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The Washington, D.C., metropolitan area has one of the hottest real estate markets in the country. That is great for investors, but it also translates to increased competition.
It means property owners must put their best foot forward to stay ahead. Vacant units equal lost revenue. So, lease administration may be the difference between success and failure.
Below are some essential tips for proper and effective lease administration. Keep reading for some strategies to help you get the most out of your real estate investment.
Centralize Documentation
Organization is essential for effective lease administration. Keeping a centralized repository for all lease documents is a good place to start. This includes agreements, notices, and any correspondence with tenants.
Keep Up With Critical Dates
Maintain a detailed calendar with critical dates for each property and unit. These should include things like lease expirations and maintenance deadlines. It should extend to the latest possible dates for when you need to send notifications, such as for property inspections or lease negotiations.
Do Regular Audits
Conduct regular examinations of lease agreements and financial records. Making this a part of your monthly routine can ensure nothing falls through the cracks. Periodically reviewing lease terms also helps you identify opportunities for renegotiations and possible cost savings.
Maintain Regular Communication
Keeping in touch with tenants and ensuring that they can reach you is critical to lease administration. It ensures that both parties have all the information they need regarding any matters covered under the lease. Good communication also can be important for establishing a paper trail, should disputes arise.
Negotiate Favorable Lease Terms
A major part of lease administration is knowing the value of your property and working to get the most profit possible. Research market trends and vacancy rates of similar properties before you negotiate a lease agreement.
With rent escalations, make sure you communicate clear reasoning, such as inflation or other market changes. Make a note of property improvements and any unique advantages the unit affords. All this can go a long way toward effective lease term negotiations.
Use Lease Administration software
There are many programs and platforms out there that can help you do all the tasks mentioned above. These can automate reporting and compliance tasks.
Software can help you manage payments, critical dates, and obligations associated with each unit. It can make all aspects of effective lease tracking seamless.
Consider Hiring a Professional
Especially if your business is growing and you are having a tough time getting a handle on lease management tasks, consider turning to the pros. A property management company can take on as little or as much responsibility as you prefer.
For instance, they might do regular property inspections but only report information you need to make decisions about the property. They can field maintenance requests from tenants and handle correspondence about renewals or other lease issues.
Get More Lease Management Tips Today
Now that you have some effective lease administration strategies, you can move forward with confidence. An experienced real estate management company can further advise you on policies that will help you get the most out of each lease.
PMI Loudoun is a full-service property management company. We offer a variety of services, including lease management and administration. Reach out to us today for some more property management tips.
