog – theBrokerList for commercial real estate brokers (cre) and Commercial Rent Increases was written by Robert Tack.