The digital components of a winning real estate investment strategy
Technology is a fundamental component for institutional investors and real estate investment managers, with increasing importance on support for investment strategies and essential building services.
Having experienced irreversible landscape alterations through the previous 18 months, and with the likelihood of further changes in the coming months and years, it’s important to take advantage of the solutions and innovations available to thrive in an uncertain future.
Adopting technology is vital in ensuring that real estate investment organisations have tools and efficient processes to help you understand portfolio performance now and in the future, make confident decisions, as well as manage data from one single source of truth. But how can this be achieved?
Data is Key
Since the COVID-19 pandemic, property and investment managers now have more data points to consider in the strategic planning process. As well as environment, sustainability, and profitability factors, it’s now essential to monitor health, safety, and the type of experience that residents, tenants, and occupiers will have inside and around their properties.
With more data to gather and consider and higher expectations from stakeholders around investment decision-making and governance, effective management and processing of the data are more important than ever.
There’s a saying in data analytics – garbage in, garbage out. It’s vital to ensure that the data being inputted into the system is complete, accurate, and of a high quality to make informed forecasts and build smart strategies. Having full control over the data within your system is imperative to avoid human or data entry errors while making modifications or handling complex calculations like scenario modelling.
Minimising the risk of errors within your data means automating as much as possible. From data gathering to calculations, finding a solution that provides end to end management of data means its quality is likely to be upheld and you’re able to lead your business into the future with decisions based on strong, data-driven foundations.
Tools that use AI to input data can scrape documents and leases for customisable input fields, ensuring accurate data with which to make decisions.
This data must be accessible in a complete and consumable format that allows for quick actioning and decision making. This means ensuring data is coming from a single source of truth and isn’t siloed across different departments and datasets.
To achieve this, it’s crucial to find a tech solution that can consolidate your data and deliver it within a customisable interface with the ability to drill down for closer analysis. This allows for a full 360-degree view of your portfolio and assets and, in this way, basing decision making off your data becomes simplified and adaptable to your firm’s practices and requirements.
Data from across the whole organisation is needed to build well-informed strategies. To avoid duplication of effort when inputting data, guaranteeing your tech stack is fully integrated not only streamlines processes but also ensures more accurate data across the board. Choosing solutions that can be integrated is critical, which is why an open and connected approach is fundamental.
As well as real-time reporting to investors, tenants and customers are calling for better communication with landlords and property managers. Over the pandemic, people have become accustomed to being able to manage their lives remotely, whether that’s shopping, banking, working, or socialising. There is now an expectation to be able to manage tenancies, make payments, and log repairs and work orders online.
Digital portals allow leaseholders to manage their tenancy remotely and online. This provides a valuable service to customers and also reduces the risk of miscommunication by having data input into the system directly from the tenant.
The key to winning real estate investment strategies is adaptability. Few could have predicted the events of the past 18 months but being able to model scenarios quickly with the ability to adjust different factors means that decisions can be reached and a range of different options can be tested quickly, allowing you to pivot and adapt to changing situations, whether global or more commonplace.
With so many different facets to consider when planning and strategy building, accurate and well-informed scenarios are simpler to achieve with modern strategic planning tools.
Become a Visionary with MRI
At MRI, we know that the ability to make winning real estate investment strategies is vital for our customers to lead their businesses as true visionaries. Visit our investment solutions page to find out more about how our tools can help you streamline, connect and unleash the visionary in you.
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