What is Lease/ Contract Management Software?

May 16, 2022
Vinay Agrrawal
Lease Management
Workflow Automation

Leases are complicated enough by themselves; imagine managing hundreds of contracts daily without any underlying support system or software to streamline things.

Truth be told, it can be quite time-consuming to handle asset leases because of various aspects that need to be managed in tandem:

  • Managing lease terms
  • Payments and invoicing
  • Renewals and operating expenses
  • Accounting tasks related to leases

The list goes on. It makes total sense, thus, to deploy software that is capable of managing lease/contract-related tasks for your business, saving you time, manpower, and resources along the way.

Better yet, it is also possible to custom-design your own lease management software using no-code platforms available in the market today.

According to a report by Fior Markets, the lease management software market is predicted to reach a value of $6.88 billion by the end of 2028. The number speaks for itself: managing contracts/leases professionally using software is rapidly gaining popularity and is only expected to increase in the future.

Let’s learn more about lease/contract management, what it entails, and what software can do to simplify the process.

What is Lease/Contract Management?

Every company has its lease portfolio that lists out the contracts it has with various clients and businesses. The process of managing various tasks directly related to this lease portfolio is called lease management.

Activities such as managing documents, reporting, stakeholder coordination, audits, etc. are covered under the ambit of contract management.

Functions of Lease/Contract Management Software

While the needs of each business and company are unique, certain functions are universal to every lease/contract management software. They are listed below in detail:

Keeping Track of Critical Events

Many aspects of leases need to be tracked diligently to avoid penalties and losses:

  • Start and end dates of a lease
  • Break clauses
  • Rent-free durations on leases
  • Reviews, events, and updates
  • Indexations on leases

Automating lease management by creating custom lease/contract management software using no-code can help you effectively track all the aspects mentioned above.

For example, if your company owns an apartment building with 30 tenants, all of them have a lease agreement with you. The payment terms on each lease would be different - these would be based on the tenant's preference (whether they pay by cheques or by direct bank transfer). Tracking such details and keeping them updated becomes easier with the use of the software.

Integration with Incumbents

Customized lease management software can be integrated with existing enterprise resource planning software. This makes it easier to seamlessly incorporate automated contract management into your existing workflows without much disruption.

Better yet, using no-code platforms to design highly integrable software works like a charm to achieve smooth workflows.

Generation of Insights

Managing multiple assets at the same time can be optimized for cost using lease management software that is designed to generate analytics of the raw data it handles.

Following the previous example, the software can draw up a chart highlighting the tenants that pay on time, those who don't, and those who have accumulated penalties or have failed to pay maintenance and other charges.

This analytics helps retain the good customers and strategize accordingly to handle the problematic ones. Such time-scaled reports of which rentals are profitable vis-à-vis the maintenance and handlings they require help optimize the returns from each asset.

Such insights are invaluable in creating a cost-effective lease ecosystem at a company.

Optimizing Timelines

Lease management software is also effectively utilized to reduce the turnaround times associated with the inception of leases until they are executed.

Additionally, the following functionalities help streamline the entire process:

  • Setting up automated email for expiry reminders
  • Keeping track of lease terms
  • Keeping rents updated with time and regulations
  • Keeping buyer/seller information handy

You can create customized functionalities by leveraging the no-code benefit while creating your lease management software.

Features of Lease/Contract Management Software

Depending on the scale of your business and the number of assets you handle daily, the features of lease management software may differ.

However, certain features remain available regardless of business size. Let’s look at these features in detail:

Managing Property-Related Data

Diverse assets come with their own sets of data that need to stay updated and accounted for when managing leases.

Lease management software has various features to let you effectively handle a high quantum of data every day to offload tasks of a clerical nature. Automation makes it simpler to look after data requests such as:

  • Lease timelines – initiations, expiries, renewals, and more
  • Data about properties/assets, such as maintenance records, status, and requirement, upkeep costs concerning profit, and more
  • Rent data such as upcoming due dates, reminders, pending rents, and penalties

It is important to have such data handy to make informed decisions for your business.

Managing Operations

Every business has its workflows wherein various operations are executed like clockwork. It is better to employ lease/contract management software to improve workflow efficiencies where the following operations are concerned:

  • Creating a website or online platform where your assets can be promoted
  • Creating user-centric functionalities like profiles to help your customers access their data without having to rely on staff
  • Creating repositories for logging various sets of information like tenant records, property documents, etc.
  • Creating payment channels to collect rent through online modes

All of the operations mentioned above can be programmed to be automated, drastically reducing the manpower requirements of a business.

Managing Accounting

All leases have different terms for payment, rent, interest rates, loans, etc. As such, the accounting team needs to stay updated with every single payment term of every lease in play.

Lease management software has features that enable integrations with the current accounting ecosystem to make accounting simpler and more accurate in the following ways:

  • Keeping track of payable and receivable amounts
  • Taxation, reconciliation, fund transfers
  • Compliance with tax/accounting guidelines of the region the business is based in
  • Advanced payments, vendor charges, maintenance, etc.

In some cases, it is even possible to eliminate the use of accounting software by creating a custom lease management software with accounting capabilities using no code.

Managing Leasing

The most important function of lease management software is to allow you to keep track of the statuses of all your leases at any given time.

The following functionalities help to keep the leasing workflows running smoothly:

  • Creating rental applications and sending them out to clients
  • Creating document storage repositories
  • Marketing listed properties
  • Gathering e-signatures

It becomes quick and easy to handle multiple leases at the same time using effective software.

Wrapping Up

Lease management is a complicated collection of tasks that set off in all directions - employing software for tying these tasks together by creating automated, logical workflows helps improve the operational efficiencies of a business.

If your business is engaged in managing diverse assets every single day, there are a lot of benefits to be gained from a lease management software. Such software, using no-code platforms, can be easily designed to track the status and updates regarding all the active leases at your company.

Additionally, it can also help you stay compliant with the latest regulations issued by the government and the industry, saving you penalties and other non-compliance hassles in the long run.

If you are looking for a lease management software that truly works for you, try using a no-code platform like LeasO.

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