Three steps to building your real estate tech stack
Real estate laws and customs go back centuries in some cases. It’s no surprise that an industry rich in tradition is hard to change. However, the systems around the real estate – especially the software – have needed upgrades over the years. A streamlined real estate technology stack acts as a way for organizations to quickly gain insight into the risks and opportunities associated with their rental portfolio.
A square peg in a round hole: Real estate has historically been underresourced
Real estate has been slow to acquire the resources that other departments use to do their jobs. The sales team uses CRM software, the marketing team has a service to manage across multiple platforms, and the finance team has a payroll and accounting solution. However, real estate has been much slower to adopt similar solutions.
Often, real estate teams have used tools that are better designed for other teams or resources are missing, such as Microsoft Excel and email. Real Estate, as second biggest expense After paying salary to the business, it should be paid more attention.
Furthermore, besides managing one of the company’s major expenses, a real estate tech team can serve as a vital source of knowledge and a foundation for operational success.
Real estate software modernization drives shared success
As businesses scale, leaders must find ways they can to drive growth and reduce costs. In the real estate technology trend, rental management software is perhaps the most effective tool to meet those needs.
Businesses can look to their software to help reinforce business plans and make informed decisions about their growth. If a company has a strong position in one market, the team can ask specific questions about the position that can predict success elsewhere.
For example, is a thriving location next to a particular fixed tenant driving growth? Are traffic patterns, utility costs or taxes particularly favorable in the area? Many of the same ideas can be applied to organizational risk.
Business leaders can look to lease management software to help protect their company from risk.
An important feature of rental management software is that it creates a single source of truth for the company and holds that information reliably. For example, an option to expand or a option to expand A lease can be buried in a reminder checklist or on an email calendar system.
If that file is lost or an employee’s account is lost, the data associated with that file may also be lost if information is silent. If the lease has a “Time is of the essence,” businesses can face an unfortunate situation where homeowners can force the business to pay a premium to stay in their location or even move.
This collaborative approach is a great example of how companies can optimize their real estate technology arsenal.
Three areas where business leaders can deploy their real estate technology arsenal
1. Part Alignment
Real estate decisions, as mentioned above, consist of many parts. Executives need to know the expected cost and authorization of transactions, the accounting team needs to plan reimbursement and comply with FASB ASC 842, and the transaction manager needs to know the status of the transactions. transactions are underway. Departments must share information to make the best decisions quickly.
For example, companies can use real estate automation software to help identify locations with increased costs — for example, Florida and California with disaster insurance — and help internal risk management teams assess the desirability of locations that may be costly to insure or completely uninsurable.
If there are reasons why a venue should be scrapped early, it can save time in the acquisition underwriting process and help the company refocus its efforts. Increase access to information All the people in company will foster a diversity of insights and ideas and potentially propel the company forward.
2. Set business goals
Traditional tools, such as Excel, rely on an individual’s knowledge base to not only create management systems but also know the questions to ask. This creates risks because of the lack of diversity of opinion. It can also lead to information silos within the organization, where one person holds important data and knowledge.
A technology stack with real estate automation software at its core not only reduces information silo threats, but also delivers a solution that is continually being refined and tested by other users in the region. different geographic regions and economic environments.
The features and data tools that rental management software provide have the potential to provide a springboard by increasing access to data or reshaping the way it works. Business leaders approach solutions. If the software tool offers this feature, it can provide a reliable indicator that a business needs to consider in its overall operations.
About 44% of real estate businesses reported that they turned to technology to improve their decision making. So companies can use those same tools to make informed decisions about their own real estate needs and how their real estate footprint shapes their success.
3. Save time
Real estate, especially property management, is an area where many tasks can be automated. Items such as lease renewal dates, options, website visits, insurance renewals, etc. can be pre-programmed.
Invest in automation software Free up employee time allowing them to move from repetitive tasks to more important ones.
To achieve hypergrowth, you’ll want to allow time for employees to practice continuing education, form relationships with other companies, brainstorm marketing and branding ideas, and execute execute strategic plans in a way that machines cannot.
The payroll cost savings from avoiding routine tasks is a win in itself, but so is the value gained from employees investing in more productive goals. This more focused approach can lead to better profits for the company and increase employee engagement and satisfaction.
We owe a lot to our ancestors’ modern real estate operations, but given the need for technology, companies should avoid doing as our ancestors did. Capturing real estate technology stacks to manage companies’ real estate needs and inform business operations is a solution that business leaders should adopt in a competitive landscape. nowadays.
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