Lease management software (also known as lease administration software) allows property managers and rental businesses to track lease data, automate renewals, manage applications, store documents, and manage leased assets. The software is most often used for managing commercial or residential real estate property rentals, and equipment leases. Some solutions can be used for managing employment or service contracts.
Lease management typically goes hand in hand with lease accounting to give you complete control over your entire lease lifecycle. Lease management software keeps track of lease details, automates renewals, and manages lease terminations and buyouts. Lease accounting software tracks income and expenses and creates reports in accordance with FASB and IASB standards. Having an integrated solution with lease management and lease accounting allows you to track lease terms and meet accounting standards from one place.
|Document Management||Create lease agreement templates, store signed lease agreements, and other important documents like service contract agreements, tax forms, and renters insurance information.|
|Date Tracking||Track lease start dates and expiration dates, as well as other critical dates like payment due dates. Receive automatic notifications for upcoming expiration or overdue rent payments.|
|Application Management||Manage application submissions, screen applicants, and create custom application forms.|
|Leased Asset Management||Track the condition and preventative maintenance details for leased assets.|
Lease management software is used by a variety of businesses to manage their lease data including:
Real estate professionals use lease management software for single-family and multifamily properties, commercial properties, and other property rentals. The software will store lease information including contract agreements, expiration dates, tenant contact information, rental payment due dates. Automatic notifications can be sent out to tenants for upcoming renewals and overdue rental payments.
Full property management software solutions include lease management, work orders, accounting, and more.
Lease management software stores lease information, as well as information about leased assets including tools, vehicles, machinery, and more. Information like the condition of your equipment and customer data will be stored within your system. Advanced software can have GPS tracking that allows you to track the real-time location of your equipment.
Other solutions also feature lease management including fleet management software and equipment rental software. These solutions may be more robust for your industry than a standalone lease management system.
Lease management software can help businesses manage lease data for contracted services. The software will store 1099 forms and signed contractual agreements, as well as information about the contracted employee or service such as employee contact information, service rates, and description of services rendered.
Lease management software allows you to create new lease agreements, store important documents, and manage lease information. The solution makes it easy to create new templates and modify existing ones, saving you time on drawing up paperwork for new tenants in the future.
Important documents from renters, customers, and contracted employees can be uploaded and stored securely within the system. These documents include renters insurance, pet records, signed agreements, asset condition documents, 1099 and other tax forms, and more.
The software will also track expiration dates and rental payment due dates. When renewals or payments are due, the system will automatically send out email notifications to your customers.
Some lease management solutions allow businesses to accept rental applications online with a customizable application form. The form can collect applicant information like contact info, social security numbers, and addresses of previous residences. Potential renters can also upload documents for proof of income, asset documents, recommendation letters, and pet veterinary records. If required, the potential renter can pay the application fee right from the form.
Lease management software also assists with tenant screening. Pre-screening tools can provide basic background checks for criminal activity, evictions, and credit issues, as well as verify employer information. Some tools can also screen an applicant’s social media accounts for potential behavioral issues.
Lease management software keeps records of your leased assets including who is using the asset, the condition of the asset before and after use, and important preventative maintenance deadlines. Keeping track of an asset’s condition before and after being rented is important for determining if any damage occurred while in use. Repair costs for damage done to the equipment or property during the rental period can then be taken out of the security deposit or charged as needed.
The software can also notify you when preventative maintenance is due. Keeping your leased assets well-maintained allows you to continue renting them out long, improving your ROI.
Often times lease management software includes lease accounting functionality or integrates with lease accounting software. The accounting solution allows equipment and property rental businesses to record their rental income and business expenses, invoice renters, and create financial reports.
Financial reporting is especially important for rental property owners in order to be compliant with domestic and international accounting standards. The most recognized standards are the IASB IFRS 16 and the FASB ASC 842. These standards determine what types of leases need to be recorded on the balance sheet.