The workplace is changing at a rapid place. What impact will this have on tech usage for service providers?
In this slideshare presentation, we take a look at the issues, exploring how next generation corporate real estate software can help firms stand out in a competitive marketplace. Continue reading “Notes on life at work and the implications for service providers”
“Best service is no more than a mouse click away.”
Today’s generation of rental residents know what they want and are prepared to pay for the right accommodation and services. But to achieve those standards, residential property managers and investors must understand that their assets are more than numbers on a spreadsheet; in order to achieve a fully occupied apartment complex, they need detailed knowledge of resident needs, long-term planning and appropriate service levels.
One of the key factors residents consider when deciding to renew tenancies is quality of customer service. A recent survey by Engage found that poor communication and taking too long to resolve property issues are among the major frustrations reported by private sector tenants in the UK. Customer service can be dramatically enhanced by using property management software to effectively manage, monitor and communicate with residents.
Technology is increasingly being used as a key differentiator, with the best systems accommodating functionality that improves long term customer relationships. The opportunity technology offers for transforming residential property management to enhance value, service and experience is huge; with the right software, residential property can even match the service levels of the best hotels.
Widespread adoption would represent a huge step change with instantly measurable impacts for the customer experience.
Automation of billing and other communication, in line with industry best practice, removes the need for paper-based, manual intervention. This helps cut debt by enabling effective credit control and improves service charge management.
Property management software also enables a 24-hour, self-service culture. Resident portals can accommodate online concierge facilities, amenity bookings such as gym or pool usage, and desirable services like restaurant bookings, tickets or car parking. Systems can also include a responsive maintenance team and convenience offerings such as cleaning services.
This ensures the best service is no more than a mouse click away, keeping even the most demanding residents happy. It can either be done on an all-inclusive basis or for an additional charge, both of which can be accommodated in the software.
Property management software allows residential managers to create communities that people want to live in. In a recent survey by property service provider, LOFT, 78% of residents said they “did not know their neighbours”, while 72% said they wanted to do so, suggesting a major unfulfilled need.
A property management system should include a resident portal to foster an increased community experience, delivering offers and promotions from local businesses, online forums and social media groups, and even events.
User-defined, smart applications also have the potential to transform the resident experience, offering virtual concierge, security, and sustainability apps to control heating and lighting via smart sensors and thermostats. It is something customers are now demanding, as evidenced by LOFT’s recent survey2, which showed 66% of respondents wanted SMART controls. The latest property management technology can help meet these increasing digital demands.
In short, a human-centric approach to property management is needed in the residential sector, and the most successful businesses in this space will be those who can identify and harness the latest software solutions to improve services for customers.
Every week there are new stories about the wonders of internet connectivity and the ‘Internet of Things’.
In residential property management, the advances are making a dramatic difference to people’s lives.
Here are nine ways that the latest mobility and connectivity technology has improved conditions for block managers, leaseholders and residents.
Containing a wealth of information on individual properties, property management portals facilitate better communication between block managers and leaseholders and residents, better access to important documents, contact lists for contractors and emergency help lines and much more.
Property managers and resident management directors can log on at any time to check the status of building management issues.
The technology can incorporate an archive of calls, repair activities and contracts so that everyone is consistently aware of what has been done, what needs to be done, and by whom (and what it costs).
One data and document set throughout the whole property management process can be enabled by superb connectivity. This reduces errors and duplication of effort, resulting in further efficiencies.
When property managers visit buildings, they can use their tablets and smartphones to check through issues and inspect for health and safety compliance. As they do so, any action points immediately register with the office, through an online connection, speeding up the process of remedying problems and ensuring that all issues are noted.
Transaction information is available to block managers and directors of residents’ management companies, meaning that issues can be monitored in real time. Service charge expenditure items can be approved and actioned within days.
This means that block managers can stay within agreed budgets more easily, there is greater transparency for everyone in financial transactions and less scope for dispute.
It is increasingly important to comply with RICS (Royal Institution of Chartered Surveyors) and ARMA (Association of Residential Managing Agents) regulations. Leaseholders today are more aware of block managers’ responsibilities and more prepared to take action against them if they flout these regulations.
New technology enables block managers to maintain a closer eye on compliance and to prepare in advance for issues which need attention, such as health and safety inspections.
A common complaint from leaseholders and tenants is that block managers make too few visits to properties and fail to respond in a timely way to queries. An online property management portal reduces such issues, since it contains answers to many of the queries that would previously require an individual to respond.
Sending out regular email correspondence means that tenants and leaseholders feel informed and in contact with block managers, even if the frequency of physical visits has not changed.
Higher frequency and better quality communication also acts as a powerful marketing tool for block managers. New work may emerge as tenants and leaseholders recommend block managers to their peers.
When block managers adopt comprehensive and up-to-date property management software, they can integrate their diaries, workflow, correspondence and financial transactions into one system, with multiple benefits to the business: speed of response, transparency of information and lower costs. Far more administration can be achieved in less time – sending out service charge reminders for example.
With smarter, faster and more efficient operations thanks to online property management software, block management companies can present a more professional image to the market, leading to a higher probability of new business referrals.
Employees who would previously have spent hours mailing service charge reminders or other correspondence can now concentrate on winning new business. Potential clients can see the scope and efficiency of the business by looking online.
A smart property management system can help to increase turnover, reduce costs and enable business growth, as block managers demonstrate their increased efficiency and professionalism.
Corporate real estate service providers face an ongoing challenge to ensure they manage clients’ property portfolios effectively.
As well as running the day-to-day operations and ensuring essential pieces of equipment remain safe and functional, providers need to remain up to speed on the more strategic elements. Knowing when leases or contracts expire can help shape key decisions around the disposal or use of buildings, while responsibilities around rent or rate payments, insurance premiums and facilities management contractors must all be met.
The ability to easily identify and receive alerts for important dates is vital, as is being able to demonstrate the total cost of a portfolio, including any anticipated future expenses.
Effective management reporting will also mean data can be compared against key performance indicators, helping to ensure costs do not spiral out of control and allowing clients to hone in on areas that are of particular interest to them.
Keeping on top of all this across multiple buildings and clients mean an effective technology solution is essential. This is even more relevant than ever, with the disruptive landscape driving companies to evolve; it seems clear tech is now becoming a differentiator in the CRE industry, with large service providers rapidly acquiring software solutions and partnering with tech providers and consultants. So what can service providers do to strengthen their offerings?
The use of big data and the Internet of Things means there is now more information available than ever before, with smart devices able to monitor usage of particular areas of buildings. That insight can then be fed back to those who are tasked with making decisions around both the use of space and the design of buildings. This can be compared with historic usage, helping to identify areas of a building which are overcrowded or potential rooms or floors where there is unused capacity, as well as giving an indication of likely future usage.
When combined with other tools such as CAD packages, such technology can help service providers and their clients ensure more efficient use of space and view information around tenants and any vacancies. Some packages can even work with geographic information systems to help identify potential sites for future expansion, highlighting issues such as planning requirements, population density and the presence of other businesses operating in the area.
This kind of insight means service providers can not only provide clients with an accurate assessment of their current portfolio and any areas of waste or opportunities for efficiencies, but can also present potential solutions.
The challenge for service providers is to find such capability from a software package. For larger providers with considerable in-house IT departments and big budgets, it may be possible to develop their own system, configured to their needs, as long as they have the capabilities to update this over time as new requirements and functionality emerges. Most service providers, however, will not have this luxury, and will look to external providers to take care of all this for them.
There are a number of other elements to think about when picking a software provider, as well as making sure it has requisite functionality. Being able to integrate with other software is vital. As well as working with the above systems, being able to extract reports to Excel, Word or PDF formats means clients can easily evaluate information and spot trends. The ability to customise reports to specific requirements is also something to consider, allowing users to hone in on individual, sector or country details.
There are obvious benefits to both service providers and clients of having such capabilities. For clients, having easy – and sharable – access to such information will help them make the right decisions when it comes to space usage in a building and identify any potential opportunities that may exist to rationalize a portfolio or to add to their property footprint, perhaps with new offices, shops or distribution units.
Knowing such information is available and being monitored carefully by a specialist provider will give in-house property professionals or heads of facilities/estate planning the confidence to focus on their own role, and can also help elevate their own position and that of the function internally.
For service providers, being able to offer this kind of intelligence can help to retain existing clients and win new ones, by offering something that competitors may be unable to. Being able to explain the business benefits of such a package is vital, and service providers that do this will be able to demonstrate how they can help clients with strategic insight into their entire property portfolio as well as managing the daily operational activities. In such a fast-moving and competitive landscape, such technology credentials are essential.
“The system should be accessible to multiple users and stakeholders.”
The Private Residential Sector (PRS) covers a broad spectrum of rental property. If you’re developing Build-to-Rent or whole block ownership schemes, known in some parts of the world as multi-family housing, you’re responsible for the entire property lifecycle, from developing a building, to attracting residents and processing their tenancy arrangements to the long-term financial and asset management of developments.
This means that touchpoints across the property lifecycle can end up being disconnected, unless an end-to-end PRS software solution is employed to link all stages of the resident journey, including property management, lettings management and a resident engagement system.
In this blog post, we consider how property investors and their management teams who are looking to move into the Build-to-Rent sector for the first time can avoid the problems associated with disparate data sources – including duplication of effort and inaccuracies. As a result, they can deliver exceptional benefits to customers and improve communication to all areas of the business throughout the building lifecycle.
All Build-to-Rent schemes require the right system architecture. This might include CCTV, networks, communications, parking, door entry, AV hardware, key management, IT hardware, telephony, in-flat broadband, TV packages and public Wi-Fi.
Importantly, there needs to be integration from the outset between this technology and the core property management system used to manage and maintain the asset long term; this integration is crucial to enabling automation of operational processes, gaining evidence at all stages, depth and breadth of reporting, and maintaining security of systems and data protection.
The lettings management process starts with attracting and securing residents, including marketing properties via a range of channels. This is followed by “on-boarding” – smoothing the tenancy processes and ensuring legal compliance. A rental solution plays a key part in this first stage, enabling automated processes and resident matching.
An add-on resident portal, fully integrated with the property management system, will help in delivering an improved level of customer service, offering more value to residents with amenity bookings, add-on services and local targeted marketing. The final link in the interconnected chain is the resident replacement and move out process.
Once the residents are set up in their new home, a smooth link with property management software enables efficient rent collection and arrears chasing, as well as effective facilities management, ensuring the reasons for any resident dissatisfaction are quickly identified and dealt with and the property is well maintained.
A property management system should be the single central source and location within the build-to-rent software solution, holding all key data and documents, such as rental agreements, inventories, and those relating to due diligence on residents.
The system will also enable agents to automate time-consuming administrative processes and reduce the costs and complexities associated with managing properties. It should be accessible to multiple users and stakeholders, with custom access levels depending on role and responsibilities.
The connected solutions approach can be taken a stage further still, by integrating your systems with those of your suppliers; this allows procurement and settlement to be accelerated. On top of the practical efficiency gains, potential residents are attracted by the thought of connected and smart buildings with app-controlled environments, where the infrastructure is scalable for future technology developments.
Ultimately, by linking data points within a core property management system, investors will benefit from a sophisticated PRS software solution to enhance effectiveness, service and profitability. If you are new to PRS – you may already have a very slick property management process in pace already (in-house, outsourced or a combination) and it may just be about adding technology components to this.
The corporate real estate sector is changing fast, as a result of changes in the way people work, the introduction of new technologies and the ongoing pressure on businesses to save costs wherever possible.
According to the Live Work Play 2016 report by CBRE, 78% see workplace quality as important when choosing an employer, and 69% will trade other benefits for better workspace.
Offices, for instance, now include a number of areas which simply weren’t on the radar of property professional or employees a few years ago, with breakout or collaboration areas, cafés and even gyms offered as a business benefit.
Additionally, open-plan offices are now the norm and some businesses encourage a culture of flexible working, desk-sharing and remote working. This means many do not have capacity for all staff should they all be in the office at once.
For CRE professionals and service providers, this constant change creates additional responsibilities and challenges. The trend towards shorter lease periods mean it is essential that these are closely monitored, both to ensure payments and renewals are made on time but also to help clients understand their options as their own business demands change.
Having access to information around lease data and property costs is therefore essential, as is the ability to compare these over time, against previous figures and key performance indicators. It’s important those tasked with looking after clients’ portfolios have access to the technology that can help generate such insight.
However, an industry wide survey by Qube Global Software shows that 75% of real estate professionals believe themselves to be at the early stages of their technology journey, with only 5% of businesses currently seeing themselves as tech pacesetters.
But lack of investment in this area means that companies are missing out on critical information; nowadays, technology can combine such insight with data from other systems such as CAD packages, giving those overseeing property portfolios the opportunity to overlay such information on the footprint of a property or shopping venue, making it easier to identify any areas which could potentially be freed up or where there could be improvements.
Taken one stage further, technology can also help to identify potential solutions as well as highlight problems. Take a retailer with multiple branches which is looking to move into bigger premises or open new outlets to meet customer need. The use of geographic information systems could help identify areas where there are no major competitors yet a significant local population, and even provide information on planning permissions that would be required for individual sites.
Such capability goes far beyond the day-to-day requirements around making sure premises are maintained and rent is paid – important though these are – but can give the kind of strategic insight businesses need to make critical decisions about both their own property portfolio and the wider business strategy.
This is critical in an industry where transparency is paramount; Qube Global Software’s survey also found that the sharing of information is a key concern for real estate professionals across the board, with a third of occupiers finding it difficult to justify and understand information supplied to them by service providers.
Service providers, therefore, can use technology to their advantage, allowing clients to draw on an unprecedented level of insight and to drill down into their own unique requirements. Those which can do this stand to gain from increased customer retention and new business acquisition, as well as cementing their reputation in a competitive marketplace.
While finance has a key duty to ensure compliance with accounting standards, reforms to the rules on leasing will bring real estate and its property management technology into the picture.
Who should take responsibility for leading the response to the new accounting standards that the International Accounting Standards Board and the Financial Accounting Standards Board will introduce with effect from January 2019?
On the one hand, accounting standards are traditionally the preserve of the finance function; on the other, these particular reforms are all about bringing the value of lease obligations onto the balance sheets of publicly-listed companies; since property assets will form the largest part of those obligations for many businesses, real estate clearly has a significant role to play too.
In reality, of course, this isn’t a binary question. Both finance and real estate are going to be involved in ensuring compliance with IFRS 16 and Topic 842 once they come into effect, and in managing the impact of the standards on an ongoing basis thereafter.
However, it is important that both functions recognise the important role each other has to play – and that they work collaboratively on the business’s response to the reforms as equal partners. That may represent a new way of operating at many companies, where real estate will traditionally have taken its lead from finance.
The good news is that finance directors are increasingly getting to grip with the basic impacts on their businesses of the reforms – particularly the headline changes to key financial metrics such as debt and profitability that may occur following the adoption of the new standards.
Equally, however, real estate directors bring specialist knowledge to the response to IFRS 16 and Topic 842. They also have the key tools required to do the detailed work now needed – their property management technology, whether existing or new, is the best route to identifying which leases are relevant to the new standards, extracting the key data from these leases, and also modelling future leases for their potential impact on the balance sheet.
The division of labour and responsibility between real estate and finance is therefore going to be even-handed. Certainly, checklist guidance from leading accountants suggests a number of key roles for both functions: for real estate, the challenges include identifying all property leases, checking systems are capturing the right information and monitoring it on an ongoing basis, and reconsidering lease strategy in the light of the reforms; for finance, key tasks will include considering exemptions and transitional reliefs, modelling the impact on financial results and statements, and communicating these impacts to stakeholders.
This is not an exhaustive list for either function by any means. But the important part to grasp is that finance and real estate will need to work hand-in-hand in the face of these reforms. The partnership approach will ensure the business benefits from both functions expertise and experience during the transition and on an ongoing basis.
Moreover, ensuring your business’s property management technology is capable of generating the data required is going to be an essential part of that split; the danger otherwise is that finance misses the opportunity to maximise value and minimise impact by trying to manage the process through its existing (but more limited) enterprise resource planning systems.
As a residential property manager, what are the fundamental factors that persuade your clients – whether leaseholders or committees – to recommend you?
New business development in the market has always been highly driven by recommendation, as targeting leaseholders and committees is a hard task to do directly.
However, the way that recommendations are made today is changing. In addition to meeting at networking events, leaseholders and tenants share information via online forums such as LinkedIn, Twitter and industry-specific websites.
It is common sense that in this digital age, prospects will look positively upon businesses – including block management companies – that use IT efficiently and effectively.
This could be:
Each of these areas can best be achieved through smart, comprehensive property management software.
So how should block managers go about selecting such technology? How can they judge what will best enable them to achieve the business growth they seek?
Here are some factors to bear in mind:
So, in summary, to achieve optimum results and to grow your business, it is crucial to have demonstrable technology that supports the following areas:
The more work you are able to take on, the better able you will be to pitch to new clients. By demonstrating your ability to handle higher volumes of work, you can also stress the benefits to clients: you can negotiate discounts from contractors and suppliers, and achieve other economies of scale in your own administration.
It’s the ultimate good recommendation: hire this block manager and get great service. Few people would argue with that.
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