We all know that a lease document can be quite long and may not be the most workable tool to use when you simply want to go over the nuts and bolts of the lease agreement with a prospective tenant. To mitigate this problem, many landlords opt to use a lease abstract to explain the lease term and conditions of the lease to a potential tenant.
So what is a lease abstract? A lease abstract is a concise, easy-to-read version of the lease agreement. The abstract generally includes the most important legal, financial, and business details that are discussed at length in the lease agreement. This condensed, workable document is created through a process known as lease abstraction.This process can be completed using either a firm, by using lease abstraction software, or using a lease abstract template.
How lease abstraction works
To create a lease abstract, lease abstraction software companies and firms put the lease through the lease abstraction process. During this process, critical lease data is boiled down to a cornice document containing only the most relevant lease information.
Once this process is complete, voila! You have the lease abstract, a navigable tool anyone can use. This process is most often completed using artificial intelligence.
Whether you're a developer, property manager, landlord, or investor, having a lease abstract for your real estate lease is always a great move.
Why use a lease abstract?
As previously mentioned, a lease abstract is a workable tool that landlords can use to explain the terms and conditions of the lease to prospective tenants. Since many leases can be complex, especially commercial leases (which may require the use of a commercial lease expert to review), a lease abstract is a tool any real estate investor can use.
For investors, a lease abstract can serve as a road map for investors to locate frequently referenced documents and sections of the lease without having to pull out the cumbersome original lease agreement. This means a lease abstract is not only a time-saving tool, since time is money, but also a money-saving tool! Who doesn’t like more bang for their buck?
The Millionacres bottom line
Whether you're an investor or a landlord, you can say goodbye to complex lease agreements once you invest in a lease abstraction tool. Save yourself time and money by finding a lease abstraction company that will give you the most accurate lease abstraction.