Imagine a situation where you have to compare two 100-page documents. It sounds like a chore, doesn’t it?
Now imagine that you first have to sort through 1000 documents to locate the two 100-page documents. And then you have to carry out the comparison! Are you ready to give up the task?
Anybody in this position would.
But what if each of these documents had an index summarizing the primary details you would typically compare. It can easily be done with lease abstraction.
This blog will explore what lease abstraction is, its key components, and associated benefits. Let’s get started.
Documents related to leasing real estate are often highly detailed and elaborate. As a result, some crucial information could get lost or overlooked between the several leaves of paper. Similarly, locating information can be time-consuming as one has to sift through the sheets to identify the portion of interest.
Lease abstraction is a process that involves the extraction of financial, business, or legal data that is critical to property portfolio management. This information is then compiled into a report saved over a centrally located database so that the organization can make informed decisions.
When businesses plan to use lease abstracts to compare multiple real estate portfolios, they need to rely on a few common denominators that indicate the property’s performance. To meet such requirements, lease abstracts often contain information like:-
The above list is just to give one an idea. However, the abstract may change from one lease to another, depending on the terms agreed upon by both parties.
In simple terms, lease abstraction is a summary of the lease document. So what makes it important?
It is the fact that it saves time and effort.
Essentially, a lease abstract eliminates all the distractors and offers a high-level overview of the lease demands and expectations.
Generally, lease documents, especially in the case of commercial properties, can be excessively lengthy and loaded with information. Naturally, businesses or administrative machinery would like to cut right to the chase than wading through real estate technicalities. As such, in these situations, a lease abstract can be a savior. Having a lease abstract at hand will make vital data readily available while masking the routine content.
Furthermore, lease abstraction services offer other such benefits:
In the current era, every document possesses scope for digitization, and lease abstracts are no exception to this rule. Businesses can build a network of databases and software applications to streamline the storage and retrieval system. Resultantly, they would be saving on time, cost, and human resources to maintain such records with unlimited scalability.
The digital transformation of this process allows real-time data updates, share alerts and notifications, calculate taxes or overdue fees, and most importantly, room for automation.
A lease abstract succinctly covers all the rights and obligations of every stakeholder, which makes it easier to implement compliance. It also structures the financial liabilities that may incur in case of any errors. Plus, since it outlines the important financial and legal information, it gets easier to comply with any taxation or local laws or regulations as well.
As a result, lease abstraction service providers ensure that real estate owners and investors can capitalize on all opportunities and prevent any losses.
Businesses are adopting a data-first approach to stay relevant and up to date. The combination of technology and lease abstraction services can offer you the desired competitive edge. Companies can exploit data obtained through lease abstraction systems to review their real estate portfolio and their respective performance. Based on these findings, one can make managerial decisions regarding divestments, acquisitions, diversification, and more.
All the above advantages indicate that lease abstraction adds value to your business operation and processes. Hence, through a combination of these, you could potentially find value in existing lease documents or rent provisions, which otherwise would have gone unnoticed.
A simple lease abstract ensures that critical information is readily available at your fingertips. It allows you to monitor property performance, save time and money, and prevent losses.
However, imagine the potential offered by this system when you can harness the power of automation!
The automation of lease abstraction services grants more opportunities, ranging from cutting-edge analytics to data validation. It eliminates redundancy and human error, which can further streamline your business processes.
Intrigued about lease abstraction services and their automation? Contact Docsumo now!
In today’s dynamic business world, filing and archiving official documents in the digital form makes it handy, and works wonders in the future or in unforeseen circumstances.
Optical Character Recognition (OCR) is the technology to convert an image of text into machine-readable text. It is the underlying technology for various data extraction solutions including Intelligent Document Processing. However, OCR is not smart enough to figure out the context in a document - it works simply by distinguishing text pixels from the background and finding a pattern. This limitation could cause inaccuracy in captured data that could directly impact the output of your data extraction model.
Accounts payable is a key financial function for any business. Corporations can have thousands of suppliers; even for relatively smaller businesses, the number of suppliers could be in hundreds. All the invoices they receive from these suppliers come in multiple formats, layouts, and templates - some semi-structured, some unstructured. Therefore, firms expend time and resources to capture invoice information through manual data entry and verification of accounts payable. Manual data entry is not feasible in the long run, definitely not on a large scale. Before we talk about how intelligent invoicing solves the problems associated with manual invoicing, let’s discuss the challenges in much detail.
As most of an organization's information is available in an unstructured format, processing it requires an automated system that can handle documents with minimum human interaction. OCR is one such technology, but its scope is limited as it requires human interaction and is highly dependent on the layout and structure of the document to be processed.These limitations are overcome by Intelligent Data Extraction.Using artificial intelligence, the Intelligent Data Extraction technology extracts data from documents and transforms it into useful information through the extraction process. It functions as a singular tool for extracting information from any type of document and aids in optimizing company operations.