{"id":1846,"date":"2025-11-03T09:00:33","date_gmt":"2025-11-03T13:00:33","guid":{"rendered":"https:\/\/visuallease.com\/?p=1846"},"modified":"2025-11-07T00:38:27","modified_gmt":"2025-11-07T04:38:27","slug":"the-necessary-steps-to-improve-lease-management-practices","status":"publish","type":"post","link":"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/","title":{"rendered":"The Complete Guide to Lease Management"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#What_is_lease_management\" >What is lease management?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#Common_lease_management_tasks\" >Common lease management tasks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#Why_is_lease_management_important\" >Why is lease management important?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#Understanding_the_lease_management_process\" >Understanding the lease management process<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#1-_Pre-Lease_activities\" >1- Pre-Lease activities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#2-_Lease_execution\" >2- Lease execution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#3-_Lease_administration_and_tracking\" >3- Lease administration and tracking<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#4-_Lease_accounting_and_compliance\" >4- Lease accounting and compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#5-_Lease_expiry_renewal_or_termination\" >5- Lease expiry, renewal, or termination<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#How_can_you_optimize_your_lease_management_process\" >How can you optimize your lease management process?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#Step_1_Centralize_lease_data_and_management_tools\" >Step 1: Centralize lease data and management tools<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#Step_2_Develop_leasing_policies\" >Step 2: Develop leasing policies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#Step_3_Create_lease_requisition_and_update_processes\" >Step 3: Create lease requisition and update processes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#Step_4_Set_up_controls\" >Step 4: Set up controls<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#What_are_the_benefits_of_lease_management\" >What are the benefits of lease management?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#Lease_management_compliance\" >Lease management compliance<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#ASC_82\" >ASC 82<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#IFRS_16\" >IFRS 16<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#GASB_87\" >GASB 87<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#What_to_look_for_in_lease_management_software\" >What to look for in lease management software?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#Take_control_of_your_leases_with_Visual_Lease\" >Take control of your leases with Visual Lease<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#How_does_lease_management_work\" >How does lease management work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#Is_lease_management_the_same_as_property_management\" >Is lease management the same as property management?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#Why_is_lease_management_important_for_compliance\" >Why is lease management important for compliance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#How_does_lease_management_software_help_your_organization\" >How does lease management software help your organization?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#Who_is_responsible_for_lease_management\" >Who is responsible for lease management?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/visuallease.com\/the-necessary-steps-to-improve-lease-management-practices\/#What_lease_data_should_be_centralized_in_a_lease_management_system\" >What lease data should be centralized in a lease management system?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; overlay_strength=&#8221;0.3&#8243; shape_divider_position=&#8221;bottom&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; width=&#8221;1\/1&#8243; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;]<div class=\"divider-wrap\"><div style=\"height: 30px;\" class=\"divider\"><\/div><\/div>[vc_column_text]Until recently, many companies were not paying much attention to their property and asset leases beyond paying the bills. Leases were simply considered a cost of doing business, and managing lease terms and obligations was not a priority.<\/p>\n<p>With the establishment of new lease accounting standards that take effect for private companies in 2021, and took effect for public companies in 2019, that mindset is changing fast. Lease management has now become an essential practice that impacts financial reporting and the bottom line.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_lease_management\"><\/span>What is lease management?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In a corporate or non-profit organization, lease management, or lease administration, means tracking and optimizing every aspect of your lease portfolio. Properly tracking leases (not only real estate but also technology, vehicles, and even assets you control as part of service agreements) can help you significantly reduce the expenses associated with leasing. We\u2019re not talking about small changes here, but a chance to add millions to your bottom line.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Common_lease_management_tasks\"><\/span>Common lease management tasks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Lease management requires a coordinated effort between the various teams to perform a variety of tasks:<\/p>\n<ul>\n<li><strong>Lease negotiation and decision making:<\/strong> Determining lease terms, structure, and length, as well as evaluating lease-versus-buy options.<\/li>\n<li><strong>Lease tracking and administration:<\/strong> Monitoring renewals and option deadlines, managing operating expenses, and keeping lease records up to date.<\/li>\n<li><strong>Lease accounting and compliance:<\/strong> Processing lease-related payments, recording journal entries, calculating right-of-use assets and liabilities, generating reports, and performing re-measurements when lease terms change.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Why_is_lease_management_important\"><\/span>Why is lease management important?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Lease management is critically important to ensure your business remains confident in sustaining lease accounting compliance.<\/p>\n<ul>\n<li><strong>Ensures compliance with lease accounting standards:<\/strong> Supports ASC 842, IFRS 16, and GASB 87 requirements by accurately recording and reporting all lease modifications.<\/li>\n<li><strong>Adapts to ever-changing lease terms:<\/strong> Captures updates when businesses renegotiate contracts, add new locations, or terminate leases early.<\/li>\n<li><strong>Centralizes lease data:<\/strong> Provides a single source of truth for all lease records, improving visibility and accessibility across teams.<\/li>\n<li><strong>Improves financial accuracy:<\/strong> Helps track payments, calculate right-of-use assets and lease liabilities, and prepare audit-ready documentation.<\/li>\n<li><strong>Reduces risk and missed deadlines:<\/strong> Monitors critical dates to avoid penalties, overpayments, and compliance gaps.<\/li>\n<li><strong>Supports better decision-making:<\/strong> Delivers insights to optimize space utilization, manage costs, and plan for renewals or expansions.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Understanding_the_lease_management_process\"><\/span>Understanding the lease management process<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The lease management process flow covers from initial planning through lease execution, administration, and termination or renewal. Each phase plays a critical role in ensuring operational efficiency, financial accuracy, and compliance with lease accounting standards such as ASC 842, IFRS 16, and GASB 87.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"1-_Pre-Lease_activities\"><\/span>1- Pre-Lease activities<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><strong>Market Research:<\/strong> Identify suitable properties that align with business needs and financial parameters.<\/li>\n<li><strong>Tenant Screening (for landlords):<\/strong> Evaluate potential tenants\u2019 financial stability and leasing history.<\/li>\n<li>Lease Drafting: Outline key terms and responsibilities in a lease agreement, preparing it for legal review and execution.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"2-_Lease_execution\"><\/span>2- Lease execution<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><strong>Contract Signing:<\/strong> Landlords and tenants formally execute the lease.<\/li>\n<li><strong>Legal Review:<\/strong> Verify compliance with internal policies and external regulations.<\/li>\n<li><strong>Security Deposit Collection:<\/strong> Ensure financial commitments are secured before occupancy begins.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"3-_Lease_administration_and_tracking\"><\/span>3- Lease administration and tracking<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><strong>Centralized Lease Data:<\/strong> Organize lease details in a lease management system for transparency and easy access.<\/li>\n<li><strong>Rent and Expense Tracking:<\/strong> Automate and monitor payments, ensuring alignment with contractual obligations.<\/li>\n<li><strong>Critical Date Management:<\/strong> Track renewals, expirations, and option deadlines to avoid missed opportunities or penalties.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"4-_Lease_accounting_and_compliance\"><\/span>4- Lease accounting and compliance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><strong>Expense Management and Invoicing:<\/strong> Allocate costs accurately and generate documentation for audits.<\/li>\n<li><strong>Regulatory Compliance:<\/strong> Maintain alignment with ASC 842, IFRS 16, and GASB 87 through built-in compliance tools.<\/li>\n<li><strong>Audit Preparedness:<\/strong> Conduct periodic reviews and maintain an audit trail of all lease activities.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"5-_Lease_expiry_renewal_or_termination\"><\/span>5- Lease expiry, renewal, or termination<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><strong>End-of-Term Management:<\/strong> Prepare properties for handover or renewal by tracking timelines and obligations.<\/li>\n<li><strong>Renewal Negotiations:<\/strong> Use lease performance insights to inform discussions and optimize outcomes.<\/li>\n<li><strong>New Lease Planning:<\/strong> Begin sourcing and evaluating new properties to meet upcoming needs.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"How_can_you_optimize_your_lease_management_process\"><\/span>How can you optimize your lease management process?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Optimizing your lease management process starts with building a solid operational foundation. That means centralizing lease data, standardizing workflows, and leveraging automation through purpose-built lease management software. A structured approach allows organizations to reduce risk, improve collaboration across departments, and maintain full compliance with lease accounting standards.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_1_Centralize_lease_data_and_management_tools\"><\/span>Step 1: Centralize lease data and management tools<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>For teams to work together on lease tracking, the first step is to gather all lease data in a central repository that creates a single source of truth as well as an audit trail for all lease decisions and changes.<\/p>\n<p>To set your teams up for effective lease management process flow, choose a lease management software platform (like Visual Lease) that allows you to centralize all ALL data related to lease contracts and provides tools for automating lease tracking tasks and auditing expenses.<\/p>\n<p>When everyone managing leased assets is using the same system to update lease data, schedule payments, and create accounting journal entries, everyone is always working with the most current data. And you eliminate data integrity problems that can occur when data is moved between systems.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_2_Develop_leasing_policies\"><\/span>Step 2: Develop leasing policies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>With centralized tracking tools and technology in place, you can now analyze your lease data and find out which leases are working well and which are costing you more money than you realized. Use those insights to determine how you want to standardize leasing decisions across the organization.<\/p>\n<p>Best practice is for financial leaders to work with lease negotiators, administrators, and accountants to understand current practices and to establish cost-effective policies for leasing.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_3_Create_lease_requisition_and_update_processes\"><\/span>Step 3: Create lease requisition and update processes<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>To ensure your accounting team always has accurate lease information to feed balance sheets and financial reports, it\u2019s essential to establish standard practices for every group that\u2019s involved in acquiring and maintaining leases, including processing new leases, documenting lease changes, and handling lease terminations.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_4_Set_up_controls\"><\/span>Step 4: Set up controls<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Adding leases to the balance sheet has increased the complexity of financial reporting. That means more oversight is needed to ensure accounting accuracy. Also, internal monitoring and process validation are required to ensure your policies and procedures are being followed and are driving better decisions and reduced expenses.<\/p>\n<p>Your lease management software can aid that process in several important ways:<\/p>\n<ul>\n<li>Documenting the terms of every lease, calculating every payment, and alerting you if payments don\u2019t match the lease terms<\/li>\n<li>Providing audit tools to find overpayments, late fees, and payments that shouldn\u2019t have been made at all<\/li>\n<li>Allowing you to customize approvals required for lease administration and lease accounting tasks<\/li>\n<li>Providing an audit trail for all lease changes<\/li>\n<\/ul>\n<p>To get there, it\u2019s critical to understand current market conditions, clearly define team responsibilities, and ensure consistent, accurate data capture across all lease-related activities. From tracking payments to recording journal entries, the right technology can transform lease management from a reactive process into a strategic advantage.[\/vc_column_text]<div class=\"img-with-aniamtion-wrap center\" data-max-width=\"100%\" data-border-radius=\"none\"><div class=\"inner\"><a href=\"https:\/\/visuallease.com\/request-demo\/\" target=\"_self\" class=\"center\"><img decoding=\"async\" data-shadow=\"none\" data-shadow-direction=\"middle\" class=\"img-with-animation \" data-delay=\"0\" height=\"300\" width=\"600\" data-animation=\"fade-in\" src=\"https:\/\/visuallease.com\/wp-content\/uploads\/2018\/06\/Are-Your-Ready-to-Take-The-Next-Step-Towards-Lease-Accounting-Compliance_-e1554130563605.png\"  alt=\"Are Your Ready to Take The Next Step Towards Lease Accounting Compliance\" \/><\/a><\/div><\/div>[\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; overlay_strength=&#8221;0.3&#8243; shape_divider_position=&#8221;bottom&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; width=&#8221;1\/1&#8243; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text]\n<h2><span class=\"ez-toc-section\" id=\"What_are_the_benefits_of_lease_management\"><\/span>What are the benefits of lease management?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Lease management offers several benefits for organizations that have a portfolio of leased assets. Here are some key advantages:<\/p>\n<ul>\n<li>Improved efficiency and time savings<\/li>\n<li>Enhanced visibility and control over lease portfolio<\/li>\n<li>Cost savings through optimized lease terms and space utilization<\/li>\n<li>Compliance with lease accounting standards (ASC 842, IFRS 16)<\/li>\n<li>Streamlined reporting and analytics for informed decision-making<\/li>\n<li>Better collaboration and communication among stakeholders<\/li>\n<li>Reduced risks of penalties and non-compliance<\/li>\n<li>Proactive management of lease renewals and important dates<\/li>\n<li>Minimized manual effort and administrative tasks<\/li>\n<li>Data-driven insights for strategic planning and portfolio optimization.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Lease_management_compliance\"><\/span>Lease management compliance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"ASC_82\"><\/span>ASC 82<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If you\u2019re still consolidating lease data for <a href=\"https:\/\/visuallease.com\/asc-842-summary\/\">FASB ASC 842<\/a> implementation, here\u2019s a crucial point you might not know: every time there\u2019s a change to a lease, your accounting records must be updated accordingly. This includes modifications like lease term adjustments, rent escalations, or changes in the scope of the leased asset. Ensuring these updates are timely and accurate is vital for maintaining <a href=\"https:\/\/visuallease.com\/compliance\/asc-842\/\">ASC 842 compliance<\/a> and avoiding potential financial reporting issues.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"IFRS_16\"><\/span>IFRS 16<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Under IFRS 16, similar to ASC 842, lease changes require you to adjust your accounting. Whether it\u2019s a change in lease payments, an extension or termination of the lease, or a reclassification of lease types, it\u2019s essential to track and update these changes to comply with the <a href=\"https:\/\/visuallease.com\/what-is-ifrs-16-what-do-i-need-to-know\/\">IFRS 16 requirements<\/a>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"GASB_87\"><\/span>GASB 87<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>For state and local governments, <a href=\"https:\/\/visuallease.com\/compliance\/gasb-87\/\">GASB 87<\/a> introduces new standards for lease accounting, which also emphasize the need for regular updates as lease terms evolve. Like ASC 842 and IFRS 16, <a href=\"https:\/\/visuallease.com\/gasb-87-summary-page\/\">GASB 87 requirements<\/a> call for accurate and timely updates to lease records whenever lease terms are modified, ensuring transparency and proper reporting.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_to_look_for_in_lease_management_software\"><\/span>What to look for in lease management software?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When selecting lease management software, consider these key features:<\/p>\n<ul>\n<li><strong>Automation of Lease Tracking:<\/strong> Ensure the software can automatically track key lease dates, payments, and changes.<\/li>\n<li><strong>Compliance Reporting:<\/strong> Look for robust reporting capabilities to meet financial and regulatory compliance (e.g., ASC 842, IFRS 16, GASB 87).<\/li>\n<li><strong>Integration with Other Systems:<\/strong> Choose software that integrates smoothly with accounting, ERP, and other business systems for seamless data flow.<\/li>\n<li><strong>User-Friendly Interface:<\/strong> Ensure the software is easy to navigate and manage by your team.<\/li>\n<li><strong>Cloud-Based Accessibility:<\/strong> Opt for a solution that provides remote access from anywhere, ensuring flexibility and mobility.<\/li>\n<li><strong>Data Security:<\/strong> Ensure strong security protocols to protect sensitive lease data.<\/li>\n<li><strong>Portfolio Management Tools:<\/strong> Look for features that help manage lease portfolios, including renewals, terminations, and modifications.<\/li>\n<\/ul>\n<p>These features will help ensure you choose the right software to manage your leases efficiently, compliantly, and securely.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Take_control_of_your_leases_with_Visual_Lease\"><\/span>Take control of your leases with Visual Lease<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Improving lease management is not just about staying organized \u2014 it\u2019s about protecting your business from compliance risks, controlling costs, and making smarter, data-driven decisions. From initial negotiations to end-of-term planning, every step of the process benefits from accuracy, transparency, and collaboration across teams.<\/p>\n<p>Visual Lease offers <a href=\"https:\/\/visuallease.com\/solutions\/lease-management-software\/\">lease management<\/a> and <a href=\"https:\/\/visuallease.com\/solutions\/lease-accounting-software\/\">lease accounting software<\/a> designed to help organizations manage the full lifecycle of their leases with confidence. Our platform centralizes lease data, automates <a href=\"https:\/\/visuallease.com\/compliance\/\">compliance<\/a> with ASC 842, IFRS 16, and GASB 87, and provides powerful reporting tools to maximize the value of your lease portfolio.<\/p>\n<p>Ready to take control of your leases? Discover how Visual Lease can turn your lease management practices into a competitive advantage. <a href=\"https:\/\/visuallease.com\/request-demo\/\"><span style=\"font-weight: 400\">Request a demo today<\/span><\/a>[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; class=&#8221;faq_vl_cs&#8221; overlay_strength=&#8221;0.3&#8243; shape_divider_position=&#8221;bottom&#8221; shape_type=&#8221;&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; width=&#8221;1\/1&#8243; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_custom_heading text=&#8221;Lease Management Frequently Asked Questions&#8221; font_container=&#8221;tag:h2|text_align:center&#8221;]<div class=\"divider-wrap\"><div style=\"height: 30px;\" class=\"divider\"><\/div><\/div><div class=\"toggles \" data-style=\"minimal\"><div class=\"toggle default\"><h3><span class=\"ez-toc-section\" id=\"How_does_lease_management_work\"><\/span><a href=\"#\"><i class=\"icon-plus-sign\"><\/i>How does lease management work?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div>[vc_column_text]Lease management involves overseeing the full lifecycle of a lease \u2014 from negotiation and execution through administration, compliance, and renewal or termination. The process includes tracking key dates, managing payments and expenses, maintaining compliance with accounting standards, and analyzing performance to inform decisions. With lease management software, these tasks are automated and connected, providing a comprehensive, real-time view of your entire lease portfolio.[\/vc_column_text]<\/div><\/div><div class=\"toggle default\"><h3><span class=\"ez-toc-section\" id=\"Is_lease_management_the_same_as_property_management\"><\/span><a href=\"#\"><i class=\"icon-plus-sign\"><\/i>Is lease management the same as property management? <\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div>[vc_column_text]Lease management and property management, while closely related, are not the same. Lease management focuses specifically on overseeing the financial and legal aspects of leases\u2014tracking lease terms, compliance, renewals, rent payments, and reporting. <a href=\"https:\/\/visuallease.com\/20161027corporate-real-estate-cre-versus-facility-management-fm\/\">Property managemen<\/a>t, on the other hand, involves the day-to-day operations of managing the physical property, including maintenance, tenant relations, and facility management. While property managers may handle lease administration as part of their responsibilities, lease management requires a more specialized approach to ensure financial and regulatory compliance, especially when dealing with complex lease accounting standards like ASC 842, IFRS 16, and GASB 87.[\/vc_column_text]<\/div><\/div><div class=\"toggle default\"><h3><span class=\"ez-toc-section\" id=\"Why_is_lease_management_important_for_compliance\"><\/span><a href=\"#\"><i class=\"icon-plus-sign\"><\/i>Why is lease management important for compliance?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div>[vc_column_text]Lease management is essential for maintaining compliance with lease accounting standards such as ASC 842, IFRS 16, and GASB 87. These standards require accurate, timely updates to lease data whenever terms change. By tracking modifications, monitoring critical dates, and ensuring records are complete, organizations can avoid reporting errors, reduce risk, and remain audit-ready year-round.[\/vc_column_text]<\/div><\/div><div class=\"toggle default\"><h3><span class=\"ez-toc-section\" id=\"How_does_lease_management_software_help_your_organization\"><\/span><a href=\"#\"><i class=\"icon-plus-sign\"><\/i>How does lease management software help your organization?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div>[vc_column_text]Lease management software centralizes all lease data in one platform, automates compliance tasks, and generates accurate reports for financial statements and audits. It reduces manual errors, streamlines collaboration between departments, and provides real-time visibility into lease obligations and performance \u2014 making it easier to meet regulatory requirements and make informed decisions.[\/vc_column_text]<\/div><\/div><div class=\"toggle default\"><h3><span class=\"ez-toc-section\" id=\"Who_is_responsible_for_lease_management\"><\/span><a href=\"#\"><i class=\"icon-plus-sign\"><\/i>Who is responsible for lease management?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div>[vc_column_text]Lease management is a shared responsibility across multiple teams, typically including finance, accounting, legal, real estate, and operations. Finance teams ensure compliance with accounting standards, legal teams manage contract terms, and operations oversee day-to-day lease performance. Lease management software connects these groups with a single source of truth, ensuring everyone works from accurate, current data.[\/vc_column_text]<\/div><\/div><div class=\"toggle default\"><h3><span class=\"ez-toc-section\" id=\"What_lease_data_should_be_centralized_in_a_lease_management_system\"><\/span><a href=\"#\"><i class=\"icon-plus-sign\"><\/i>What lease data should be centralized in a lease management system?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div>[vc_column_text]A lease management system should house all information needed for administration, accounting, and compliance, including:<\/p>\n<ul>\n<li>Lease terms and key dates (start, end, renewals, options)<\/li>\n<li>Payment schedules and amounts<\/li>\n<li>Operating expense and common area maintenance details<\/li>\n<li>Right-of-use asset and liability values<\/li>\n<li>Contact details for landlords, tenants, and stakeholders<\/li>\n<li>Centralizing this data ensures transparency, accessibility, and accuracy across the organization.<\/li>\n<\/ul>\n[\/vc_column_text]<\/div><\/div><\/div>[\/vc_column][\/vc_row]\n","protected":false},"excerpt":{"rendered":"<p>[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; overlay_strength=&#8221;0.3&#8243; shape_divider_position=&#8221;bottom&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; width=&#8221;1\/1&#8243; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text]Until recently, many companies were not paying much attention to their property&#8230;<\/p>\n","protected":false},"author":3,"featured_media":1847,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[170],"tags":[185,186],"company_size":[],"company_portfolio_size":[],"company_industry":[],"case_study_topic":[],"class_list":["post-1846","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lease-accounting","tag-asc-842","tag-ifrs-16"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/posts\/1846","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/comments?post=1846"}],"version-history":[{"count":0,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/posts\/1846\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/media\/1847"}],"wp:attachment":[{"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/media?parent=1846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/categories?post=1846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/tags?post=1846"},{"taxonomy":"company_size","embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/company_size?post=1846"},{"taxonomy":"company_portfolio_size","embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/company_portfolio_size?post=1846"},{"taxonomy":"company_industry","embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/company_industry?post=1846"},{"taxonomy":"case_study_topic","embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/case_study_topic?post=1846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}