Tenancy agreements in the private sector are often very straightforward. Apart from the house rules and the notice period, there is little that is exciting about the tenancy agreement for residential premises (and that is a good thing!).
It's different with tenancy agreements for companies. Especially for commercial operations, the contract landscape can become quite complex: Multiple locations, different types of rental properties, special contract conditions, renewal options, turnover rent and other special features make contract management a nerve-racking and time-consuming "side job".
The problem, however, is not strained nerves and extended working hours at the end of the month, but hard economic facts. For example, if you miss the deadline for exercising an option because you have lost sight of the contract in question, you will ultimately lose money.
Contractually agreed rent adjustments (rent increases, turnover rents, etc.) can also cause bellyaching if they are not duly observed: In this case, the budget of the new year would be calculated incorrectly, which would be worse than merely "unsightly".
Those who want to be sure to keep full track of all tenancy agreements theoretically have three alternative options :
1. summarise all important facts from all contracts in a clear list.
2. read through all contracts at least once a month and check whether any deadlines are due.
3. use lease management software.
Fortunately, the third option does not cost the earth. At least not as much as the numerous hours of work that would have to be spent on the first two options.
Basically, a lease management software does exactly the two options 1 + 2 mentioned above:
1. it records all relevant contract details in a structured form.
2. it checks the data continuously and points out deadlines.
Let us briefly turn to the first point: What details are relevant in tenancy agreements?
Here is a short checklist:
Lease management software would add little value if you had to fill in all the details mentioned by hand. In this case, you might as well fill up an Excel spreadsheet! The contract management software ContractHero analyses the uploaded contracts using artificial intelligence and independently extracts the important details such as notice periods or rent.
What is not automatically recognised and filled in, you add manually in a clear entry mask. The advantage of ContractHero over other software solutions for managing rental contracts is its flexibility: ContractHero comes with a "field construction kit". This allows you to define your own database fields as you wish.
Here are two examples:
In this way, contracts with any degree of complexity can be recorded in a structured way. Needless to say, you will never miss a deadline with ContractHero.
Just give it a try!
Learn what contract management is and what to look for when choosing contract management software.