Commercial real estate management teams are under pressure to control spending and operate efficiently. These goals can be difficult to balance; and it’s understandable that teams prefer to manage everything internally for the sake of data security and control.
“Managing a property is much more complex and expensive than it used to be, but like many other modern operations, the right partners and the right technologies can make a huge difference,” says Akan T. Rajah, Managing Partner at Assetsoft.
Advances in remote technologies and data security systems have made outsourcing a more attractive option for property management teams. In addition, technologies such as automation, cloud computing and user-friendly platforms offer many advantages. This is especially true when used by industry SMEs (subject matter experts) who are well versed in the business and can get the most out of these tools.
“It’s about making life easier for commercial property management talent,” adds Rajah. “With remote working and operations becoming the new normal in the post-pandemic period, many now recognize and accept the cost and time benefits of outsourcing. “
There are many areas where commercial property management teams can unlock savings. Ahead are four areas to consider.
Outsourcing of back-office accounting
Transferring back office tasks to a third-party SME like AssetSoft has many advantages. On the one hand, it allows property management teams to free up valuable time and talent. This helps talents to focus on strategizing and improving relationships with their clients, and allows the business to focus on core competencies. Additionally, outsourcing gives property management teams the peace of mind of knowing their finances are overseen by specialists who understand the industry, have a good grasp of the industry’s accounting software, and know how to save and earn money. efficiency in any operation.
For example, Rajah adds, “Our offshoring model leverages the strength of conventional outsourcing, but ensures that the client has direct control over their business results. Our client can build their own team without worrying about all the legal, human and technical requirements.
Paper-based processes take time and are vulnerable to delays, interruptions and human error. Important documents (eg, leases, invoices, correspondence, etc.) can be corrupted or misplaced, and key deadlines can go missing. Trusting the process to sophisticated asset management software helps standardize processes, on the other hand, increases accuracy and accountability, generates actionable data and insights, and keeps everyone on the same page. . Teams can also rest easier knowing that their sensitive financial data is being collected and managed appropriately.
“Data privacy and security can be a concern, which is why outsourcing partners like us should do everything possible to be a trusted cloud solutions provider. This means that we need to provide 24/7 server operation monitoring, data recovery, encryption, and other critical security measures to protect organizations against data loss, hardware failure or failure. power outages, ”says Rajah.
Automation (or “Robotic Process Automation”) represents a new way to improve operational efficiency and intelligence. Automated systems can streamline repetitive tasks, monitor processes, and ensure tasks are performed efficiently and exactly as planned. In property management, automation can be particularly useful for reinforcing common tasks or more complex tasks prone to human error, such as generating leases using abstract data, reviewing trial balances , disaster recovery testing and similar activities. These are all advantages that should not be overlooked.
Lease audit / abstraction
It is common for commercial property managers to lose money due to disconnections between charges set out in a lease agreement and the actual money collected from tenants. Through a lease audit, however, teams can confirm that the expenses they charge (e.g. rent, utilities, etc.) are the same as agreed upon upfront. Additionally, rental audits help identify any other irregularities or red flags that could save even more costs that would otherwise go unnoticed.
Lease levies offer similar benefits. Through this process, specialists can extract and summarize key information from leases, which are often lengthy and unnecessarily complex.
Entrusting either of these processes to third-party specialists has its advantages. In addition to saving time, outsourcing audits and lease abstractions allows teams to have a fresh and unbiased look at their leases, which may find unresolved issues or new opportunities for cost reduction. This process also allows teams to avoid disputes with tenants and correct irregularities. Finally, the data in a lease abstraction can be useful in the event of an assignment, mortgage, merger or takeover.
Speaking of these benefits, Anil Jamani, Vice President of Finance at Colliers International, an AssetSoft client, notes: “The cost-benefit ratio of outsourcing lease abstractions to Colliers is the time saving for our team. We are more able to run faster and focus on higher level analysis. “
The maintenance of common areas (CAM) is crucial to maintain optimal conditions for commercial real estate value. CAM reconciliation, by extension, is a process that ensures owners cover the costs of common areas through a separate invoice.
That said, the calculations for the CAM reconciliation may differ from tenant to tenant depending on their square footage and other factors (e.g. case exclusion, CAP, tax parcel, mark-up, etc.) which may change each. year. Here, CAM reconciliation services, such as those offered by Rajah and the Assesoft team, combine talent and technology to ensure that fees are charged fairly and consistently and that the calculations are in accordance with the rental document.
“The CAM reconciliation only happens once a year, but it’s important to get it right,” says Rachana Khandelwal, principal at Assetsoft. “That’s why we’re happy to take on this responsibility on our own or help teams put the right processes in place within their own system. “
Managing commercial real estate is no easy task. Neither does it in a way that saves time, money and headaches for management teams. The advantage is that today’s property management teams have access to specialists with technology that can lighten their load while protecting their bottom line.
Akan Thurairajah and Rachana Khandelwal are part of the Assetsoft team. The Assetsoft team encourages all questions and inquiries. Email them at email@example.com or visit their website at www.Assetsoft.biz.