What we’re finding in a marketplace as we’re experiencing these days, people just pass on the properties that don’t have everything neat and tidy in a single location.
Tim Donahoe, Senior Real Estate Investor, Morgan Stanley Smith Barney
Multiple locations is a luxury – when it comes to houses. When it comes to property and tenant management, it’s inefficient and unattractive to owners, insurers and tenants. Here are three reasons to manage building operations information in a single source:
Bringing all the Investors to the Yard
For anyone looking to finance a property or bring in investors with someone that’s conducting due diligence on the property, having everything stored in a single location is critical. Time is of the essence for everyone – lenders included. They want easy, centralized access to information whether it be a tenant log, life safety issues, or zoning and regulation notes.
Lenders and equity investors need information on how a property is maintained. They want to see that it is not only operating as it’s needed on a daily basis but also that it is proactively managed with tabs on the long-term capital needs.
Now That’s What I Call Service
Ultimately, you want to ensure that your properties are full to the maximum and the way to ensure that is through tenant satisfaction. If there is a question about a particular tenant, you want to be able to easily see the full history of that tenant, any complaints or queries, who addressed them, when, and in what fashion… all in once place. When someone asks you, “How are the tenants?” you shouldn’t be reaching for a dust-covered ledger.
There’s been a dramatic change in the quality of addressing tenant requests and demands. Tenants are going properties that are being professionally managed and have access to tools that enable immediate and organized feedback. Easy access to operational information gives you the ability to get into a property’s details and take action earlier – before the quarterly review reporting.
Not So Risky Business
The old days of paper files are gone. Donate those stacks to an origami class. Properly managing operational risk today requires a system containing everything attendant to a property in a single location. That means one place to look for evidences, compliance with life safety issues, codes, health inspections, planning and zoning, and all relevant documentation for running a property. You need ready access to certificates of insurance not only for the building itself but also for all the tenants and service providers.
In this all too litigious world, easy access to information that supports claims and courts is no small fry. Typically, a better managed property reaps the benefits of a better insurance rate. This single source for operational risk that is critical to insurance companies, is then critical to lenders, owners and investors.
In sum, since the market’s dramatic decline since 2007, everyone in the investment community is asking for greater transparency and greater information. So when it comes to your property’s information and operational data, keep it neat it and tidy.
Watch a bonus clip from the Metrics That Matter webinar where Tim Donahoe discusses the impact of systems to manage operational data on real estate investment:
Video (2:07): From an Owner & Investor: Impact of Managing Information