Do you want to increase revenue across your CRE portfolio – but aren’t sure how?
While raising rent and increasing occupancy is traditional ways to increase revenue, it can only get you so far. If you have high occupancy rented at market rates, you need to look at alternative methods to increase your revenue.
One way to capture more revenue is with a building operations software. With this software, you can maximize your RSF, increase work order chargebacks, and capture amenity billables – all of which can boost your revenue.
Wondering how to use building operations software to increase revenue? Read on to find out.
1. Maximize RSF
One way to increase your revenue with building operations software is by maximizing your RSF.
When was the last time you calculated your RSF?
If the answer is years ago, you’re not maximizing your RSF and revenue. New calculation standards come out periodically – which often affect your RSF.
The newest BOMA standard, BOMA 2017, can increase your RSF over older calculation methods like BOMA 2010 and BOMA 1996. It includes things like exterior amenities and vertical penetrations (such as stairs). By factoring in these building features, you can increase your RSF.
REBNY is another measurement method that could increase your RSF. If your building is in New York (or a few other markets), you can use the more aggressive REBNY calculation method. With REBNY, your RSF will usually exceed the gross area of your building – helping you earn more.
However, recalculating your space with the newest methods can be time-consuming and expensive. If you use an architect, you’ll have to wait weeks for them to find the time to remeasure your space. What’s worse, architects often overcharge for inaccurate results – increasing your expenses and decreasing revenue.
An easier way to maximize your RSF is to use building operations software with space management capabilities. This software has experts to help you remeasure your building and stay on top of standards changes. So, you can easily recalculate your building with BOMA 2017 or REBNY.
Once you recalculate your RSF (and likely increase it), you can rent out your building for more. This helps you increase revenue – even if you have a high occupancy building.
2. Increase Work Order Chargebacks
Another way to increase your revenue with building operations software is to maximize work order chargebacks.
When tenants sign their leases, they likely agree to pay for certain work you do. This could include changing lightbulbs, hanging tv monitors, and more.
But, it can be hard to make sure tenants get billed for every work order they should pay for. Your team might not record the work. Or, the records of the work might get lost before you can invoice for it. It’s also easy to simply forget to send an invoice even if you have the records.
When you don’t charge tenants for work, you’re losing out on potential tenant revenue. And, not charging back tenants increases your operating costs because you have to foot the bill for the labor and materials used to complete the work order.
To increase your revenue, you need a way to reliably chargeback tenants for work orders. Building operations software with work order functionality can help you do this. With this software, your team can accurately record things like labor, material, and more. And, when they record this info on the software, it’s automatically saved and easily accessible.
Plus, building operations software can share work order billing info with your accounting system. So, you don’t have to manually enter data multiple times. Instead, all the info you need to bill tenants is right there – helping you invoice in minutes.
By maximizing chargebacks, building operations software can help you maximize revenue.
3. Capture Amenity Billables
One last way building operations software can help you increase your revenue is by making it easy to capture amenity billables.
Your building likely has a variety of amenities, like event space, a café, or even a gym. While these amenities can help you attract tenants, they can also help you increase your revenue if you charge for them.
But, many buildings hardly charge anything for amenity usage. If you do charge for amenity usage, it can be hard to set a rate, consistently invoice tenants, and manage scheduling. Generating revenue from amenities can seem like more trouble than it’s worth.
However, building operations software with scheduling capabilities can make it easy to capture amenity revenue. With the software, you can easily set a rate for every amenity. And, the software has an interactive calendar that auto-populates with availability, rate, usage rules, and more. So, when tenants want to reserve amenities, it’s easy for them to do so.
And, this software can reduce amenity related administrative work. You can approve amenity requests automatically or in batches. Plus, the software can automatically send confirmation emails to tenants.
Once tenants use amenities, this software makes it easy to invoice them. You can quickly see when and how long tenants used the amenity, what the rate is, and more. This makes it effortless to create invoices and send them to tenants – helping you increase amenity related revenue.
With building operations software, you can increase revenue by capturing all amenity billables.
Wrapping It Up
Increasing your revenue without increasing rents or occupancy can seem challenging. But, with building operations software, it’s easy to increase your revenue by maximizing RSF, increasing chargebacks for work orders, and capturing amenity billables.
Prism helps CRE property teams keep operating expenses low while giving them tools to increase revenue and deliver a better tenant experience. To learn what Prism can do for you, watch our on-demand webinar Introducing Prism: The Modern Software Platform for CRE Building Operations.