When To Abstract Leases

When should a lease be abstracted? Generally, leases should be abstracted at certain times before and during ownership of the property, including:

  • Whenever a new lease is executed
  • Whenever a lease is modified in some respect
  • Prior to the acquisition of commercial real estate
  • Prior to the merger or acquisition of a company that has a portfolio of lease assets
  • Whenever a company acquires or contemplates acquiring a portfolio of leases
  • Whenever a property changes current management
  • Whenever ownership converts to a new property management software system
  • Whenever lease files are not adequately organized
  • Whenever a real estate company does not have complete confidence in the accuracy and validity of its lease data
  • Immediately, if lease abstracts had not previously been created or recently updated.