Property Management & Investments
Managing Multi Property Portfolios
Managing multi-faceted property portfolios or any pubic infrastructures brings complexity that originates from the varying detailed needs of the management company, their commercial & residential tenants, and the owners of the building. Complexity can be at every level of operation with some facing reporting challenges that stem from operating multiple buildings across different geographies, whilst others arise from the management of diverse ranges of tenants and asset types that can be distributed across many floors.
This of course comes against a backdrop of continual change in external market factors which need to be considered in any decisions impacting leases including IFRS16.
Revenues, utilization, costs, yields, and tenant churn need to be proactively managed against expectation, together with risk, with all positions continually monitored taking into account both macro and micro economic trends throughout the year, not to mention those emergencies that can challenge us at any time. Processes to achieve this need to be manageable, self-service orientated where it makes sense, and intuitive to ensure compliance with policies with any negative trends identified early to reduce material commercial impact.
Management of Revenue and associated cash collections is about now and the future whether systems be cloud or on premise. Processes need to be efficient and should leverage tenant self-service and new payment systems, where appropriate, in order to reduce administrative overheads and at the same time be able to facilitate management in setting and implementing any future tenant charges and re-charge goals. To facilitate this:-
• Management fees, monthly leases and rental fees can be efficiently billed to each unit, parking place owner, business outlet or clubhouse member or the same done for groups of same owner units.
• Serviced apartments that require management and billing of utilities can also be handled.
Self Service portals can be optionally deployed to various stakeholder types for bills advice & payment, or more broadly to geo centric located shared service centers for multiple buildings to further leverage costs.
Deployment of QR codes, barcodes and mobile can also be considered to simplify payment processes and where appropriate these can leverage Octopus, Apple Pay, Alipay, WeChat Pay etc.
• Delinquent payments can be actively managed including interest payments and workflows.
• Management of chargeable and non-chargeable ad hoc tenant services can be handled including compliance with authorized price lists ie rental and time management of equipment like ladders, BBQ areas, function rooms, or non-tenant related billing for clubhouse activities.
• Cash flow forecasts can be performed by property or any aggregate level with scenario planning.
• CRM management can be used for internally and externally related activities ie events, sports coaches, function rooms etc depending on circumstances.
• Workflow management can be utilized for corrective actions including safety issues, defective lighting and these processes might include initial reporting of a fault through the use of mobile photos and location reference descriptions etc. Emerging Beacon deployment might be considered for guest related customer services or maintenance.
Analytics support facilitates management at a broader level including:-
• Risk exposure, and comparison of operational revenues that can be managed across multiple properties, geographical areas and tenant types.
• Ranking of revenues with groupings (ie top 10) using standardized metrics.
• Management of operating variances and yields against overall and functional budgets.
• Lease payments amounts that can be smartly determined including turnover related rent components.
• Management of IFRS 16 implications for leases.
• Rolling renewal analysis by floor space with prioritized actions to minimize churn related down time.
• Foot traffic and security management in public and private areas including car number plate tracking.
• Surveys and subsequent data analysis for assessments of service levels by functional area.
Management of Costs can be diverse not to mention complex and are vital to facilitate decision support, segregation of duties and controls. These might include:-
• Staff & contractor rostering with time & attendance management.
• Fixed asset management.
• Various inventory needs that require these items to be actively maintained. For example for the upkeep of gardens and pools not to mention keys to common and on-demand areas.
• Decorations that can be diarized and organised for different festive times of the year.
• Mobile platform to hold latest versions of miscellaneous charges or standardized authorized processes for fixed asset operations and maintenance repairs.
• New areas of cost management that are emerging through the Internet of Things (IOT) that will facilitate routine and maintenance timings.
Cost management can cover the entire procurement process for goods, capex and services with the ability to understand detailed costs and/or delivery variances for any item or service in the various locations for which management services are being provided.
Transparency to a variety of stakeholder requirements, including residential operational committees, can only be achieved by having the ability to granularly record and report in multiple dimensions across geographies, which then allows for the tighter management and operational comparison of both revenue and cost related activities. Deployment of self-service portals to both property staff, as well as tenants, can minimize costs with regional geo portals facilitating further cost leverage. A game changer!