As organizations scale and their asset portfolios grow in complexity, the question of whether to develop lease management software internally or purchase a solution becomes increasingly relevant. This decision carries long-term implications for compliance, operational efficiency, and financial oversight. In this post, we’ll explore the core elements of lease management, common pitfalls in the build vs. buy debate, and best practices for successful software implementation.

Why Lease Management Matters

Lease management refers to the oversight of all lease-related activities, including contract negotiation, compliance, payment processing, and reporting. It ensures that lease obligations align with organizational goals and financial standards. For global companies, the landscape is more complex—leases span multiple regions, currencies, legal frameworks, and accounting regulations. Without effective systems, the risk of financial inaccuracies and compliance violations increases sharply.

Core Functions of Lease Management

A solid lease management process includes several essential components: setting up and managing lease agreements, tracking important dates, handling payment calculations and reconciliations, managing subleases, and ensuring accounting compliance (e.g., IFRS 16, ASC 842). Each task plays a critical role in maintaining data integrity and supporting strategic decisions. But managing all of this manually—or with disconnected tools—leads to inefficiencies, missed deadlines, and elevated risk.

Challenges Enterprises Commonly Face

Enterprises often struggle with fragmented lease data, limited visibility across portfolios, inconsistent processes, and insufficient system integration. These challenges can result in billing errors, untracked liabilities, and delayed reporting. Moreover, a lack of clarity around roles and responsibilities often leads to bottlenecks and reduced accountability. A comprehensive software solution is essential to address these issues effectively.

Separating Fact from Fiction: Myths About Build vs. Buy

Myth 1: In-house development offers greater control.
While internal teams may initially feel more in control by building a custom solution, the reality is that lease-specific complexities—such as evolving accounting standards and advanced workflows—often exceed what general-purpose systems can handle. Purchased solutions typically come equipped with features tailored for these demands, with continuous updates and vendor support built in.

Myth 2: Every software provider meets top-tier security standards.
Not all solutions are created equal. Just because a vendor offers lease management software doesn’t mean it complies with security benchmarks like SOC 2 or GDPR. Buyers must evaluate a provider’s certifications, encryption practices, and access control features to ensure compliance and data protection.

Myth 3: In-house development speeds up delivery.
Internal development teams often face competing priorities, which can delay implementation and compromise focus. Unlike specialized vendors, whose sole responsibility is delivering lease management functionality, in-house teams may struggle to dedicate consistent resources to the project.

Myth 4: Buying is more expensive.
While purchasing software comes with upfront licensing fees, building internally requires ongoing investment in development, maintenance, integration, and user support. When factoring in full-time staffing, infrastructure costs, and long-term updates, buying a solution can be significantly more cost-effective.

Myth 5: Custom-built tools integrate better.
Even with deep knowledge of internal systems, custom-built solutions aren’t immune to integration issues. Whether you build or buy, successful integration depends on choosing the right architecture and thoroughly planning technical execution.

Laying the Groundwork for Success

To determine the right approach, organizations must evaluate their readiness across three dimensions: people, process, and technology.

• People: Does your team have the expertise and capacity to manage complex enterprise software? Are stakeholders aligned and ready for transformation?

• Process: Are current workflows standardized, and do they align with global portfolio requirements? Is there a clear operating model in place?

• Technology: How mature is your infrastructure? Do existing systems support integrations with lease accounting, financial reporting, and asset tracking?

A candid assessment of these areas provides the foundation for making an informed decision.

Weighing the Costs: Build vs. Buy

When looking at the total cost of ownership over three years—including implementation, support, integrations, project oversight, and upgrades—buying software from a trusted vendor is often the more economical choice. Vendor-provided services reduce the internal workload and provide consistency in updates and compliance maintenance.

A real-world example highlights this: a global retail chain with over 1,500 stores moved from a limited in-house system to a comprehensive vendor platform. The transition improved visibility, automated workflows, ensured compliance, and integrated smoothly with ERP tools. The switch also enabled new capabilities like percentage rent calculation and rent reconciliation, unlocking operational efficiencies.

Planning for a Seamless Rollout

Whether you choose to build or buy, success depends on a structured implementation strategy:

1. Define your needs: Identify gaps in your current system and outline critical features.

2. Engage stakeholders: Align internal teams early and often.

3. Prioritize integration: Choose solutions that complement your existing ecosystem.

4. Test thoroughly: Conduct trials, refine workflows, and train users.

5. Monitor performance: Track adoption, collect feedback, and iterate as needed.

If building internally, ensure clear milestones and budget allocations are in place. If buying, evaluate vendors through scorecards, demos, and reference checks to select the right partner.

Final Thoughts

Choosing between building and buying lease management software is a decision with strategic, financial, and operational implications. While building may offer a sense of customization, it often introduces more complexity and higher costs than anticipated. For most global enterprises, buying a specialized solution provides a faster, more scalable, and compliant pathway—freeing internal teams to focus on business growth rather than software development.

By understanding your organization’s unique needs and evaluating each approach through a structured lens, you can confidently select a path that ensures long-term success in managing your lease portfolio.