November 06, 2018
How to Improve Asset Management for Your Rental Property Portfolio
Is it a rental, or an asset? When property owners – and property managers – view all properties as assets, there is a fundamental shift away from simply being its steward and managing the rental property, to being a driving force in helping to preserve and improve the property while maximizing returns.
Over the last decade, property managers have started to adopt property management cloud software to help them go beyond the traditional “tactical” perception of their industry. Yes, collecting rent, showing vacancies, overseeing maintenance and interacting with staff and residents still plays a big role. However, when thinking like an owner, streamlining operations, increasing profits, lowering risk and ensuring return on investment have become the marching orders of the day.
Transitioning to property management cloud software can significantly modernize operations throughout all departments – from finance to marketing to daily ops. Simplifying and streamlining processes and ways of working reduces costs. From self-serve tenant portals that centralize communication to maintenance portals that automate purchase orders from work orders, cloud software vastly reduces paperwork, telephone time, human error and repetitive redundant work.
Eliminate Lost Opportunities
When you are up to your eyeballs with the daily to-do list, it becomes easier to lose the big picture. Having instant access to information across your portfolio can make it easier to capitalize on opportunities for greater revenue, to reduce business threats and assess the market as a whole. Standardized, at-a-glance information is key to being able to do things like developing a multi-year investment strategy to help phase maintenance and make buying decisions on upgrades.
Smarter Data Management
Companies are only as good as their data. Redundant data collection and multiple data repositories are common problems in the paper-heavy property industry. People throughout the organization spend too much time looking for information. Siloed files, forms and other information leads to data that can vary from department to department. As well, a siloed approach instantly reduces collaboration. To increase your efficiencies to further reduce costs, your firm needs to have everyone on the same page working towards the same goal.
When a property sits empty it’s not generating revenue. In fact, it’s costing you. There’s lost rent, but you still have to pay utilities, maintenance etc. And, then you have to advertise. Property management cloud software enables you to automatically email key stakeholders reports of upcoming lease expiration dates. The simple act of reducing turnover through better insights and ability to negotiate can save countless dollars. It also cuts time and effort in marketing and showing a property – let alone fielding and screening applicants.
More Accurate Forecasting & Budgeting
As mentioned about, when you reduce the chance of human error through automation, the trickle-down effect is more accurate data. Then, give that data legs through real-time collaboration between departments. Finally add in that you now have “one version of the truth” and you have the foundation for better decisions. The ability to easily find and share stored digital data, and instantly generate reports allows you to look for trends, predict expenses and budget more accurately.
The Bottom Line?
Property management cloud software helps you go from everyday tactics to strategic thinking. It becomes easier to focus on how to improve your investment’s value and return.