Whether you’re a property manager trying to organize your residential properties, or a nationwide corporation with commercial real estate interests, the profitability and efficiency of your real estate management is going to have a direct impact on your bottom line. Fortunately, today’s technology makes it easier to overcome some of the biggest problems in real estate management.
The Big Problems and Solutions
So what are the common issues real estate managers find, and how can real estate management software correct for it?
- Real estate appreciation insights. If you’re interested in reaping the greatest value on your real estate investments, you’ll need to consider your purchase price, the current price for comparable items in your neighborhood, and of course, the hundreds of variables that could affect its price in the future—including how you plan to sell the property. Once your number of properties extends into the double digits, these problems become magnified in complexity. Only a software platform that can aggregate and crunch all these data points will help you project your average property appreciation, and get better information on when to sell.
- Cash flow breakdowns. Cash flow is another major concern for real estate managers if you’re leasing to tenants. You can use a basic cash flow calculator to determine whether each property remains cash flow positive (and predict the conditions in which a property could become cash flow negative), but it’s better if you have a full breakdown, by property, that illustrates your potential cash flow in each area. This will not only help you decide which of your properties is most valuable, but will allow you to project your available cash so you can make better purchasing decisions.
- High-level strategic conclusions. It’s hard to improve your abilities to make strategic real estate decisions with anything other than raw experience, but the right software platform can be the perfect tool to improve the logic of your next moves. By incorporating all your previous data points, including purchase price, cash flow, sale price, and other factors, you can more intelligently predict the next ideal location to buy property, or learn from your past mistakes and update your overall purchasing strategy accordingly.
- IFRS leasing standards. The Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) have recently combined their standards for how organizations should design and account for their running leases. For starters, you’ll need to report your leases on each company’s balance sheet. Ensuring you’re in compliance with these new leasing standards is tough, even for an experienced real estate manager. Fortunately, many new real estate management platforms have adapted to include this functionality, so you can quickly and easily determine whether you’re in compliance.
- Integrations. If you’re already using other software platforms (such as accounting software or an enterprise resource planning platform) that aren’t conducive to managing real estate, you may find it difficult to manage the overlap here. Fortunately, most modern real estate management platforms offer seamless integrations, so you can keep all your data points and high-level insights in one place.
Finding the Right Software Platform
All that’s left is finding the right software platform to help you overcome all these challenges, and there are dozens of options to choose from; however, not all platforms will afford you the same detailed insights and reliability. If you’re interested in trying SAP’s real estate management platform, you can give it a free trial, and see whether it’s a fit for your business.