Lease is a legal agreement between two parties. It states that one party can use the property/assets/products/services belonging to another by paying them a certain amount of money. Both the parties need to keep track of certain necessary details, which is even more important in the case of those in the Property or Real Estate sector. Real estate companies have to handle a lot of paperwork and lease abstraction is a real boon for them.
Components of a lease for renting a property:
- Address of the property leased
- Monthly rent
- Security deposit (if any)
- Purpose for which the space is being rented (residential or commercial)
- Starting date of the agreement
- Ending date of the agreement
- Names and signatures
- Any additional information, negotiations or situational clauses
Legal support companies are offering specialized services such as lease abstraction services. These services are specially beneficial in cases where the owner has to keep the record of several properties and tenants at the same time. Lease abstraction services help them digitize all their agreements, organize them and keep them safely. Lease abstraction also allows both the parties to access, retrieve and modify any information instantly.
Abstraction services summarize the terms of the agreement and analyze their effect. Lease conditions differ from tenant to tenant and a lease can vary from 10 pages to a 100 pages. The process of lease abstraction helps both the parties and helps resolving issues easily and quickly. Abstracting data from lease also helps you in in taking a quick look at the core points easily and quickly without having to go through several pages.
The process of lease abstraction starts by sending the lease(s) to the legal support company. Then their expert lease administrators thoroughly read the document, highlight the crucial details and then start the process of abstraction. The project manager or the supervisor either makes the necessary changes or makes the list of modifications to be made. Once the project manager or supervisor is satisfied then the final product is delivered to the client.