Lease AdministrationLease Administration is the process of managing all transactions related to a lease and organizing a portfolio of leases to maintain smooth flow of operations. The lease administration department usually falls under an organization’s real estate department. The activities of this department include receiving rents from facilities they own and paying rent for the facilities they lease. It has become an integral part of the accounting, administrative, and legal requirements normally associated with a real estate portfolio. Job duties and responsibilitiesLease administrators track and administer all the leases in a company's portfolio. They usually have real estate experience and at least two years of college or a bachelor's degree, with a specialty in business, accounting, finance or law. Lease administrators make sure that all financial transactions related to leases, such as rent, sublease payments, common area charges and real estate taxes, are tracked and processed accurately. This is often tracked through a database and maintained by the lease administrator or with the help of lease administration software. Job responsibilities for lease administrators include:
The flow of transactions originates from realtors who scout for prospective lessees and sign them up. Once a lease is in place, lease administrators continue to manage and monitor rental payments, coordinate any tenant alterations, and handle lease amendments when necessary. Lease administration can be managed either internally or through outsourcing. The sizes of the company’s real estate portfolio and the corresponding complexity of rental transactions dictate the outcome of the decision to carry out administrative duties in-house or to outsource. Creating automated management and accounting systems might not be feasible for some, but most existing lease administration software can be adapted for any organization’s use. Job RequirementsLease administrators are required to have a bachelor's degree in Business, Finance, Accounting or Law. Most companies prefer some experience in real estate as well. Candidates should also have above par analytical, communication and computer skills, as well as strong attention to detail. They should be proficient in their use of word processing, spreadsheets (Excel), Internet and database software, as well as contract management systems. Facilities management or real estate certificates will provide an advantage. If you are passionate about real estate management and have an inclination for developing the skills mentioned, consider a career in lease administration. The knowledge and experience gained from such a field of work would allow you to have excellent mobility in your career. |
