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Entering and Maintaining General Lease Information

Help Page Summary

This tutorial page will instruct you on all of the Lease tab fields and options. For iLeasePro general navigation instructions, please visit the QuickStart General Navigation page.

Page Sections

The Lease tab contains general lease information and is separated into four sections;

  1. General Lease Info
  2. Operating Expenses – Base Year
  3. Real Estate Taxes – Base Year
  4. Documents

Help

Every page with Sections offers you additional help for that Section. This help information can be accessed by clicking on the question mark in the Section header bar.

Notes

Notes: Every tabbed page under the Leases selection offers you the option to make annotations for the current lease. When the notepad icon shown above is clicked, a new page will be displayed where you can add notes that you would like to make to help you or others in your team identify key dates/reasons, etc for the lease information entered.

General Lease Info  mceclip0.png

Lease Name: The lease name is used throughout the application to reference the current lease.

Lease Type:  For a real estate lease, this will be labeled Real Estate Type.  For an equipment lease, this will be labeled Equipment Type. The lease Type allows you to further clarify the type of lease.  The dropdown values are defined in the User Defined Fields in the Account Settings under Application Values. For additional information refer to Account Setting - Application User Defined Field Values

Lease Status: There are four statuses that can be applied to a lease to help you and your team manage your lease portfolio.

  • Negotiating – Select negotiating to identify a lease that has been identified but has not been executed.
  • Active – A lease that has been executed and currently active. All calculations within the application are based on “Active” leases by default.
  • Renewal – A lease status of renewal will signify that the lease renewal option has been accepted and in process to become active.
  • Expired – A lease status of expired signifies that the lease expiration date has passed and the lease is currently not effective
  • Inactive – A lease status of Inactive should be used to archive the lease. Inactive lease information will not be included in any of the calculations of the application.

Prorata Pct: The prorata percent value is calculated based on the lessee’s contracted pro rata percent defined in the lease. This is typically the lessee total unit square feet divided by the total rentable square feet of the building.  Once the unit square feet and building square feet have been entered, you can click on the sum button and the prorata pct will be automatically calculated.

Commencement Letter: If a commencement letter is required, click on the commencement letter checkbox and then Choose Doc to located and link the electronic version of the commencement letter to the lease. If you do not have the commencement letter, click on the checkbox to remind you that the letter is required and needs to be uploaded.

Inception Date: This is the date the lease agreement was executed. You can either manually enter the inception date or click in the date field and a calendar popup will be displayed where you can select the date.

Inception Date - Critical Date Checkbox: If you would like to tag this date as a Critical Date, simply click in the checkbox to the right of the field to enable. By enabling this, you can monitor this date through on the dashboard.

Commencement Date: This is the actual start date of the lease defined in the lease contract. You can either manually enter the commencement date or click in the date field and a calendar popup will be displayed where you can select the date.

Commencement Date - Critical Date Checkbox: If you would like to tag this date as a Critical Date, simply click in the checkbox to the right of the field to enable. By enabling this, you can monitor this date through on the dashboard.

Payment Date: This is the first day the rent payment is due. The day of this value is used to build the payment dates for the lease term.  You can either manually enter the commencement date or click in the date field and a calendar popup will be displayed where you can select the date.

Expiration Date: This is the actual end date of the lease defined in the lease contract. You can either manually enter the expiration date or click in the date field and a calendar popup will be displayed where you can select the date.

Expiration Date - Critical Date Checkbox: If you would like to tag this date as a Critical Date, simply click in the checkbox to the right of the field to enable. By enabling this, you can monitor this date through on the dashboard.

Short Term Lease: By checking this box, you are identifying this lease as a short term lease which is a critical test for the Lease Accounting feature of iLeasePro. Note that iLeasePro does not test the difference between the Commencement Date and the Expiration Date to determine a short-term lease. This is left up to the user.

Lessor: The Lessor is selected from the dropdown list.  The Lessor is used as the Payee for the journal entries built for the lease. The list data can be populated from either the Contact details or for Sgae Intacct Users, from the Vendor Cost Center/Dimension.  For additional information refer to Account Settings - iLeasePro Settings

Security Deposit Amount: This is the full amount defined as Security Deposit in the lease. If the lease specifies that interest will be accrued throughout the lease term, you should click on the “with interest” checkbox.

Line of Credit Amount: If a Line of Credit has been used for this lease, enter in the dollar amount of the amount borrowed.

Bank: Enter in the name of the Bank that the Line of Credit was borrowed from.

Purchase Order Number: Free form field value to store the Purchase Order for the lease if needed.

Base Year Operating Expenses 

In full service or modified gross leases, the landlord may agree to cover a tenant’s share of the annual operating and real estate expenses, but limits their annual exposure to an amount equal to the expenses incurred in the first year, or “Base Year.” The base year is therefore the actual (usually grossed up for full occupancy) operating expenses incurred by the building, usually in the first calendar year of a lease. Once established, this figure becomes the benchmark for future years to determine the tenant’s share of excess operating expenses, also referred to as “pass throughs” in many leases.

Base Year: From the dropdown list to the right of the Base year label, select the base year specified in lease agreement.

Base Amount: You can either manually enter in the total Base Year Amount or you can click on the “Set Base Year Operating Charges” link and enter in the detailed operating expenses.

Note: If you intend on taking advantage and using the Expense Chargeback feature within iLeasePro, it is highly recommended that you enter in the detailed expenses.

Pro Rata Pct: You can either manually enter in the Base Year Operating Expense Pro Rata percent that is specified in the lease agreement or you can click on the Sum button to have the Pro Rata Pct calculated from the Lease level Pro Rata Pct (Unit Sq Ft/Asset Sq Ft).

Adding a Base Year Operating Expense:

Prerequisite: A list of operating expenses comes out of the box with iLeasePro so you can begin using this feature once you subscribe. But your administrator should use the iLeasePro Administration pages to setup the actual operating expenses that your firm has identified in your accounting general ledger.

  1. Click on the ADD NEW button
  2. Select from the dropdown list the expense you would like to add
  3. Include/Exclude. For most entries you will select include, but some leases specifically identify expenses that should not be passed through to the lessee. For any of these expenses, you would select Exclude.
  4. Enter in the Base year Amount for this operating expense
  5. Enter in any annotations to support the information entered for this expense.
  6. Click on the Trash Can or Delete button to delete an entry.

 

 

Base Year Real Estate Tax Expense 

Base Year: From the dropdown list to the right of the Base year label, select the base year specified in lease agreement.

Base Amount: Manually enter in the total Base Year Amount of the Real Estate Tax Expense.

Pro Rata Pct: You can either manually enter in the Base Year Operating Expense Pro Rata percent that is specified in the lease agreement or you can click on the Sum button to have the Pro Rata Pct calculated from the Lease level Pro Rata Pct (Unit Sq Ft/Asset Sq Ft).

Is gross up provision specified? If a gross up provision is not specified in the lease agreement do not click the checkbox. If a gross up provision is specified in the lease agreement, click on the checkbox and enter in the gross up percent specified in the lease agreement.

Uploading Documents

For detailed explanation on uploading an electronic document into iLeasePro please reference the Upload Document Help Page.

 

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