Lease abstraction

Every term, with its page and its words

The card lists a fixed set of terms: the tenant, the suite, the dates, the base rent, the recovery clauses and more. Each term shows the page it came from and the exact words, so you can check it against the document at a glance.

A term the document does not state is left blank and named as missing. Nothing is guessed to fill a gap. A figure the document writes only in words is a question on the card, not a number Komod fills in.

Amendments and terminations

An amendment is read as a change to a named lease. The card shows what the rent changes to, what it changed from, and the date the change takes effect. A later amendment's term stands over an earlier one, and each term names the document it comes from.

A termination or surrender agreement is read as an end date for the lease it names. When you approve that card, the lease is ended on that date. When the document names a suite that does not fit the tenant's lease, Komod asks you to pick rather than guess.

Rent that moves

Stepped rent comes back as a schedule on the card: the first installment as the base rent, and each later step with its date and its amount or its percentage. A percentage step compounds on the one before it.

A free-rent period is recorded as a concession through a date. A rent start later than the lease start is recorded too, so a build-out month bills nothing. Both show up in the income schedule with the arithmetic written out.

Percentage rent and other clauses

Percentage rent is read as a rate over a breakpoint. Komod does not invent the tenant's sales figures. Until a sales report is on file, the report names the tenant, the rate and the breakpoint and leaves the figure open. If the lease does not say whether the breakpoint is annual or monthly, that is a question on the card.

Co-tenancy, holdover, late fees, renewal options, guarantors and tenant improvement allowances are read too, each with its quote. When an anchor tenant leaves, each co-tenancy clause that names it comes back as a card. Any rent relief it allows is yours to approve. The software never changes rent on its own.

Related pages

• Use case

  CAM and NNN reconciliation

  Shared building costs, worked out line by line from your own books and each tenant's lease. Caps per recovery year, controllable and non-controllable costs, the admin fee, and a true-up per tenant. Every figure shows how it was reached.
• Use case

  The month-end close

  You open the month and ask Komod to run the close. It reads your mail, your documents and your bank, lines up what it proposes, and asks where it is unsure. You approve each entry, and the owner report is drafted from what you approved.
• Use case

  Owner reporting

  The monthly report your owners read, in seven sections. Every figure links to the transaction, lease clause, calculation or document behind it. Owners read it in their own portal and see only their buildings.
• Who it is for

  For small and mid-size CRE portfolios

  Retail, office, mixed-use, triple-net. A handful of buildings or many. No new accounting system to adopt: QuickBooks stays your ledger, and Komod does the reading, the matching and the report.