Essential Lease Management Software for Lessees

Commercial and retail leasing has grown exponentially in complexity as the business world has changed dramatically in recent years. Due to three main drivers, managing leases from a lessee’s perspective has become impossible with simple spreadsheets. First, IFRS (AASB 16), which was enacted on 1 July 2019, requires lessees to “capitalise” future rental payments on their balance sheets. Second, new rules introduced since the pandemic deal with rental abatements and clauses addressing changes in rental due to pandemic circumstances. Third, retail leases are increasingly moving to turnover-only or “capped occupancy leases,” where rental values are based on a lessee’s sales. This blog explores the benefits of commercial lease management software and highlights why it is essential for anyone involved in commercial leasing from a lessee’s perspective.

Commercial lease management software is a specialised digital solution designed to streamline the complexities of managing commercial leases. It includes several components, including lease abstraction, lease management, accounts payable and financial reporting. Enhanced by AI, leasing abstraction offers high accuracy in digitising lease details. Lease management provides a centralised platform to manage lease agreements, tenant information, rent payments, maintenance requests, and compliance with regulatory requirements. Standard features include automated reminders, tenancy schedules, reporting, and compliance. Additionally, it manages accounts payable and financial reporting, which involves paying rent, tracking variances, and capitalising leases.

The key benefits of using commercial lease management software are manifold:

It enhances organisation and accessibility by centralising all lease-related documents and data, making information easily accessible to authorised users. AI-powered lease abstraction software like Accurait ensures an audit trail of the document’s content.
It improves accuracy and compliance by providing automated alerts for critical dates, ensuring renewals, inspections, and other important events are not missed. This proactive approach, vital in maintaining compliance with Australian laws and regulations, offers a sense of security, helping avoid costly penalties.
With the advent of IFRS 16, financial management and reporting have become mandatory. Lease management software automates rent calculations and CPI reviews, generates invoices, uploads turnover (sales) data for occupancy calculations, tracks payments, and offers detailed financial reporting to help lease managers make informed financial decisions.

Adopting commercial lease management software is not just a move in the competitive Australian commercial real estate market. It is a strategic leap that can significantly enhance efficiency and accuracy. By leveraging these digital tools, lessee property managers can stay organised, ensure compliance, improve financial management, and provide better tenant service. As the market continues to evolve, embracing technology will be vital to staying ahead and maximising the potential of commercial real estate investments. Leading software solutions like Accurait offer robust and leading-edge features tailored to the Australian market, ensuring scalability and efficiency as your portfolio grows. This emphasis on technology and its strategic importance will make the audience feel forward-thinking and prepared for the future.

Learn more about Accurait by visiting our About Us or book a demo to see how it can help you today.