How accurate is your portfolio data?

REfocus was engaged to review an existing lease portfolio to ensure data integrity. A technology company's leases had been abstracted by many individuals over the years with no consistent process or quality control measures in place. The old adage of “garbage in, garbage out” still holds true. It’s impossible to effectively manage a portfolio with unreliable data.

• Our initial review of the 90+ lease portfolio found that 74% of the abstracts included errors.

• Actual errors generally were focused in two areas: incorrect payment amounts in the rent schedules and missing options and/or option notice dates. In many instances, automatic renewal provisions were missing.

• Several records also included unclear or mis-interpreted language (e.g., per the lease, termination option notice is required at least 3 months prior to the LED; the language in the abstract stated that notice is required within 3 months of the LED).

• REfocus corrected the existing errors and made the following recommendations to improve data quality and consistency:

  • revise the values in several drop-down fields;

  • re-abstract;

  • implement a data review/quality control process;

  • limit database edit rights to the lease administration team