How do Industry Professionals “Unveil the Mystery” of Lease Administration?
–by Rouben Alchoujian, President, Praedium. Used with permission.
EVEN THOUGH Lease Administration, as part of the CRE suite of services, has been around for over 30 years now, it still remains a big mystery to many. As surprising as it may sound, the overwhelming majority of business professionals (even those in the Real Estate industry!) have little or no idea about it. Transactions / Brokerage, Facilities Management, Property Management, Investment Management, even Real Estate Finance and Accounting are relatively easy to explain – almost everyone knows what these are and what they do. But not so much for Lease Administration!
Online definitions and information don’t add much clarity. According to Wikipedia, “Lease Administration is a department that usually falls under an organization’s real estate department. Lease Administration involves receiving rents from facilities they own and paying rent for the facilities they lease, and other activities.” So, it’s a department, that receives and pays the rent – were we wrong in thinking that accounting does that?