Feature
You have a new lease from a tenant and are trying to enter it into STRATAFOLIO. What do all of the different statuses mean and which is the best for this specific tenant? Which ones will be automatically updated for me and which ones will I need to change?
Benefits
Things are hectic when a new tenant moves in. If the lease statuses in STRATAFOLIO automatically change when you reach the lease start or end date, you can enter a lease before the actual start date. You can also be assured that when the lease ends, it will expire in STRATAFOLIO. It will not appear on the Rent Roll. Hopefully, this will make the management of the leases easier for everyone involved.
Finding the Lease Status
Go to the Lease Abstract view. Click on the Edit Lease button.
The Lease Status is to the right of the Lease Type. This is a dropdown menu.
The choices are as follows:
- Future Lease
- Occupied
- Month-to-Month
- Year-to-Year
- Expired
- Notice – Available to Rent
- Breach of Contract
- Eviction Started
- Evicted
We will go into each of these in a little more depth and how STRATAFOLIO tracks each.
Future Lease
A Future Lease indicates the unit is rented, a lease has been signed, and the tenant is set to move in at a future date. This allows you to enter the lease into STRATAFOLIO before the lease starts. This is especially helpful when a build-out needs to be done and the exact start date is unknown. You can enter it any time you would like to and on the day the lease starts, it will change to Occupied. This date may need to be updated several times for new construction.
Occupied
An Occupied lease is one where a tenant is in the space, they are current on payment obligations, and the lease terms have not expired. These are the current, active leases that will show up on the Rent Roll.
Month-to-Month
A Month-to-Month lease has reached its agreed-upon end date, and the tenant has opted for a short-term stay. The tenant may have chosen to select a Month-to-Month contract rather than making a long-term commitment. There is no specified end date to the lease.
Year-to-Year
A Year-to-Year lease is a lease in which the tenant can renew yearly without the need for a new lease or amendment. This is normally at an agreed-upon rate for an agreed-upon number of years. They could also opt out at the end of the year. There is no specified end date to the lease.
Expired
An Expired lease has reached its end date without breach of contract. The tenant and rent will not be included on the Rent Roll.
The day after the last day of the lease term, the lease will automatically turn to Expired for you. It is important to ensure the lease gets updated as soon as an amendment has been signed. If there is a time while waiting for the new agreement, it is best to temporarily move this to a Month-to-Month lease to keep it on the Rent Roll and active. Only active leases will show up in the Rent Collection and create invoices for them.
Notice – Available to Rent
A Notice-Available to Rent lease indicates the tenant has moved out, but the lease terms have not yet expired. Therefore, a new tenant can move in now and take over the existing lease until it expires. This will still be included on the Rent Roll.
Breach of Contract
A Breach of Contract lease is a lease in which the tenant breached the terms set in the lease. The breach could be related to the tenant going out of business, or any other violations of the terms set in the lease. The rent will not be added to the Rent Roll.
Eviction Started
An Eviction Started lease is a lease that has begun the proper legal eviction process for the removal of the tenant.
Evicted
An Evicted lease is a lease that has completed the proper legal process for removing the tenant, and the tenant has been evicted from the premises. The rent will not be added to the Rent Roll.
Note: With the Month-to-Month and Year-to-Year lease statuses, the latest lease rate will continue every month. They will stay at the same rate until the lease is stopped or until a newer lease rate is entered.