Spend management and property management are two different functions slowly merging. With the continuing trend of people moving out of their homes and searching for rental properties, more spending control, and property management opportunities exist.
There is much to learn about each function, including how to institute efficiencies within your team structure.
Property management and spending control in ERP For Real Estate are two very different functions, yet there are many ways that the two can be combined. Efficiency is always a challenge in removing costs from your organization. That is what you hope to achieve and drive better ROI and value through property management.
Working on spending control is an excellent place to start working towards greater efficiencies in your team structure. By establishing better controls over purchasing, approval procedures, and general business costs through property management, you will see improvements in your bottom line and increase your tenant retention rate.
Changing market conditions: Partner with a local property management company and focus on spending control. This is becoming more common in the industry as big-name companies are looking to partner with local management companies to maximize the economics of their properties.
A way to determine if your property management company is an effective partner or if you need a new one would be to see how they plan on driving better value through their services (if they are not doing so already) and also by seeing how much spending goes on your property. For example, these companies will budget for tenant improvements and include them in the rent increases.
Gain visibility and control: You want visibility into the tenant improvement process and general property management costs. This will allow you to see if there are inefficiencies on the team or if one person is doing more work than others.
You can then partner with a property management company that is effective and efficient in its processes. By doing this, you will also be saving money on your monthly expenses of running your property, which should include the maintenance budget and other expenses involved with property management.
Management of capital assets: You have several options for improving spending control and property management in your office. You can partner with a property management company that has a sophisticated and automated estate management system or take it upon yourself to manage your database of monthly expenses and capital needs.
By doing so, you will be able to manage your property and the associated costs better. This can include the costs for maintenance and insurance, which are all tied to your overall budget for running the property. By gaining ownership of these assets, you will start seeing savings on your bottom line and improving tenant retention.
Integration is not just a suggestion: Using accounting project management software, you can create project plans for your property management requirements.
The funds from the various sources (property taxes, etc.) will be tracked and broken down by project. This way, all of your expenses are tracked on an ongoing basis. Property management should also be included in your monthly budgeting process.
When managing your property more effectively and efficiently, there are many things to consider. By instituting spend controls and a property management system, you will see improvements in your bottom line and increase your tenant retention rate.
These two functions can work together to create even better processes, resulting in greater efficiencies for your business. The market has shifted to more opportunities for spending control and property management.
It is up to you to take full advantage of those opportunities by developing innovative processes that keep costs down while improving the value of your assets through property management.