Contract management for real estate companies: 5 challenges and how to solve them

Real estate companies manage a unique mix of contract types: lease agreements, management contracts, construction contracts, supplier agreements and service contracts. The volume is high and the consequences of errors can be significant.

1. Hundreds of lease agreements with different terms

A real estate company with 50 properties can have 500–2,000 active lease agreements, each with unique terms for rent, indexation, supplements and termination. Manually monitoring all of these is practically impossible.

The solution: Automatic extraction of all terms and centralised monitoring with reminders based on each contract's specific termination conditions.

2. Index clauses that aren't followed up

Most lease agreements contain CPI-based index clauses. But are they actually followed up? Our experience shows that many real estate companies fail to apply indexation on time, which can mean hundreds of thousands of SEK in lost revenue per year.

3. Supplier contracts without overview

Property management requires a long list of suppliers: cleaning, maintenance, elevators, fire safety, electricity, HVAC and more. Without a central overview, it's difficult to know which contracts are running, what they cost and whether the terms are still competitive.

4. Poor traceability during transactions

When buying or selling properties, all associated contracts need to be identified and transferred. Without a structured system, there is a risk of missing contracts — or transferring contracts that should have been terminated.

5. Different systems and routines per management area

Large real estate companies often have different routines in different regions or business areas. This makes it difficult to get a consolidated view and compare terms across properties.

"As a real estate company, we have thousands of contracts. Getting them all in one place with automatic monitoring was a gamechanger."

How to get started

Step one is to gather all contracts — lease agreements, supplier contracts and management contracts — in one place. Tagd handles the volume and extracts all relevant information automatically, whether the contracts are scanned PDFs or Word documents.