If you are a small to medium-sized CRE PM business owner, no one knows your customers as you do. So, it should come as no surprise that technology is disrupting traditional customer service models – in a big way. Cloud-based Software-as-a-Service (SaaS) is making its biggest splash ever. But going digital does not mean getting less personal.

Digital technology is drastically altering the power balance between customers and companies. According to Forbes, digital transformation with a focus on customer experience can generate a 20-30% increase in customer satisfaction and economic gains of 20-50%. Sounds like a win-win, right? Digital technology allows customers to gain the power of information and choice while increasing business revenue.

Property managers have even more of an incentive to make the digital leap. Digital workflows can reduce overhead costs, speed up leasing processes and increase response time – just to name a few advantages.

So, how do you offer quality personal customer service in the digital age? Let’s explore 5 ways property management Software-as-a-Service can enhance customer experience.

1. Access data anytime, anywhere

Even if you’re the sole property owner of one building, it’s likely you still have a stockpile of data. Think about all the information you’re given on an annual basis. Leases, legal contracts, utility bills and receipts must be readily available on hand. Companies of all sizes can reap the benefits of asset management software.

Property management systems offer unparalleled access to accurate, up-to-date, real-time data about your buildings. Common in old-style business workflows, personal data sets are typically on individual computers manipulated by a single person with their complex spreadsheets. This produces single-source, unverifiable data that easily propagates errors throughout the entire company. Eliminate the round trip of individual departments producing piecemeal paperwork in scheduled increments. Expedite the customer experience with centralized systems that provide immediate access to all data sets simultaneously.

In times of uncertainty, the speed of access to data is vital to decision-makers and stakeholders.  Landlords using property management software can respond faster to changing conditions and benefit from automated tools and reporting features. CRESSblue is an example of a specialized Software-as-a-Service system that offers tenant and owner portals. The tenant portal allows tenants to easily access invoices and statements through an online system. The owner portal functions similarly, enabling property managers to access invoices and statements and see property management reports.

Furthermore, forward-thinking owners get the insights stakeholders need with access to comprehensive reports and ROI analytics. By applying business intelligence technology to these sources of data, you can mine them for patterns you never knew existed.

2. Take human error out of the equation

Looking to build a loyal customer base? Transparent and accurate reporting is non-negotiable. Who would want to do business with a landlord that fudges numbers on spreadsheets? Smart tenants demand more transparency from landlords on CAM cost allocations and calculations.

Manually tracking expenses leaves too much room for error. When it comes to managing other people’s money, you can’t afford to make mistakes. If you’re a landlord that runs multi-tenant properties, then you know all too well how difficult it can be to track financial information. Add custom lease terms, tenant inclusions/exclusions and cost recoveries to the mix – and the paperwork can pile up fast.  Here is an example of some of the lease errors that we’ve come across in paper-based systems:

Landlords using accounting software have the clear advantage. Automation reduces the risk of human error, so you don’t have to dig through files to identify (and correct) mistakes. Digital workflows give you the option of automatically logging financial data, which takes all the guesswork out of the task.

Commercial leases are complex. Commercial property accounting software offers ease-of-use when managing cost allocations, requiring less customer involvement and accurate results. Unique tenant circumstances can be reconciled efficiently and painlessly. Deliver information confidently and professionally, with internal audit capabilities to assure tenants that their finances are in safe hands.

3. Self-service optimization

At one time, ‘self-serve’ was a dirty word. But in an age where technology offers instant access to information, self-service is an integral part of customer experience. Streamlined, user-friendly portals empower customers to get the answers they need without enduring long wait times and dreadful hold music.

What’s more, services like online payment and maintenance request submission can cut out the middleman. Landlords can promptly respond to tenant concerns. Cloud-based software, like CRESSblue, offers tenant portals with messaging systems that can alert landlords to a problem immediately. Owners can respond to tenants, message team members, schedule work orders and track maintenance tickets to ensure timely service is delivered.

Companies that embrace technology allow for greater communication amongst the team. Effective internal communication boosts morale, employee engagement and information sharing. Coupled with these benefits, integrated workflows that centralize and standardize your data also reduce customer follow-ups for additional information. In turn, this results in fewer direct calls, fewer tickets and happier customers.

The best part of all? It’s cost-effective. Keeping investors, landlords and tenants happy improves retention, minimizes vacancy and maximizes revenue.  

4. Customers want to make green choices

Consumer research shows that customers find it important for businesses to demonstrate social responsibility and take stances on current social movements. According to Business Insider, a recent survey found that 47% of internet users worldwide had ditched products and services from a brand that violated their personal values. Protecting the environment tops the list.

Not only does going paperless help the environment, but it also significantly reduces operating costs. You can cut out the expense of printing, storage and the transportation of paper itself. No checks to print, stamps to lick or envelopes to stuff. Swap the unnecessary administration time – in favour of secure, digital files that are easy to search. Still not convinced? As a tenant, would you prefer a firm that constantly delivers notices through your mailbox or one that simply sends emails straight to your phone?

Most important, digital information storage greatly reduces the risk of paper documents ending up in the wrong hands. Enterprise-level Software-as-a-Service systems like CRESSblue, lock sensitive information down and control access to files with user credentials. Real-time monitoring of the system health and intrusion detection ensure that records are securely backed-up and intact. Unlike paper, which can be destroyed, lost and never returned.

As businesses plan for the post-coronavirus future, more owners are converting physical offices into remote property management teams. Remote working is an opportunity for companies to work more sustainably and increase productivity. Think less office space, less commuting, fewer business trips, shorter breaks and greater focus for employees.

5. Increased productivity equals more time for better service

Companies that leverage data-driven decision-making are far more productive than companies that rely on low-tech solutions. By investing in technology, owners are free to look beyond day-to-day operations and focus instead on property management leadership.

Automating complex processes and repetitive tasks saves valuable personnel hours. Adopting cloud-based Software-as-a-Service technologies increases business intelligence while decreasing administration time. These tools will enable you to effectively and productively improve internal processes and deliver professional service.

Phone calls, faxes and paperwork will only slow you down. And that will ultimately hinder your stakeholders. With smart business systems, you can automate e-notifications and reminder emails, as well as digital reports and documents.

The benefits of the cloud go beyond increased productivity. Digital and analytic tools can reduce the cost of operations while fostering flexibility. Smart business systems do the heavy lifting, so you can focus on strategies to boost your service level and ROI. Take pride in knowing your business is using tools to accelerate and scale. 

Start with your customers

The rules of business are being rewritten nearly every day with this imperative for digital transformation. There’s no denying that customer service is changing too. The current global climate has forced companies to rethink how customer interactions are handled, performed and tracked.

Emerging Software-as-a-Service technologies present an incredible opportunity to make customer service more natural, authentic and emotionally intelligent. Not surprisingly, customers value total convenience. What systems can you leverage to meet their evolving needs?

Commercial property management software rewards customers with easier, more efficient and ultimately, more responsive service. It’s your job as a business leader to apply tools to engage, connect and grow relationships. You owe it to your customers.

Embrace Software-as-a-Service

“Digital transformation” was a buzz phrase before the coronavirus crisis. Since then, it has become a necessity. Leaders must continuously reinvent their customer service model – with technology at its core. Otherwise, watch from the sidelines as tech-savvy customers are swept up by high-tech competitors using innovative Software-as-a-Service solutions.

Customers have already become accustomed to the digital experience. The demand is growing strong. They expect new standards of excellence, performance and just about everything in between. Failure to adapt will risk a loss of efficiency and frustration among your stakeholders.

Digital transformation is modernizing how companies work and compete in an evolving digital economy. What’s also evident is that executives are, by and large, prioritizing technology in their business goals. Not investing in remote systems will have far-reaching consequences on the way you work when the pandemic dust settles. Are you ready for a fresh customer service strategy?

Book a demo to learn how CRESSblue cloud-based property management software can help increase your profitability while cutting costs and positioning your business as an industry leader.

---

Disclaimer

This article is for informational purposes only and is not intended as professional advice; please consult a competent professional for advice specific to you. This blog is written to stimulate thinking on concepts related to commercial leasing. Please join the discussion with your experiences.

---

What factors hold you back from making decisions on new business systems? Have you been holding back from upgrading to commercial real estate investment software? Let’s take a look at the common causes of inaction and how to address those fears.

The case for leaping forward with specialized commercial real estate investment software

Without a doubt, there has to be justification for transitioning to new business systems before arguing when to make the transition. To that end, we have previously made a case for new business systems. Not utilizing the right tools can strangle a business, severely reducing responsivity and profit. Interestingly, Forbes Technology Council lists 11 signs your software is due for a major update. Let’s dig specifically into the key reasons you should move forward with commercial real estate investment software designed for your business.

Centralized business data

Sources of data are everywhere now – in leases, abstracts, offers, contracts, agreements, invoices, term sheets, building operations and many others. The issue isn’t the quantity of data that can be collected. Instead, the issues with data collection and use are:

• Data quality
• Data integrity
• Data aggregation
• Data control
• Data assimilation
• Data dissemination

Data quality

Quality data can only exist with accurate and reliable collection. Further, the data must be relevant and suited for individual transactional use. Furthermore, the data must be qualitative and not just quantitative.

Data integrity

Data integrity involves encryption and user security controls in the software itself. What’s more, data validation can be done utilizing incremental change tracking for irrational or outsized changes (i.e. upon entering a 10% rent increase when the typical rent increase is 1% to 5%). Another method is to set data input limits for the expected values. On the human side, there are data governance policies to ensure that the data is collected and maintained accurately and consistently. More than that, though, the reliability of the data must be verifiable. This means that the source materials need to be readily available, typically in a digital format. It isn’t enough to have a spreadsheet of aggregated data. Unquestionably, the source documents must be accessible to verify the aggregated data.

Data aggregation

Data aggregation (collection and organization) from disparate sources must be done consistently through the use of systematic processes and repeatable workflows. Individually created spreadsheets are demonstrably the worst means of collecting and collating data due to the single user creation and the inability to display verifiable data sources. The consequences of segmented data can be devastating. For example, one property management company and its tenants discovered that it had erroneously overbilled for years:

Location 1
Original Square Footage	171,422
Actual Square Footage	157,568
Overpayment Over 53 Months	$170,047.11
Location 2
Original Square Footage	41,960
Actual Square Footage	36,634
Overpayment Over 53 Months	$120,239.84
Total Overpayments	$290,286.95

In contrast, compare a spreadsheet of data to a database where every number links to a digital source document for verification purposes. In addition, each number that exists in isolation in a spreadsheet directly links in a database to the tenant, premises and accounting transaction history. Together, the aggregate data presents a total, accurate picture.

Data control

Setting controls on the data are critical for two key reasons. One, the data is now much more valuable in its curated form that it was in the various disconnected sources. Two, no one user should have singular control over the data. This is important both for maintaining the quality of the data and for preventing internal fraud.

Data assimilation

With the collected data now in a consistent, verifiable manner, a sophisticated Software-as-a-Service (SaaS) solution will assimilate it into the relevant areas of the business decision-making process. The data is collected once, curated and then made available for all. These unified data sets enable consistent business decisions. Siloed data systems with multiple duplicate data entry points, on the other hand, lead to inconsistencies in both the data and decisions based on them.

Data dissemination

The final step for the effective use of data is to disseminate it to the right people at the right time. Accessibility to the central data repository is key to making use of the data while it is current. The speed of access is vital to decision-makers and stakeholders, enabling them to respond faster to changing conditions or make changes to stagnant positions.

The centralization and control of quality data is likely the most significant immediate benefit you will realize when switching to a commercial business system.

Increased business knowledge through integration

Commercial real estate investment software made specifically for your business gives executives and managers access to a much more complete set of data. Centralized business systems provide access to all data sets simultaneously. They do not rely on individual departments making data available on scheduled intervals, such as monthly or quarterly reports. Not only do decision-makers have better data faster, but they also benefit from specialized insight and reporting tools. This makes for much quicker analysis and leads directly to more accurate and timely decisions.

Vastly improved efficiency

Business workflows and tools built into the systems benefit from standardization in all areas. This includes data entry and processing, allowing multiple users to enter data while the system processes that data independently of the user. Old-school spreadsheets hold individual user data inputs until they are blindly handed over to the next person. Additionally, paper-based systems leave room for messy documentation, like this illegible lease document:

SaaS-based, commercial real estate investment software, on the other hand, allows multiple users to enter clear data that is immediately available to all relevant users. Moreover, your team benefits from standardized data input forms and consistent reports.

Better investment returns

Obviously, another primary outcome of all the business process improvements is ultimately to increase ROI for the company. This objective is easily achievable in conjunction with improved work systems for all the staff when using enterprise-level, dedicated business solutions.

The impact of increasingly sophisticated tenants

Landlords aren’t the only ones with access to large amounts of data. Tenants are increasingly switching to more intelligent business systems. Larger tenants that have desirable lease covenants use sophisticated lease analysis software. What’s more, they demand more transparency from landlords on the CAM cost allocations and calculations. Landlords that do not meet the requirements of these tenants will find a shrinking pool of tenants willing to do business with them. Landlords using commercial real estate investment software have the clear advantage.

Existing systems and sunk costs

You’ve made it this far in the reading and understand the case for better systems. But you purchased software licences for other systems. Although you haven’t been able to meet all of the objectives you had hoped for initially, you haven’t fully amortized those costs. Perhaps you should wait until those costs are used up?

The costs for anything unrecoverable are known as sunk costs. It is a fallacy to allow those costs to influence new decisions. They cannot have any impact on the future because the spent funds will not change now or later. Draw a line under them and start fresh in your decision process. All that matters now and going forward is whether a new system will have a positive outcome on the business or not.

The fears (you’re not the only one who has them!)

How much will it cost? Purchase cost and ongoing licencing fees

The initial cost of enterprise-level systems is a shock to many just starting in the quest for better business workflow. Financial cost considerations often overshadow the financial benefits so much that fear petrifies the buyer, or they turn to software that costs almost nothing upfront.

Software system costs vary greatly. Why does some software hardly cost anything, and others charge so much? The difference is in the capability to save or even make money through efficiency and sophistication. The case for business software is financial on one side offset by the significant ROI that purpose-built industry solutions for commercial property management can achieve.

How do you know what you can achieve? For one thing, book a demo of the commercial real estate investment software. Indeed, do more than one demo and focus on each group of users to see the workflows and interaction between departments and management levels. Have your decision team see and understand how the system works for your specific case.

How hard is it to set up? Implementation, training and deployment costs

The fear here is that setup will require a serious time commitment from the existing staff who still have to use legacy systems while doing the setup work. Where will the extra hours come from? Will there be overtime wages? When can we schedule all the extra work? How much resistance will there be?

Resistance to change

Change across an entire organization is always difficult. While helpful implementation strategies such as these are useful to get employees on board, CRESSblue recommends getting people involved even sooner. In this way, change is a response to their feedback directly and enables a more fluid process. Furthermore, the staff sees management implementing change to suit the needs of its staff, rather than forcing change.

Implementation of change

Implementation, training and deployment are typically lumped together as setup. There is a push to market software products that require little or no setup. However, to achieve exceptional levels of automation, the business system needs to understand your business structure and its data relationships.

Once you have created a shortlist of workable systems, what will it take to deploy the solution? SaaS software systems have significant advantages over legacy boxed software. The provider does the deployment. You are not required to supply any dedicated, onsite hardware. Typically, SaaS solutions completely bypass the old-style software installation process and provide instant, encrypted access using your Internet browser.

Look for after-sales training options. Is personal training available, or are you left to dig through a user-created knowledge base? Getting adequate training is important for several reasons. First, training reduces user frustration and gets early buy-in from the staff. Second, it allows for an earlier realization of newfound workflow efficiencies. Third, those who launch into sophisticated systems without training often pull together a workflow that works, but that doesn’t fully utilize the most efficient workflows available.

Look for a company as committed to your success using their product as they are in selling it to you. Insufficient or ineffective training can cripple the launch of a new software system through user frustration. Merely purchasing a sophisticated system in no way determines its effective deployment and use.

How long will it take? Slow realization of initial goals

What if the system we try doesn’t work out for us? What if it costs a small fortune, takes a lot of effort to set up and then doesn’t meet our expectations?

Take a serious look at using professional setup and training services. While doing all the setup internally can be beneficial for training and familiarity with the new system, manually inputting historical data can be very tedious. See if software scripts can be provided to import much of the historical data into the new system. Of course, this assumes you have enough good quality data available in a useful format.

In summary, online software avoids all of the deployment headaches of traditional boxed software products. Taking advantage of training advances the implementation curve significantly. Together, these factors lead to more effective use of the system and earlier realization of returns on the technology investment.

How long do I have to sign up for? Commitment liability

Commitment isn’t really the issue here. No one worries about commitment when they like where they are. Asking about commitment is actually looking for an escape mechanism in case you made a serious mistake.

The question then becomes “How long will it take to realize if I made a mistake?” The uncertainty is the highest at contract initialization and decreases inversely with software familiarity. Make a definitive commitment to fully implement and deploy the software. Subsequently, within a few months, you will know whether it will work out. Look for a 3-month money-back guarantee in your contract.

Will this work with my other software? Integration problems

This is more or less important based on two questions. One, how many other software packages do you use? Two, how much will the new system replace older systems? Other factors include reporting to or integrating with external systems used by others, such as financial reporting tools.

Newer software systems are typically built with an integration layer that enables rapid and relatively painless programming to connect systems. Ask what other systems have already been integrated and get quotes on the integrations you require.

Is change really necessary? Uncertainty

Facing uncertainty in business often feels worse than sticking with the processes you know. This inertia can be useful as a hedge against too rapid change and gives stability to the company. However, too much inertia and the company will stagnate and fall behind nimbler competitors.

Inefficient responses, improper reporting documents and poor accounting records are evidence of stagnation. Small landlords are not impervious to this measure. Being small and self-contained does not insulate you from the competitive influences of growing tenant expectations. Businesses must invest in themselves or get left behind.

What if I look like I don’t know what I’m doing? Image and reputation

This one is a personal issue. An outside expert is going to look at my business? What if I have been doing things wrong? Won’t that make me look inadequate or incompetent?

First of all, taking steps to improve is the smartest thing a person can do. Bravo! No one has ever grown by hiding in ignorance. Step up, learn and be surprised by how quickly you can make improvements with modern business systems working for you. Secondly, if you were far behind, you have the most to gain. Moreover, you will realize your efficiencies faster than most. Get the tools to make the improvements you need to outflank the competition.

If you have progressed this far in business and life, you undoubtedly have what it takes to master enterprise business systems. They exist for people like you, in your situation. Software solutions have advanced tremendously. CRESSblue is an example of a very specialized system that brings something brand new to the table. You aren’t unique in your need for better software solutions. Knowing what needs to be done and not doing it is a fool’s path. Seeing room for improvement and advancing toward growth is the behaviour of the savvy and successful. You have what it takes to be successful. A big part of that is a hunger for continuous improvement and competitive advantage.

Addressing the fears (the solution is right here!)

Briefly, here are the main steps that alleviate the concerns of moving forward with new commercial real estate investment software.

Get informed

Research and discovery diminish change-induced fear. Utilize the sales team resources for your benefit. Get more details, get more demos. It’s their job to educate you on the possibilities and capabilities of their solution, so inquire to your satisfaction.

Demo and test

One standard demo will demonstrate the general use of any system. However, unique situations and process exceptions can break the workflow for the user. After the first demo, ask the other future system users to weigh in with their feedback. Schedule additional demos to see the functionality and workflows and how they address the atypical situations.

Mitigate the impact of change

Since early adoption of the new system is critical to its successful implementation, use the provided training resources. Get everyone using it effectively as quickly as possible. Concurrently, have the system provider run data import scripts as soon as possible. This step in effect informs the system on your business data relationships.

Avoid new risks

Have the system provider make the necessary software integrations for you. Avoid using workaround solutions as they destroy the efficiency you hoped to achieve. Awkward workarounds also lower user confidence in the new system.

Utilize newfound efficiencies quickly

Rapid deployment means reaching efficiency milestones sooner, and that means greater profitability. Minimize the initial hump as much as possible, and then cross it as soon as possible. With this in mind, fully commit to making the commercial property management system fully operational within the first three months.

The cost of not leaping

If you are looking for better property management software, there is obviously room for systems improvement. Delaying or declining the move to the right commercial real estate investment software can cost your company in many ways. Here are the top five risks faced by a commercial property management firm using outdated systems:

1. Lost revenue

Slippage is a significant source of direct income loss. Improper CAM calculations and missing expense recoveries immediately impact the bottom line. In reality, remedying slippage can, by itself, cover the cost of the entire software system and associated setup costs in the first year alone.

2. Disorganization

Lost documents, disjointed leadership activities and inattentive business management are symptoms of ineffective business systems. Dedicated, purpose-built enterprise business systems allow you to “get your stuff together” and keep it that way. So, replace “What the heck am I doing?” with “Check this out!”

3. No progress

Business systems have changed significantly in even just the last few years. If you are still using spreadsheets and individual independent employees, untapped efficiency gains exist. Improvements in workflows are one of the main reasons for using professional software.

4. Operating on assumptions

It is a point often overlooked, but if you do not have aggregated business information readily available, critical decisions stand on loose foundations. Basing big decisions on isolated data points and assumptions of past performance based on memory is risky. Get a complete picture of each property’s performance covering all aspects from asset purchase to capital expenditures to operational revenues, recoveries and losses.

5. No integration with partners

As a small business, you likely don’t have inhouse professional services. So then, what connects your outside legal, accounting, insurance, leasing and contracted maintenance services? You do. You hand responsibility from one profession to another. Your broker gets an offer to lease, and you give it to your lawyer for a lease agreement. If you are a careful landlord, you get your insurance broker to review the new tenant’s risks. Your bookkeeper does the daily accounting, and you hand the books off to the accountant to file your annual returns. At the centre of it all is you. It’s your responsibility to integrate all the information from everyone into a business plan and to act. Why deprive yourself of business tools you need to organize, cooperate and understand?

Purposeful striding

Given these points, it’s clear that there is a strong case for moving forward with modern business software, and that there are logical steps to resolving the associated fears.

Now we get to the heart of the matter. Insomuch as something needs to be done, and done quickly, the best advice is: Don’t leap at all.

That’s right. Don’t rush into anything. Plan. Prepare. Execute. It isn’t a question of leaping off a cliff and hoping you make it. A smart executive strides purposefully toward intended goals.

The timing is now

Change inevitably happens in the business environment, regardless of personal stagnation. Consequently, this will either force personal change or force you out of the industry. The only thing worth feeling embarrassment over is awareness of what needs to be done while doing nothing about it. To let critical opportunities for continuous improvement and competitive advantage slip you by. You know what to do. You know how to start. More importantly, you know you can do this.

---

Disclaimer

This article is for informational purposes only and is not intended as professional advice; please consult a competent professional for advice specific to you. This blog is written to stimulate thinking on concepts related to commercial leasing. Please join the discussion with your experiences.

---

So, you’re looking to improve your business systems and discovered there are more commercial property management software options than you thought possible. How does a smart executive choose?

It’s essential to weigh price against capability, workflow and productivity gains. As a result, the most financially efficient system will become obvious. Let’s investigate this in detail.

The common offer

There’s a definite trend towards availability of entry-level software packages for property management. It seems every day another introduction flyer blows into the office announcing the latest and greatest new solution in real estate software. Almost universally, these are the key features:

• Start using right away
• No user fees
• No long-term contracts
• Low monthly fee

If it didn’t mention property management software, one might be inclined to think it was promoting a mobile phone plan. Does commercial property management software actually have the same evaluation criteria as a cell phone plan?

Let’s get going!

Who wants to wait for setup and training? We want to get productivity up right away!

How initial setup affects business systems

The initial setup allows for a significant reduction in workflows due to the automation of tasks that would otherwise be manual. For example, checking invoices against lease document terms can be automated on integrated systems. Similarly, cost allocations can be performed automatically, eliminating the need for time-consuming spreadsheets. Additionally, the reconciliation process can be automated, ending the need for manual reconciliations.

Setup doesn’t have to be difficult or complicated. However, the data needs to be input to allow the system to create the necessary logical structures between the property, lease and financial data sets. These connections allow software automation to take over tedious and time-consuming tasks. Without having the necessary structure in the software, it is impossible to realize significant automation. The system simply doesn’t have enough information to know how to process data for each specific case.

In many cases, large data sets can be set up in the system by using custom import scripts. This is possible when a reliable and accurate data source exists. The scripts map the supplied data into the correct fields in the new database. This setup can save significant time on tedious tasks.

Every advanced skillset requires training and practice. Athletes constantly train and use coaches to teach them and provide feedback. Being good at something requires dedicated education and learning.

Realistic expectations

Facts don’t support the expectation that employee productivity can increase without new systems training. If the system is so simplistic in its capabilities that training isn’t recommended, then there isn’t much hope for increased productivity ever. Alternatively, the system may be sophisticated but without training its users will be continually confused and inefficient in its use.

Training programs teach four important things. Firstly, training programs teach best practices. Secondly, they highlight new and faster workflows. Thirdly, they reveal crucial security procedures. Finally, training programs teach how to use the software most efficiently. This time allows your staff the opportunity to become familiar with the systems and to implement company policies. Providing software training indicates to employees that the company is committed to the system and their use of it.

Providing little or no user training is to accept mediocrity from the outset.

No user fees. Woohoo!

Wait, there are no user roles either?

Business applications need defined user roles. At the very least, the bookkeeping and payment authorization responsibilities need to be separated unless it is a sole proprietorship. Generally, a property management company will need, as a minimum, role segregation in leasing, financial (accounting), asset management (owners) and building maintenance.

Company hierarchy needs to be translated into the software systems and be evident in the user workflows. Approvals should be isolated to those given the authority to make those decisions by the company. The scope of work accessible to a role should be based on the natural flow of information in real life. It’s unlikely your accounts payable person knows that the work done by the maintenance person isn’t recoverable as additional rent for one tenant because of a lease exclusion. If your software isn’t sophisticated enough to do the allocations for you by checking the expense accounts against the lease terms, the lack of capabilities and defined user roles will severely impact the efficiency of your staff. It will drive the workflow outside of the software system.

User roles promote orderly and controllable business operations and decision making. You wouldn’t buy a car with the vehicle controls in the middle for everyone to use at will. Why would you consider critical business systems set up that way?

Defined user roles in business systems are critical for success. They come with scaling fees based on the complexity of the user functions attributed to them. You pay for what you use. We’ll look at fees in more detail below.

No long term contracts?

Ahh yes, the maximum flexibility.

Remember what was said about setup and training? A lack of commitment to a software system doesn’t allow for the realization of any efficiencies either. From the start, effective business systems require setup for automation. Additionally, employees need training to learn effective workflows.

Choosing a property management software system specialized for commercial applications is an important decision. Indeed, it isn’t something you want to do often. It should be a decision that is fully supported by the software supplier. A longer-term contract provides security for your business. Specifically, it assures that your initial investments will have time to pay off. Moreover, a longer-term contract indicates that the software company is committed to supporting and enhancing the system for at least the length of your contract. In contrast, a no-commitment contract lacks these assurances.

Business systems with low monthly fees

Surely those are good!

Fixating on the low fees encourages a “price only” evaluation. Frankly, that’s a ridiculous business proposal. If you want to determine value, you need to look at financial efficiency, not just financial cost. What are you getting for your money?

This isn’t the point where you ask for the features sheet.

What you need to see is how the software workflow and abilities improve employee productivity. Are leasehold improvements automatically capitalized to the correct properties? Are the annual depreciation amounts automatically calculated for the accountants? Can an annual additional rent reconciliation be automated without the use of spreadsheets? Is it ready for review in less than two minutes?

We’ve all seen a lease setup done in a demo. Have them show you how the system logic uses that to calculate the additional rent charges and exclusions based on lease periods and negotiated lease terms. Ask for role-specific examples to see the impact on workflows. How is a reconciliation affected by an area audit challenge in a multi-tenant building? Is it an accounting disaster, or merely two minutes of a supervisor’s time before you have new reports for all the tenants and managers? Go way beyond colourful screenshots and best-case scenarios.

The first software demo won’t be able to cover more than the general overview of the system. You will want to have additional demos on specific roles and workflows to assess capabilities and actual outcomes. To that end, you should get a deeper understanding of how you can vitalize your teams on the whole. In like manner, you should be able to visualize better ways to get work done. All in all, you need to see what you can actually accomplish. Don’t settle for anything less than the “that’s exactly right!” feeling.

Realizing efficiency in productivity gains

Can efficiencies be realized in increasing employee output? If you can give your employees additional workload, then the answer is yes. For example, with the right business systems, employees can manage additional properties within the same time frame. Overall, it is reasonable to expect entry-level software to increase employee efficiency by 2-5%. How will you utilize the newfound time and increased efficiency for productivity gains?

The goal isn’t to drive employees harder. Firstly, the goal includes significantly improving the bottom line while reducing tedious work and time required. Secondly, it is to get more accurate and complete accounting. Thirdly, it is to have a happier team. And fourthly, it is to operate a more professional company.

Software systems need to be evaluated based on the impact on actual user roles. Moreover, any found efficiencies need to translate into markedly and measurable increases in productivity. Only then can you make a value assessment linking price to productivity.

Checking the math

Let’s run a quick sample calculation.

In this illustration, we have assumed an average employee salary of $50,000 per year and 50 weeks working, giving a salary amount of $1,000 per week. The results are scalable to whatever pay rate you want to use.

Entry-level software

Entry-level commercial property management software is typically $1 per unit with a minimum of $200 per month. Assuming that this software gives a realized increase in productivity of 5%, we get the following:

ENTRY-LEVEL SOFTWARE	PER PERSON	PER 4 PEOPLE
Annual Cost	$2,400	$2,400
Monthly Cost	$200	$200
Weekly	$48	$48
Time Savings @5%	2.5 weeks	10 weeks
Savings	$2,500	$10,000
Savings Less Cost	$100	$7,600

We have assumed that there is no limit on the number of users allowed on the system at any one time and that fixed fees apply regardless of the number of users.

Enterprise-level software

Enterprise-level software can conservatively increase productivity by 15% in realized output gains. We have assumed an average combined cost per user of $2,400.

ENTERPRISE-LEVEL SOFTWARE	PER PERSON	PER 4 PEOPLE
Annual Cost	$2,400	$9,600
Monthly Cost	$200	$800
Weekly	$48	$192
Time Savings @15%	7.5 weeks	30 weeks
Savings	$7,500	$30,000
Savings Less Cost	$5,100	$20,400

Comparisons

Enterprise-level software is the clear winner from a business standpoint. Even if you factor in personnel time for the first-year setup into an enterprise-level solution, you still come out ahead when the size of your company dictates you need to move beyond generic accounting software and spreadsheets. The long-term savings are too significant to ignore.

Given these points, it’s not that hard to decide. For example, if you are delivering products, do you want fancy running shoes or a delivery truck? Running shoes are easy, cheap and require little commitment. However, they offer little change in productivity. A truck requires commitment in time, money and operating costs. However, the boost in productivity puts you in another business class entirely.

Investing in a delivery truck serves to break through current limitations. The running shoes can’t come close. Likewise, enterprise-level software supports an optimal workflow and generates maximum productivity. Not surprisingly, marked business growth requires the implementation of correspondingly large business systems.

Decision time!

As can be seen, enterprise-level software systems unquestionably provide the most direct path to commercial success.

The investment in new business systems needs to result in measurable increases in productivity

To that end, here are several key thinking points when evaluating new software systems:

• What are the current roles in my business structure?
• Why are the roles defined in those ways?
• Is the workflow based on the natural flow of information and decision authority, or are they based on the current system process limitations?
• What are people spending their time on?
• Where can we save the most time?
• How much control do we have over the systems we use?
• Does our work match the processes we use, or does the system define how we do our work?

What defines how we do our work?

Imagine the possibilities if:

• Your business systems were smart enough to use logic to make repeatable decisions instead of people repeating decisions.
• Computers did all your math instead of people making and using spreadsheets.
• Your people did work that let them be thinking humans, and machine systems flawlessly performed the tedious and mundane.
• Roles supported your people, their abilities, their authority and natural lines of communication – rather than system limitations.
• Workflows were complete within the software solution.

CRESSblue is designed to require no more interaction for regular tasks than a person would need. So, if a person can describe a complex invoice allocation to another person in 90 seconds, the software can do the same. Or, quicker. As a matter of fact, CRESSblue will also do all the calculations based on internal logic and give you the results, without using employee time. What’s more, you will receive personal support in the initial setup, implementation and training to ensure your success.

We are ready to make a case for the financial efficiency of our commercial property management software system. Moreover, we are happy to demonstrate the clear difference CRESSblue can make for you.

---

Disclaimer

This article is for informational purposes only and is not intended as professional advice; please consult a competent professional for advice specific to you. This blog is written to stimulate thinking on concepts related to commercial leasing. Please join the discussion with your experiences.

---