How Lease Audits Will Increase Your Revenue by an Average of 15-20%
As property owners and managers, you’ve been faced with innumerable challenges throughout the pandemic and have swiftly adapted to meet each new need. From reevaluating HVAC systems to implementing renewed safety protocols, costly updates have reignited the search for potential areas for revenue generation. Lease audits can provide a low-risk, high-reward solution to this, but often require time that is rightfully monopolized by tenant safety measures. So, how can you do both? Read on for our top three tips.
Safeguard Against Lost Revenue in Lease Agreements
Despite the recent shift to work-from-home structures, results from a study conducted by BOMA International, Yardi Systems, and Brightline Strategies affirms that office spaces remain vital to the long-term growth and success of businesses. As a result, employees will begin returning to your property, once again utilizing their parking spots in your lot or garage. That makes now the ideal time to review leases and ensure tenants are using only the allotted spaces agreed upon in the contract. If they exceed that amount, a renegotiation of the contract will keep you from losing out on any potential revenue in your parking operations.
Winpark can aid in this effort by deploying our team of analysts to conduct a lease audit for your property and thoroughly review the specifics of each contract. Especially in a time of increased focus on safety, these details can be overlooked easily; however, our analysts can take on that concern and, ultimately, locate potential areas for revenue generation – all without adding more to your to-do list.
Ensure Tenants Pay Market Rate
A lease audit can also ensure you are generating maximum revenue by identifying out-of-date pricing and giving you the opportunity to update leases with the current market rates. Depending on when the contracts were last reviewed, these lease adjustments could increase your parking revenue by up to 15-20%. Since the parking garage is typically the second-largest revenue generator, after building rents, this can make a significant difference.
When Winpark conducts a lease audit, we make sure you maximize revenue by ensuring all lease details are being followed, including rate steps and abatement end dates. As a parking management leader in Texas, Winpark’s analysts possess the specific expertise, along with the key industry insight, necessary to price your parking operations effectively, earning you the highest revenue possible.
Review and Renegotiate Expiring Contracts
A Cushman and Wakefield study reports an atypically high percentage of short-term renewals in 2020. At this uncertain time, when companies are revising strategies for the future and planning for the role of their office space, they favor the flexibility of a shorter lease. Because a lease audit gives you the opportunity to locate and review expiring contracts, now is the ideal time to prepare an attractive renegotiation offer that could prove instrumental in tenants’ decisions to remain at your property.
Winpark’s keen attention to detail ensures a thorough analysis of your leases that will not only enhance your parking revenue generation, but also pinpoint other potential opportunities, like a contract renegotiation. While you do the work of keeping your tenants safe during this pandemic, we’ll take on the auditing process that could be vital to the future of your property.
Partner with Winpark
Interested in learning how Winpark can help enhance your revenue and provide high-quality parking services for your tenants? Contact Winpark President Drew Riley at andrew.riley@winpark.com or fill out the form below.