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LEASE ADMINISTRATION SOFTWAREVENDOR COMPARISON CHECKLIST

DEVELOPED BY:


SECTION ONE:

REAL ESTATE LEASE ADMINISTRATIONFEATURESVENDOR COMPARISON CHECKLIST

Developed by LeaseAcceleratorwww.leaseaccelerator.com

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1) LEASE DATABASEVendor 1 Vendor 2 Vendor 3

Leasing Repository

Purchase Orders – Capture all purchase requests and purchase orders for a specific lease electronically

Lease Documentation – Capture Master Lease Agreements, subleases, letters, images, work letters, site plans and facilities drawings electronically

Communications – Capture all inbound/outbound emails, voice messages, notes and comments

Contacts – Track landlords, tenants, brokers, attorneys and property managers involved with each property

Clauses – List all key dates for each lease, including variable rent changes; expansion options; right of first refusal; early terminations; purchase option, renewal and cancellation notice periods

Data Management

Audit Trail – Show timeline of activity for economic and contractual purposes

Version Control – Manage changes for all leasing records

Search – Locate leases by lessor name, deal name, asset/property name or employee name


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2) CRITICAL DATE MANAGEMENTVendor 1 Vendor 2 Vendor 3

Middle-of-Term

Expansion Option – Workflow to notify decision makers and communicate choice to landlord

Variable Rent Change – Capture appropriate rent variables, such as Consumer Price Index (CPI), and update monthly charge calculation

Tenant Improvement Reimbursement – Business rules to identify due dates for TI reimbursement; workflow to notify owners and confirm receipt

End-of-Term

Renewal Option – Workflow to notify decision makers of a deadline for renewing a lease and communicating intentions to landlord

Termination Option – Workflow to notify decision makers of a deadline for terminating a lease and communicating intentions to landlord

Purchase Option – Workflow to notify decision makers of the option for purchasing a property and communicating intentions to landlord

Security Deposit Recovery – Workflow to notify lease owner of contractual security deposit amounts owned


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3) INVOICE-TO-PAYVendor 1 Vendor 2 Vendor 3

Invoice Processing

Capture – Real estate lease invoices from landlords: abstracting data and matching elements automatically

Workflow – Invoice review, payment approval and disbursement authorization through Accounts Payable

Allocations – Expenses for leases allocated to appropriate general ledger codes and cost centers

Estimate Rent Payment

Calculations – Track fixed and variable rent calculations as well as exclusions and cap calculations for each lease

Inputs – Identify inputs to variable rent fields; capture relevant market rates, such as CPI; calculate or allow input of performance or usage-based rent variables

Estimate Rent – Calculate straight-line and variable rents; determine percent-in-lieu and overage rents

Payment Submission

Recurring and Batch Payments – Automate lease payments based on the amount forecasted to be owed in the schedule (versus the invoiced amount)

Submit Payables – Submit estimated/recommended payables to ERP or Accounts Payable applications

Payment Reconciliation – Reconcile actual payments made by ERP with recommended payments submitted

Disbursement – Receive, save and associate check number and check date


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4) SPEND ANALYSISVendor 1 Vendor 2 Vendor 3

Invoice Validation

Invoice Reconciliation – Compare invoice to estimated rent calculations; highlight variations and notify lease owners

Real Estate Lease Validation – Identify incorrect variables, such as CPI, Value Added Tax (VAT) rates, free rent periods, terminated leases still being invoiced

Manage Billing Disputes – Notify lessor of billing errors; track aging of disputes; archive all related communications

Enable Desktop Audits

View detailed landlord expense invoices and paid amounts for each property

View detailed history of CAM charges and contractual obligations

View key contractual dates, such as lease commencement dates and free rent periods

View variable rent inputs, such as CPI and tax rates, for each lease

Reporting

Report on costs per square foot by property type, geographic region and business unit

View payment history detail by landlord, property or lease

Report on historical year-over-year total charges for each real estate property

Track all invoice reconciliation activity by property, lease and year


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5) SUBLEASE ADMINISTRATIONVendor 1 Vendor 2 Vendor 3

Administration and Billing

Lease Documentation – Store copies of lease schedules and addenda for each tenant

Lease Data – Track key contacts, clauses, critical dates and rent calculation formulas for each sublease

Billing – Generate monthly invoices for sublease tenants; calculate variable rents based on market or performance based formulas; pass-through and allocate CAM costs, and insurance and tax fees

Receivables Tracking – Report on payment history by tenant and the age of outstanding receivables


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SECTION TWO:

EQUIPMENTLEASE ADMINISTRATIONFEATURESVENDOR COMPARISON CHECKLIST


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1) LEASE VERSUS BUY ANALYSISVendor 1 Vendor 2 Vendor 3

Inputs

Equipment Details – User can specify manufacturer, quantity, unit cost, etc.

Lease Details – User can specify term, payment, timing and end-of-term options

Workflow

Request Form – Enable non-financial users to request analysis for upcoming equipment needs

Approvals – Ensure that leases meeting certain criteria (e.g. greater than $1M in cost) are properly approved

Outputs

Lease Classification – Indicative based upon IFRS and US GAAP accounting standards (new/old)

Tax – Pre-tax and post-tax cash flow analysis

Administration

Reports – Provide visibility into pipeline of Lease versus Buy analysis over period of time

Financial Variables – Enable treasury to centrally control WACC, IRR, Cost of Debt, etc.


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2) COMPETITIVE SOURCINGVendor 1 Vendor 2 Vendor 3

RFP Creation and Distribution

Requirements – Specify asset types, lease structure, terms and conditions, documentation and reconciliation requirements

Distribution – Automatically generate RFP based on inputs and distribute to list of leasing companies

Bidders – Specify a list of leasing companies to include (e.g. existing lessors) or exclude

Analysis and Ranking

Ranking – Automatically evaluate bids received and rank them based on criteria specified by user

TCO – Provide Total Cost of Ownership analysis for each lease

Standard Contract

Customer Contract – Option to distribute customer’s preferred lease agreement contract along with RFP

Vendor Contract – Option to distribute software vendor’s standardized lease agreement with RFP

Spend Aggregation

Aggregate Spend – Consolidate leases for similar equipment types and vendors into a Lease Line

Lease Line Reporting – Track individual commitments against Lease Lines

Network of Leasing Companies

Lessor Profiles – Strong network of commercial banks, vendor captive finance organizations and independent leasing companies

Credit Profile – Strong network of leasing companies that support current and future credit


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Vendor 1 Vendor 2 Vendor 3

profiles

Ticket Size – Strong network of leasing companies that bid on small ticket (less than $250K), middle ticket (between $250K and $5M) and large ticket (more than $5M) deals

Asset Types – Strong network of leasing companies that bid on specified equipment types (aircraft, IT, material handling, office, etc.)

Geographic Diversity – Strong network of lessors in Europe, Asia/Pacific, North America and South America

3) EQUIPMENT LIFECYCLE MANAGEMENTVendor 1 Vendor 2 Vendor 3

Lease Database

Purchase Orders – Capture all purchase requests and purchase orders for a specific lease electronically

Master Lease Agreements and Schedules – Capture all Master Lease Agreements, schedules and addenda for a specific lease

Shipping Documents – Capture Certificate Of Acceptance and relevant shipping documentation electronically

Communications – Capture all inbound/outbound emails, voice messages, notes and comments

Contacts – Track key account contacts at lessor, equipment manufacturer and any value add resellers involved

Equipment Mid-Term Events

Location Change – Workflow to update records

Cost Center Change – Workflow to update


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records

New Equipment – Workflow to add to an existing lease, making contract dates co-terminus

Partial Buyout – Ability to change some assets to “owned” status while keeping remainder as “leased”

Partial Return – Ability to take some assets off lease while keeping remainder on lease

Data Management

Audit Trail – Show timeline of activity for economic and contractual purposes

Version Control – Manage changes for all leasing records

Search – Locate leases by lessor name, deal name, asset/property name or employee name

4) END-OF-TERM MANAGEMENTVendor 1 Vendor 2 Vendor 3

Critical Dates, Notifications and Alerts

Critical Dates – Track critical notification dates, including notification periods for return, renewal and buyout options

Alerts – Provide pre-defined alerts and notifications of upcoming end-of-term events

Decision – Include economics, instructions and reverse logistics information for each option

Escalation – Provide pre-configured alerts and notifications if a milestone is at risk of being missed

Wizard – Make it simple for stakeholders to declare their intentions for end-of-term, then share with lessor


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Reporting

End-of-Term Reports – Identify all renewal options, return notice periods and buyout options for each piece of equipment

Evergreen Reporting – Enable tracking and reporting on all “evergreen” fees

Automated Workflows

Return Workflow – Enable lessors to acknowledge receipt for returned equipment

Renewal Workflow – Automatically generate a new purchase order for renewal period

Buyout Workflow – Automatically generate a new purchase order for a buyout

Partial Return Workflow – Support partial returns in which the lease for some assets is extended while other assets are returned

Partial Buyout Workflow – Support partial buyouts in which the lease for some assets is terminated with a buyout while other assets are renewed


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5) INVOICE-TO-PAYVendor 1 Vendor 2 Vendor 3

Invoice Processing

Capture – Abstract data and match elements automatically for equipment lease invoices

Workflow – Support invoice review, payment approval and disbursement authorization through Accounts Payable

Allocations – Allocate expenses for leases to appropriate general ledger codes and cost centers

Recurring and Batch Payments – Automate lease payments based on the amount forecasted to be owed in the schedule (versus the invoiced amount)

Payments

Submit Payables – Submit estimated/recommended payables to ERP or Accounts Payable application

Payment Reconciliation – Reconcile actual payments made by ERP with recommended payments submitted

Disbursement – Receive, save and associate check number and check date


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SECTION THREE:

DATA INTAKE AND PUBLISHINGFEATURESVENDOR COMPARISON CHECKLIST


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1) DATA ABSTRACTIONVendor 1 Vendor 2 Vendor 3

Data Abstraction

File Types – Support data abstraction from JPEG, TIFF, PDF, DOC, etc.

Data Elements – Automatically capture key lease terms (start date, end date, and end-of-term options)

Dynamic Capture – Dynamically add new data elements, attributes and clauses in efficient manner without rework

Linking – Link schedule, line item, asset and component-level information submitted from different sources using a common key

Relationships – Hold related data and documents in a queue until all related transactions are completed

Quality Assurance

Validation – Ensure that bad data is not loaded into the system

Self-Assessment – Assess accuracy and completeness of abstracted data by assigning a confidence score or rating

Reprocessing – Enhance quality of data using automated reprocessing algorithm (second pass)

Source Documentation – Maintain a link of abstracted data elements to their location on a lease document to support auditing and inspection

Alternative Options for Data Upload

Web Interface – Upload one or many leases

Email – Upload one or many leases


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API – Upload one or many leases*

File Upload – Upload one or many files in spreadsheet (XLS/XLSX) or comma-delimited format (CSV)

2) APIS AND INTEGRATIONVendor 1 Vendor 2 Vendor 3

Internal Applications

Lease Accounting – API or pre-built integration with systems such as LeaseAccelerator or Tririga

Procurement – API or pre-built integration with Ariba, Oracle iProcurement, Coupa, etc.

ERP – API or pre-built integration with SAP, Oracle, PeopleSoft, Workday, Netsuite, etc.

IT Asset Management – API or pre-built integration with HP, BMC, CA, ServiceNow, etc.

Fleet Management – API or pre-built integration with Fleetmatics, Telogis, Sperion, etc.

External Systems

Lessor Systems – APIs or pre-built integration with lessor applications such as Sungard, Odessa and LeasePath, etc.

Real Estate Broker Systems – APIs or pre-built integration with applications from JLL, CBRE, Cushman and Wakefield, etc.

IT Outsourcing Systems – APIs or pre-built integration with applications from HP, CSC, IBM, etc.

3) FILE UPLOAD AND WEB INTERFACE


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Data Intake and Publishing Vendor 1 Vendor 2 Vendor 3

File Upload

File Upload – Upload one or many leases in a structured file format such as comma-delimited (CSV) or spreadsheet (XLS/XLSX)

File Download – Enable users to download all of the data related to a lease (or set of leases); export data in a comma-delimited file format

Web Interface

Email – Enable users to send lease documentation to a designated email address; files kept in a queue for manual data entry into the system

Web Interface – Provide screens to efficiently enter new leases into the application


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SECTION FOUR:DEPLOYMENT OPTIONSAND INFORMATION SECURITYFEATURESVENDOR COMPARISON CHECKLIST


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1) LICENSED/ON-PREMISEVendor 1 Vendor 2 Vendor 3

On-Premises

Operating Systems – Support for Linux, Windows, etc.

Database – Support for Microsoft, Oracle, IBM DB2

Documentation – Comprehensive installation and support documentation

Training – Availability of online or in-person training for developers, users and systems administrators

Professional Services – Support for installation, upgrades, integration and customization

Support – Multi-tiered 24x7 phone support with troubleshooting, problem diagnosis and resolution

2) CLOUD DEPLOYMENTVendor 1 Vendor 2 Vendor 3

Cloud

Backup – System, content and database files

Monitoring – 24x7 monitoring of application health and performance

Security – Policies and controls; technologies such as firewalls, intrusion detection and data encryption

Processes and Controls – Third-party audit support; SSAE 16 (SOC I or II) or ISAE 3402

Support – Multi-tiered 24x7 phone support with troubleshooting, problem diagnosis and resolution

Maintenance Windows – Frequency and duration

Managed Upgrades – Frequency and level of support required by customer


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Service Level Agreements – Standard SLA, Recovery Time and Recovery Point Objectives

3) INFORMATION SECURITYVendor 1 Vendor 2 Vendor 3

Application

Role-Based Access – Configure roles to ensure that users have access only to the appropriate functionality and data

Single Sign-On – Enable access to the application through a corporate login and password administered by another system; integration with Active Directory or Lightweight Directory Access Protocol (LDAP)

Cloud

Incident Management – If hosted, process for detecting, responding and communicating the outcome of suspected or known security incidents

Patch Management – If hosted, process for evaluating and deploying firmware, operating system, database and application patches and hot fixes

Data Encryption – If hosted, process for ensuring that sensitive information is encrypted while in motion or at rest in the database


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