Capturing Contract Provisions
Please Note that Provisions are not included in the NetLeaseGo free version.
Overview
Users can realize significant value from having their leases tracked within a single unified system—well beyond the benefits of streamlining accounting processes. NetLeaseGo allows users to capture additional information related to the lease record, including lease Contract Provisions. Each contract provision is captured as a child record of the lease and NetLeaseGo users can aggregate and report on those contract provisions across their entire lease portfolio, allowing for simplified disclosure reporting as well as lease management.
Users can capture as many contract provisions for a lease as they would like.
Key Contract Provisions Details
Contract provisions represent legal provisions that make up certain clauses or conditions within a lease contract. The most common contract provisions requiring disclosure include the primary types in the Contract Provision Type field:
- Lease Renewal Option
- Lease Expansion Option
- Lease Termination Option
- Lease Purchase Options
Additionally, other contract types can be captured within the Other category, which include the following (this list can be expanded within the Sub-Type (IF"Other Contract Provision") list:
- Other Contract Provision
- % Rent Clause
- Alterations
- Assignment
- Guarantor
- Holdover
- HVAC
- Insurance
- Late Charges
- Notice Period
- Notices
- Other
- Parking Rights
- Permitted Use
- Price Increase Caps
- Relocation
- Repairs & Maintenance
- Right of First Offer
- Right of First Refusal
- Security Deposit
- Sub-Leasing
- Tenant Estoppel
- Tenant Improvement Credit
Once a contract provision is created it can then be reported upon with searches, dashboards, email reminders and any other native NetSuite reporting. That way, you can ensure you never miss a key date
Process Steps
Step 1:
- After navigating to a lease record for which you would like to add a contract provision, select the Create New icon at the top of the screen and select NetLeaseGo Contract Provision
STEP 2:
- Within the new NetLeaseGo Contract Provision record, complete the fields as appropriate:
Field Name | Description | Example |
| Primary Information Section | ||
Provision Type | Indicates whether the contract renewal is one of the primary disclosed provisions under the new lease accounting standard. These selected types are separately grouped within the Contract Provisions sublist on the standard NetLeaseGo form and included within the NetLeaseGo standard reports | Lease Renewal Option |
| Provision Sub-Type | This will appear as an option when "Other Contract Provision" is selected in the Provision Type field. | Late Charges |
Provision Status | This is the status of the contract provision | Expired |
Contract Paragraph / Reference | Refers to the specific section of the Lease Contract where the provision details are located | Section 2.a.(1) |
Provision Date (Exercise by / Release Date) | The date by which the provision must be exercised. This is the date most commonly reported upon as it represents the final chance to exercise a provision | 30-June-2024 |
| Provision End Date | 29-June-2027 | |
Key Provision Amount (Purchase, Penalty, etc.) | The sum of any amounts associated with the contract provision, whether for purchase, penalty, incentive, etc. If the amount is formula, it is typically captured in the Clause Detail/Notes section | $25,000 |
Clause Details | Long-text field to capture any relevant information about the clause not captured elsewhere | Clause must be exercised in writing |
| Availability to Exercise | ||
| Option Available Date | The earliest date at which the option can be exercised | 1-Jan-2024 |
| Latest to Notify Date | The due date for notification of Lessor that an option will be exercised. | 12-Dec-2023 |
| Likely to Exercise Option | Checkbox to indicate whether the option is likely to be renewed. Note that while this is necessary for disclosure reporting, adjustments to the primary lease schedule term and dates must be manually adjusted; selecting this box will not trigger adjustment to the lease record terms | check mark |
Exercised Provision Details | ||
Exercised Date | The date on which the clause is exercised or the clause conditions are met | 30-Nov-2024 |
| Related Modification | The lease modification related to the exercised contract provision | Drop-down List |
| Exercised Notes | Long-text field to capture any relevant information about the clause not captured elsewhere | |
| Option Term (Full Months) | Additional term to be provided for under the option agreement | 24 |
| New Lease End Date | The update lease end date after exercise of the option agreement | 31-Jun-2028 |
Exercised Notes | Long-text field to capture any relevant information about the exercise of the provision | Submitted & confirmed by Ray Jones |
- Select Save to save the record associated with the lease
- NOTE: Additional documents or relevant information for the contract provision can also be entered or uploaded to the Documents subtab
Upload Contract Documents & Other Files
Use Case
NetLeaseGo can capture and associate any relevant documents or contracts related to a lease and store/link to the lease record
Process Steps
Step 1:
- During initial lease creation or in edit mode of any existing lease record, select the Documents subtab
STEP 2:
- Select the New File button to upload contracts or other files that you would like associated with the lease to the NetSuite file cabinet or select the Attach button to attach a file that already exists in the file cabinet to the lease.
CAPTURING MODIFICATION OPTION DETAILS
- The section is not used during the initial lease setup
- Modifications that are made during the lease term are displayed on this tab
- Modifications cannot be triggered prior to lease commencement
- Modifications should be performed using the Modify Lease button on the lease record
CAPTURING TERMINATION OPTION DETAILS
- The section is not used during the initial lease setup
- Terminations that are made during the lease term are displayed on this tab
- Terminations cannot be triggered prior to lease commencement
- Terminations should be performed using the Terminate Lease button on the lease record