What is a lease abstract template?
There are two parts to lease abstraction; collecting the relevant data, then populating the data into a lease abstract form. A lease abstract template is an empty lease abstract form. it contains all of the terms and provisions you would expect to find in a standard lease abstract, for you to fill in the blanks with the relevant information from your lease documents.
If you’d like to learn more about lease abstraction you can read our guide: What is lease abstraction?
What are the benefits of a lease abstract template?
Faster lease abstraction - a lease abstract template will help you to identify which information to abstract, saving you time when reviewing leases.
Easier lease administration - using a lease abstract template to create uniform lease abstracts makes it easier to find information in the future and you know what to look for in each new lease.
Quicker due diligence - when performing due diligence, understanding the provisions and risks associated with each lease is crucial. Uniform lease abstracts summarizing the key clauses in each lease makes finding the relevant information quick and easy.
Seamless property management - Answers questions from landlords and tenants quickly with instant access to the most commonly used provisions in each of your leases.
What is a lease abstraction summary?
Lease abstraction is the process of extracting the most important and frequently used information from lease documents to summarize them in a document known as a “lease abstract”. However, many companies manage a lot of leases meaning lease abstraction is often a time consuming and costly process.
Breaking lease terms down to their essential elements helps lease managers access relevant information when necessary, speeds up the underwriting process and makes financial information easily accessible to accountants.
If you’d like to learn more about lease abstraction you can read our full guide: What is lease abstraction?
What is a lease abstract sample?
A lease abstract is a lease summary; a document that summarizes the crucial information contained within a lease. A sample lease abstract is an example document demonstrating what a real lease abstract may look like, based on example lease provisions.
Lease Abstract Sections
Our lease abstract template follows the structure of a short form lease abstract. It contains the following details;
- Lessor and lessee - Name of the landlord and tenant.
- Property address - What is the address of the property being leased?
- Square footage - What is the size of the leased space in square feet?
- Base year - most often the year that the lease commences, used to tie to expenses for tax, insurance and operating expenses.
- Lease term - How long does the lease last? What is the commencement date & expiration date?
- Guarantor - Details of guarantor, if there is one.
Cost and revenue information
- Security deposit - Did the lessee pay a security deposit? How much was it?
- Rent details - This includes Base rent / percentage rent / rental abatement / holdover rent
- Responsibilities for operating expenses - Who is responsible for operating costs associated with the asset (eg. utilities, repairs etc.)?
- Pro rata share - the tenants share of the building’s expenses.
- Late fee - Are lessees subject to a charge if payment is late?
- Renewal options - What are the provisions concerning renewing the lease at the end of the term?
- Subletting - Is the lessee permitted to sublease the asset?
- Parking spaces - If you are letting a real estate space, are any parking spaces included? Is there any extra cost?