You’ve tried counting sheep, but that didn’t work. You’ve taken natural, sleep-enhancing supplements, but you still wake up just a couple hours into the night. Heck, you even cut back on your (admittedly excessive) coffee intake, but it’s had no effect. You simply can’t sleep at night these days.
Your mind is racing with the potential errors infesting your lease portfolio. Did you store that lease proposal document in the right folder? Do you have any expirations, termination or renewal options coming up that you didn’t know about? Are your rent projections for the next quarter on track, or did you input the wrong information in your spreadsheet?
Human error can’t be avoided by even the sharpest minds in the commercial real estate (CRE) industry. In fact, without the use of CRE software with lease auditing capabilities, there’s probably a error-ridden lease in your portfolio. Fortunately, lease auditing software can help. Read on to discover why it will help you sleep better at night.
There are two main types of errors humans can make with data entry: mechanical (spelling, grammar, typos, etc.) and logical (human mistakes). According to the Klemmer and Snyder study at the University of Hawaii, a “good general figure for mechanical error rates appears to be about 0.5%.” As for logical errors, the rate is even higher, “about 5%.” This means that for every 200 actions you take, you’ll make one mechanical error and 10 logical errors. Of course, the above study was based on people whose job consisted entirely of data entry, so it’s likely even higher for commercial real estate professionals.
Whether you’re a broker, landlord or corporate CRE pro, the opportunities for human error in your lease administration are abundant. From juggling lease documents and scheduling appointments to reconciling tax records and building reports, there are several clerical tasks that make up a portion of a commercial real estate professional’s day. Here are a few examples where it would be easy to make a mistake that could seriously impact your CRE portfolio:
When you’re recording rent obligations and occupancy costs for reporting
What do all of these situations have in common? They involve CRE pros manually inputting data, which, as illustrated in the section above, will result in some errors. Fortunately, CRE software with lease auditing can help.
Lease administration involves a lot of moving parts.In order to ensure that you’re recording everything exactly the way it should be, you need to be monitoring and analyzing your data constantly. As a CRE pro, though, lease administration is just part of your day. You need time to focus on building your portfolio, right? CRE software with lease auditing solves this problem, as it systematically examines your expenses, billing and other lease metrics to ensure there are no potential errors. Here are a few other benefits of CRE software with lease auditing:
Finally, the biggest benefit to CRE software with lease auditing isn’t related to avoiding mistakes at all. It’s actually a way to proactively save money and cut costs. According to the CCIM Institute, lease auditing has resulted in $100 million in savings over the last decade for commercial tenants. That fact alone makes CRE software with lease auditing potentially worth the investment.
Of course, commercial real estate software with lease auditing is a nice feature, but in itself doesn’t reach the potential of CRE software with additional support. That’s why companies like Quarem are more than just a platform; their primary goal is to help you utilize the application to its full potential. Here are some of the ways Quarem accomplishes this with its services:
When it comes to lease auditing, commercial real estate software like Quarem can help you sleep better at night. To see how, schedule a demo of Quarem today.
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