LEASE MANAGEMENT OUTSOURCE

ADDITIONAL DETAILS

Lease File Organization:Many times the document file containing the lease is extremely disorganized and does not include all of the relevant documents and internal/external communiqués. It also may include documents that are not relevant for managing the lease obligations. McKenzie methodically reorganizes the file and creates an exception listing documents which may be missing or unexecuted.

Lease Abstracting:
McKenzie’s trained lease experts use an abstracting database that extracts critical lease/liabilty information from legal documents in order to create a valuable reference tool for middle and senior management. The abstract includes critical dates, financial amounts, engineering formulas, and lessee/lessor obligations.

Financial Lease Review & Operating Expense Analysis:
Landlord charges are verified for consistency with lease obligations and proportionate calculations are logic-checked and vouched. McKenzie analyzes each of a client’s leases and interprets their specific financial liabilities and requirements. This information is then compiled to create a model of what should have been paid in the past. Errors are brought to light by comparing this information to the actual accounts payable history.

The stream of Operating Expenses or CAM is a considerable component of total occupancy costs. Reviewing statements of these expenses requires experience and a methodical approach to ensure that overpayments are not made. McKenzie considers the relevant information in the lease, the occupancy history of the space, the tenant-landlord relationship, and other pertinent information sourced from the landlord. After all the information is gathered, McKenzie uses specialized tools to verify, analyze and highlight critical elements or weak assumptions of the billing. The results of the analysis are either presented to the client with a recommendation for recovery or McKenzie will execute the recovery plan.

Escalations:
McKenzie uses a specialized tool to verify, analyze and highlight current Tax & Operating adjustments to the lease. Based on the analysis, McKenzie makes the appropriate revision, the calculation and the initial landlord or tenant contact.

Banking:
McKenzie can set up a custodial account for clients. The account receives wire transfers and or (sub) lease income that in turn can be used to make monthly payments. At the end of the month, a full reconciliation is compiled.

Database Genesis & Maintenance:
It is advantageous to create a database from which reports can be generated to support accounting and management activity. We can establish a subset of one of McKenzie’s databases or assist a client in populating their own software. It is critical that this work be done with consistency from field to field and record to record.

Once a database is established, the client has a powerful tool to efficiently administer the portfolio. It also provides greatly enhanced reporting capabilities. The success of a lease administration program relies on the consistency and accuracy of this database. McKenzie has experienced resources to make this possible and cost effective. McKenzie offers extensive customer support with responses within 24 hours or less (often the same day) to any questions about the portfolio.

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