July 20, 2017
Adding to Your Property Portfolio? Time to Rethink Your Processes
Open up any multifamily property publication and you read about property management firms snapping up new properties or merging with other firms to grow their portfolios. M&A has become an increasingly popular growth strategy among property management companies.
Organic expansion strategies take time, and merging with or acquiring another property firm can accelerate growth. However, property management companies must realize operational and cost synergies with each new acquisition. Easier said than done.
After the deal is signed the reality sets in. Yes, the combined business now has presence in multiple markets, and an expanded portfolio of properties, however, there is a whole new level of operational complexity There are two sets of operating systems, two sets of processes, and integration issues as far as the eye can see.
Fill the Gaps Quickly
For REITs, multi-property owners and property management firms, access to information is key. Yet, many times processes like applications, credit checks and rent collections — all key cash-flow activities — are paper-based. This creates bottlenecks and reporting is often rear-view only or incomplete due to missing bits of information.
When companies need to merge and work as a single entity, the move the web-based technology can help fill the gaps between the two companies, no matter what major property management software they are using. This also presents the opportunities to rethink processes on both sides to streamline and get rid of inefficiencies.
From initial marketing efforts to ongoing resident relations (and everything in-between), an affordable, SaaS (Software as a Service) platform can bring together diverse systems helping to achieve two key outcomes for the newly merged company: 1) reduced operation costs, and 2) increased revenues. Key stakeholders can instantly access real-time reports to get a complete financial picture of portfolios and properties. The unification realized through the cloud-based solution achieves:
Reduced Property Costs: The SaaS platform removes the need for any post-merger capital expense in the form of IT infrastructure. Property leaders are not required to invest in an IT department or extensive hardware. Because SaaS is software that is accessed through the Internet, the property management solution is easy to set up and even easier to maintain as providers manage any necessary upkeep and upgrades.
As well, paperless applications and email queries cut the costs of printed forms and phone bills, and offer a much more efficient means of sorting through prospects.
Bigger, Better Insights: Cloud-based solutions go far beyond the necessary action of reducing upfront costs. By switching to such a cloud-based system, property management companies and REITs gain access to real-time data about all their properties – information that is up-to-date, comprehensive and consolidated. Rather than having to sift through information that is often isolated in silos across various platforms and medium, professionals can quickly access and assess performance by building, by building manager or by region, giving them keen decision-making insights that empower them to make the right choices to improve their operations, marketing and finances – and ultimately cash flow.
Don’t Take Our Word for It
Property management firms that have switched over to Property Vista’s SaaS solution typically experience a 45% improvement in collections and a 75% lift in online payments within a few short months of implementation. Many have achieved their goal of going paperless, which reduces costs and improves efficiencies.
Through our set of open APIs, we can work in tandem with other systems, including Yardi or even your own proprietary solution. To learn more about how to use cloud-based technology to effectively manage your properties, sign up for your free account today or give us a call.