.webp)
If you don't bother reading the terms of service when setting up an account, you aren't alone. According to The Advance-Titan, some studies show that as many as 91% of people skip through them.
That may be fine when creating a Google email account, but not for commercial property portfolios. The property lease contains need-to-know information for all parties, yet that info is buried in dense legalese. Is there any way to make it easier?
There is, with lease abstraction services. Today we'll cover:
- What they are
- Why they're important
- How they can help you
Lease abstracting sounds confusing, but it's a clever way of portfolio optimization. Let's dive into this critical property management strategy in Westminster, Colorado.
What Are Lease Abstraction Services?
The word abstraction likely gives the impression that this is some complex idea, but it's not. Think of the abstract in a study. It's a summary that boils a longer document down to bite-size.
How Lease Abstracting Works
Lease abstracting is, in many ways, a formal TLDR. You hire lease abstraction services to:
- Give key bullet points
- Provide a general overview
- Outline the whole document
To be clear, the lease abstraction does not replace the lease. It's not meant to be enough information for someone to read and feel confident enough to sign. Rather, it's a helpful lease data management tool for demystifying the document.
Why Lease Abstraction Is Important
Lease abstraction is important for one simple reason: people don't like legalese. The language feels like it's purposefully trying to hide information from the reader. In fact, studies have shown that many lawyers understand better when things are in plain English.
Of course, this doesn't mean that the information is written casually, like a social media post. Instead, it's concise, straightforward, and clear to the reader. It exists not just for lawyers, but everyday real estate investors.
While this is not a legal requirement for leases, it's highly advisable to include an abstraction. After all, the lease has information that both buyers and sellers need to know.
How Lease Abstraction Helps You
Again, lease abstraction is not required, but it still behooves you to use it. Benefits may include the following:
- Speeds up lease review
- Answers general questions
- Helps locate information in the lease
- Makes the lease accessible to all
In the end, this optional lease optimization is a show of good faith. Abstracting the document demonstrates that you want the information to be as clear as possible. You are putting your best foot forward to achieve comprehension and agreement between parties.
Learn About Lease Abstraction and More at PMI
Lease abstraction services take a lengthy and complex lease, then cut it down to size. Think of it like a TLDR, especially one for a legal document people can't afford to skip over. It helps you by making the process smoother and the lease more accessible to all parties.
PMI Mile High in Westminster, Colorado, takes your portfolio miles high, too. We're the preferred realtor of Keller Williams, proof that we're a local business that you can trust. Before drafting the lease, use our ROI calculator to find out what you can earn.
