Leasing 102

by Mr. Terry Winders, CLP

"What good is Lease Education for the back office?"

The back office is clearly a large expense, and to minimize it have each person good at there job and do what they are told to, to hold down costs. How many times have I heard that comment!!! Efficiently comes from people that are not only trained in their job but trained in what leasing is all about so they can detect errors and omissions. Robots can perform many tasks but you do not expect them to think. I believe that too many lessor's think the same about their staff.

On many occasions I have had to thank my lucky stars that a member of my staff questioned what was occurring and therefore saved my bacon. This would not have occurred if I had not understood how valuable education on all aspects of leasing was to my staff. They need not be lawyers but they need to understand documentation and the purpose of doing it correctly. They do not need to be accountants but they can find a problem with structuring and pricing faster than you can. A completely trained staff is the best back up in the world. If you train and respect them they become part of the team and not part of the furniture.

Regardless on how many years someone has been in leasing, changes occur every day. New ways to offer and handle the business need constant attention and management is not always on top of every change. Sending staff to training to refine their tasks and review current changes can support your need to control costs and be on top of your market. Just staying abreast of changes in documentation can save you time and money and protect the viability of your company.

One of the cheapest ways to offer training is to have one of the many lease educators come in and do a review of your procedures by having all of the staff explain their function and where they fit in the chain of events. When everyone sees the correct work flow and its purpose, it gives meaning to their jobs, and once in a while suggestions surface that will improve the duplication of effort and establish a more efficient method. Current changes in the companies business plan can also be presented that makes everyone aware of the company goals and makes sure they are all pulling the same way.

Usually an outside trainer is best because the teacher is not handicapped by the restrictions of the company's outlook and current and new approaches can be presented.

If everyone is trained to understand leasing and its benefits then they can be your ambassadors away from the office. A happy employee encourages customers to do business each day because the customers get answers instead of being past off to others. The more professional your staff looks the better it is for your company reputation.

Another suggestion I have is to prepare a test for your staff on the rules and regulations plus questions on your company policy and simple questions on types of leases you offer and the markets you prefer and then prepare yourself for the results. If you are not surprised at some of the answers you will be in the minority. If you need help preparing these tests contact me because I have a lot of such tests.

One thing is for certain "all the rules and all the competitors change everyday" and staying on top of the changes is a full time job. It is difficult when you have a strong understanding of commercial leasing and an impossible job if you do not. Plus your organization, when poorly trained can destroy you. Education and training is a must to a properly run leasing company.

Mr. Terry Winders has been a teacher, consultant, expert witness for the leasing industry for thirty years and can be reached at leaseconsulting@msn.com or 502-327-8666