LEASE ADMINISTRATION SOFTWARE
VENDOR COMPARISON CHECKLIST
LEASE ADMINISTRATION SOFTWARE
VENDOR COMPARISON CHECKLIST
DEVELOPED BY:
SECTION ONE:
REAL ESTATE
LEASE ADMINISTRATION
FEATURES
VENDOR COMPARISON CHECKLIST
1)LEASE DATABASE
Vendor 1 / Vendor 2 / Vendor 3Leasing Repository
Purchase Orders – Capture all purchase requests and purchase orders for a specific lease electronically
Lease Documentation – Capture Master Lease Agreements, subleases, letters, images, work letters, site plans and facilities drawings electronically
Communications – Capture all inbound/outbound emails, voice messages, notes and comments
Contacts – Track landlords, tenants, brokers, attorneys and property managers involved with each property
Clauses – List all key dates for each lease, including variable rent changes; expansion options; right of first refusal; early terminations; purchase option, renewal and cancellation notice periods
Data Management
Audit Trail – Show timeline of activity for economic and contractual purposes
Version Control – Manage changes for all leasing records
Search – Locate leases by lessor name, deal name, asset/property name or employee name
2)CRITICAL DATE MANAGEMENT
Vendor 1 / Vendor 2 / Vendor 3Middle-of-Term
Expansion Option – Workflow to notify decision makers and communicate choice to landlord
Variable Rent Change – Capture appropriate rent variables, such as Consumer Price Index (CPI), and update monthly charge calculation
Tenant Improvement Reimbursement – Business rules to identify due dates for TI reimbursement; workflow to notify owners and confirm receipt
End-of-Term
Renewal Option – Workflow to notify decision makers of a deadline for renewing a lease and communicating intentions to landlord
Termination Option – Workflow to notify decision makers of a deadline for terminating a lease and communicating intentions to landlord
Purchase Option – Workflow to notify decision makers of the option for purchasing a property and communicating intentions to landlord
Security Deposit Recovery – Workflow to notify lease owner of contractual security deposit amounts owned
3)INVOICE-TO-PAY
Vendor 1 / Vendor 2 / Vendor 3Invoice Processing
Capture – Real estate lease invoices from landlords: abstracting data and matching elements automatically
Workflow – Invoice review, payment approval and disbursement authorization through Accounts Payable
Allocations – Expenses for leases allocated to appropriate general ledger codes and cost centers
Estimate Rent Payment
Calculations – Track fixed and variable rent calculations as well as exclusions and cap calculations for each lease
Inputs – Identify inputs to variable rent fields; capture relevant market rates, such as CPI; calculate or allow input of performance or usage-based rent variables
Estimate Rent – Calculate straight-line and variable rents; determine percent-in-lieu and overage rents
Payment Submission
Recurring and Batch Payments – Automate lease payments based on the amount forecasted to be owed in the schedule (versus the invoiced amount)
Submit Payables – Submit estimated/recommended payables to ERP or Accounts Payable applications
Payment Reconciliation –Reconcile actual payments made by ERP with recommended payments submitted
Disbursement – Receive, save and associate check number and check date
4)SPEND ANALYSIS
Vendor 1 / Vendor 2 / Vendor 3Invoice Validation
Invoice Reconciliation – Compare invoice to estimated rent calculations; highlight variations and notify lease owners
Real Estate Lease Validation – Identify incorrect variables, such as CPI, Value Added Tax (VAT) rates, free rent periods, terminated leases still being invoiced
Manage Billing Disputes – Notify lessor of billing errors; track aging of disputes; archive all related communications
Enable Desktop Audits
View detailed landlord expense invoices and paid amounts for each property
View detailed history of CAM charges and contractual obligations
View key contractual dates, such as lease commencement dates and free rent periods
View variable rent inputs, such as CPI and tax rates, for each lease
Reporting
Report on costs per square foot by property type, geographic region and business unit
View payment history detail by landlord, property or lease
Report on historical year-over-year total charges for each real estate property
Track all invoice reconciliation activity by property, lease and year
5)SUBLEASE ADMINISTRATION
Vendor 1 / Vendor 2 / Vendor 3Administration and Billing
Lease Documentation – Store copies of lease schedules and addenda for each tenant
Lease Data – Track key contacts, clauses, critical dates and rent calculation formulas for each sublease
Billing – Generate monthly invoices for sublease tenants; calculate variable rents based on market or performance based formulas; pass-through and allocate CAM costs, and insurance and tax fees
Receivables Tracking – Report on payment history by tenant and the age of outstanding receivables
SECTION TWO:
EQUIPMENT
LEASE ADMINISTRATION
FEATURES
VENDOR COMPARISON CHECKLIST
1)LEASE VERSUS BUY ANALYSIS
Vendor 1 / Vendor 2 / Vendor 3Inputs
Equipment Details – User can specify manufacturer, quantity, unit cost, etc.
Lease Details – User can specify term, payment, timing and end-of-term options
Workflow
Request Form – Enable non-financial users to request analysis for upcoming equipment needs
Approvals – Ensure that leases meeting certain criteria (e.g. greater than $1M in cost) are properly approved
Outputs
Lease Classification – Indicative based upon IFRS and US GAAP accounting standards (new/old)
Tax – Pre-tax and post-tax cash flow analysis
Administration
Reports – Provide visibility into pipeline of Lease versus Buy analysis over period of time
Financial Variables – Enable treasury to centrally control WACC, IRR, Cost of Debt, etc.
2)COMPETITIVE SOURCING
Vendor 1 / Vendor 2 / Vendor 3RFP Creation and Distribution
Requirements – Specify asset types, lease structure, terms and conditions, documentation and reconciliation requirements
Distribution – Automatically generate RFP based on inputs and distribute to list of leasing companies
Bidders – Specify a list of leasing companies to include (e.g. existing lessors) or exclude
Analysis and Ranking
Ranking – Automatically evaluate bids received and rank them based on criteria specified by user
TCO – Provide Total Cost of Ownership analysis for each lease
Standard Contract
Customer Contract – Option to distribute customer’s preferred lease agreement contract along with RFP
Vendor Contract – Option to distribute software vendor’s standardized lease agreement with RFP
Spend Aggregation
Aggregate Spend – Consolidate leases for similar equipment types and vendors into a Lease Line
Lease Line Reporting – Track individual commitments against Lease Lines
Network of Leasing Companies
Lessor Profiles – Strong network of commercial banks, vendor captive finance organizations and independent leasing companies
Credit Profile – Strong network of leasing companies that support current and future credit profiles
Ticket Size – Strong network of leasing companies that bid on small ticket (less than $250K), middle ticket (between $250K and $5M) and large ticket (more than $5M) deals
Asset Types – Strong network of leasing companies that bid on specified equipment types (aircraft, IT, material handling, office, etc.)
Geographic Diversity – Strong network of lessors in Europe, Asia/Pacific, North America and South America
3)EQUIPMENT LIFECYCLE MANAGEMENT
Vendor 1 / Vendor 2 / Vendor 3Lease Database
Purchase Orders – Capture all purchase requests and purchase orders for a specific lease electronically
Master Lease Agreements and Schedules – Capture all Master Lease Agreements, schedules and addenda for a specific lease
Shipping Documents – Capture Certificate Of Acceptance and relevant shipping documentation electronically
Communications – Capture all inbound/outbound emails, voice messages, notes and comments
Contacts – Track key account contacts at lessor, equipment manufacturer and any value add resellers involved
Equipment Mid-Term Events
Location Change – Workflow to update records
Cost Center Change – Workflow to update records
New Equipment – Workflow to add to an existing lease, making contract dates co-terminus
Partial Buyout – Ability to change some assets to “owned” status while keeping remainder as “leased”
Partial Return – Ability to take some assets off lease while keeping remainder on lease
Data Management
Audit Trail – Show timeline of activity for economic and contractual purposes
Version Control – Manage changes for all leasing records
Search – Locate leases by lessor name, deal name, asset/property name or employee name
4)END-OF-TERM MANAGEMENT
Vendor 1 / Vendor 2 / Vendor 3Critical Dates, Notifications and Alerts
Critical Dates – Track critical notification dates, including notification periods for return, renewal and buyout options
Alerts – Provide pre-defined alerts and notifications of upcoming end-of-term events
Decision – Include economics, instructions and reverse logistics information for each option
Escalation – Provide pre-configured alerts and notifications if a milestone is at risk of being missed
Wizard – Make it simple for stakeholders to declare their intentions for end-of-term, then share with lessor
Reporting
End-of-Term Reports – Identify all renewal options, return notice periods and buyout options for each piece of equipment
Evergreen Reporting – Enable tracking and reporting on all “evergreen” fees
Automated Workflows
Return Workflow – Enable lessors to acknowledge receipt for returned equipment
Renewal Workflow – Automatically generate a new purchase order for renewal period
Buyout Workflow – Automatically generate a new purchase order for a buyout
Partial Return Workflow – Support partial returns in which the lease for some assets is extended while other assets are returned
Partial Buyout Workflow – Support partial buyouts in which the lease for some assets is terminated with a buyout while other assets are renewed
5)INVOICE-TO-PAY
Vendor 1 / Vendor 2 / Vendor 3Invoice Processing
Capture – Abstract data and match elements automatically for equipment lease invoices
Workflow – Support invoice review, payment approval and disbursement authorization through Accounts Payable
Allocations – Allocate expenses for leases to appropriate general ledger codes and cost centers
Recurring and Batch Payments – Automate lease payments based on the amount forecasted to be owed in the schedule (versus the invoiced amount)
Payments
Submit Payables – Submit estimated/recommended payables to ERP or Accounts Payable application
Payment Reconciliation –Reconcile actual payments made by ERP with recommended payments submitted
Disbursement – Receive, save and associate check number and check date
SECTION THREE:
DATA INTAKE
AND PUBLISHING
FEATURES
VENDOR COMPARISON CHECKLIST
1)DATA ABSTRACTION
Vendor 1 / Vendor 2 / Vendor 3Data Abstraction
File Types – Support data abstraction from JPEG, TIFF, PDF, DOC, etc.
Data Elements – Automatically capture key lease terms (start date, end date, and end-of-term options)
Dynamic Capture – Dynamically add new data elements, attributes and clauses in efficient manner without rework
Linking – Link schedule, line item, asset and component-level information submitted from different sources using a common key
Relationships – Hold related data and documents in a queue until all related transactions are completed
Quality Assurance
Validation – Ensure that bad data is not loaded into the system
Self-Assessment – Assess accuracy and completeness of abstracted data by assigning a confidence score or rating
Reprocessing – Enhance quality of data using automated reprocessing algorithm (second pass)
Source Documentation – Maintain a link of abstracted data elements to their location on a lease document to support auditing and inspection
Alternative Options for Data Upload
Web Interface – Upload one or many leases
Email – Upload one or many leases
API – Upload one or many leases*
File Upload – Upload one or many files in spreadsheet (XLS/XLSX) or comma-delimited format (CSV)
2)APIS AND INTEGRATION
Vendor 1 / Vendor 2 / Vendor 3Internal Applications
Lease Accounting – API or pre-built integration with systems such as LeaseAccelerator or Tririga
Procurement – API or pre-built integration with Ariba, Oracle iProcurement, Coupa, etc.
ERP – API or pre-built integration with SAP, Oracle, PeopleSoft, Workday, Netsuite, etc.
IT Asset Management – API or pre-built integration with HP, BMC, CA, ServiceNow, etc.
Fleet Management – API or pre-built integration with Fleetmatics, Telogis, Sperion, etc.
External Systems
Lessor Systems – APIs or pre-built integration with lessor applications such as Sungard, Odessa and LeasePath, etc.
Real Estate Broker Systems – APIs or pre-built integration with applications from JLL, CBRE, Cushman and Wakefield, etc.
IT Outsourcing Systems – APIs or pre-built integration with applications from HP, CSC, IBM, etc.
3)FILE UPLOAD AND WEB INTERFACE
Data Intake and Publishing / Vendor 1 / Vendor 2 / Vendor 3File Upload
File Upload – Upload one or many leases in a structured file format such as comma-delimited (CSV) or spreadsheet (XLS/XLSX)
File Download – Enable users to download all of the data related to a lease (or set of leases); export data in a comma-delimited file format
Web Interface
Email – Enable users to send lease documentation to a designated email address; files kept in a queue for manual data entry into the system
Web Interface – Provide screens to efficiently enter new leases into the application
SECTION FOUR:
DEPLOYMENT OPTIONS
AND INFORMATION SECURITY
FEATURES
VENDOR COMPARISON CHECKLIST
1)LICENSED/ON-PREMISE
Vendor 1 / Vendor 2 / Vendor 3On-Premises
Operating Systems – Support for Linux, Windows, etc.
Database – Support for Microsoft, Oracle, IBM DB2
Documentation– Comprehensive installation and support documentation
Training – Availability of online or in-person training for developers, users and systems administrators
Professional Services – Support for installation, upgrades, integration and customization
Support – Multi-tiered 24x7 phone support with troubleshooting, problem diagnosis and resolution
2)CLOUD DEPLOYMENT
Vendor 1 / Vendor 2 / Vendor 3Cloud
Backup – System, content and database files
Monitoring – 24x7 monitoring of application health and performance
Security – Policies and controls; technologies such as firewalls, intrusion detection and data encryption
Processes and Controls – Third-party audit support; SSAE 16 (SOC I or II) or ISAE 3402
Support – Multi-tiered 24x7 phone support with troubleshooting, problem diagnosis and resolution
Maintenance Windows – Frequency and duration
Managed Upgrades – Frequency and level of support required by customer
Service Level Agreements – Standard SLA, Recovery Time and Recovery Point Objectives
3)INFORMATION SECURITY
Vendor 1 / Vendor 2 / Vendor 3Application
Role-Based Access – Configure roles to ensure that users have access only to the appropriate functionality and data
Single Sign-On – Enable access to the application through a corporate login and password administered by another system; integration with Active Directory or Lightweight Directory Access Protocol (LDAP)
Cloud
Incident Management – If hosted, process for detecting, responding and communicating the outcome of suspected or known security incidents
Patch Management – If hosted, process for evaluating and deploying firmware, operating system, database and application patches and hot fixes
Data Encryption – If hosted, process for ensuring that sensitive information is encrypted while in motion or at rest in the database
1
Developed by LeaseAccelerator