Think back to a time when you lost an important piece of paperwork. This universal experience can spell disaster for a landlord if they lose a lease or related documents.
They won't be able to look at or update the agreement. It can even cause legal trouble with their tenants.
Read on to learn about technology and best practices for easier lease documentation management.
Use the Right Technology
Lease management software provides a digital platform to store, organize, and access all your lease documents and data in one place. It also helps you automate tasks such as:
- Rent collection
- Invoice generation
- Lease renewal
- Compliance tracking
OCR technology lets you convert scanned or image-based leases into a text document you can edit and search through.
Did a tenant recently ask you about a specific clause or term in their lease? OCR lets you find it much faster than if you had to read a paper document. You'll also have fewer errors than if you entered all the data manually.
Cloud-based storage lets you access documents from anywhere in the world. This lets you communicate with others about them and work with them remotely.
It's also a useful form of backup. Cloud-based storage protects your documents better than other options against hardware failures or other problems.
Centralize Your Documents
Choose one storage area for all your documents. It keeps you from losing them or forgetting to renew them when necessary.
Only use digital platforms with security protocols such as password protection, encryption, and access controls. Keep physical files in a safe place where they can't be accessed by anyone and are safe from damage.
Keep Your Documents Updated
One reason that lease documentation management is so important is that you'll need to make frequent updates. In Colorado, you can legally change anything in a written agreement but can only change rent once a year.
Use the right strategies to keep lease documentation up to date. Provide open communication about any changes to tenants and other stakeholders. Failing to do so can leave everyone confused or even cause legal disputes.
Plan for Lease Renewals
Nationwide lease renewals hit a high of 58.3%. They can be a win-win, giving landlords more money and tenants more time in their homes.
Schedule them in your lease document management system. Set reminders to remind yourself and your tenants when they're happening. This keeps you from renewing the lease without reviewing it to see if changes need to be made.
Find a Property Manager
Property managers can help handle your leases for you. They'll make sure the documents are legally compliant and help negotiate renewals.
They'll also handle other tasks such as maintenance, marketing, and tenant screening. You'll improve your ROI while reducing your stress.
Put It All Together
Lease documentation management keeps a landlord's most crucial paperwork secure and easy to access. It requires the right software, centralized storage, and regular updates that are communicated to tenants and stakeholders.
Contact PMI Parker today for full-service property management services. We can help you manage your documents and maximize your investment.