Lease abstraction is a challenging task in real estate and property management. As companies grow and regulations become more complex, handling leases is becoming increasingly difficult. Let’s explore the top 10 problems people face when working with leases, and how new AI tools are making things easier.

1. Messy Data

Leases are often 40 pages long and full of unstructured information. It’s challenging to quickly find the important details.

2. Different Formats

Companies deal with leases from various tenants, each with a unique format. This makes it difficult to have a standardized approach for all leases.

3. Slow Manual Work

Traditionally, people had to read leases and manually input information. This process is time-consuming and prone to human error.

4. Finding Key Details

Extracting crucial information like tenant names, rent amounts, and lease expiration dates from lengthy, complex documents can be tricky.

5. Mixed-Up Addresses

Leases often contain multiple addresses, which can get confused during scanning or processing.

6. Making Data Fit

After extracting information from a lease, it needs to be formatted to work with property management software. This can be time-intensive.

7. Getting Things Right

Accuracy is crucial in lease work. This becomes challenging when dealing with hundreds or thousands of leases.

8. Teaching New People

It used to take 3-4 months to train new team members on lease work. This slows down team growth.

9. Following Rules

There are numerous regulations to adhere to when working with leases. This adds complexity to an already challenging job.

10. Working with Other Systems

Integrating new lease tools with existing company systems can be difficult.

How AI is Helping

New AI tools are significantly simplifying lease work. Here’s how:

• AI can automatically extract information from unstructured documents
• It can organize information in a logical manner
• It works much faster than humans and with fewer errors
• It continuously learns and improves over time
• It can integrate well with existing systems

Looking Ahead

AI is likely to make lease work even easier in the future. This is excellent news for professionals in the real estate industry.

Conclusion

While lease abstraction remains a challenging task, new AI tools are significantly streamlining the process. By addressing these common problems, AI is enabling real estate companies to work more efficiently and effectively.