Most real estate organizations have already abstracted their leases. That does not mean the data in the system is correct. Every amendment, manual update, migration and interpretation introduces another opportunity for the system of record to diverge from the actual contract.
What a lease-to-system audit checks
Compare the executed documents with the fields currently stored in your systems, including:
- Base rent.
- Escalations.
- Lease commencement.
- Expiration.
- Renewal options.
- Termination rights.
- Critical dates.
- Area.
- Pro rata share.
- CAM terms.
- Percentage rent.
- Deposits and letters of credit.
The problem with sample-based audits
When validation requires people to manually reread leases, organizations usually audit only a portion of the portfolio. The remaining records are assumed to be correct. AI makes it possible to evaluate the entire portfolio.
REAL turns the lease into the control
REAL reads the governing lease documents, extracts the applicable terms and compares those terms with existing system data. Instead of asking "Was this abstract entered correctly?" teams can ask "Where does our system disagree with the lease?" — and investigate the exceptions that matter.