In the brisk-paced world of commercial real estate, adaptation isn't just the key to success – it's the lifeline. Today, let's peel back the curtain on a silent but potent risk: the cost of maintaining the status quo in your property management systems.
Commercial property management has become increasingly complex. The demands of tenants, regulatory changes, and market fluctuations require agility and efficiency. However, traditional software solutions, often characterised by on-premise systems, legacy applications and an over reliance on spreadsheets, struggle to keep up with these demands.
While it might seem comfortable to stick with the software you've been using for years, it's essential to consider the long-term costs. These hidden costs can manifest in various ways:
- Opportunity Costs: Your competitors who have embraced modern solutions may gain a competitive edge by providing better services and experiences to tenants and clients. It also hinders your ability to take advantage of modern tools such as artificial intelligence and automation.
- Productivity Loss: Outdated software can lead to decreased productivity among your team. Slow systems, frequent crashes, and cumbersome workflows can frustrate your staff and result in valuable time wasted.
- Tenant and Client Dissatisfaction: Inefficient property management processes can lead to tenant and client dissatisfaction. This can result in higher turnover rates and decreased revenue.
- Security Risks: Older software is often more susceptible to security breaches. As cyber threats continue to evolve, your data and your clients' data may be at risk.
- Compliance Challenges: Regulatory requirements are continually changing. Outdated software may not have the capacity to adapt to new compliance standards, exposing your business to legal risks.
- Maintenance Burden: Traditional software often requires extensive maintenance and updates, which consume valuable time and resources. This ongoing effort can divert your team from more strategic tasks.
- Data Silos: Older software systems are notorious for creating data silos. This means that valuable information is scattered across different applications, making it challenging to gain a holistic view of your business and portfolio.
- Inflexibility: Customisation options in traditional software are often limited, making it difficult to adapt the software to your specific needs or integrate it with other key solutions like accounting apps or email. This lack of flexibility can hinder your ability to innovate.
Here are some examples of how you can solve key business concerns by moving from manual to meaningful commercial property management:
1. Stop spiralling operational costs & do more with current resources
Manual ways of working:
- Inefficient systems or processing often require manual inputs, leading to hours of additional work each week
- Businesses spend, on average, 20 hours monthly rectifying manual data input errors. It's not just time; it's money
Meaningful ways of working:
- Prevent operational bottlenecks and inefficiencies that come with scaling without a streamlined system
- Initiate smoother, automated operations and redeploy on average 70% capacity back into the business
- Increased trust with accurate data for clients, managers and investors
Opportunity cost: 42% of Commercial Real Estate CFOs are ardently prioritising smarter cost reduction strategies (Savills Outlook). Software like Re-Leased facilitates efficient and scalable operations. Not being able to streamline operations and efficiently manage costs can have a direct impact on a company's bottom line. This can add higher costs and more complexity as you grow, rather than benefiting from economies of scale.
2. Reduce potential risks
Manual ways of working:
- Lacking a unified, reliable data source often results in overlooking key events and dates
- Mistakes can result in revenue loss or client attrition
Meaningful ways of working:
- Gain effective key date tracking, reminders, and calendar integration for cost and risk reduction
- Remove compounding direct and indirect impacts of missing a rent review or renewal
Opportunity cost: Modern solutions can assist in better compliance with regulatory requirements and risk management through its structured automation, alerts, and reporting tools. Without it, businesses could face heightened risks and regulatory challenges, potentially incurring significant future costs.
3. Get a better understanding of portfolio performance and pinpoint opportunities
Manual ways of working:
- Limited visibility into property/portfolio performance
- Challenges in tracking cashflow, arrears, and predicting growth
- Operational bottlenecks impacting business efficiency
Meaningful ways of working:
- Easily identify areas of opportunity and improvement with a dashboard based on your portfolio analytics
- Bring a strategic lens to portfolio management
- Expand portfolio/grow business without increasing headcount
Opportunity cost: 92% of respondents deem data analytics is the most important vertical that real estate owners want technology to address (EY, Technology Adoption Report). Your untapped data goldmine can guide informed decision-making. Without capabilities to digest your data, you miss the chance to transform existing data into valuable insights that could drive business strategies and reveal opportunities for profitability and expansion.
4. Improve experiences and protect IP loss
Manual ways of working:
- Relying on spreadsheets or outdated software can result in dissatisfied employees and challenges in attracting top-notch talent
- Extended onboarding times arise from inefficient procedures and insufficient documentation
- The lack of remote work capability hinders flexibility of time away from the office
Meaningful ways of working:
- Technology could be a key enabler for talent attraction and transformation
- Take immediate advantage of cloud-based solutions for team efficiency gains and great user experiences
- Offer added competitive benefits to attract clients and tenants via mobile apps, improved communication methods, reporting, and modern software experiences
Opportunity cost: 45% of the commercial real estate industry is over 55 years old (Deloitte). Not having a solid system in place to facilitate business processes carries inherent risks. Leveraging the appropriate technology can not only ensure a seamless transition in the event of a key team member retiring but also serve as a draw for prospective talented individuals.
Re-Leased is proud to have helped thousands of customers transition from error-prone manual methods to processes that yield tangible and meaningful results for their businesses. Built for commercial and mixed property management, Re-Leased is cloud-based, mobile-friendly, and automation-driven. It's also tailored to integrate seamlessly with other software, offering customers adaptability.
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