You have a lease extension executed, How do you input that extension/amendment into STRATAFOLIO?
Keeping track of expiration dates and lease escalations in STRATAFOLIO is imperative to keeping an updated portfolio. The lease already entered has the security deposit, the lease options to renew, and copies of their original lease. There is no need to start over and re-enter all of that. Here are the steps to Extending a lease.
- If the Lease Expiration has passed or the type of lease has changed, Change Lease Status
- Extend the Lease Expiration Date
- Add Lease Rate Escalations
- Extend or Add the Operational Expense period if needed
- Add Contract to Files
Instead of inputting a new lease, we want to extend the current lease for historical purposes. The only reason why we would suggest expiring the old lease and adding a new lease is if lease terms drastically changed or for a tenant acquiring someone else’s lease.
Changing Lease Status:
When the expiration date passes, STRATAFOLIO will automatically mark a lease as Expired. Locate the lease under Left Hand Navigation > Operations > Leases > i
Note: The Leases table will display all leases, current, future, and expired, inputted into STRATAFOLIO. Expired leases will not show under the Building or Unit views if a newer lease has been entered. They will also not show on the Rent Roll if they have expired.
After you have chosen the proper lease, under the Lease Abstract select the Edit Lease button.
Modify the Lease Status drop-down to the appropriate status.
Change Expiration Date:
Modify the Lease End Date to the new end date on the amendment or extension.
If the tenant has executed an option, be sure to update the Lease Renewal options with (option # executed) so it is clear how many options remain. And then press Save.
Add Lease Rate Escalations:
Now that the lease end date is extended, the Lease Rates are available to be modified. The Lease Term or End Date must be extended to be able to enter the new escalations. You will not be able to add Lease Rates past the end of the Lease Term.
Click on the Lease Rates Tab, then Add a Lease Rate.
STRATAFOLIO will automatically calculate the dates for the next year and populate them. Modify dates as needed.
Enter the new Lease rate amount, type, and whether the lease rate is confirmed or not. In the Lease rate notes, STRATAFOLIO’s Onboarding team enters what document that lease rate is located in. Please feel free to utilize the note section for whatever notes you need for this specific lease rate period. The Late Fees and Due Date should pull through from previous rates. The Income Item should also pull through – but be sure it is the correct Income Item you would like to utilize for invoicing. Press Save or click the Add Another function to continue adding escalations.
*Remember that you will only be able to enter new Lease Rates until the end of the Lease Term.
Extend Operational Expenses if Needed:
Click on the Op-Exp tab and the pencil button next to the appropriate year – extend the period expiration if needed. You will only be able to extend this period until the end of the Lease Term as well.
Note: STRATAFOLIO Onboarding recommends utilizing a new Operating Expense period each year. At the end of this year, you can utilize our Clone Feature to copy over the same sub-categories that you have been using. You can update the amount invoices for the next year after cloning.
Add Contract to Files:
Select the Files tab. Click the Upload button.
Upload up to 10 files at a time by dragging and dropping or clicking on the button to browse and find the file.
Choose the file type and write in a description if needed. If you have an active tenant portal, you can choose if the tenant has access to this file as well. Check out this Knowledge Base article about Lease File Upload Options for more information.
Now that you have updated the lease with new expiration, new escalations, new operating expenses, and new files; your portfolio has been updated. Utilizing the current lease helps you keep full historical data on each tenant and saves you from having to input data already entered. Run the Rent Roll to verify that the escalations are correct.