Outsourcing lease administration to experts can be just like your Black Friday!
By Patrick Rousseau, Director of Lease Administration & Audit Services, Landmark
The recipe for having a profitable business should be quite simple: find a way to have more revenues than operating expenses. But, this is easier said than done. For this reason, so many businesses look forward to Black Friday as an opportunity to push revenue and create a buffer for the rest of an unreliable year. Based on your industry, these moments of grace can greatly increase your revenues. However, cost reduction can be just as important as a sudden boost of sales. Keeping costs under control throughout the year is a challenge in itself — especially during times of crisis. After product costs and salary payments, your real estate related costs are usually the next largest expense.
Partnering with industry experts in lease administration will mark a fundamental shift in a company’s experience for those who are unaware of that critical part of their real estate. By partnering with experts, Landmark can help you build a sustainable model you can count on.
The best way to improve is to learn from your mistakes, to live through and overcome hardships — that is what we call experience. By calling upon experts to solve problems related to managing your commercial leases, you are not only saving time, you are also being more efficient. Controlling and reducing costs becomes a lot easier: you do not have to invest in training colleagues and the results are immediate. Organizing crucial information and finding charges not compliant with leasing or industry standards is not straightforward, and should be left to an expert in the field.
Do you consider yourself able to change an electrical panel? Can you conduct surgery on your dog who suffers from a fractured ligament? You will likely require the help of an expert! Similarly, managing a commercial lease requires the specialized skills and know-how of an expert.
Based on what criteria would you purchase a car, a house, your next computer? Do different real estate management programs really have a direct impact on your profitability? The answer is yes. Based on your corporate requirements, some programs are much too elaborate to fulfill your needs. Lease administration experts have experience over the years across many different platforms and know how to choose a streamlined program to optimize your lease management. It all starts with the analysis of requirements, process, and knowledge of what is available on the market. Even on that aspect, experts save you time and reduce your overall annual management costs.
I need to know my average rent paid in the Greater Montreal Area. What were my snow removal costs in British Columbia for the past three years? Which of my commercial leases comes to term within the next two years? To get reliable answers, it is crucial to rigorously organize and structure lease data with sustained quality control. Otherwise you will be unable to produce reports that are valuable to decision-making at your company.
Now that lease administration experts are taking care of maintaining the integrity of your real estate data, reducing lease-related expenses, and ensuring that you have all the necessary information at your fingertips to make strategic decisions; what will you do with your time? Your lease-related costs are now optimized by your partner, giving you access to an easy to reach break-even point. You can now dedicate your efforts to the other key ingredient of the recipe: creating value with the sale of your product.
Partner Smarter thanks to Landmark’s lease administration team of experts.