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Essentials of Lease Abstracting                            Presented by: Julie RicciLease Administration Masterclass      ...
Essentials of Lease Abstracting     Session Overview       •   What is a Lease Abstract?       •   What is the Value of Le...
Essentials of Lease Abstracting     What is a Lease Abstract?      lease      Noun      1.   a contract renting land, buil...
Essentials of Lease Abstracting     What is the value of Lease Abstracting?      To ensure ….      •    Key Dates are chec...
Essentials of Lease Abstracting     Basic Rules Before You Start     • Have a clear mind;     • Take your time, check each...
Essentials of Lease Abstracting     Administering Multi-Geographic Portfolios     Are you about to expand your Business in...
Essentials of Lease Abstracting     Systems & Tools     How do you record your findings:     • Excel Spreadsheet          ...
Essentials of Lease Abstracting     Lease Abstraction Components     •   Abstracting Critical Dates     •   Managing Rents...
Essentials of Lease Abstracting     Abstracting Critical Dates     • Start & Expiry Dates     • Mid-term Refurbishment    ...
Essentials of Lease Abstracting     Managing Rents, Reviews & Adjustments     • Calculating Commencing Rental     • What i...
Essentials of Lease Abstracting     Percentage Rent Calculations     • Calculating the threshold          – Natural       ...
Essentials of Lease Abstracting     Conditional and Dependant Clauses    • Greater Than    • Percentage of Sales    • Merc...
Essentials of Lease Abstracting     Sales Restrictions     • Managing Restrictions     • Limiting other competitors     • ...
Essentials of Lease Abstracting     Insurances and Compliance     • Building Approvals          – Warranty of Fit (NZ)    ...
Essentials of Lease Abstracting     Lease Conditions and Clauses     • What is a Kick-out Clause?          – Landlord or T...
Essentials of Lease Abstracting     Exercising Options     • What is a Right of Renewal?     • Have you documented:       ...
Essentials of Lease Abstracting     Landlord & Tenant Notices     • Address for Service     • Format/Type     • Date deeme...
Essentials of Lease Abstracting     Outgoings Charges & Reconciliations     • What is included as an Outgoing?     • Are y...
Essentials of Lease Abstracting                                   Thank youLease Administration Masterclass               ...
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Rpcon masterclass s203-essentials-lease-abstracting - julie ricci

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Transcript of "Rpcon masterclass s203-essentials-lease-abstracting - julie ricci"

  1. 1. Essentials of Lease Abstracting Presented by: Julie RicciLease Administration Masterclass Friday, 23rd March 2012
  2. 2. Essentials of Lease Abstracting Session Overview • What is a Lease Abstract? • What is the Value of Lease Abstracting? • Basic Rules Before You Start • Administering Multi-Geographic Portfolios • Systems & Tools • Lease Abstraction ComponentsLease Administration Masterclass Friday, 23rd March 2012
  3. 3. Essentials of Lease Abstracting What is a Lease Abstract? lease Noun 1. a contract renting land, buildings, etc., to another; a contract or instrument conveying property to another for a specified period or for a period determinable at the will of either lessor or lessee in consideration of rent or other compensation. 2. the property leased. 3. the period of time for which a lease is made: a five-year lease. ab·stract Noun 1. a summary of a text, scientific article, document, speech, etc.; epitome. 2. something that concentrates in itself the essential qualities of anything more extensive or more general, or of several things; essence. “A summary of a contract for renting land or a building”Lease Administration Masterclass Friday, 23rd March 2012
  4. 4. Essentials of Lease Abstracting What is the value of Lease Abstracting? To ensure …. • Key Dates are checked and recorded • Charges are calculated correctly • Documentation of Key Clauses • Budgeting awareness for forthcoming expenses • Reduction of risk of unusual Clauses being interpreted incorrectly • Easy reference for Company personnel • Speed and ease of access • Use of automated SystemsLease Administration Masterclass Friday, 23rd March 2012
  5. 5. Essentials of Lease Abstracting Basic Rules Before You Start • Have a clear mind; • Take your time, check each page; • Don’t ever assume documents are the same; • Ensure you have a complete set of Documents including all variations, extensions, memorandums, etc; • Review ALL documents before you start; • Seek guidance if you do not understand the intention of the clause; • Document data clearly and securely. Tip of the Day Two monitors are a must for efficient Lease Extracting.Lease Administration Masterclass Friday, 23rd March 2012
  6. 6. Essentials of Lease Abstracting Administering Multi-Geographic Portfolios Are you about to expand your Business into another Country? Well here’s your first challenge, not all Leases have a Lease Schedule. Dealing with different area and rental calculations Dealing with different currenciesLease Administration Masterclass Friday, 23rd March 2012
  7. 7. Essentials of Lease Abstracting Systems & Tools How do you record your findings: • Excel Spreadsheet – Pros and Cons • Database – Pros and ConsLease Administration Masterclass Friday, 23rd March 2012
  8. 8. Essentials of Lease Abstracting Lease Abstraction Components • Abstracting Critical Dates • Managing Rents, Reviews & Adjustments • Percentage Rent Calculations • Conditional and Dependant Charges • Sales Restrictions • Insurances and Compliance • Lease Conditions and Clauses • Exercising Options • Landlord and Tenant Notices • Outgoings Charges & ReconciliationsLease Administration Masterclass Friday, 23rd March 2012
  9. 9. Essentials of Lease Abstracting Abstracting Critical Dates • Start & Expiry Dates • Mid-term Refurbishment • Kick-outs • Co-Tenancy • Variable Accounting Years/PeriodsLease Administration Masterclass Friday, 23rd March 2012
  10. 10. Essentials of Lease Abstracting Managing Rents, Reviews & Adjustments • Calculating Commencing Rental • What is a Review, Escalation and Step • Cross-checking CPI values • Managing Rebates and Rent Concessions • Outgoings AdjustmentsLease Administration Masterclass Friday, 23rd March 2012
  11. 11. Essentials of Lease Abstracting Percentage Rent Calculations • Calculating the threshold – Natural – Forced • Using the correct Accounting Period – Lease Anniversary – Financial Year – Calendar Year – Other • Reporting Sales - Are there any exclusions?Lease Administration Masterclass Friday, 23rd March 2012
  12. 12. Essentials of Lease Abstracting Conditional and Dependant Clauses • Greater Than • Percentage of Sales • Merchant Promotional FundsLease Administration Masterclass Friday, 23rd March 2012
  13. 13. Essentials of Lease Abstracting Sales Restrictions • Managing Restrictions • Limiting other competitors • Radius RestrictionsLease Administration Masterclass Friday, 23rd March 2012
  14. 14. Essentials of Lease Abstracting Insurances and Compliance • Building Approvals – Warranty of Fit (NZ) • Public Liability – Do you have the right level of cover • Lessor Requirements – What does this cover; – Does the Lessor need to be noted on the Policy – Are there any exclusions • Providing COC to Lessor – Is it a requirement under the Lease to provide each year?Lease Administration Masterclass Friday, 23rd March 2012
  15. 15. Essentials of Lease Abstracting Lease Conditions and Clauses • What is a Kick-out Clause? – Landlord or Tenant Driven • Accounting for Make Good Provisions • Co-Tenancy Provisions • Assignment Provisions • Repairs & Maintenance • Relocation • RedevelopmentLease Administration Masterclass Friday, 23rd March 2012
  16. 16. Essentials of Lease Abstracting Exercising Options • What is a Right of Renewal? • Have you documented: – First Exercise Date – Last Exercise Date • What is the Review Method at the Option – Market – Fixed – CPI – CappedLease Administration Masterclass Friday, 23rd March 2012
  17. 17. Essentials of Lease Abstracting Landlord & Tenant Notices • Address for Service • Format/Type • Date deemed served • Updated – Current • Nominated ContactLease Administration Masterclass Friday, 23rd March 2012
  18. 18. Essentials of Lease Abstracting Outgoings Charges & Reconciliations • What is included as an Outgoing? • Are you in the US? What are CAMS? • Budget v ReconciliationLease Administration Masterclass Friday, 23rd March 2012
  19. 19. Essentials of Lease Abstracting Thank youLease Administration Masterclass Friday, 23rd March 2012
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