Real Estate is one of the largest economies in the world that involves a lot of data and customer handling. In order to gather information on properties, one needs to analyze a large volume of lease documents every day.
Imagine how challenging it would be for someone to trace the details manually.
Understand the connection between the ever-growing technology, Artificial Intelligence, and the business industry’s largest shareholder – Real Estate. It is hard to imagine how exceptional the collaboration would be and the benefits that can be attained.
According to grandviewresearch.com, Real Estate expects to generate a value of 4263.7 Billion USD by 2025. There is no doubt that more data is to be handled and is limited to human effort. At this point, AI has characteristics in addressing big data and it is time-efficient.
Before we dive deeper, let’s talk about Lease Abstraction in Real Estate.
What is Lease Abstraction?
Real Estate lease documents are often vague, lengthy, and unstructured and require serious attention in collecting the mandatory details. Taking up the data-related tasks manually could result in information mismatch, or there is a chance of missing the parties to be entered in the sheet.
About 90% of human error that happens at the workplace results in significant loss of money, time, and productivity. How do we avoid these errors? Technology-driven software can help minimize these mistakes.
Lease Abstraction works well for crucial management tasks, especially when it comes to corporate real estate. The process of analyzing, identifying and uploading the data is still a neck-breaking task for humans and is quite complicated- labor-intensive.
The lease abstraction method involves extracting prominent data valuable to the management, and uploading the compiled report into the client system.
How AI managed lease abstraction processes take place?
“No fuzz or reiteration; Only automation and self-updating.”
Technically, the automated tool completes the process by carrying out six steps: document scanning using OCR, training through ML, self-learning using NLP, evaluation, execution and integration.
An automated lease abstraction tool should ideally be a formulation of Optical Character Recognition (OCR), Natural Language Process (NLP), and Machine Learning (ML).
The tool can be channeled in a way that it captures the relevant key clause or phrases from real estate agreements containing sales, lease, or tenant information.
NLP enables automatic analysis of crucial information, extracts the data related to financial and legal information, and delivers the details in Word or Excel format.
The thumb rule works well with AI providing 80% of vital info in a lease. The AI software can categorize the obligations from the party and deliver appropriate references to the original document.
Let’s understand why lease abstraction is crucial to the real estate industry.
Why is Lease Abstraction so important?
An automated process has the power to cut down human error. But its merit doesn’t end here. Implementing AI powered commercial lease abstract into your real estate business could limit other drawbacks as opposed to when done manually.
AI + Lease Abstraction = Effective Time Management
“Some people call this artificial intelligence, but the reality is this technology will enhance us. So, instead of AI, I think we’ll augment our intelligence.”Ginni Rometty (CEO & President, IBM)
AI lease abstraction software is programmed to identify the required data points from lease agreement documents. An AI-based solution can be trained to trace, track, and abstract the data from records quickly in a single turn, which is much better than humans reviewing the documents.
As a result, it can lead to a 30-40% reduction in time consumption and can provide an accurate output.
Accuracy holds supremacy
Implementing any self- learning algorithm and automated lease abstraction software would lead to quickening of the process and easy adaption to the newly learned information. By applying the new data consistently into every document, the software can deliver a highly accurate output.
Data abstraction can be made easy with AI intelligence software that doesn’t need to be streamlined manually.
With more new frequent encounters, an AI algorithm fed lease abstraction software can improve its accuracy.
Reliability in Data Analytics
By introducing a complete data abstraction solution into a business, any realtor can gain a detailed insight into lease data, such as the start of a contract, lessee, lessor, and other detailed leasing information.
Seeking more excellent reliability in deriving a template pattern summarizing the data, companies could have a clear picture of their lease portfolio and performance.
AI data abstraction software can work in any language irrespective of the region, so companies could explore data from any part of the world and make decisions based on the data.
Diversified yet perfect
Automated lease abstraction process is crucial to the real estate industry as it can crawl through lease agreements varying in language, clauses, terms, and obligations.
Moreover its extended support reduces the challenges faced in manual data entry along with abstracting the regulatory requirements that could vary based on diversification and imported into an excel sheet.
As a part of the process, the recorded data can be stored in any format such as .jpg, .pdf, documents, or images from time to time based on your requirement.
Lease abstraction is a core task in real estate administration. It is important for the smooth functioning of the business and accuracy which cannot be achieved manually.
To overcome this difficulty and challenges faced by the realtors, Mobius has designed a lease abstraction software that can deliver resultant data points into a simple, structured and easily understandable template.
Feel free to know more about our automated lease data abstraction service and reap the benefits of automation.