Commercial lease renewals provide an opportunity for you to take stock of your real estate portfolio, ensure that your current properties are still worth leasing, and potentially negotiate for better terms. But renewals can be a lengthy, complicated process, and failure to adequately prepare for them, track key dates, and understand your options could leave you stuck with a bad deal. Even when you intend to stay in your existing sites exactly as they are, you should treat the lease renewal process as if you were moving in for the first time.
A dedicated solution for lease renewals, like Tango Lease Transactions, helps you manage the process from start to finish, ensuring that everything goes according to plan and you come out ahead. Here’s why you don’t want to navigate lease renewals without one.
It saves you hassle and expense
Lease renewals have a lot of components, and managing them all without a centralized system requires far more work hours than necessary.
For example, you’ll want visibility into all leases with a given landlord—especially if you intend to negotiate in bulk—so you can see what terms and rates the landlord has already agreed to elsewhere. The landlord already has visibility into all of this, so being able to organize your own leases by landlord eliminates a point of information asymmetry in negotiations. You can compare similar leases and facilities to push for better terms in your renewal.
The more leases you have, the harder it becomes to find the information you need to create comparisons, recognize opportunities, and leverage your portfolio. But a dedicated solution like Tango Lease Transactions manages all these details for you, analyzing every relevant factor much more quickly and efficiently than a human can, and automating the creation of transactions to ensure that nothing falls through the cracks.
Using an organized and automated system to manage this process saves time and money—and it reduces the chance of human error.
It tracks key clause negotiations
Lease renewals are a time to negotiate for the best deal for your business. If your lease contains language you want to remove, this is the opportunity to make that happen.
For example, maybe your current lease has you tracking percentage rent, and you want to adjust the burden of risk your business bears. Or perhaps you want to add break options or change the structure of CAM expenses.
Tango Lease Transactions automatically ingests every lease, bringing each element into a single, searchable database, making it easy to find the information you need to negotiate effectively.
It limits mistakes
When we talk about mistakes, we aren’t just referring to typos in the paperwork for the lease agreement itself—though a dedicated solution like Tango Lease Transactions will help there too. We’re talking about costly oversights such as unexpected or unnecessary repair bills.
Let’s say you have a property that needs a new roof (or any other major maintenance expense). Who is responsible for these repairs? Will you be staying long enough to benefit from them? You wouldn’t want to pay for maintenance that actually falls to the landlord to cover, or make significant improvements to a facility you won’t be leasing a year from now.
When you manage a large number of properties, it can be hard to keep track of your responsibilities and renewal dates without a centralized source of truth. Businesses easily end up spending large amounts of money on repairs they wouldn’t have needed to make if they had better visibility into renewal plans and the terms of the lease.
Conversely, the work a given property will need should inform your decision about whether to renew. If you have the chance to get out of a property that will soon require expensive CapEx investments, you’ll want to factor that into your lease renewal strategy.
Solutions like Tango Lease Transactions keep everything organized, let you see the status of your real-estate portfolio at a glance, and help prevent costly mistakes.
It maintains operational efficiency
Most organizations have many different people looking at renewals—including internal decision makers and possibly third-party brokers as well.
You’ll need to make sure everyone has access to the relevant metrics who need them. Your teams should be armed with the same information the landlord has. And they should be able to access it all in one place.
It’s also important that you’re able to measure, track, and report on performance, ensuring that each person is doing their part to ensure a smooth process. How many deals are your managers or third-party brokers working on at a given time? What stage of the pipeline are they in? How are they doing with any savings targets you may have set? Are they getting the terms they need? Are they hitting the target for rent per square foot?
A dedicated solution like Tango Lease Transactions gives you easy access to all these insights and more.
Manage all your lease renewals from a single place
Tango Lease Transactions organizes all your lease information into intuitive dashboards, equipping you to manage lease renewals, keep track of important dates, review clauses, maintain compliance with the latest lease accounting standards, and streamline your processes to save valuable time.
Your team can analyze and explore your entire lease portfolio from the same place. Tango Lease Transactions gives you the tools to handle all of it.
Ready to see what our lease administration and accounting software can do for your organization?