With residential fraud at an all-time high, multifamily communities should be keeping their eyes opened for prospects applying with a CPN.

Background checks and credit history reports are part of resident screening processes meant to help property managers find qualified renters in a wide pool of applicants. But fraudsters could be slipping past your community’s guardrails with a CPN, a fraudulent number used by potentially unqualified prospects to trick one of the most important aspects of the application process. But what is a CPN really, and why does it mean trouble for a residential community? Let’s take a look.

What is a CPN?

A Credit Privacy Number (CPN) is advertised as a nine digit number that can be used in lieu of a Social Security Number (SSN) when filling out applications for a loan, lease, or any other purchase that requires a credit check. According to companies that provide these numbers, buying a CPN is akin to buying a “clean slate” for your credit history. In reality, CPNs are linked to real SSNs that have been exposed in data breaches and made accessible through an online black market. Those numbers are bought by dealers who can scrub the SSNs and open new lines of credit for the sole purpose of racking up a respectable score for a buyer to claim as their own.

If this is starting to sound a bit like a dishonest and illegal practice, you’re not wrong.

Using a CPN in place of an SSN in a financial transaction is against the law in the United States as CPNs are directly tied to identity theft. Presenting a CPN in lieu of an SSN is a deceptive tactic made to trick a seller into believing the buyer is someone they are not.

Who actually gets hurt by a CPN?

While this practice is inherently duplicitous, it’s important to remember that everyone involved in the use of CPNs at risk. The creation of CPNs makes financial victims out of unsuspecting people whose SSNs have been stolen. Any multifamily property that admits an applicant using a CPN into their community is at risk, as the renter is not who they’ve presented themselves to be. And regardless of how the service has been advertised to them, whether as a clean slate for one’s credit history or quick fix for bad credit, unsuspecting CPN buyers could end up breaking the law, resulting in fines or even jail time. The people selling CPNs are likely also offering additional illegal services, such as fake pay stubs and other forged documentation.

Managing risk at your multifamily property

CPNs are bad for everyone, so how can your property mitigate the risk of fraud during the application process? One of the best ways to defend against CPNs is by utilizing a suite of risk management solutions that includes ID verification, screening, and renters insurance programs designed to keep you, your residents, and your property safe.

With technology that’s easy to use and readily available, fraudulent prospects are harder to spot than ever before, but innovative and comprehensive resident screening services will help your property avoid unnecessary costs associated with turning an apartment or even evictions. These solutions enable your property to efficiently identify qualified prospects instead of wasting time on unqualified leads. Learn how to protect your multifamily business from fraud in this webinar.

The post What is a CPN and how to protect your apartment community appeared first on MRI Software.

When the pandemic struck two years ago, almost overnight, office workers switched to remote working and PropTech made the mainstream press, quickly becoming a business imperative. Once the real estate industry overcame the initial disruption and became comfortable mobilizing teams to work remotely, attention turned to mitigating future costs and driving efficiencies, with the main objective to work smarter and drive profit.

Senior stakeholders across workplace, operations, and real estate management required a significant shift in how they effectively managed their teams. They began leaving their office doors ajar, encouraging regular feedback from their staff, with the entire workforce striving to come together as a unit with less focus on titles and hierarchy. “Do or die” was the attitude, and it brought about a positive culture, leaving everyone committed to the same cause.

Mission accomplished? Not quite. Whilst everyone may now be focussed on the same goals, the general technology behind these efforts is still not up to speed. Technology continues to move forward at a pace we have all grown used to (Facebook did not exist 20 years ago and now is closing in on two billion active users each day), so why should we as a real estate community not demand the same innovations?

The expectation of having the freedom of choice in ensuring your technology strategy stays aligned with your fluid real estate priorities is being met already, but it is key that your software provider works around you.

Business priorities change constantly – how can my workplace management solution be more flexible?

MRI Software has redefined the traditional IWMS concept to improve long-term, strategic property and portfolio management.

XWMS, our interoperable cloud-based ecosystem, gives you the power to decide how to optimize your business across operations, workplace, and real estate management, and to leverage certain functions or specific solutions suited to your needs.

Take control of your real estate portfolio with technology that enables you to incorporate third-party and partner solutions to create an ecosystem that scales as the business evolves.

Hybrid workforce is key – How do I build a strategy through the adoption of XWMS?

Planning and modifying your hybrid workspaces based on current compliance and trends is business critical, but how well do each of your business units communicate and have oversight on the process?

The XWMS approach provides an ecosystem for your space planners, finance team, and business leads to deliver.

• Space Planners understand the true cost of employees across various locations, considering utilization of spaces.
• Finance has the ability to perform portfolio benchmarking across your real estate footprint with space utilization metrics.
• Business leads are able to identify new opportunities to repurpose and sublet space to drive additional revenue streams for the business.

ESG planning is here to stay, but I don’t know where to start – can XWMS help me?

There is a renewed focus on energy and resource allocation for safety and price control – we all have our part to play.

• Facilities Managers have a focus on sustainability and want to effortlessly collect and analyze key performance metrics (i.e., LEED, GRESP) to help with evaluating and maintaining certification levels.
• Lease Accounting teams are targeting cost savings and want to mitigate the likely growth of energy prices by having oversight on usage and diversifying energy types consumed.
• Business leads crave the strong position to review investment total cost of ownership and overall corporate positioning to determine ROI and access levels to different capital.

Can XWMS support the increased oversight into financial compliance?

New updates to lease compliance standards lead to increased need for coordination. Finance teams and C-suite members have IFRS 16 and ASC 842 fresh in their mind, and there are solutions to help them address that burden.

• Use AI- driven automation of data/onboarding entry processes to store critical leasing information for financial compliance.
• Find and correct inaccuracies and meet your obligations, including new lease accounting standards utilizing the expertise from your software partner of choice.
• Business owners can then rely on the infrastructure in place to identify inaccurate costs of your leases through AI data validation, keeping your landlord accountable to the contract, often saving costs.

2022: Evolving technology and the year XWMS goes mainstream

With 5G networks still being deployed around the world and many areas of the globe still using 4G and even 3G networks, it seems a bit early to throw around the term 6G when considering technology, but it is not too soon to insist on an open and connected infrastructure that reduces your real estate cost and provides an environment for your organization to drive profit.

By leveraging an interoperable cloud-based solution, your team can better serve the increasingly sophisticated and unique needs of corporate real estate, accounting, workplace and facilities workstreams.

Take control of the technology that manages your real estate portfolio by leveraging MRI’s suite of products, our dedicated partner solutions, or third-party products, and create an ecosystem that scales with your growing business. By taking a fluid approach to your lease, workplace, and operations management , you can use comprehensive technology solutions to make critical decisions for your real estate portfolio. Learn more about XWMS in this webinar.

The post What is the future of your real estate ecosystem? appeared first on MRI Software.

The concept of ‘reinvention’ seems to be on everyone’s lips across many disciplines, many sectors, and many organizations, due to the global economy and business landscape evolving. Global challenges pile pressure on organizations to become more innovative and find ways to create and sustain success. ‘Reinventing the workplace’, ‘reinventing real estate’, and are we now firmly in the midst of the ‘reinvention of retail’?  

Thus, retail real estate shouldn’t be any different. We aren’t just seeing the reinvention of retail from a customer experience perspective; we are also seeing it through new store designs as well as increased footfall. The future of the high street and shopping centres has been under the spotlight for quite some time, especially now that the pandemic has further impacted buying behaviours. This has piled the pressure on retailers and retail landlords to accelerate strategies and consider new and unforeseen scenarios.  

Here are three key trends that are driving the reinvention of retail real estate.  

Changing dynamics of lease terms

Long-term leases have been a staple of retail space in real estate for decades. Longer-term commitment in exchange for lower base rents, alongside more opportunities to review and negotiate costs across the lifecycle of the lease have been implemented through open market rent reviews. However, this seems to have become a thing of the past. At MRI Software, we’ve seen the average lease term for retail clients decrease rapidly to around five- or six-years with three-year renewals – terms that landlords might not have considered before the pandemic. This puts more importance on the initial lease contract negotiation with what is becoming a lifecycle. With little-to-no open market reviews, negotiation opportunities arrive only at the point of the renewal or break option. 

New requirements for rent models

Turnover (sales or percentage) rents have been present in retail portfolios for many years, but the conversation with senior stakeholders within retailers has transitioned from “we try to avoid them” to now having a very defined strategy to push for all leases to be turnover based. Today, many C-suite executives at MRI retail clients are reluctant to execute lease contracts that do not include a turnover element. The market already seems more balanced in such a short space of time across larger portfolios where the split between turnover-based rent models and conventional rent models is becoming more aligned to 50/50, with the strategy to tip the turnover scales even further through effective negotiations. This seems to be an acceleration from the impact of the pandemic, with pressure on coverage during uncertainty. There also seems to be an increase in all-inclusive turnover rent models with business rates and service charge, from what more conventionally used to be base rent plus top-up, or pure turnover rent. Whilst all this can inevitably benefit both the landlord and occupier from a sustainability and successful partnership standpoint, it creates more work and strain on resources when it comes to producing accurate payment and collection schedules.  

Increasing complexity of leases

The challenges of the last two years have significantly impacted real estate occupancy and utilization, and as a result, we are now seeing pandemic provisions being built into agreements across the board. For retailers, we are seeing provisions covering potential store closures with examples such as the ability to claim up to three months’ rent back per year, or a 50/50 liability split during such a period. It’s also worth noting the language around suspension of payments which was a common theme in the early stages of 2020. If we rewind to those very first unprecedented national and global lockdowns, much of this became a power struggle between landlords and occupiers, with occupiers suspending payments indefinitely, whilst others struck temporary agreements for rent free periods and smoothing rents over smaller periods (i.e., UK quarterly temporarily moving to monthly). We also found occupiers and retailers acting into their own hands to preserve their business during such a difficult economic period. Another area of interest is how lease contracts, along with landlord and occupier relationships play out when the occupier is an essential retailer, who inevitably keeps their store doors open throughout lockdowns. Despite having their stores open to serve the communities, there will naturally be a huge drop in footfall and a potential drop in revenue, yet the clauses in typical pandemic provisions don’t necessarily cater out of the box to these retailers. As such, negotiated and compromised positions to cover these eventualities are key, given little to zero negotiation power in existing leases would potentially have a huge impact on the organization’s long-term sustainability. 

Reinventing the future of retail real estate through PropTech   

The evolving nature of retail real estate continues to create more questions, more opportunity, along with a potential power shift, which presents one question: ”Is the occupier now holding the cards?” 

One thing is for sure – retail’s unique position in the world of real estate continues to develop its own nuances and complexities across the board, and reinvention is paramount. More frequent renewals, more frequent expiries, more obligations, and more provisions that once didn’t exist now need to be tracked, managed, and negotiated. Stronger relationships and communication channels between landlords, local authorities, and occupiers are pivotal. Real estate certainly has secured its seat at the executive table in retail organisations, and now it requires the right technology tools to address these new challenges.  

We have seen the acceleration of the real estate industry’s digital transformation, and delaying the adoption of technology and innovation is no longer an option. Successful retail occupiers will leverage a defined strategy together with flexible PropTech solutions to take on the future.  

The post The changing landscape of retail real estate appeared first on MRI Software.

For nearly two decades, organizations have aspired to bring all their facilities, workplace, and real estate management functions into a single IWMS solution. While this concept is a great idea, in reality, very few companies have been able to achieve it.

The challenges are many – internal structures and alignment, outsourcing of major functions, and acquisitions that bring in new technologies to name a few. But the need for connected workplace management solutions has never been greater. Today’s workplace is more dynamic than at any other point in history, and achieving success hinges on having the right set of solutions in place to manage your real estate portfolio.

Fragmented tech stacks and bolted-on applications are no longer capable of adapting to new demands. Let’s take a look at three ways your workplace management solution might be falling short of today’s requirements.

1. Managing hybrid work

The pandemic was a catalyst for many organizations to implement hybrid work arrangements, marking a generational shift in the workplace. As companies adapt to managing a hybrid workplace, decisions regarding facilities and space have been elevated to a strategic level, which means workplace data and energy usage will be a significant consideration. Companies will require a more flexible workplace management solution to schedule and monitor space, track energy usage, and integrate the data together as part of a long-term corporate strategy.

2. Oversight into total portfolio costs

Today’s real estate organizations have a more urgent need to understand the cost of occupation, the demand for leased space, and how it impacts the broader business strategy. The amount of change that these departments are going through shouldn’t be underestimated.

As organizations shift to the hybrid workplace, they often find that they have excess capacity in their office portfolio. This excess capacity creates tremendous opportunity for cost savings, but how can you access and unlock those savings?

Real estate teams have been faced with transitioning to new lease accounting standards and adapting to the increased strategic importance of leases. Today, they are also tasked with collecting and assessing usage data and productivity insights from both the physical footprint and financial leases to quickly inform strategic decisions regarding the optimal size of leased portfolios and productivity goals.

Business has evolved, but many workplace management solutions have not. Traditional IWMS solutions were not designed to handle the shorter-term planning cycles that are taking place in the market today, and real estate and facilities teams require more flexible technology to meet business demands and manage leases at the portfolio level.

3. Employee health and safety

When Gartner created the term “IWMS” almost 20 years ago, the definition focused on meeting the needs of corporate IT, facilities, and real estate departments in a single database with little consideration if any for the employee experience. Today, employee health and safety are an integral part of workplace management, yet most IWMS solutions don’t offer the flexibility to integrate with presence management applications that can provide accountability and peace of mind.

Businesses are redefining the workplace, and it’s time to also redefine the solutions that help them manage it. Workplace management systems need to be scalable and able to integrate with emerging technologies and third-party providers.

XWMS: an open ecosystem for workplace management

To allow organizations to choose the tools that align best with the unique needs of their industry, MRI has coined the phrase “XWMS”: an extensible workplace management solution. We define it as an open ecosystem that enables integration with best-in-class technologies so organizations can strategically plan, manage and optimize real estate, facility and leasing portfolios – without limits.

The redefined XWMS offers an open and connected approach to help businesses accelerate digital transformation and adapt to new market demands through an extensive partner ecosystem and integration capabilities.

XWMS is the new IWMS

Today’s real estate and facilities management teams deserve a redefined approach to workplace management technology. See how XWMS can benefit your business in this webinar.

The post Beyond IWMS: 3 reasons you need an extensible workplace management solution appeared first on MRI Software.

Technology adoption across the real estate industry has accelerated in recent years to say the least. Keeping up with the latest residential property tech trends can be difficult, but understanding the technologies that are popular today can help your organization stay ahead of the competition.

We’ve previously explored the impact that artificial intelligence (AI) is having on the real estate industry, but as this technology evolves, so do its applications in the multifamily, affordable, and public housing spaces. The right AI-powered technology solution can help your property business stay on top of emerging trends and new challenges, such as:

• Staying one step ahead of fraudsters
• Increasing resident engagement
• Establishing and complying with ESG initiatives

Let’s take a look at the residential property tech trends that are gaining momentum in the industry and see how they could impact your business.

Trend 1: Manage risk and outsmart fraud with advanced technologies

Are you confident in your ability to spot fraud? Think again. Rental fraud is on the rise, and according to a survey from Forrester, 97% of property management companies have experienced fraud in the last two years. With fraudsters taking advantage of new technology to produce fake IDs and evade traditional screening procedures, shouldn’t the digital boom benefit property managers too?

Through the power of AI, your organization can protect against risk with ID verification tools that utilize facial recognition technology to identify imposters, screening processes that provide multifamily-specific credit scores to determine qualified prospects, and intelligent insurance programs that enable you to protect all the residents and staff at your community. Even as the jobs of property managers everywhere become more important and more challenging than ever, protecting against risk can be made easier with technology that fights risk and outsmarts fraud.

Trend 2: Provide flexible digital services for residents and prospects

Today’s multifamily prospects consist of younger generations that expect amazing resident experiences. Providing those experiences means keeping current residents happy in a connected community and engaging prospects by putting your best foot forward.

A prospect’s first impression of your property is a critical step that will likely take place in the digital world, and with comprehensive and easy-to-use technology, your organization can entice potential leads from the very first interaction and satisfy residents. Public-facing communication tools that keep you from missing a call can help you connect with prospects quickly, and online payment portals can enable residents to engage with your property in a flexible way that works best for them.

Trend 3: Using AI to support sustainability and ESG initiatives

In light of increased energy costs, consumer awareness, and legislative attention, sustainability is a main concern throughout the real estate industry. With commercial property organizations adopting new strategies to meet environmental, social, and governance (ESG) requirements, residential property managers are also thinking about how to reduce their carbon footprint.

Reducing energy usage across properties will require the use of “green clauses” in leases, and these clauses can be abstracted from contracts easily with an AI-powered lease abstraction tool. Alongside tools that can automatically analyze your property’s energy usage, this technology can help your residential organization take meaningful steps towards reducing your carbon footprint and saving money in the process.

Multifamily, affordable, and public housing spaces have all seen frequent shifts in market trends as a result of the pandemic, but by arming your organization with the latest technology, you’ll be able to meet the challenges of tomorrow and gain a competitive edge in the digital world. Learn more about how PropTech can help you address residential trends in this webinar.

The post 3 residential property tech trends to watch appeared first on MRI Software.

Two years into the pandemic, businesses across North America are in various stages of returning to the office, but employees are still expressing reticence when it comes to working full time in a traditional office environment.

Considering that a recent survey indicated 52% of North American workers have health concerns about reporting to the physical office space and 78% voiced a preference for some remote work, a hybrid work model would seem to be the best option. But with so many varied preferences, how can employers provide flexibility while also ensuring workplace safety and security for employees?

When it comes to hybrid ways of working, there are five main types of hybrid work models that your business could choose from:

• Remote-centric
• Office-centric
• Split week
• Week by week
• Choose your own hybrid

Remote-centric: The hybrid work schedule for go-getters

A remote-centric hybrid work schedule is one where employees are remote-first with the option to come into the office at their own discretion. For organizations whose workers might have gotten used to the fully remote days of the pandemic, corporate occupiers can stick with this schedule to give employees more freedom when it comes to choosing which environment they find most productive.

This schedule caters best to workforces that prefer remote options, but in order to keep a physical workplace open for those who want it, employers may need to reassess their space usage on an ongoing basis. With the right technology, managing and tracking space requirements can help businesses save money on utilities and provide an office environment that changes alongside the business.

Office-centric: The model for collaborators

An office-centric hybrid work schedule is one where employees commit to working in the physical office for most of the time, with some remote options available. This setup works well for businesses that occupy smaller workspaces and whose employee base expresses a great desire to work in-office on most days.

While this model of hybrid work looks closest to the traditional workplace people left behind in 2020, visitor management solutions and hotdesking tools can enable occupiers to meet the needs of employees who want to return in full while still remaining compliant with any local health requirements.

Split week: For the teams that work best together

The split week model of working involves scheduling different teams to gather in-office on different days of the week. Implementing this model is a good way to bring each individual department back into one collaborative space while still supporting remote work options.

In order to make this transition work best, occupiers can empower employees to coordinate with one another and schedule in-office time together by leveraging desk reservation technology. Employers can also take advantage of the reduced space usage to assess their utility needs and make informed decisions when it comes to their in-office requirements.

Week by week: For the business that needs occasional catch-ups

In this hybrid work schedule, employees come into the office for one week to perform certain duties that are best done in-person and then return to remote work for another few weeks. Implementing this schedule allows employers and their workforces to “sync up” on important tasks on a monthly basis while still empowering employees to work in the environment that suits them best 90% of the time.

Enabling this type of hybrid work will help foster a sense of community that can drive productivity in a workforce while still cutting down on utility usage. For occupiers, space scheduling and space management software solutions can go a long way in making this model feasible.

Choose your own hybrid: To meet the needs of all

While the previous schedules rely on internal feedback from a business’s employee base, a “choose your own hybrid” work schedule is one in which employers provide a menu of hybrid options to their employees and allow them to choose which one they find most efficient.

Enabling employees to work in a hybrid environment at their discretion may seem like a hands-off approach, but for bigger organizations with large workforces, this model could be exactly what the business needs to thrive. With the help of presence management tools, employers can still always maintain control over their workspace by monitoring who’s on site.

As hybrid work schedules remain a hot topic, it can be easy to forget that each decision an occupier makes can have an impact on the lives of their employees, and by extension, the productivity of their organization. By taking the time to properly assess each possible hybrid work model, gather feedback from employees, and consider the software solutions that could help you enact each model, your business can make informed decisions and prepare for the future of the workplace. Learn how a suite of workplace management solutions like MRI Workplace Central can enable your business to implement the best hybrid work model for your needs.

The post 5 types of hybrid work schedules for your business appeared first on MRI Software.

One of the hallmarks of the world emerging from the pandemic is workers returning to the office. For the past two years, many employees have been able to work remotely to reduce the risk of catching and spreading COVID-19. However, it’s important to business continuity and operational efficiency for employers to understand employee attitudes toward working in the office.

Surveying employees regarding workplace health and safety

Understandably, many workers have reservations about commuting to the office again due to the risk of catching COVID. Therefore, the onus is on employers to implement robust health and safety guidelines that ensure a COVID-secure work environment. Hand sanitization stations, guest pre-registration and touchless sign-ins are just some of the features organizations are using to keep staff safe.

Additionally, employees appear to be fully behind measures designed to safeguard their well-being. Indeed, a recent survey conducted by MRI Software and Brivo has revealed that over half (53%) of workers want employers to go one step further and introduce proptech that has the ability to record proof of COVID-19 vaccination. This study follows an earlier report in May 2021 by MRI Software, Return to Work, which examined people’s attitudes to returning to the office.

The findings of the report highlight that there’s a remaining sense of unease amongst employees about returning to the workplace and this type of technology instils a greater sense of confidence and comfort about working on-site.

How employees feel about returning to work

This recent report, based on a survey at the end of 2021, further explores people’s health and safety concerns related to their return to the office and preferred working arrangements. One of the main concerns people have about returning to work is the proximity to other people. It has a sample size of more than 1,000 people in the United States and offers insight across more than a dozen sectors in the workplace. The findings provide insight into post-pandemic views on the future of the office and the technologies that may be required to adapt to this work model.

There are other key findings in the report that reveal further attitudes towards remote work transitioning into returning back to the office:

• 52% of respondents said they had health and safety concerns about returning to the workplace – but this was down from 62% in the previous survey six months earlier.
• Of the workers who are not back at the workplace full time, 45% percent expect to be back full time within six months, down from 53% in the previous survey.
• 78% of all workers surveyed prefer working from home at least some of the time.
• 61% of respondents reported concerns about returning full-time.
• Vice presidents and C-suite respondents had the lowest levels of concern, while directors and associates were the most concerned.

It is clear that workers still have some concerns about returning to the office, but they are starting to subside. Organizations that want to continue alleviating worries around health and safety in the office need to implement the right technologies to foster greater trust.

Overall, while the pandemic has fast-tracked a switch to a situation where more employees than ever split their time between home and the office, currently many workers are still working from home because they are more comfortable about their health and safety there. In order to assure employees in the office are safe, businesses need to have a full range of effective workplace management solutions in place that enable them to track and manage all the challenges around keeping people safe in the workplace – from ensuring that workstations have been fully cleaned to managing a properly spaced desk configuration to touchless signing in of visitors to recording proof of vaccination.

While vaccine passports remain a controversial issue, there is clear demand for employees to prove their vaccination status. A comprehensive solution like MRI’s WhosOnLocation platform can track proof of vaccination and help alleviate employees’ reservations about commuting into the office – thus helping ensure that companies more easily shift to true hybrid working arrangements that offer a comfortable and protected work environment.

The post Using proptech to address employee concerns about workplace health and safety appeared first on MRI Software.

No matter what corner of the real estate industry you occupy, your organization faces numerous challenges that can hinder day-to-day operations and lead to serious long-term problems. Without accounting services that help with efficient budgeting, accurate data, and auditable documentation, your residential property or public housing authority (PHA) could be burning through time and funds in order to simply operate and remain in compliance with state and federal regulations.

Outsourced accounting services can help both residential property management organizations and PHAs with recurring account services, giving them visibility into their financial performance and enabling them to overcome their daily challenges. Let’s take a look at how MRI Accounting Services can help your housing-based organization increase operational efficiency, make more informed decisions with accurate data, and guarantee success through frequent communication.

Streamlining operational efficiencies

When it comes to outsourced accounting services, many real estate organizations fear that their operations won’t receive the full attention of an outside team. But MRI Software’s accounting team knows that at your organization, whether residential or public housing, your time is valuable, and you should be able to run your business the way you need it to run. With this commitment and by getting to know your processes, MRI’s Accounting Services team can help your organization increase in operational efficiency.

This was the case for CMT Properties, a small firm that manages residential housing. By leveraging MRI’s Accounting Services, CMT Properties has been keep costs down while remaining up to date on their most important work. With a reliable team taking care of standard data entry and day-to-day system support, CMT Properties can focus on moving forward without being burdened by time-consuming accounting tasks.

Initially, I was unsure if MRI Accounting Services could take care of all my needs, but they accomplished everything I required. I don’t know where we would be without the support setting up our systems and for the data entry of the existing accounting information.​

Walt Cameron, President and CEO
CMT Properties

Providing accurate financial data

No matter what challenges they faced, many of MRI Software’s expert clients in the housing space agree that a vital benefit of MRI’s Accounting Services was the access it gave them to comprehensive and accurate data. For the Poplar Bluff Housing Authority and Bryan Texas Housing Authority, MRI’s accounting team provided them with critical insight and services that helped bolster the consistency of financial information. This included preparation of monthly financial statements, unaudited Financial Data Schedules, and Management’s Discussion and Analyses. MRI also assists these housing authorities with their operating subsidies and budgets, and these PHAs have saved significant time and capital by having these statements created by the accounting team.

One finance director, Angela Cochran of Poplar Bluff Housing Authority, dove into details about how the data they get from the team isn’t just accurate – it’s insightful. When Angela receives statements from the accounting team, she sometimes finds that anomalies in their financials have been noted and key data points are highlighted to help out at future board meetings. This kind of data enables public housing authorities and residential properties to better understand their performance and see how they’re tracking to meet their goals.

Enabling frequent communication between teams

For both residential properties and PHAs of all sizes, transparency and proper documentation play a critical role in long-term strategy and budgeting. One of MRI’s clients in the public housing space, Sheryl Swendson, stepped in to serve as Executive Director to several small PHAs who had limited access to CFP funds. Given their size and need, these entities required rock-solid financial documentation to ensure that public funds were being used properly and effectively.

With MRI’s accounting services, a constant line of communication stays open between the accounting team and clients in order to ensure that all necessary information gets relayed in a timely manner. When asked about the greatest benefit she sees from accounting services, Swendson mentioned the frequent calls from her accounting team that helped to not only guarantee that the data provided had been received, but also to make sure it was properly understood. With MRI’s financial advice, Swendson was able to run her consortium of small PHAs efficiently, using the CFP funds that were available and leaving a clearly auditable trace of work.

Both residential property management firms and public housing authorities have a lot of hats to wear, and with a service as important as housing, your business shouldn’t have to go it alone. By partnering with MRI Software’s accounting services team, you’ll be able to bring consistent data, efficient operations, and transparent auditability back into your processes. Learn more about how accounting services can benefit your PHA or residential organization.

The post 3 ways MRI Accounting Services empower residential properties and public housing authorities appeared first on MRI Software.

When the pandemic struck in 2020, almost overnight, office workers switched to remote working and PropTech quickly became a business imperative. To manage the fallout of the crisis, landlords, property managers, and occupiers embraced tools that enabled COVID-safe digital interaction such as virtual tours, electronic rent payments, visitor management systems, and automated lease abstraction. When 2021 arrived, it ushered in a different scenario, which emphasized accommodating the ‘new normal’ and preparing companies for long-term hybrid working. The ‘new normal’ was simply becoming ‘normal’.

2021 was also the year that PropTech attracted attention beyond the usual real estate insiders and technology investors. This specialized technology was on the broader business community’s radar. Senior decision-makers across a breadth of industries began to acknowledge the close links between workplace and workforce, recognizing that this relationship plays an essential role in the success of the hybrid model. It wasn’t just the real estate team and sometimes the finance department interested in how PropTech could be leveraged – human resources and the C-suite were now in on the action.

As we look to 2022, many businesses are still trying to define which hybrid model will work best for their organization in the long run. As a result, PropTech will be pushed further into mainstream strategic business conversations and inspire developments in three key areas:

Greater collaboration between HR and real estate

Regardless of which hybrid model businesses choose, their office space will need to be optimized to balance health and wellness with employee performance. HR’s overarching role is to ensure employees feel safe and motivated when they’re in the office. Facility managers can ensure these objectives are fulfilled by planning appropriate layouts, selecting desk-reservation apps, and analyzing new space requirements while monitoring attendance, indoor air quality, and access. Silos between departments must be broken down to facilitate true collaboration and create a safe and engaging environment.

AI moves beyond lease abstraction

Uptake of artificial intelligence (AI) driven real estate technologies that help give investors, owners, and occupiers a quick and detailed picture of what is going on with their property and lease portfolios will continue through 2022. Once the true impact of the pandemic on retail spaces, offices, and other workplaces became clear, landlords and tenants needed accurate information that provided fast answers in areas such as Force Majeure clauses across their lease portfolios and other sections relating to their rights, responsibilities, and options. Nobody had the time to manually sift through endless pages of lease agreements to determine who needs to pay rent when offices are unoccupied or partially occupied, or who does and does not have the right to renegotiate or terminate leases.

AI proved invaluable in the lease abstraction process because it could quickly pinpoint the relevant information for landlords and tenants. As a result, businesses are now turning to AI for tasks beyond lease abstraction, including using it to digitalize contracts and other legal documents along with automation and the elimination of dashboards – all of which support the collaborative efforts of real estate, finance teams, and management as they make strategic decisions about lease obligations.

Improved energy efficiency

One of the major advantages of the hybrid office model is that when managed smartly and efficiently, it can help reduce costs – but there are other ways to streamline operations when rethinking the workplace set-up. It also presents an opportunity to evaluate energy usage based on space utilization. Sustainability is, quite rightly, an important topic, and businesses will need to become more conscious about their carbon footprint and look for ways to reduce it. By using PropTech tools, companies can reduce energy bills and support sustainability, now a common goal for environment, social, and governance (ESG) programs. Data can be sourced from IoT sensors, badge swipes, and employee and visitor check-ins to better understand actual usage for utilities such as air conditioning and lighting. 

If fewer employees are occupying an office because of hybrid work arrangements, it may be possible to reduce utility usage. Such considerations are no longer the sole purview of real estate departments: Employees and investors are demanding that companies meet high standards of energy efficiency. Addressing these demands – along with the urgent environmental need to reduce carbon footprints – requires attention and action from all decision makers involved in developing long-term strategy. To make informed and astute strategic decisions, multiple departments and stakeholders need data and insights from across the organization.

2022: The year PropTech goes mainstream

For companies planning and implementing a hybrid work model, it has become clear that real estate management has a major influence on corporate culture – from employee satisfaction to recruitment to ESG. Consequently, businesses are realizing that PropTech doesn’t just support real estate organizations – it has a wider impact on the business and helps meet both immediate and long-term strategic objectives. While PropTech may not be part of every organization’s mainstream business and technology conversations yet, 2022 will further elevate it as business leaders realize how it will underpin deeper relationships between workforce and workplace.

Download the ebook to learn more about how PropTech can help your business prepare for the workspace of the future and ensure that your workforce remains safe and engaged.

The post PropTech in 2022: 3 key trends to watch appeared first on MRI Software.

Facilities managers who have already completed a successful software implementation look back and wonder: why didn’t they choose a CMMS (or computerized maintenance management system) sooner?

With a shudder, they remember what their workday was like before having facilities management software in place: desks littered with maintenance requests, voicemails full of disgruntled calls about incomplete repairs, and equipment breakdowns that meant someone had to dig through file drawers to find the right manual.

After implementation, these same managers enjoy streamlined processes that allow them to stay one step ahead rather than play catch up all day long. With data at their fingertips, they’re empowered to make better informed decisions and take pride in running an organized, efficient and insightful department.

In a nutshell, they consider the decision to transform their operations with a facilities management solution the key to improving their work day exponentially.

7 Ways Facilities Management Software Improves Your Workday

1. Managing work orders is no work at all

Unfortunately, many businesses find themselves repeating the same ineffective cycle for handling work orders. Someone jots down a maintenance request, hands it off to someone else who reviews it and assigns the job to a technician. The tech, already swamped with other work orders from multiple departments, reads it and quickly realizes some critical information is missing. They put the request aside for later and forget about it.

Comprehensive facility management software includes a work order tool that streamlines communication, ensuring that each maintenance request is addressed and includes all the necessary information for timely completion of the job.

Authorized users log into a secure portal to submit requests. To write up an order, they follow a template with pull-down menus and check boxes so all the necessary details are organized and easy to find. Then, in minutes — from a computer, tablet or smartphone — they can approve, assign and prioritize the workflow.

No longer will you have to constantly check the inbox on your desk, phone or email for maintenance requests. You can check on the status of a work order from wherever you happen to be.

2. Guesswork is replaced by data-driven decision making

Choosing to repair or replace an asset is a tough decision, and one that should be made based on your experience and a thorough analysis of historical data and trends. But if you’re still depending on traditional methods of record keeping like folders in a filing cabinet or spreadsheets on one computer, it takes too much time and energy to pull together and analyze the information. You need to be able to quickly identify where your budget should be allocated.

With facilities management solutions, the data you need is readily accessible. You can run reports to show exactly what an asset costs in terms of parts, labor and materials. You’re also better equipped to set up a preventive maintenance schedule when you know how often an asset breaks down and what types of repairs have been needed in the past.

3. Compliance becomes uncomplicated

When it comes to something as important as compliance, you want to know that you can meet it and verify that you did so. Typically, many items on your compliance list require periodic visual checks that are completed internally, as well as semi-annual or annual inspections carried out by an independent licensed professional.

A CMMS facilitates both requirements. You can schedule a preventive maintenance work order ahead of time in your CMMS. This order can include step-by-step instructions, checklists, images of the inspection tags and even interactive floor maps–which helps immensely when a new tech has been assigned the job.

Then, you can set up your system to send email reminders to third-party vendors who will be informed of what you need inspected and when. Every compliance requirement will be taken care of on time — and you’ll have the records to prove it.

4. Preventive maintenance stays on schedule like clockwork

The days of retroactively managing your buildings and assets are over. On-demand work orders, unexpected production halts, and wasted time and money can be avoided.

With a facilities management solution in place, you’ll have insight from historical data to create a preventive maintenance schedule that will keep your facilities and equipment running like a well-oiled machine. By setting up both time- and meter-based preventive maintenance orders, you’ll prolong the performance of your assets and reduce the total cost of ownership.

5. Out of office but in touch

If you’re like most facility managers who are still dependent on manual processes and spreadsheets, you’re caught between having to be in the office (where you can get your hands on the information) and being out in your facility (where you’re closer to the action).

One of the prime benefits of facilities management software is how much easier it makes  a manager’s life. Cloud-based solutions give you the freedom to work remotely and away from your desk. You can oversee operations from anywhere (communicating and collaborating with your team from any device with an internet connection).

6. Productivity stays on track

Whether it’s a malfunctioning engine that completely shuts down a production line or an out of order bathroom that dampens the mood of personnel, any aspect of your facilities that isn’t working at full capacity impacts productivity and the bottom line.

With efficient work order management, a comprehensive preventive maintenance program in place, and the strategies you’ve developed from data analysis, you’re poised to be proactive and reduce the risk of equipment failures and shutdowns. In the event of an accident or human error — which are bound to happen occasionally — you’ll be better prepared to respond effectively.

7. Attracting new skilled workers looks better than ever

As a forward-thinking manager, you’re concerned with cultivating a healthy, motivated team. Yes, when you shift to automated facilities management there may be grumbles from some of your longstanding employees who dislike change, but with encouragement and training they’ll soon see the benefits of a CMMS.

More importantly, facilities management software enhances the way a prospective employee views your company. The next generation of workers have grown up with technology and generally seek inspiring work environments that operate with automated solutions and employers who recognize the value of change.

Conclusion: Every day works better with facilities management software.

The job of a facilities manager is fast-paced and hectic. It often doesn’t receive the esteem it deserves. Whether you manage one manufacturing plant, a multi-site healthcare organization or a sprawling university campus, your days are full of challenges, workarounds and unexpected issues.

But there is a step you can take to make your workday flow better. The right facilities management software can optimize your processes, increase productivity and reduce costs.

If you’d like to learn more about how the MRI NETfacilities suite of solutions can transform your facilities management, reach out today. Or better yet, take a look at what we can do for you with a no-obligation, free demonstration.

Schedule a demo today!

The post 7 ways facilities management software improves your workday appeared first on MRI Software.

MRI Software is proud to be an award-winning workplace, recognized in the U.S. throughout 2021 by Top Workplaces for excellence in fostering a healthy, thriving workforce.

2021 was a year of adjustment – no organization was immune from shifting return-to-office plans, changing workforce attitudes around hybrid work, and a seemingly endless stream of new normals.

But at MRI, we look back on 2021 as the year where our talented and innovative workforce stepped up – like they always do – and exemplified all the values that drive our business. In 2021, MRI Software’s employees fully earned the moniker of an “award-winning team.”

Ushering in the future of work with pride

Throughout 2021, MRI Software was awarded a total of four Top Workplaces Awards, with recognition going out to MRI’s company culture as well as certain offices across the US. Awarded to businesses on both national and regional levels, Top Workplaces are evaluated based on surveys sent out to all employees, measuring overall satisfaction. In 2021 alone, MRI has been recognized in the following ways:

Top Workplaces in the Technology Industry
This year, MRI placed in the Top 100 Workplaces on a national level based on anonymous, positive feedback from U.S. employees and without the knowledge of senior leadership or supervisors.

Top Workplaces in the Small Workplace category for Atlanta
Awarded by the Atlanta Journal Constitution (AJC), MRI’s Atlanta office is our second-largest office in the U.S. The Atlanta team is one of 175 companies recognized by AJC’s Top Workplaces, and among only 86 in our category.

Culture Excellence in Remote Work
In a year where public health circumstances necessitated a move to fully remote work throughout the organization, MRI Software already had the technology and processes in place to handle this transition with ease.

Culture Excellence in Work Life Flexibility
Employee engagement and well-being has always been a high priority at MRI. Even in the move to remote work, MRI continued to bring employees together as one team through HR-led spirit weeks, quarterly social hours, designated rest, and mental health awareness.

Our clients make me love my job and strive to over-deliver every day. With the professionalism of my colleagues and the unwavering support of the MRI leaders, I can’t imagine working anywhere else!

Sandy Rogers
Director of Client Support, MRI Software

MRI Software strives to amaze clients, partners, and employees in all that we do, and the recognition the team has received throughout the year serves as vindication of a job well done. With the MRI Software team adding more than 1300 employees over the past year, we believe that the best days for clients, partners, and the real estate industry as a whole lie ahead of us. Want to join our award-winning team? Check out our careers page to see how you can be part of the MRI team.

The post MRI Software delivers an award-winning workspace throughout 2021 appeared first on MRI Software.

Artificial intelligence (AI) isn’t a dream of the future anymore – it’s here now, and it’s being used in industries across the globe, including in the residential real estate sector. Over the past several years, AI for multifamily has grown from a theoretical concept to one that’s being put into practice now, benefitting residential property managers by reducing risk and saving time.

What is AI for multifamily?

AI as it exists today is a technology that mimics the neural networks of the human brain in order to learn and improve upon processes. You may be wondering, “Sounds neat, but what does that look like in practice?” Here’s how:

When an AI-powered tool receives a document for the first time, it can label the data it’s been shown and then search for patterns in that data. From there, it’s able to use predictive computing power to build its own model of what data is supposed to look like, and as more documents come in, the AI-powered tool can better recognize what it’s looking at, pulling information from its understanding of the model and placing it in the appropriate category. As it processes each document, the tool would learn from feedback and become more accurate in how it operates.

So why AI for multifamily, and why now? While the concept of AI conjures pop culture images of sentient robots and virtual butlers for many, AI as a real scientific possibility has existed for more than 60 years, with the term “artificial intelligence” being coined as early as the 1950s. But what started off as a possibility has now become reality as the computing power of modern technology has finally caught up to the research that began when the computer itself had just been invented. When it comes to AI for multifamily, this technology is able to provide great benefit to residential property managers by helping to mitigating risk.

How to reduce risk with AI for multifamily

AI for multifamily isn’t about technology for technology’s sake. The responsibilities of residential property managers are becoming more difficult than ever before. Fraudulent activity has increased in recent years, and if your organization falls victim, you could be exposed to financial damages, especially during the application process.

With fraudsters taking advantage of new technology to produce fake IDs and evade traditional screening procedures, shouldn’t the digital boom benefit property managers too? AI-powered multifamily software solves for that exact problem, making your job easier by helping to secure your property, residents, and staff.

ID verification
In recent years, rental fraud has become increasingly prevalent – rampant, even – in multifamily with increased use of digital services. According to Forrester, 97% of property management companies have experienced fraud. AI-powered ID verification helps you identify qualified applicants and improve tour security while still adhering to Fair Housing standards. In addition, these solutions can help you ensure the safety of both your staff and your residents.

Screening
Even with improved ID verification measures, your property could still be exposed if your screening processes are producing false positives – whether by denying qualified prospects or approving future residents with inconsistent histories. AI for screening can help mitigate risk at your properties by assessing an applicant’s past payment and delinquency behaviors to predict what kind of resident they’ll be.

Insurance
As much as we try to prevent problems from happening, accidents are an unavoidable part of life – from large natural disasters to small kitchen fires. To minimize risk for the community, many multifamily properties have put resident insurance compliance programs in place to reduce risk and minimize loss by closing gaps in coverage. With an AI-powered solution, your property can ensure compliance with an applicable insurance program in order to protect your property and your residents.

In a digital world where committing fraud is easier than ever, securing your property should be too. AI-powered multifamily software can enable you to mitigate risk at the application and insurance phases of the residential lifecycle – and when it comes to up-and-coming technology that makes life in real estate easier, this is only the beginning. Learn more about how you can protect your multifamily property with AI-powered screening, insurance, and ID verification solutions.

The post No more risky business: How AI for multifamily keeps your properties safe appeared first on MRI Software.

There is little doubt the pandemic has had an irrevocable impact on workplaces worldwide, accelerating the switch to remote working and the adoption of new digital technologies to help manage the transition. But are we really going to see a homeworking free-for-all from now on? Despite the fact the sudden mass shift to home working demonstrated to most businesses that staff and executive teams could continue to be productive outside of the office, companies are managing the changes to the structure of work carefully.

Attitudes and concerns to remote working are still changing

Interestingly, a survey by MRI Software and CoreNet Global, the leading association for corporate real estate professionals, revealed that commercial occupiers were, in fact, tightening remote working policies. At the same time, landlords – initially shown to be more complacent than their tenants about the long-term damage by the pandemic in similar research in Q1 of 2021 – were growing more alarmed about the impact of remote working on their business when surveyed again at the end of Q3.

The Q3 survey of a group of nearly 200 tenants and landlords from a range of industries worldwide found that commercial occupiers’ willingness to allow all employees the choice to work remotely fell significantly from 39% to 26% between March and September 2021. Indeed, 70% of survey respondents planned to institute policies limiting remote working eligibility while increasing requirements to be onsite – up from 60% in March.

Despite the fact some corporate occupiers appear to be reconsidering the degree to which they will allow home working, the research also showed that landlords’ apprehension over the rise of remote work increased significantly over the same period. It revealed that 43% were concerned about its impact on their business compared to just 26% in March.

These findings indicate that corporate views on remote working are continuing to take shape at each new phase of the pandemic – as companies digest learnings and see how their operations are affected as the situation continues to play out.

Remote working is still reshaping workspaces

Nonetheless, the report findings make it clear that the wholesale shift to remote working since March 2020 has had a transformative effect on ways of working and the future of the office.

The analysis contained in the full research report, entitled MRI Software Market Insights: Views from Real Estate Occupiers and Landlords on the Return to Office, demonstrates that while attitudes to home working are still adjusting, the working world remains a much different place in the wake of COVID-19. The survey results show that, overall, nearly 80% of responding commercial occupiers have increased the availability of remote work since the pandemic. It also shows that 69% of respondents said that the worldwide shift to remote working during the crisis has fundamentally changed their long-term approach to space usage – only slightly down from 71% in March.

The key consideration for business leaders is how to better utilize their physical spaces. Tenants and landlords have an opportunity to partner on ways to return to the office safely and effectively. As more employees return to the workplace, both commercial occupiers and landlords realize that PropTech tools will be essential to planning and maximizing space usage, meeting the requirements of a hybrid office, keeping the workforce safe, and developing the best real estate strategies for the future.

Q1 2022 target for getting more people back to the office

The report also shows that commercial occupiers expect to see more employees returning to the office to collaborate and make use of resources as soon as it is feasible. In fact, 57% of corporate tenants expected to have more than half of their workforce back in the office by the end of Q1 2022. Landlords were even more optimistic, with 67% expecting the majority of workers to be back onsite by the end of Q4 2021.

Other key findings indicate that fewer companies saw a need for wholesale change in the Q3 survey than earlier in the year:

• 42% of corporate tenants indicated in September that they would require less space after the pandemic, down from 56% in March
• 49% of commercial occupiers were converting or expanding their use of hot-desking, down from 54% in March
• At the same time, 61% of landlords expected their tenants to lease the same or more space despite the prospect of more remote working in the future, but this figure was also down from March (67%)

Clearly, while the fact that successful remote working in just about every corporate sector has opened eyes to the potential of a brave world of home working, as the pandemic continues to play out and more normalcy returns, many are now expecting less of a radical change to the status quo. As the prospect of getting people back into the office seems more practical, more occupiers and landlords seem to reconfirm its value.

Tapping PropTech to support change

Although wholesale support for an entirely new work dynamic going forward appears to be softening somewhat, there is little doubt that attitudes both among managers and employees to remote working will never be the same – and that companies will have to deal with that reality. The research demonstrates that the vast majority of corporate occupiers do realize that and see a strong need to adopt technologies to handle the changes they face in managing the workplace. The survey showed that 70% of companies occupying business premises plan to adopt new technologies to address changes in space usage.

More strikingly, the survey showed that an increasing proportion of landlords are beginning to see that they need new technology tools to deal with the workplace of the future. The percentage of landlords that thought their existing technologies were sufficient to manage changes in space usage dropped from 61% to 45% between the March and September surveys. The Q3 results also reveal that 61% of landlords expect to adopt new technologies to handle changing space needs, compared to 55% in the previous survey. The top functions named by landlords planning to adopt new technologies going forward included the ability to:

• Track and manage who is onsite (employees, visitors, contractors) – 63%
• Strategically manage long-term space utilization and layout – 53%
• Schedule and reserve desks – 47%
• Better enable hybrid meetings between onsite and virtual attendees – 42%
• Reserve and manage meeting space – 21%

The pandemic continues to see new phases as it develops. At the same time, businesses’ views on how to manage it and how they will reshape the way the office functions will continue to evolve as we move into 2022. Pandemic-driven technology adoption has enabled people to stay connected and collaborative no matter where they work and will continue to do so. However, organizations still recognize the benefit of bringing employees back to the office as part of hybrid working arrangements that support engagement, workplace culture and productivity. And to make a success of hybrid work, organizations need to put the right technology tools in place – like the MRI @Work solution set – to help inform decision-making and ensure businesses can continue to thrive in the face of all future challenges.

See the full survey results in the report here.

The post Research shows attitudes to the future of work continue to evolve along with the pandemic appeared first on MRI Software.

It’s official: nonpublic real estate organizations are expected to either comply with ASC 842 by the end of Q4 2021 or start the New Year off on a sour note. A recent ruling from the Financial Accounting Standards Board (FASB) has confirmed that despite delay requests from nonpublic companies, the official deadline for these entities to comply with new lease accounting standards remains December 15, 2021.

While the compliance deadline for public companies has long past, this new ruling means that private and nonprofit businesses who have been relying on a delay or otherwise putting off the steps necessary to comply will need to kick their efforts into high gear in order to meet the requirements by January. Let’s take a closer look at what this means for nonpublic real estate organizations and their leases.

Defining ASC 842 and why it matters for real estate

While all public and private companies were previously under the jurisdiction of ASC 840, the prevalence of off-balance-sheet leasing – such as capital leases that could be accounted for via expense reports – motivated the need for improved financial reporting and increased transparency. This led to the introduction of the new ASC 842 lease accounting standards, which require all public, private, and not-for-profit entities to include all of their leases on the balance sheets. This means that capital leases (now called finance leases), equipment leases, and operating leases need to be accounted for and tracked in order to ensure auditability and transparency.

This is a new requirement for many companies and considering what a dramatic shift it is from previous lease accounting practices, real estate organizations may still have questions. Businesses will have to move fast in assessing their documents and processes in order to comply with new standards by the end of the year.

Check out the whitepaper, “Roadmap to New Lease Accounting Standards,” to learn more.

What stands between you and compliance?

The ASC 842 compliance deadlines could be tricky for some real estate organizations to meet. Before businesses can take concrete steps towards compliance, there are a few key questions they’ll need to answer.

1) What will you need to include?
As mentioned earlier, ASC 842 requires private and not-for-profit organizations to include all leases on their balance sheet starting December 15, 2021. Real estate businesses will need to assess the full breadth of their portfolio and track down each document. The goal of these new lease accounting standards is to increase financial transparency and accountability, so not only will your leases need to be listed on your balance sheet, they’ll also need to exist in an auditable document.

2) Where is the lease data coming from?
Data quality is an important aspect of lease accounting, and meeting these new standards is going to be challenging if your lease information isn’t accurate. Private companies need to review their leases and find all the different sources of information in order to pull out the relevant pieces. Without a full, accurate picture of the data, the accounting team won’t be able to run the right calculations.

3) How will calculations work with the new standards?
The new lease accounting standards will also change the way that organizations deal with certain calculations, such as the borrowing rate. Capital leases in the past have usually stated or implied a borrowing rate, but now, businesses have to calculate a present value on all of their leases to arrive at the liability costs. The borrowing rates will need to be calculated for each lease, making it even more important have accurate data on which you can rely.

How you can prepare for ASC 842

With data that needs to be brought together into one place and with leases potentially spread out across your organization, how can you best prepare to comply with ASC 842 by the end of the year? First, we need to assess to what extent your organization has gone digital.

Having all of your lease data scanned into a digital database that provides easy access for key stakeholders will be crucial in meeting the ASC 842 deadline. If your contracts still exist solely in paper documents stored in a series of filing cabinets, your organization is going to struggle in pulling all the relevant information together. From there, however, there are a few critical guidelines that can help you on your way to compliance.

1) Make sure your data is correct and complete
As mentioned, you should be gathering all your leases from across the business and extracting the key terms of those leases. After that, you need to verify that everything can be audited and traced back to a legal source document. Getting your leases into a digital format can be done quickly and efficiently with a software solution that automates your lease abstraction process.

2) Ensure communication between lease administration and accounting departments
You’re never going to get complete and accurate data if you don’t have clear communication between these two teams. In the past, these teams could operate by themselves without much issue, but with the new lease accounting standards, that’s not the case anymore. The lease administration team needs to be pulling out the data points that are actually relevant and necessary to the accounting team so they can use those pieces for accurate calculations.

3) Invest in necessary technology to find and extract data for ASC 842 leases
While communication lays the foundation for pulling out all the right information, getting the right data into the system is critical. “Bad data in, bad data out,” as some say. By leveraging technology that lets you automate your lease abstraction process and bring efficiency back into lease administration, your organization can stay ahead of the curve and prepare to meet the ASC 842 compliance deadline.

Many private and not-for-profit entities have their work cut out for them if they’re looking to meet the lease accounting standards deadline at the end of 2021, but with the right digital solutions and processes that enable you to quickly and efficiently abstract lease data and coordinate between the administration and accounting teams, your business can set itself up for success.

Watch the on-demand webinar to learn how MRI’s Contract Intelligence can help you meet ASC 842 compliance with AI-powered lease abstraction capabilities.

The post Your organization’s last-minute guide to ASC 842 compliance appeared first on MRI Software.

Over the past few decades, businesses “going green” and building sustainability have transformed from simple marketing gimmicks into full-fledged market trends. Industries across the globe – from transportation to food production and even clothing – have seen companies with environmental responsibility at their center grow dramatically in market share. Sustainability isn’t just “in” right now – it’s here to stay, and every industry will need to address their carbon footprint.

As companies commit to reducing their environmental impacts and promise deadlines for going “carbon neutral,” commercial real estate businesses will also need to move towards sustainable operations over the coming years.

What’s driving the sustainability market trends

Even outside of regulatory requirements, companies across the globe have spent the past few years making and executing on sustainability promises. In March 2021, 30 of the UK’s FTSE100 companies committed to go carbon neutral by 2050, setting the stage for businesses across Europe (and beyond) to follow suit.

Another factor driving the sustainability market trend is a shift in affordability. While technology aimed at reducing carbon emissions was once considered prohibitively expensive, the cost of monitoring energy usage has been going down steadily over the past several years. Conversely, the cost of fossil fuels has only gone up. Green energy technologies like solar and wind are proving to be reliable while the price of oil continually fluctuates.

The real estate industry has also begun feeling the effects of sustainability demands. Commercial real estate investors have begun including “green clauses” in their leases, which stipulate that owners and operators need to benchmark and report their energy usage. Even as these clauses currently exist on a case-by-case basis, the direction of local and federal regulation points to a future where reporting on building sustainability practices will be required by law.

What CRE businesses can do to make spaces sustainable

Considering that real estate companies will be held responsible for their building sustainability, businesses should be decreasing their energy usage now in order to stay ahead of the curve. Even without having specific regulations or investor expectations in mind, here are a few things your property business can be doing to become more sustainable.

1. Increase the efficiency of assets in your building

Tracking and lowering the energy that your building uses on a regular basis is the foundation of increasing your building sustainability. Newer spaces built within the past decade or so may already come equipped with “smart” technology designed to save money and energy. These Internet of Things (IoT) devices, such as thermostats, lights and even faucets, help to keep energy consumption costs down. Older buildings might not have many of these features currently installed, but with the help of your facilities management team, you can begin implementing these solutions to start cutting down on waste right away.

2. Understand how you utilize your office spaces

Over the past year and a half, the traditional office layout has become a thing of the past and businesses across the globe are enabling their employees to take advantage of hybrid work schedules, with some time spent in office and some time spent working remotely. With these changes, spaces that were in full use every day of the week might now be using the same amount of energy as before with no one onsite to require it.

By utilizing space and presence management solutions that give you a comprehensive view of how space it utilized, you can decrease energy usage in parts of the office that aren’t in use. Increasing building sustainability means knowing what usage is necessary, and what might simply be waste.

3. Invest in technology to enable reporting

As mentioned before, investors across the commercial real estate space can see that sustainability drives value to buildings. The rise of smart devices has highlighted the cost of wasted energy and a younger generation is entering the workforce, bringing with them expectations for environmentally friendly business practices. Even where building sustainability benchmarking isn’t yet required, businesses need to be able to report their energy usage to key stakeholders.

By investing in energy monitoring solutions that decrease operating costs, reduce environmental impact, and improve facility performance, commercial property owners, operators and occupiers worldwide can both better manage their energy consumption and report their savings to investors.

As the market continues shifting in favor of environmentally conscious businesses, organizations across the commercial real estate industry need to be preparing for a future where building sustainability is key and answering for energy usage is common practice. With the right technology solutions to help you understand where energy usage can be decreased, where money is being left on the table, and where your building stands in terms of sustainability, your organization can rise to the occasion and stay ahead of the competition. Learn how MRI Software and eSight Energy can help.

The post Preparing for a future of building sustainability with PropTech appeared first on MRI Software.

According to the National Multifamily Housing Council, 74% of renters are below the age of 45. With this age group, paying bills online has become the norm, and their rent is no exception. For property managers hoping to collect more digital rent payments, rather than paper checks, the first step is to encourage resident adoption.

Three reasons your renters should make online rent payments

It’s easy and flexible – Instead of having to locate a check and drop it off in the leasing office, tenants can pay their rent the same way they pay many other bills – from the comfort of their home, computer or mobile app. Paying online also gives them the flexibility to use a credit card, debit card, eCheck or cash – or change between these options month-to-month – whatever works best for them. They even have the option to set their payment on auto-withdrawal, making the whole process flawless.

They can take advantage of incentives – To help increase engagement, consider offering an incentive to new tenants who switch to online payments. For instance, you could do a small monthly giveaway for anyone that signed up for autopay that month. This is something you easily promote across your community to increase excitement and awareness.

Also, it’s worth mentioning to tenants that many credit cards offer points or cash as a reward for using them. By including a larger purchase, such as their rent, on the credit card, they are automatically boosting their benefits, such as cash or points, and helping themselves build credit over time.

It’s more secure – Gone are the days of worrying that their rent check could be lost in the mail or stolen, ultimately exposing their bank account information. Renters can rest assured that their personal details are protected behind secure rent collection technology and strong passwords.

The benefits of rent collection software for leasing teams & residents

Managing online payments and online rent collection from residents has been a cumbersome process for property managers in the past – but not anymore.

RentPayment makes it easy for you to accept credit cards and eChecks for monthly rent payments and move-in expenses. Not only will this keep your tenants happy, but it also means you can easily collect rent on-time. As the largest independent electronic payments processor in the multifamily industry, RentPayment already represents over 2.5 million apartments.

Want to learn more about how to increase your resident adoption of online rent payments? Sign up for the on-demand webinar “Tools & Tips to Increase Resident Adoption” here.

The post How to increase resident adoption of online rent payments appeared first on MRI Software.

As businesses continue to redefine their return-to-work plans, corporate real estate professionals are returning to in-person industry events. In the fourth quarter of 2021, groups like BOMA, IFMA and most recently CoreNet Global have begun welcoming back industry specialists at a time when many pivotal decisions are being made about their office spaces, data and remote-work policies.

MRI Software was thankful for the opportunity to moderate a panel at the 2021 CoreNet Global Summit in Seattle titled, “Leveraging Technology for Strategic Workplace Decisions”. The panel featured Kay Sargent of HOK, Simon Davis of Impec Group, and Alecia Chandler of EBUSINESS Strategies. Andy Welkley, Senior Product Marketing Manager at MRI, moderated the discussion on the continued evolution of the office, the need for flexibility in a hybrid environment and how people are a pivotal part of a successful office transition. The conversation maneuvered down some interesting paths – let’s take a look at five takeaways from the panel.

Going hybrid provides an opportunity to cut costs

All organizations with a physical footprint are determining the best working model for their employees. A majority of the businesses we’ve spoken to are implementing hybrid work scenarios, which provides flexibility for the employees but creates new challenges for employers. The short-term problem of flexible working has been addressed with a short-term solution: hybrid work. However, the longer-term need for businesses is to evaluate the space they have for future decisions about their footprint.

If you are eliminating the need for all staff to be in-office all week, there is an opportunity for cost savings through various channels. Do you close the office on certain days to save on operational expenses like janitorial services? Do you re-evaluate the lease you have on your physical space to something more suitable to your new work environment? Do you shut down some offices? Take this opportunity to find cost savings during this period of monumental shift for your employees and your business.

Your meeting room problem is actually a booking problem

How often do you look for a meeting room at the office only to find they’re all booked? How frustrating is it to then walk through the office and see empty conference rooms, or one employee leveraging it as an office by themselves? The answer shouldn’t be to simply add more conference room space – the problem that needs to be addressed is how to book the space. This can free up under-utilized areas and also provide extra freedom for employees.

Setting parameters around who can book particular spaces, as well as setting requirements for occupancy can help alleviate some of these issues. Room booking software that enables you to not only see booking data, but also empower staff to easily view, book and modify meeting rooms can become a real advantage to getting people back into the office. The last thing an employee wants to do is come into the office for collaboration and not have the ability to collaborate.

You can’t manage what you can’t measure

Hybrid working models present opportunities to evaluate the places we occupy and the trends of how people use them. If you don’t have a means to measure the usage of offices and the trends of your staff, your business is likely leaving money on the table. Using access control systems, employee and visitor management sign-in software and physical sensor technology allows you to collate new data points that have never been more relevant. Operationally, it makes the management of buildings more efficient.

Data is only valuable if you know how to use it

Now you have data points, but what good is data if you can’t act on it? Hybrid working models give businesses a chance to constantly re-evaluate how people work. Today’s “return to work” plan may look nothing like your work practices two years from now. Many CEOs even see the shift to remote working being a temporary event and still want to see fully utilized offices post-COVID. Your data matters. Tracking your space utilization can effectively shape your long-term corporate leasing strategy, which in many cases, may swing expenses by millions of dollars. But you also have the opportunity to use this data to impact your employees’ lives. Knowing how they work allows you to cater to your most important asset: your people.

Space is cheap compared to the price of people

It’s hard to recruit and retain talent. The flexibility of working from home during COVID changed the perspective of many employees about not only what they want to do, but how and where they want to do it. Putting technology in place that makes working from the office even easier than working from home gives your staff a reason to want to work at your company. It can be hard to sell employees on culture when they are absorbing it virtually. Businesses need to put real value not only on the costs associated with flexible spaces, but also on the cost of losing talent for lack of flexibility. Commuting into an office can be burdensome, but for an employee to know they can easily and effectively book a desk and a meeting room for collaboration allows your company culture to shine through – keeping your employees satisfied.

Facilities Managers, Directors of Real Estate, and Building Managers have the ability to truly impact the future of the business both financially and culturally with the decisions that they make over the coming months. Putting your people first has never been more important, and the ability to leverage technology to also save money in the process brings this area of an organization to the forefront of future executive-level decisions.

CoreNet Global was a fantastic educational conference, and you could feel that all in attendance were thrilled to finally get back together in a safe environment. CoreNet members will have free access to the audio recordings of the sessions, so check out the panel discussion. Next year’s CoreNet Global Summit in Chicago will be another great opportunity to evaluate the progress made in the industry toward reinventing the workplace. Learn how MRI Software can help you make the most of your hybrid work policies.

The post 5 ways your business can win at hybrid working appeared first on MRI Software.

The PropTech sector has seen a deluge of investment in recent years, with nearly $24B invested in it in 2020. The pandemic accelerated technology adoption in the market, and investor confidence remained high for PropTech in 2021. According to JLL, the number of real estate technology startups has increased 300% over the past decade.

As we look ahead to 2022 PropTech trends, such strong momentum in the industry comes as no surprise to MRI Software. We founded the PropTech category in 1971 and have helped our clients realize its potential ever since. Here are a few real estate technology trends that we expect to see in the coming year.

Proptech for all. Proptech isn’t just for real estate anymore. The need to manage employees within a facility – whether it’s a distribution center, retail space or office – has become paramount. Organizations across all industries are leveraging technology to optimize space utilization and make strategic decisions around what they need, what they don’t, and ways to change their existing workspace layouts. PropTech will be the go-to technology to connect the workforce with workplace management, linking real estate and HR together in a collaborative, post-pandemic environment.

Buckle up, AI is taking off. Applying artificial intelligence (AI) to an industry that relies on an abundance of manual and paper-based processes is a recipe for positive transformation. The computing power available today is poised to revolutionize all sectors of the real estate industry and provide significant benefits around automation, time savings, operational efficiency and productivity. AI will be coming soon to a PropTech solution near you – if it’s not there already.

The application of AI to real estate data has already reduced the need for dashboards. Instead of requiring a human to evaluate the data presented in a dashboard and then determine what to do next, AI can skip over the decision-making step entirely – kicking off a workflow for the actions that need to happen next in the process. With AI, you can build in appropriate decision processes, so you won’t need a dashboard at all – automating mundane tasks like generating renewal correspondence with tenants whose leases are expiring soon.

Space as a strategy. Landlords and property owners now view space management as part of the business strategy, which gives facility management teams more responsibility and a bigger seat at the table. Technology will be necessary to drive collaboration between finance, human resources, real estate and other departments to achieve a holistic plan that aligns productivity with business goals. AI-powered lease abstraction played a critical role during the pandemic as landlords and tenants needed to quickly review their contractual lease obligations and determine the best options for their business.

Flexible technology will allow owner/operators to handle changing space usage needs, such as managing co-working options and making use of space in new and creative ways. For example, if tenants won’t need 100% of their space for a few weeks, then landlords have an opportunity to leverage it for other purposes. According to the MRI Market Insights report survey of landlords and tenants in September 2021, both parties plan to expand existing or adopt new technology to manage changes in space usage.

Data is key. Everyone understands the importance of data, but now that we’ve emerged from the “unprecedented times” of 2020, we realize it’s even more imperative. From powerful analytics tools that help businesses pivot sharply into the unknown, to industry data that provides insight into sector-specific trends, PropTech will continue to be a source of information. Check out the NMHC Rent Payment Tracker and MRI Software Market Insights reports on multifamily to see how PropTech is keeping a finger on the pulse of the industry.

The office as a destination. For commercial landlords, managing space now includes managing occupancy. According to the previously mentioned report, nearly 80% of respondents have increased the availability of remote work. Office tenants have shifted toward a hybrid working model and hot desking over the past year and many are considering potentially modifying their space requirements – this means landlords and property managers will need to find ways to make the building more attractive to occupants and lessees. Amenities will play an important role here – the employee experience is a key aspect of their interaction with the workplace. Incentives and perks offered by the property, such as free or discounted lunch on site, can be tied to employee tracking apps to help landlords and tenants understand whether the space is meeting the business needs. Just like a destination hotel, employees will visit the office because they want to – not because they have to.

Landlord and tenant communication. PropTech will enable landlords and tenants to keep building on the close collaborations that began in earnest in 2020. Efficient communication about changing space needs – and the best ways to woo employees, as mentioned above – will be critical to both party’s success in the future. Landlords will continue to shift from lease-centric to client-centric relationships – maintaining occupancy through increased tenant engagement and greater focus on health, wellbeing and community.

Energy management and sustainability. Environmental, social and governance (ESG) is here to stay, and it will be a huge factor in valuations, leases and investment decisions for commercial properties. It’s no longer a nice-to-have feature, but rather a long-term expectation that will drive value for properties and avoid wasting energy.

Throughout the prognostications for real estate tech in 2022, there’s a common theme of flexibility. The need to work smarter and be nimble is greater than ever, and PropTech plays an integral role in helping businesses run strategically and efficiently. Open and connected PropTech platforms that have the flexibility to integrate with the latest and greatest point solutions from tech startups and other third parties will offer limitless possibilities for growth and scalability.

The post 2022 real estate technology trends appeared first on MRI Software.

Whether you manage a commercial or residential facility, a key part of your job is looking for ways to improve your operations and maintenance. Facilities management (FM) software is a platform that helps you achieve that goal while reducing costs and increasing productivity.

FM, often also referred to as a computerized maintenance management system or CMMS, stores, connects, produces and reports on all your facility and equipment needs. By adopting a CMMS which optimizes your facilities and property management practices, you can be more proactive and less reactive.

A comprehensive CMMS allows you to easily and efficiently

• Manage assets, maintenance, inventory and vendors
• Automatically generate preventive maintenance schedules
• Manage work orders with little to no effort
• Store all key documents in one centralized location
• Create meaningful reports
• Track labor and material costs

To get the most out of a facilities management software solution, you’ll want one that allows unlimited work orders and vendors and is cloud-based for anytime, anywhere access. You’ll also want one that is scalable with a clean, modern interface and customizable fields.

And speaking of customization, the best solutions offer flexibility to choose the tools, modules and add-ons that work best for your business and that integrate with applications you may already be using.

If you’re new to facilities management software, here’s an explanation of the top features to look for.

# 1 Asset Management

Think about how much time you’d save if you were able to easily find all of the key information about your assets with just a couple of clicks. An Enterprise Asset Management Program as part of your facilities management software solution makes that kind of organized efficiency possible.

It allows you to tag your assets with unique identifiers. You can input an asset’s make, model, serial number, manual and other relevant files. You can even upload an image of the piece of equipment with a link to its location on your property so your team knows what it looks like and where to find it.

The best EAM platform will also offer some advanced functionality like barcoding, warranty tracking, tracking meter readings, nested triggers for generating work orders and the ability to set up parent-child relationships.

# 2 Work Order Management

The days of scribbling a work order on a piece of paper or maintaining a binder to keep up with maintenance requests are gone. And along with the paper requests and binders, you can say goodbye to lost work orders too.

A work order management tool drastically reduces the time you spend handling requests. Users can create a work order which is then synced across all computers, smartphones and tablets. There’s real-time tracking so there’s no question about the status of the work orders. This kind of efficiency is a must-have for facility management today.

A must-have–but you still have choices when it comes to selecting one that meets your particular needs.

Look for a facilities management software solution that offers flexibility in its work order module. From a simple work order tool that allows a request to be made, approved and assigned to one that offers more advanced features like setting priorities, customized workflows, vendor assignments and time, and material and cost tracking, you should be able to pick and choose the features that work best for you.

# 3 Preventive Maintenance

Remember the last time your business experienced downtime because a critical piece of equipment failed? Too often those failures can be traced back to poor maintenance practices or a crucial part replacement not happening when it should have.

The concept of preventive maintenance has been around since after WWII. No one denies its value for prolonging the life cycle of an asset and lowering the total cost of ownership. But making sure those servicings and inspections occur at the optimum time can be a real bear.

A preventive maintenance module helps keep your equipment up and running by automatically scheduling service tasks and generating the necessary work orders.

Automatic reminders and status updates help ensure that the work actually gets done, so you can avoid costly repairs, halted production and inconveniencing your customers.

# 4 Inventory Management

Another cost-saving tool to include in your facilities management solution is one that manages your parts and supplies inventories. More than just a convenient system for real-time tracking of materials, an inventory management module gives you visibility into details like the total cost of your inventory use and how often you use a specific piece of inventory.

With the insights you gain from this valuable tool, you can make smarter purchasing decisions to be sure you’re always well stocked for maintenance tasks. Some features of this component include instant email notifications alerting you to low quantities and integration with your work order system so technicians can know if the part is in stock or not.

# 5 Vendor Management

Managing vendors is just one of all the moving pieces you have to oversee on a daily basis–but it is an important one to pay attention to. An automated solution means critical aspects of your relationships won’t be overlooked.

Without ever having to pick up the phone or send an email, you can easily assign a vendor a work order. With the secure login you’ve provided them, it’s convenient for a service vendor to manage their own activity. They can even track their time and charges which gives you accurate cost tracking per work order.

Imagine how much hassle you’d be spared if you could access everything associated with a particular vendor in one place. Work histories, invoices and other useful data are right at your fingertips.

And by integrating vendor management with your work order management, you’ll streamline your workflows into a well-oiled machine.

# 6 Mobile Applications

Smartphones and tablets may not be hanging on a technician’s tool belt, but mobile devices are definitely a necessary tool for daily operations these days.

This feature is so important that you really shouldn’t consider a facilities management solution if it doesn’t offer a mobile application. It’s an obvious tool to integrate with a work order management system, enabling techs to create and close out work orders and log their time and materials used.

But mobile apps can also give workers who are out on the job performing scheduled maintenance tasks access to helpful asset information like manuals or warranties.

Mobile apps allow field techs to have full use of your database without having to sit in front of a desktop computer.

# 7 Reporting

Let’s face it, when it comes time to forecast, budget or create any kind of report that depends on gathering and analyzing data, you really can’t beat the idea of simply letting your CMMS do the work for you.

Gaining insight into your spend, operations and maintenance trends is just a matter of entering a few dates and other key parameters into pre-built report fields. Or better yet, many CMMS solutions allow you to build reports with your own KPIs for customized reporting.

# 8 Facility Document Storage

Are your offices overrun with file cabinets stuffed with all the documents associated with your maintenance and operations? Or worse, the manuals, floor plans, warranties, work histories and other papers you need aren’t organized in file cabinets. They’re on someone’s desk.

The benefit of being able to transfer and store all these important documents goes beyond saving space. Going digital with your facility documents protects them and organizes them into a system that is easily accessed anytime, anywhere.

Conclusion: Facilities Management Software Solves a Host of Problems

There’s a # 9 top feature to look for when you’re shopping for a facilities management solution: the people behind the product.

As you compare solutions, you’ll find many offer the features we’ve discussed. Most are able to help you transform your facility management practices and optimize your processes. But when it comes down to choosing the right solution, the best one will have a team you trust and enjoy working with.

At MRI Net Facilities, not only do we offer comprehensive and flexible facilities management software, we’re known for being experts who like to get their hands dirty–meaning we won’t leave you staring at a screen wondering what to do next. We’ll get in there and make sure you and your team are up to speed. And we’ll always be available when questions come up.

Want to learn more about our solutions?

Schedule a demo today!

The post The top 8 features to look for in facilities management software appeared first on MRI Software.

In the spring of 2021, the commercial real estate sector looked ahead to a bright future as the global vaccine rollout was underway, and businesses everywhere considered how best to bring their employees back into the office.

But just as all things in today’s world are subject to change on a moment’s notice, so has the thinking of landlords and tenants in the face of unexpected speed bumps in the return to “the new normal,” including the rise of the delta variant and discussions surrounding vaccine and health requirements.

MRI conducted two surveys – the first in March and the second in September 2021 – to see how landlord and tenant views on return to office plans have changed over time. Now that businesses have 2022 in their sights, let’s take a look to see where both parties stand today.

Firming up return to office timing

Our first survey from Q1 2021 indicated that a large percentage of tenants were unsure as to when they’d bring more than 75% of their workforce back into the office, and landlords, didn’t expect to go back into the office until later in the fall or winter.

Data from the Q3 2021 survey, however, shows that tenants and landlords now have stronger ideas as to when employees will be brought back into the office. 57% of corporate tenants expect to have more than half of their workforce back in the office by the end of Q1 2022, while landlords were more optimistic, with 67% expecting the majority of workers to be back onsite by the end of Q4 2021.

Return to the office policies are being cemented

In our survey from the first half of 2021, landlords and occupiers alike agreed that some time in-office should be required for employees, but plans were not yet set in stone. Our data from Q3 2021 shows that 70% of respondents planned to institute hybrid work policies that include onsite requirements, formalizing plans as return dates get closer.

Policies around hybrid work and office requirements have largely firmed up across the board, with nearly 80% of all respondents increasing the availability of hybrid work. We also see that 69% of respondents said that the worldwide shift to remote working during the pandemic has fundamentally changed their long-term approach to space usage, which is consistent with the initial survey. Nearly half of the respondents plan seating capacity for less than 75% of their workforce.

Occupiers and landlords need flexible technology to meet new challenges

In Q1 2021, landlords felt mostly confident that they had the technology in place to handle a return to the office, but this is no longer the case. With changing space requirements and the need to better understand the health of employees and visitors that enter the building, both occupiers and landlords now see a strong need to adopt technologies to handle changing requirements.

According to the data, 70% of corporate occupiers plan to adopt new technologies to manage changes in space usage. The percentage of landlords that thought their existing solutions were sufficient to manage changes in office usage dropped from 61% to 45% between the two 2021 surveys. The most recent results reveal that 61% of landlords expect to adopt new technologies to handle changing space needs, compared to 55% in the previous survey.

The latter half of 2021 is not turning out the exact way that many predicted, but landlords and tenants are adjusting their expectations and assessing new technologies and their own space requirements in order to facilitate a successful return to the office. As we continue into 2022, communication between all parties and solutions that flex to a business’s individual needs will be crucial in transitioning into a new normal.

Get the full survey data from the report:

MRI Software Market Insights: Views from Real Estate Occupiers and Landlords on the Return to Office, by MRI Software and CoreNet Global

The post 3 ways return to office plans have evolved for landlords and tenants appeared first on MRI Software.

Few industries are emerging unscathed from the coronavirus pandemic, but the global retail sector has been hit particularly hard. The impact of lockdowns around the world, local restrictions and social distancing resulted in UK retailers experiencing the worst sales in 25 years. Additionally, the pandemic has accelerated the trend away from purchasing goods in physical shops, with e-commerce growing 46% in 2020. The impact retailers have seen on the main streets of urban centers, suburban shopping malls and out-of-town retail parks is lasting and promises to usher in critical changes in how these spaces are used and managed.

Accelerating commercial retail trends

The reality is that the pandemic has acted as a commercial retail trend accelerant for changes already taking place in consumers’ shopping habits. Both retailers and their landlords are facing a fundamental shift in the marketplace, with many retail businesses closing a large number of outlets for good. The real estate owners and the retailers themselves need to work together to reshape their commercial spaces in order to compete with e-commerce.

Already, many landlords are working with retail occupiers to ease the pressure on stores with an increasing number of leases incorporating turnover rents, which closely align rent to an individual store’s performance. During a successful sales period, both parties benefit from the agreement, and during downtimes, the landlord does not lose a tenant that is viable over the long term to an empty space. But turnover rents alone are not enough. The reality is that consumers will continue to shift their purchasing online and physical stores are at risk. During lockdown, consumers were forced to become reliant on online shopping and became accustomed to the around-the-clock shopping, personalized advertising and home delivery so bricks and mortar retailers must now provide a superior in-person shopping experience.

Balancing tenant mix and the landlord/tenant relationship

Whether in a shopping mall or on the main street of a town center, landlords need to work with retailers to ensure physical stores remain attractive and relevant to shoppers. Many are working together to create experiential shopping ‘journeys’. This approach creates an engaging showcase for brands and products, enhancing the personal aspects of shopping by allowing consumers to see, touch and try – often with in-store demonstrations and helpful staff armed with tablets assisting shoppers in finding precisely what they want.

In working to revive retail sites, especially in struggling shopping districts in towns and cities, real estate owners, operators and investors need to look beyond their retail tenants. They must consider developing a more complex mix of occupiers that bring to life the full spectrum of activities in these areas – enabling consumers to live, work and play in closer proximity. The upshot is that, increasingly, landlords are looking to include residential, office, co-working, hospitality, and service industry tenants in developments that previously had more of a complete retail focus.

To manage these changing real estate trends, commercial landlords and occupiers need the right technologies. For retailers to justify paying for physical stores, particularly in shopping centers, landlords will need to demonstrate how commercial spaces deliver value, which will be best achieved by measuring foot traffic and tracking the customer’s journey in and around the stores. For those landlords managing a more diverse set of uses for their properties, many will require software that will enable them to handle the blurring of commercial and residential tenants by providing a holistic view of their leases.

The retail industry has endured an immensely challenging time, but the success of the global vaccine program also brings hope that it can now focus on the road to recovery. However, we are now living in a post-pandemic world which has changed the shopping habits of consumers, and retailers must now reimagine the in-store experience to help entice shoppers back.

If you would like to learn more about our retail management software solutions, please get in touch today.

The post How the pandemic changed the evolution of retail and commercial real estate appeared first on MRI Software.

This blog was written by Charles Hartley, Senior Content Writer at AvidXchange.

AvidXchange helps real estate companies liberate their accounts payable from the endless paper chase of manual checks. MRI Vendor Pay powered by AvidXchange is a complete out-of-the-box integration used by more than 500+ clients. Learn more about the AvidXchange integration here.

After an unprecedented period of economic disruption, finance professionals in the real estate market are now facing a whole new set of industry dynamics. The broad digitization and automation of their financial transactions and overall operations are at the heart of these new dynamics.

What does this mean? It means real estate finance pros are changing business processes by digitizing and automating invoices, payments, supply chain and marketing – and everything in between.

These sweeping changes contrast with the way businesses used to operate only two years ago. Then, finance pros may have made vendor payments using paper invoices and paper checks. Now, chances are they have started – or are seriously considering – automating those accounts payable (AP) payments.

Real estate finance pros are using automation

There’s more. Instead of paying vendors from many different real estate offices as they typically have, finance pros can use AP automation software to consolidate payments in one centralized dashboard system that’s easy to access and use.

A June 2021 survey of chief financial officers (CFOs) from PYMNTS.com and VersaPay further points to planned shifts to AP automation. According to this survey, 96 percent of CFOs surveyed have either digitized or plan to digitize their AP and AR accounting functions in the next year.

With so much momentum shifting to AP automation, it’s important to ask why. What are the benefits of digitizing and automating your vendor payment process? We’ve identified four of the most important benefits making AP automation so crucial now.

1. Increase efficiencies

When your business digitizes and automates its AP vendor payments, it’s creating more efficiencies than using manual processes full of paperwork. But efficiency is not just a vague word to use to describe what AP automation is all about. Among finance pros, efficiency is actually one of the most highly valued benefits.

An AvidXchange survey of our customers finds that 95 percent rated the AP automation solution’s ability to drive efficiency as either important or extremely important. When we asked for their top reasons for considering an AP automation solution in the first place, the top three results all centered on driving efficiency.

• 83% to create operational efficiency
• 72% to reduce processing operational costs
• 64% to improve timing of approval process

2. Faster payments using AP automation

In the context of AP automation, efficiency often translates to faster processing of vendor invoices and payments. And these faster payments are crucial to vendors and suppliers. They want to get paid quickly. Your business could pull in higher or lower revenues based on how fast you pay these key business partners. But how fast is AP automation compared with manual AP? No matter how your measure this, it’s a big improvement.

Efficiencies include faster vendor payments

Finance pros want to make vendor payments faster with fewer mistakes and interruptions while minimizing costs. Saving time and money executing financial transactions, such as processing invoices and payments automatically, translates to better efficiencies. When you cut steps in the invoice approval process, enabling AP managers to view the status of invoices faster and more easily, you attain better efficiencies.

AP automation: 70-80% time savings

According to Goldman Sachs, AP automation can drive 70-80% time-savings for small and medium-size businesses (SMBs). But how  does an automated solution cut so much time out of the invoice and payment cycle, and what does that actually mean for the business? Let’s look at two examples: eliminating invoice chasing and expediting approvals and payments.

1. AP automation expedites approvals and payments. If your AP process uses manual, paper-filled processes, you know how challenging it can be to work through several levels of approvals to process one invoice and payment. Multiply that by hundreds or thousands of invoices needing approvals each month, and you realize the problem becomes exponentially more serious. With an industry average of more than a week to process a single invoice, it’s obvious many companies would like to speed up this process.
2. Automation minimizes the need to chase down approvers. Taking advantage of software rules and restrictions, AP automation eliminates the hassle of chasing down an approver and manually routing invoices to the next step in the process. With just a few clicks, actual payments can be approved and executed. Approvers get approval invoice reminders in their message inboxes. As a result, your finance team spends a lot less time on approvals and becomes liberated to focus on more valuable strategic work.

3. Cost savings of AP automation

Not only does AP automation save time, it directly saves real estate businesses money. Goldman Sachs estimates total costs (processing and labor costs) for AP staff involved in manually processing a single invoice equaled $16.00 for medium-size businesses and $22.26 for small businesses.

In an automated system, by contrast, these numbers fell to $5.89 and $6.89, respectively. That’s a net savings of roughly 60-to-70 percent. Why the cost savings? Let’s go deeper into the numbers for better understanding.

Top performers spend less time processing invoices

In its research of 1,485 organizations, the American Productivity & Quality Center found “top performers” – the leading 25 percent of businesses evaluated – spent an average of $2.07 per invoice. The lowest 25 percent spent nearly five times as much ($10.00). The key difference between the two groups? Automation: top performers typically use it while lower performers don’t.

4. Better visibility into status of vendor payments

Finance pros tell us consistently about their desire to have faster and easier visibility into the status of their vendor payments. AP automation delivers this crucial benefit. Wherever they are, using whatever electronic device they prefer, they can see the status of their vendor payments and invoices.

That’s a big improvement compared with sorting through piles of disorganized paper invoices and vendor payments trying to figure out which one has been paid and when. When you use AP automation, you’re less likely to make mistakes and send incorrect payments. And your payments are more likely to arrive on time.

Final thoughts

All these benefits of AP automation underscore the point that this technology is not merely a “nice to have” tool. It’s a “must have” business asset. The technology enables your business to pay vendors and suppliers on time even with a hybrid workforce structure.

It also makes it possible for your business to use fewer manual processes, which are prone to more mistakes than automated systems. And consider this: If your competitors can pay vendors faster than you with fewer mistakes, they’re more likely to win more business – and may even take away some of your customers. And that’s reason enough to invest in AP automation software.

Big change in next year: use of technologies

These investments will require your business to change. Over the next year in real estate, the biggest change you’ll see will be an increase in the number and types of technologies used to improve productivity and efficiency while minimizing operational costs. These technologies will include software for AP, customer relationship management and accounting.

Equipped with these tools, you’ll accelerate towards becoming an all-digital, completely automated business. Your finance team will benefit and the skills you and your team need will evolve and expand. And, importantly, your business will be better positioned for growth.

Read More: How Digital Can Help Drive AP Software Market Growth.

The post 4 benefits of automating real estate vendor payments appeared first on MRI Software.

For the first time in two years, MRI Software’s clients, partners and staff gathered in person for MRI Ascend Cleveland, the company’s users conference in North America. After nearly 20 months of virtual meetings, travel limitations and uncertainty, real estate industry visionaries came together in Cleveland to celebrate the history of PropTech and pave the way for its future.

Coming together in The Land where it all started

In honor of MRI’s 50th anniversary, the conference was held in MRI’s hometown of Cleveland, Ohio, where Fred Goodman and his brother founded the company in 1971. Much has changed since the early days of MRI, but Fred has been at the heart of it all from day one. We’re proud to serve clients that have been with us since the beginning – like Goldberg Companies and IRG Realty Advisors – and clients who have partnered with MRI and benefitted from our shared vision of innovation in the real estate industry. In their honor, we recognized several clients and announced the Partner of the Year at the RE:Visionary Awards. See all the award winners here.

An AI-first approach to PropTech

Technology has evolved by leaps and bounds since the ‘70s, and today’s computing power makes it possible for the real estate industry to leverage Artificial Intelligence (AI) like never before. Attendees at this year’s conference saw firsthand how MRI is putting AI at the core of its open and connected approach to software and the significant benefits that the technology has to offer around automation, time savings, operational efficiency and productivity.

MRI’s Ecosystem of visionary partners

One of the best parts of MRI Ascend is the presence and support of MRI Software’s suite of partners and clients, which enables an open and connected ecosystem of software and innovation. Getting together with our partners this year in the MRI Partner Ecosystem was extra special after a year where we’ve all been sitting at home on laptops.

We’d also like to extend our gratitude to those who sponsored the conference, like our good friends at AvidXchange, Nexus Systems, and many others.

Cleveland rocks

2021 marks a special year for MRI, and we couldn’t have been prouder to host our clients and partners in our hometown. Today, MRI is a global technology provider with a presence across North America, EMEA and the APAC regions, but Cleveland is where it all began. It’s still the foundation of our values and our culture – even after 50 years.

As we celebrate the history of PropTech, we’re still looking to the future to deliver the most advanced solutions for our clients, which includes setting our sights on next year’s North American users conference – MRI Ascend New Orleans! The conference will run from October 23 – 26, 2022. Keep an eye on the MRI Ascend website for updates.

The post Celebrating real estate visionaries at MRI Ascend Cleveland 2021 appeared first on MRI Software.

This blog was written by Josh Malinoff, Principal and CEO at REdirect Consulting.

REdirect, an MRI Software Consulting Partner, is a leading provider of real estate technology solutions with a demonstrated record of assisting hundreds of clients internationally and across the real estate industry to attain their technology and business goals. Learn about how REdirect has helped new and existing MRI clients leverage their software investment.

When you’ve identified the right investment management system for your business, you probably want to jump in right away to start making use of the new, time-saving tools. But consider this “in between” time as an opportunity to review best practices for implementing a new investment management system, while thinking through existing processes, managing risk, data collection, and driving adoption.

Before implementing any system, it is wise to undertake a process review. And given that your investment management system is going to be a major component of your team’s daily work and tasks, we believe a process review prior to implementation is essential.

Assuming you’ve already done a process review and your processes and needs are well-documented, below is an exploration of other factors to consider and how to successfully get started with implementing your new technology.

1. Prepare to automate

Since you are just getting started with your investment management software, it’s likely that you still have some manual, paper-based tasks. Anything that still lives in filing cabinets should be top of your list to automate.

While some of the preparation you’ll need to do here will have been taken care of by the process review, make sure you are mapping processes with a heavy consideration of your future state. This might entail streamlining processes which previously had many touchpoints and limited controls.

For example, your distribution process may currently require offline calculations and manual data entry into your accounting and bank systems. Once automated, the new process will be entirely contained in your investment management system with robust controls, a much faster cycle time, and reduced risk of error.

The goal is to move the bulk of your tasks into the new system. You might be surprised to learn that some processes are easily automated in the system. For example, we find that many investment clients assume they have to do waterfall calculations “manually,” since they are so complex. Believe it or not, you don’t have to continue to manage these calculations within Excel.

The MRI Software real estate investment platform, for instance, has complex functionality to manage waterfall calculations within the system, which helps reduce errors, gain control, and have an easier audit experience.

2. Empower users to take over

Beyond financials and the back office, investor portals can offer a streamlined and better marketed experience for new investors (and extend wallet share with existing investors). CRM capabilities of your investment management system can help you greatly. Be sure to get your self-service portal for investors up and running as early in your fundraising cycle as possible.

As we all know, receiving a quarterly report doesn’t cut it anymore. Modern investors want anytime access to their investment performance and returns. Allowing investors to download reports and check in on investments themselves will save you a lot of time (and emails). These features of the system can also help you market your funds better and accelerate your firm’s growth.

3. Good data is your best friend

Data conversion is always a hot topic because investment management implementations frequently replace manual processes, so the original data does not typically reside in a single system. That original data is often spread across multiple Excel spreadsheets and PDF documents. Because people have their own preferences and habits when it comes to maintaining and manipulating files, we often find inconsistencies in data when stored outside of an investment management system.

This data spread is especially problematic when your staff is working in files with different versions, naming conventions (or lack thereof), and sending files back and forth. Normalizing your data is critical to make sure you retain the historical information that benefits your long term operations and accounting.

MRI Investment Accounting offers a great opportunity to run reports directly without needing to download or manipulate data outside of the system. And fortunately the system can handle both key reporting needs for the funds as well as for your investors. The report design functionality can help you with both internal and external reporting needs. Though configurations in your new system are very personal and specific to your firm, the system is flexible enough to allow your needs to be met without too much tweaking.

4. Manage the change before you “go live”

It is critical to do thorough testing before you completely shift over to your new system. Build “user acceptance testing,” into your plan and timeline. On paper the system might be a great fit, but if your team doesn’t like it, isn’t comfortable using it, or if it just doesn’t fit what they are looking for, you will need to offer some change management. If your existing processes are heavily ingrained, it will take more time and effort to get the team’s buy-in.

It is important to carefully manage change, particularly with users who may be resistant. REdirect’s implementations build in significant hand-holding before the system goes live. We believe this support is essential to ensure the system is being used properly in the long term. User acceptance includes training as well as expectation management. Giving your team a forum to ask questions and practice using the software before it’s live is a great way to get them onboard faster.

Thorough testing also helps ensure that everything in the system functions as it should and that there are no unexpected hiccups once you are live. It is possible and sometimes quite common to take a phased approach with your go-live. You may choose to exclude funds that are winding down in the nearterm, and move new and upcoming funds onto the new system. This phased approach can offer an interesting ROI example when you can see the systems side by side.

If you become overwhelmed by the process of configuring and populating your system, undertaking data collection and normalization, or making specific and strategic analysis considerations, working with a consulting firm can streamline a lot of those struggles.

REdirect Consulting is one of the leading experts on implementing investment management software solutions and can aid in any (and all) steps of the process, from full implementation and customizations, to training and ongoing support. If you have any questions about the next steps for your firm’s technology, reach out to us here.

The post Implementing an investment management system: 4 best practices to consider appeared first on MRI Software.

This blog was written by Amy Bruton, Consultant at REdirect Consulting.

REdirect, an MRI Software Consulting Partner, is a leading provider of real estate technology solutions with a demonstrated record of assisting hundreds of clients internationally and across the real estate industry to attain their technology and business goals. Learn about how REdirect has helped new and existing MRI clients leverage their software investment.

Before you invest in a new software system for your business, it is vital that you evaluate it thoroughly to ensure that you are getting the best product for your needs. When it comes to real estate investment management software, there are many different tools available on the market. All of these tools have slightly different features, functionalities, and benefits. So how do you know which one is right for you?

In this article, we discuss how to evaluate a new investment management system and what you need to take into consideration before you make your decision. We will also help you understand who needs to be involved in the process and what system integrations you should consider.

What are you trying to achieve?

Many firms are still wasting time trying to manage everything in spreadsheets. If you’ve been frustrated by the limits of spreadsheets, spent precious time waiting for large files to download and render, or lost hours creating a single report, then it might be time to invest in a more sophisticated system.

The main thing you are trying to achieve when you implement an investment management software system is the streamlining and automation of as many of your processes as possible. Streamlining and automation allows you to avoid duplication of effort and wasted time doing unnecessary manual entries, since the system ties everything together for you.

Virtually all investment management software systems allow you to record and monitor financial transactions, track the performance of each investment, and create reports. But beyond this, things can get complicated, and the software you choose will depend on your needs and what you want to achieve. The right system will give you real, actionable insights that you can use to improve the performance of your investments and provide the best possible service to your investors. Here are a few key features you might need to consider, depending on your needs:

Waterfall calculations

A distribution waterfall shows the way in which capital is distributed to relevant investors – in other words, how it “flows down” to the various parties involved. Waterfall calculations are complicated, but the right system will be able to handle them in a way that saves you time and makes them easier for everyone to manage and understand.

Equity rollups

If you have several companies under the umbrella of a larger organization (or intend to), you will need to consider how your investment management software copes with the financial complications this can bring.

General Ledger impact

The ability to define how the General Ledger (GL) is affected by different types of transactions. You might even need to specify that certain transactions do not impact the GL at all.

As you implement and roll out your new system, set the expectation that you might take much of your firm’s work into your new system, but you might still end up in spreadsheets on occasion. Spreadsheets are still a useful tool, so do not be afraid of turning to it when you need to. The point is not to get rid of spreadsheets entirely, but to ensure you are using the right tool for the right job.

Who to consult in your organization

Precisely who will need to be looped into this process depends on your organization’s structure. You will need to get input and buy-in from all affected stakeholders, taking into consideration both front-end (owner/investor) and back office expectations. Ensure you leave enough time to explore everyone’s expectations and gather a comprehensive list of requirements.

• You will likely have a fund controller overseeing investment activity. This person will be key to the selection process, as it is their job to ensure that you are compliant with all relevant regulations and maximizing the return on all investments.
• Fund accountants who will be the day-to-day users of the investment management software are also important stakeholders. They will be best placed to inform you of the minute details of how things work in your organization, since they understand the nuances and complicated processes and structures that others might miss. It’s generally best to avoid involving every member of the team: stick to a few key people.
• Finally, it’s also smart to get your investor relations team involved in the final stage of the process. We are not implying you should give them decision making power over which system you choose, but they will inform and guide future reporting requirements.

A note of caution: be very wary of handing your investors a “blank check” when it comes to what is available. Otherwise you might end up with requests that you cannot honor or that would be prohibitively expensive. One way to mitigate this is to narrow down your choice of software system to two or three potential options before asking your investors for their input on the final choice or on specific customizations.

Tying your systems together

Last but not least, you will need to consider how the different systems you use work together. Your choice of investment management software might vary depending on what other systems you have in place and how well they work with the software you’re considering.

Consider integrations between systems, planning for immediate or future customizations (since it is unlikely you will simply purchase a product “off the shelf” as it is), using data from the system for reporting, and beyond. Remember that the aim is to build a sophisticated and seamless investment management system that saves you time, saves you money, and allows you to focus on tasks that cannot be automated. Certain systems focus on aggregating data across multiple systems while others are positioned to capture most data within the platform. For example, MRI’s Investment Central solution excels at aggregating data across multiple property management and accounting systems.

Many of the best real estate investment management software systems on the market offer extensive customization options. Anything from the look and feel of the output from your system (such as financial reports), to the level of detail you require in your reporting, can be customized. Take the time to assess which customizations will meet your business needs and your investors’ expectations.

Need some additional support?

Implementing a new software system is a learning curve and can involve a significant initial investment of time, money, and other resources. But in the long run, you will not only save time and grow your revenue, but also increase accuracy and reliability in your reporting and allow you to provide the best possible service to your investors.

No matter what stage of your journey into real estate investment management software you’re at, the experienced team at REdirect can help you. Whether you’re looking for initial advice on which system to choose, support with implementation, or help to train up your team on the new software system, get in touch and we will be pleased to talk you through the ways that we can help.

The post What to look for in real estate investment management software and systems appeared first on MRI Software.

The past year has been one of great change among commercial owners and occupiers, and with an increased adoption of technology, this year’s BOMA International Conference and Expo couldn’t have arrived at a more relevant time.

During the conference, the MRI Software team took an informal assessment of the general themes and concerns among attendees. In these discussions, we found that an abandonment of manual processes in exchange for comprehensive digital services is set to continue into the future of the workplace.

The return to the office will be televised – and live

More than a year after work from home policies took the world by storm due to COVID-19, businesses across the globe are returning to their offices with workforces whose expectations around “office life” have changed in varying ways.

BOMA International COO, Henry Chamberlain, addressed these market trends in a keynote presentation. “Studies show that around 30-40% of people are hoping to go back to the office full-time, perhaps working from home one day a week, while about a third will work from home two to three days a week and the remaining 10% will work remotely just about full-time.”

Whether it’s due to employee expectations, workforce growth or renewed space requirements, the traditional office setup is no longer viable for many businesses, and organizations implementing hybrid work practices will benefit from space and presence management technology. These innovations will help businesses drive better workplace engagement, experiences and optimization.

Sustainability is here to stay

One thing that was hard to miss at this year’s event was the large “Green Pavilion” in the exhibitor hall, which featured consultants, tech solutions and other organizations committed to driving down energy usage, increasing air quality, and improving health. While sustainability has historically been treated as a marketing point, with organizations boasting an immeasurable label about their “environmentally friendly practices,” green building maintenance and operations practices have become an important feature of modern buildings.

Sustainability is more important now that it ever has been, with many commercial investors including “green clauses” in leases to add value to their buildings. Sustainable buildings aren’t just good for the environment or meeting regulations. The various operational improvements to modern buildings drive down maintenance costs and can increase productivity from employees. Going green is here to stay.

Innovation is driving value to businesses

The past year may have been defined by uncertainty, but the rapid rise in the adoption of technology didn’t come out of the blue. The industry was already moving towards digital services before the pandemic accelerated the trends, resulting in a full digital transformation. Now that we’ve been through a year of remote work and online services, the industry isn’t just adapting – it’s thriving.

The value of moving away from paper-based and manual tasks towards technology solutions is clearer than ever. Big data might still be overwhelming for some, but technology and cloud-based solutions can enable commercial business to use that data to improve efficiency and productivity. Understanding and using data with comprehensive and flexible systems that work together can drive better business decisions and equip organizations to overcome unforeseen obstacles.

Commercial real estate owners and operators are facing challenges old and new in this fast-paced market. As attendees of the 2021 BOMA International Conference made clear, technology that lets you adapt to those challenges is the key to future success. Learn how your organization can utilize MRI Software’s set of comprehensive digital tools to prepare for the future of the workplace and stay ahead of the curve.

The post BOMA 2021: How technology is driving change in commercial workplaces and workforces appeared first on MRI Software.

This blog was written by Gunita Bindra, VP of Product Management at Bottomline Technologies.

Bottomline’s Paymode-X helps real estate companies make fast, secure digital payments while improving core KPIs. By using Paymode-X to pay vendors, businesses digitize their manual AP processes to automate workflows, accelerate approvals, and securely make all payment types (virtual card, ACH, check, and B2C) using a single solution. Learn more about the Paymode-X-MRI integration here.

Paper and manual processes have been fixtures in commercial real estate forever. With real estate showing strong KPIs in this age of uncertainty, it’s time to rip those fixtures out and ride the wave of growth.

Across the commercial real estate industry, CFOs and accounts payable leaders are embracing more efficient, secure payment automation. We may not be out of the pandemic yet, but it has exposed the inefficiencies of paper checks and manual processes.

Efficiency and security aren’t the only reasons to automate payments and processes, because you can also generate revenue through accounts payable. The losses associated with manual processes are (mostly) hidden because they’re so familiar. At the same time, those processes prevent revenue gains from rebates and early payment discounts that modern digital payments offer.

With Bottomline’s Paymode-X, for example, customers can see rebates that exceed $1 million, as well as hundreds of thousands of dollars in savings when they switch to payment automation. That happens because digitization and automation allow you to scale and grow in ways that just aren’t possible with your current setup.

Let’s talk about three ways AP automation improves ROI, both in the near future and in the long term.

1. Paper is expensive

You may be processing thousands of payments per month, and if you’re making those payments via check, you’re creating unnecessary costs with each one that goes out the door. Few industries are more reliant on checks than commercial real estate, which makes automating payments an urgent priority. From the very first invoice to the final mailed check, AP teams are slogging through steps that are costly and slow. That needs to change.

2. Rebates help immensely

The estimated $4-5 cost per check adds up, considering that 65-75% of the average real estate company’s payments are made by paper check. If you’re making 100 check payments per month, that’s $400-$500 you don’t have to spend. If you switch to an integrated solution, those costs immediately become cash in your pocket in the form of rebates on ACH and card spend. Automation also transforms a paper storm into something clean, controllable, scalable, and ERP-agnostic.

The gains in terms of cost-savings are also substantial. With Bottomline’s Paymode-X, we’ve seen 57% of our customers reduce their processing costs by more than half, while 73% have decreased their processing time by a quarter. Rebates, time savings and cost savings go together like chocolate, peanut butter and more chocolate.

3. Automation future-proofs accounts payable

We’ll all be glad to do less sorting of paper and waiting on the mail when it comes to payments. That’s reason enough to update your systems and processes, but it goes beyond that.

In the future, payment automation can offer your CFO and your AP team the advantages of early payment discounts and fewer late fees. I know we mentioned it already, but how about the potential of rebates on digital payments?

Early payment discounts and rebates add value instead of cost, and chances are you haven’t even been able to think about those discounts to this point. Embracing a change here can in turn pave the way for a pattern of accelerated growth.

Of course, as well as adding value to you, it’s adding value for your vendors. They love being paid in a more timely fashion and not needing to worry about checks being intercepted or lost in the mail (as do we all), so upgrading is a true win-win.

Eyes on the prize

Let’s face it: CFOs and accounts payable teams need more time to focus their eyes on revenue. Fortunately, with Bottomline’s Paymode-X payment automation:

• Eight out of 10 customers see 50% more cash back rebates
• Six out of 10 customers see 50% more early payment discounts
• Five of 10 customers make 50% fewer late payments

We have many more metrics to share here, but you get the picture. Automating gets you out of the mess you’re fighting through to make payments today, allows you to avoid stagnation and say hello to better cash flow.

Automating payments is about increasing productivity, increasing security, and reducing cost with 100% automation for your full range of B2B and B2C payments. This makes AP a profit center for the businesses.

It’s time to say goodbye to the old way of paying your many vendors and embrace payment automation. It’s no exaggeration to say you can’t afford not to make the switch.

See you at MRI Ascend 2021

To learn more about Bottomline Paymode-X and payment automation for commercial real estate companies, visit the Paymode-X real estate webpage. Be sure to visit the Paymode-X team at booth 304 at MRI Ascend 2021, as well.

The post AP Automation for commercial real estate: 3 reasons to make the switch appeared first on MRI Software.

Never before has there been so much information available about PropTech. There are quite literally thousands of real estate technology providers to consider as the number of PropTech startups grows by the day. With many of them using the same PropTech terminology, it’s easy for them to blur into one.

As a result, it has never been more difficult to make a decision on which PropTech solution, or solutions, are right for your business. Before we try and answer that problem, we need to first understand what PropTech is and why it matters.

What is PropTech?

At a foundational level, PropTech is simply the application of technology to real estate in order to raise revenue, drive efficiency, enable better service, or power transactions. Applying different technologies to different parts of the real estate industry is what gives us the vast array of PropTech solutions that we find in the market today. There are PropTech solutions that address development, construction, sales, marketing, leasing, and operations. Further, solutions are available to serve key stakeholder groups, including brokers, tenants, vendors/suppliers, as well as institutional and other investors. With a high degree of variability in operational constructs and an array of stakeholders, there are endless permutations of ownership models, operating models, and stakeholders.

In recent years, PropTech has reached new scale and momentum as all corners of real estate have modernized and automated, sought better data to support decision making, and ultimately driven NOI by adeptly applying technology to better real estate businesses globally.

Understanding PropTech terminology

One of the main areas of confusion commonly associated with PropTech is simply the language used to describe what is on offer. Terminology such as tech stack, business intelligence, and data analytics for example, is often used without clear descriptions of what it actually means in the context of the offering. With the use of these terms such commonplace, the challenge first lies in determining what they actually mean.

Artificial intelligence
Artificial intelligence has nearly unlimited potential when applied to the real estate industry. From automated lease abstraction to delivering more accurate, structured data, AI-powered real estate tools can automate many of the manual processes that have been inherent in the industry for ages and give businesses renewed insights into their data to make better decisions.

Big data
Big data refers to extremely large datasets. Typically, these are so large and complex that not only would a traditional data-processing application, such as Excel©, be inadequate to manage them, but users might not even be able to see the full picture of what data is relevant to their business and processes without PropTech.

Business Intelligence
Business intelligence is the visualization of data used to analyze, report on and optimize business decisions. With the excessive amount of data that real estate firms generate, business intelligence and analytics tools can be harnessed to yield insights that will guide strategy and increase competitive advantage.

Data analytics
Data analytics is the process of analyzing raw data to identify trends and patterns and inform key decision-making. Without the right tools and guidance, modern real estate professionals can face a lot of uncertainty as they attempt to extract information from the mountain of data that their businesses create.

Deep learning
Deep learning is the part of AI and machine learning that enables everything from practical tasks to predicting what TV series you should try next based on your watch history. It’s the “science” behind computer systems that when fed data, can make decisions about other data with the aim of mimicking – and going beyond – the human decision-making process.

Internet of Things (IoT)
IoT is the process of connecting objects and devices to the internet to enable them to “talk” to each other while being managed and monitored. For example, IoT can help property managers handle predictive maintenance on HVAC systems in commercial buildings to move toward more energy-efficient operations.

Machine learning
Machine learning is the subset of artificial intelligence that provides systems with the ability to adapt, change and improve without the need for human intervention. When applied to the industry, machine learning can automate manual processes in areas such as lease abstraction, lease auditing, and conversational AI.

Open and connected
Open and connected PropTech refers to software platforms designed to integrate with systems from other providers, allowing real estate companies to choose the systems that work best for their business and create competitive differentiation. The platform provider takes responsibility to manage the integrations with select third-party providers.

Open data
Open data is data available to the public that can be freely used, reused and redistributed by anyone.

Single stack software
Single stack software refers to a platform that includes all features and functionality within one system, or stack. All aspects of the platform are developed, maintained, and managed by one provider.

Technology stack
A technology stack is made up of the infrastructure, data, services and programming languages that power a software application. Real estate companies can evaluate PropTech providers to find the tech stack that suits their needs.

User experience (UX)
UX refers to all the touch points an end-user has with your system. PropTech software that gives staff a positive user experience with intuitive navigation will enable them to provide a better overall customer experience.

User interface (UI)
UI refers specifically to the visual part of a computer system used by the end-user to interact with the software.

Choosing the right real estate software for you

Once you have established what is available to you and what works for your business then you are ready for the next step: bringing everything together.

The ideal scenario is to choose a system capable of integrating with the best components in the market. This means you never have to compromise on functionality, allowing you to have all your preferred solutions available in one end-to-end system.

There are a number of providers who say they offer an open platform; however, it is important to closely evaluate any solutions claiming to have open architecture. Many vendors claiming the ability to integrate haven’t got the functionality to support their assertion, similar to the “cloud-washing” of products that don’t offer real cloud functionality.

MRI Software has done the hard work to assess what solutions are viable and meet real business problems. We have established a strong and growing partner program with tried and tested providers. As such, we can provide flexible, open PropTech software that meets the needs of your real estate business – today and tomorrow.

The post PropTech terminology – what does it all mean? appeared first on MRI Software.

Controlling fixed asset information and extracting the data needed for compliance and reporting purposes can often come with many challenges. These hurdles may be caused by a lack of a proper functioning asset management system or the need to update processes to reflect changes in the organization’s environment.

What challenges are presented by fixed asset management and how do you evaluate the current processes and the solutions that specialized systems offer?

The major challenges

Fixed asset management may generate several challenges, such as dealing with the volume of data, tracking assets and the maintenance of those assets.

1. Volume of data

Fixed assets can create data that continuously increases. Throughout an asset’s lifetime, the amount of information about it will never decrease. The file will continue to expand with information about depreciation, maintenance performed or required, whether it has moved departments, and so on. If an organization does not have a proper system to record all this information, it can quickly get out of control and become chaotic.

2. Tracking assets

Fixed assets may be transferred to another department or disposed of without the information making its way back to the accounting department, or to those that maintain the asset register. If the asset register is not kept up to date with the movement of assets, it can quickly become an obsolete tool.

3. Maintenance

Fixed assets can often be quite costly, and most are expected to last for several years. To get the most out of an organization’s fixed assets, it is important that those items are maintained over time. Without proper maintenance, assets may need to be replaced prior to the end of their average life expectancy or repaired more often than expected, thereby causing the company unforeseen costs.

Evaluation of your current practices

As an organization grows, processes may be outgrown as well. If an asset base has increased significantly and no specific management system is in place, patchwork solutions may make it difficult to overcome the major challenges of ongoing fixed asset management.

If your organization is currently using spreadsheets as an asset register, this could be compounding the challenge of dealing with the volume of data. With the amount of information available as your asset base grows, a spreadsheet will quickly become too large to properly manage everything. Additionally, this system offers no audit history to see changes made and it is difficult to avoid unknown and unintended errors.

If you have a specialist system in place or use the fixed asset module within a general ledger, it is important to review the functionality and decide whether it is still meeting your needs. Older programs may not offer integration with other solutions that you require, such as asset tracking by barcode or RFID. Or it may be that the basic asset register lacks the necessary functionality or reporting capabilities needed to address maintenance issues.

If an organization does have a specialist fixed asset system in place that has all the required functionality but continues to experience problems with asset management, it may be time to retrain employees and review current practices.

How software is an incentive for changes to your processes

Whenever a company implements new software or updates their current systems and procedures, it is a natural stimulant for change. If there are challenges or issues to address, the introduction of a new system is the time to do this. For example, a new fixed asset management process or software system can help correct issues associated with ghost or zombie assets that exist by adding annual physical audits to avoid the issue in the future.

Another issue to solve when introducing software is that of asset transfers and disposals. With a system that allows for event request authorization, an organization can expunge any manual processes in place that may require filling out forms that then have to travel from one department to another. Inclusion of transfer/disposal authorization in the software will help to streamline processes and ensure the accuracy and accountability of an asset register.

Additionally, the annual reconciliation of the fixed asset register will be far simpler with the utilization of functionality that requires transfers and disposals to be properly authorized and recorded throughout the year. Sound internal controls and the provision of a full audit trail for each asset will help to prevent unaccountable asset losses.

Whether you have a system in place currently that is sufficient or if you implement a new system, it is important to ensure that it serves as a helpful tool to overcome the challenges of fixed asset management. The purpose of specialist software is to decrease the amount of manual labor and to increase efficiency. Some of the ways that can ensure best use of this tool are to run regular reports and to conduct a physical audit on a regular basis.

If an organization has or plans to purchase fixed asset software, make sure to take advantage of annual upgrades made to the software as these will include any changes required in line with the latest regulatory requirements such as IFRS.

When it comes to dealing with fixed assets, there are several ways to ward off the worries that are associated with ensuring the data is correct. To overcome the challenges of voluminous data, inaccuracy and maintenance requirements, organizations should review their current practices and fixed asset management systems. Some of the hurdles associated with fixed asset management can be overcome by a simple restructuring of processes, while others may require that a new system is put in place to provide the tools for change.

Learn more about MRI’s fixed asset management or request a demonstration.

The post Overcoming the hurdles of fixed asset management appeared first on MRI Software.

The right workplace management solution can enable you to transform your business for the future of the office and drive huge returns on investment, but the prospect of implementing a new software in a time of transition can be daunting. Without an effective process for implementation, the results can be underwhelming at best and harmful to the business at worst.

By following three guiding principles, your organization can properly maximize the value of a new workplace management solution and quickly take advantage of the potential benefits, turning your workplace into a thriving workspace.

1. Know what you need to take the first steps

When implementing a workplace solution, you likely have already taken steps to assess what you want and need this software to do for your business. What’s equally as important is making sure that you have all the files, technology, and other software tools necessary to actually undertake the implementation process. Check with your enterprise software provider to make sure you have a complete list of any HR data or business organizational hierarchy information your provider will need for a successful implementation.

It’s also critical to get your internal team aligned on the goals of this process and what you need this software to do for you. There’s no such thing as overcommunication when it comes to implementing a solution that’s designed to help your business, and laying out the expectations for each party involved in the implementation process will help to push the project in one unified direction.

2. Overcome initial hesitation by working out issues across teams

Once you’re able to establish the files and tools that are needed, you also need to educate and gather input from the teams that will be affected by this process, including HR, procurement, IT, and Legal. Keeping these teams informed and up to date on why this new technology is necessary and how it will benefit the business is critical to gaining buy in and making sure everyone is on the same page.

Of course, implementing new software won’t always be popular with every person across an organization, and when it comes to change management, conflict will inevitably arise. This makes it even more important to involve other departments in the implementation process. By bringing in different perspectives, you’ll be able to address specific needs at the start of the project, and with different viewpoints, you’ll gain an even more thorough understanding of how your business can benefit from this workplace management software.

3. Deal with change management the right way

There’s a reason why some organizations tend to avoid new software altogether, and it’s not always because they didn’t plan for the implementation correctly. The actual change management process can be difficult if tackled incorrectly, and no matter how well you position yourself at the outset, there are several aspects you need to have in place for your change management that can make or break the implementation process:

• Vision
• Skills
• Incentives
• Resources
• An action plan

Without one or several of these key ingredients, your implementation will result in some combination of confusion, resistance, false starts, or all of the above.

While this still might seem like a daunting task, a successful product implementation is possible, and change management can play a big role in its success. For starters, many organizations believe that adoption of a new product has to be a “100%” issue, where success is measured only by rolling out a fully operational product with 100% of your critical data and information accessible in the system to every single member of the organization. But trying to implement your workplace management tool perfectly is a recipe for disaster. Instead, change management should look like getting your new system between 80 and 90% completed, rolling out to a small group of employees and assessing your results. From there, you can see what’s working, what’s not, and after you make the necessary changes, you can update the system and roll it out to a larger group of employees.

Through this method, change management can be a process that not only brings you the services you need, but also allows you to pivot when you encounter issues instead of delaying the rollout indefinitely to try and figure out what went wrong.

Avoiding pitfalls by going back to basics

Essentially, all three of these guiding principles amount to the basics of any successful project. Aligning your teams before beginning the process, managing your time well, and undertaking your implementation in a manner that allows you to benchmark your progress can set you on the path to a successful implementation and drive productivity with your new workplace management software. Learn more in this webinar.

The post 3 keys to a successful workplace software implementation appeared first on MRI Software.

This blog was written by Olivia Johnson, Senior Director of Solutions and Partnerships at G5.

G5, a certified MRI Software Partner, is a leader in real estate marketing optimization. Through AI, its Intelligent Marketing Cloud and seamless integrations, G5 delivers hyper-personalized customer experiences, continuous spend optimization and scalability to drive results. Learn more about the G5-MRI integration here.

The first time a researching apartment renter clicks on your ad, reads an online review, or visits your website, your property has the opportunity to build a lasting (and profitable) relationship. If your ad takes them to a broken link, if your website is clunky, or if they read an online review about how terrible past renters’ experiences were…well, then you can kiss that budding relationship goodbye. That renter is already onto greener internet pastures.

Let’s skip worst case scenarios, you’re no newbie. Say this first interaction with a researching renter ends in a signed lease. The opportunities to attract, engage, retain, and delight are endless. Read on to learn how open platform technology is changing the multifamily marketer’s playbook, and what that means for the industry as a whole.

Drop the silos + delight the renters

Think of the last time you had an intentionally curated experience (plot twist: we’re not talking about the #aesthetic effort poured into your Instagram grid). How’d you feel?

This might seem like a ridiculous question, but hey, given last year it’s probably not too wild. Have you eaten at a restaurant recently? First, you select a restaurant that serves food you’re in the mood for. Once you get to the restaurant and are seated, the server often describes the specials. You carefully read through the menu, and select items. Long story short, you’re curating your dining experience.

Curated experiences don’t stop with linen napkins or Instagram grids. Your property has the same opportunity to create thoughtful, well-crafted experiences for researching renters, and current renters alike, by leveraging open platform, best-in-class software solutions. Here’s the dilemma – for too long, tech vendors in our industry believed in operating a walled garden kind of approach, meaning tech vendors didn’t always work well together. This elbows-out approach limited properties’ abilities to deliver one-of-a-kind, best-in-class experiences for renters.

The good news is, those days are gone. Innovative multifamily operators aren’t saying, ”I’m a *name of tech vendor* operator.” Instead, they’re leveraging the power of choice with open platform solutions and adding complementary best-in-class tech-vendors to their tech stacks (without the hassle of creating costly integrations or replacing back-end software). This creates the best apartment shopping, apartment leasing, and apartment living experience possible for their renters. Plus, preventing headaches for property owners and operators is a win-win.

Deliver the too good to be true renter experience

Now if this sounds too good to be true, pinch yourself, it’s real. You want researching renters to get a consistent, exceptional experience every step along their journey, from signing a lease to renting from your property.

How can you do that from the first click? Simple.

Your website should be not only be beautiful, but should answer renters’ questions intuitively and be a conversion-focused front door. This kind of website is built by making sure the single-call-to-action pathway is clear, easy to navigate and leads to conversion. We know that after the home page, the floor plans page is the second most viewed page on multifamily websites. This is why in our call-to-action pathway, the floor plans page is the first place we take researching renters after the homepage. It’s also why we believe in the proven power of chatbots on multifamily websites to convert researching renters to move-in-ASAP-renters.

It’s essential that your digital front door, i.e., your website, feeds information directly to your property management system, lead management system, or customer relationship management platform, so that question-asking, tour-requesting potential renters don’t fall through the cracks. Building an open platform stack that creates excellent experiences for your renters doesn’t go unnoticed. Don’t believe us? Go read some five-star reviews.

Turn renters into five-star reviewers

Never underestimate the power of a delighted renter who loves where they live. The internet gives us all a megaphone, and when the right experience is cultivated, that can mean excellent online reviews for your properties. The truth is, if you’re looking at online reviews for everything from the newest clean beauty line, to sneakers, to dog food, you bet renters are reading a review for where they are going to live. So, choose best-in-class tech vendors that create a space for your renters to share positive experiences about your property online. Learn more about our approach to online reviews here.

Welcome to the age of the agile renter

If you can buy a car in four clicks, then why not rent an apartment in the same amount of time? When you choose open platform solutions and best-in-class partners who are in the game to help you AND your renter, there is no mission “impossible.” Learn more about the G5 approach.

The post Open platforms open the door for creating best-in-class experiences appeared first on MRI Software.

The MRI Software team was thrilled to reconnect with clients and partners in person at the NAA Apartmentalize conference in Chicago! With three booths at the event – covering MRI, RentPayment and CheckpointID – we had lots of exciting multifamily technology to talk about. And we had prizes. Serious prizes. One lucky person won a $2,500 Marriott gift card!

Despite the unknowns surrounding the virus and its variants, the conference was welcome proof that our industry can still convene in a safe way to lead the charge for the future of multifamily. Being able to interact in person was a refreshing change from virtual events and online meetings, especially because our business is ultimately about people and community!

Increasing demand for flexible multifamily technology

The multifamily industry is changing rapidly, and the need for flexibility was a common theme throughout the Apartmentalize conference. Many of the new PropTech solutions presented at the show were geared toward saving time for leasing teams with new innovations. If the pandemic taught us anything, it’s that everything can change overnight and we must adapt our processes and strategies quickly to preserve business continuity. In 2020, residents began facing unprecedented hardships and cash flow problems, and multifamily operators turned toward flexible technology solutions to adapt to the changing needs of renters and think beyond the traditional rent payment model.

Artificial intelligence for multifamily

PropTech is offering even more flexibility for the industry by using AI to drive automation. During one of MRI’s sessions at Apartmentalize, we discussed the future of the digital leasing office and the growing need for automation and efficiency in the leasing process. As online applications increased during the pandemic, rental fraud has also risen, and AI will be instrumental in preventing fraud for multifamily properties. A focus on risk management can help keep communities safe and ensure that leasing agents are spending time on real leads from real humans.

CheckpointID, an MRI Software company, provides ID verification software that uses AI to map ID scans with facial recognition to provide multiple levels of identity verification. It also automates the creation of guest cards through the integration with MRI Living, our comprehensive and flexible residential management solution that empowers residential property owners and operators with the tools to attract and engage qualified residents, effectively manage operations, and make data-driven decisions using accurate reporting and insights.

Minimize risk through screening services

At NAA, MRI announced an expanded partnership with long-time partner, TransUnion. MRI’s screening services now use TransUnion’s highly accurate ResidentScore system, which predicts future behavior based on historic rent payment data. By minimizing risk before the lease is signed, you can gain peace of mind by ensuring that you have the right residents for your community.

Learn more about MRI’s exciting announcements from 2021 Apartmentalize.

The post Apartmentalize 2021: Flexibility is key for the future of multifamily technology appeared first on MRI Software.

Lease accounting rules were dramatically altered when the International Financial Reporting Standard (IFRS 16), requiring all leases to be recorded on balance sheets in a bid to increase the transparency of business exposure to costs, came into force in January 2019. Yet, despite IFRS 16 coming into effect over two years ago, some businesses are still feeling the impact of the new legislation and struggling to make the right adjustments to their lease and accounting practices.

IFRS 16 represented one of the most significant changes to lease accounting in decades because it eliminates nearly all off-balance-sheet accounting for leases. Before IFRS16, businesses expensed leases, but now lessees must recognize assets and liabilities arising from leases on their balance sheets.

The business challenges of IFRS 16 compliance

Virtually every company has been impacted because most businesses lease several big-ticket items, including cars, offices, power plants, retail stores, cell towers and aircraft. COVID-19 has added complexity to leases with additional KPIs and clauses.

IFRS 16 spotlighted the importance of accurate, complete and incongruent data given the on-balance sheet accounting for almost all leases. Still, many organizations are struggling to achieve this because they are using old fashioned and manual ways of collecting the data, such as spreadsheets, which are inefficient, costly, and time-consuming.

The businesses most affected by IFRS 16 usually have a presence in multiple regions, different business operations, and often acquire companies. As a result, they have complex portfolio structures, and trying to manage all of that with spreadsheets and collect accurate data remains a considerable challenge. This has a knock-on effect on the ability of real estate teams to optimize portfolio performance and finance teams’ need for accurate IFRS 16 disclosures along with full amendment and validation logs.

Real estate and finance teams must work together

Furthermore, before IFRS 16, many organizations worked in siloed ways with real estate and finance teams having minimal interaction, but achieving regulatory compliance requires more inter-department collaboration and communication. IFRS 16 asks for an unprecedented degree of financial transparency. Businesses need to approach the entire process with a ‘one version of the truth’ mindset if company figures are to be 100% accurate. Consequently, accountancy needs to become an integral part of a real estate professional’s remit.

All real estate teams within an organization need to approach new and existing leases with the standard at the forefront of every decision. It may even be that traditional approaches to property are no longer within the business’s best interests. What’s more, accounting teams should now have a greater say in whether certain assets are bought or leased, completely reshaping the role of real estate. All of this means there’s a greater need for collaborative reporting.

How lease accounting software can help

Fortunately, technology is helping automate time-consuming and costly tasks and provides a central platform for collaborative reporting. Organizations that have overcome the challenges of IFRS 16 use technology that extracts the critical data – often using machine learning and AI for extensive lease portfolios – from leases in just a few minutes and eliminates manual errors so real estate and accounting teams can access accurate data in real-time.

Using the right software solutions ensures that half-year and end-of-year audits don’t become unmanageable, expensive tasks because there are full audit trails for any changes made during the lease lifecycle. Additionally, lease accounting software can ensure compliance by automating otherwise time-consuming calculations, prone to error and difficult to audit in a spreadsheet or different software approach. This means all teams have one platform which produces accurate reporting, allowing real estate and accounting teams to focus their time and attention on tasks that deliver real business value.

With the right lease accounting technology platform, companies have the capability to handle the huge churn in data and automatically analyze the numerous variables that can affect leases to ensure that all information is accurate and up to date.  The upshot is that, through the effective implementation of the standard, IFRS 16 can help make the business not just more transparent, but more efficient.

Learn more about our Lease Management, Lease Accounting and AI-powered lease abstraction tools in the solution brochure.

The post A balancing act: how technology continues to help businesses keep IFRS 16 compliant appeared first on MRI Software.

Like many aspects of the real estate industry, the process of leasing commercial properties has shifted to the digital space. In today’s market, tenants expect quick and easy access to your property information – including listing details, photos, and virtual tours – on any device they might be using. Delivering great experiences that meet these expectations can be tough on marketing teams, requiring constant contact with brokers and prospects as well as cross-department collaboration that can slow the process down.

Marketing your commercial space in the digital age should be as easy for you as it is for your prospects. With Findspace from MRI Software, you can present all your available properties to brokers, prospects, and other viewers on your own website in an engaging format.

Showcase your commercial portfolio to brokers and prospects

Brokers have come to rely more and more on online tools to help them connect leasing agents to properties that suit their needs, and making sure these brokers are able to see information on your available properties is crucial. Findspace gives commercial owners and managers the ability to display the full breadth of the portfolio to brokers in an easy-to-use, searchable format.

Findspace cuts down on manual marketing as it gives website visitors the ability to search for properties by location, square footage requirements and asset type to sort through your portfolio – all in a platform that integrates directly with your brand website. By uploading all photos, video footage, and virtual 360° images into the platform, Findspace organizes the property information and develops easy to read listings, complete with auto-generated brochures that brokers can download and customize for their own needs.

When it comes to keeping prospects up to date on your portfolio, your marketing team wants to ensure that the right people can see all the necessary property information both today and in the future, which is why brokers can use the Findspace platform on your website to “subscribe” to different properties based on asset type, location, and more. From that point on, they’ll receive alerts whenever there are new updates to that space.

Bridge information gaps between internal teams

In addition to presenting all your necessary portfolio data to brokers and prospects who might be interested, Findspace gives you full control over that data in one centralized tool, allowing you to pick and choose what gets pushed out publicly and when. Manage your buildings in the environment by selecting and deselecting what properties you want to show. If you have a space that might have a vacancy in the future, you can use Findspace to identify when that space will be available and then schedule a posting for that time.

When all the information for these properties is pulled into the Findspace content management system, you’ll have effectively established a link between the marketing team and the leasing team, with each team having easy access to the data. All the information stays in an internal-facing, secure environment that allows easy access from across the business.

In an age when commercial real estate is becoming more of an online process, Findspace brings your leasing operations into the digital space in a way that’s easy-to-use for your marketing team, your leasing team, and your prospects. Learn more about Findspace in this demonstration.

The post Modernize your commercial real estate marketing with Findspace from MRI Software appeared first on MRI Software.

Since March 2020, the real estate industry has experienced a large shift to a digital environment in the face of a global pandemic. As investors shift their attention to the future of commercial spaces in a tech-driven world, many are wondering which COVID-related changes can be expected to stick around.

Recently, a panel of experts from Deloitte, One11 Advisors, CohnReznick, and MRI Software shared their insights into the specific ways investors, owners, and occupiers in the real estate industry are reacting to current market trends. Here are some of the key takeaways:

1) There’s increased interest in innovation – from all parties

Even as both the traditional office environment and brick-and-mortar retail were experiencing turbulence, the pandemic has accelerated the adoption of technology. Real estate owners and operators were forced to move their businesses further into the digital space than ever before, and many have come to recognize the benefit that these innovations can have on how their organizations are run. To quote Ken Meyer, Principal at Deloitte Consulting:

On a foundational level, everyone recognized that everything needed to be accessible, and everything needed to be properly integrated so you could drill down and see the data.

Since the pivot to digital in 2020, many of the reasons that owners and operators traditionally opted against impactful tech adoptions simply vanished. Now, with those barriers gone, companies are investigating the possibilities of tech innovation as a competitive advantage more than ever before.

2) Tech adoption can mitigate risk in strategic planning

Having access to the right data can help you make more informed business decisions, but in a world where it seems like everything is “unprecedented,” access to historical information isn’t always enough. Utilizing technology that enables businesses to analyze market trends, variables, and other external factors can provide valuable insight that can be used to drive better decision-making and optimize return on investment.

3) Investors want to understand the end users of their services

Core aspects of offices and retail centers were dramatically impacted by the loss of foot traffic at the start of the pandemic. Real estate investors have become acutely aware that they rely on more than just consistent rent rolls and cashflows – they also rely on the employees that work for the occupiers, or on the customers that retail tenants depend on for profit. In order to boost performance in businesses dependent on the human element, investors need more information on the end users of their services – customers, employees, visitors – than ever before. By taking cues from the relationship-driven residential sector, commercial real estate investors are adopting smart technologies that enable them to benchmark the behaviors of those end users in order to drive performance.

Among all these observations, the panel of experts agreed on one thing: the digital transformation in the real estate industry is here to stay, and when it comes to tech adoption, looking forward will be the only way to stay ahead of the curve. Learn more about the opportunities for real estate investors in a post-COVID environment.

The post Real estate investment post-COVID: Technology is here to stay appeared first on MRI Software.

MRI Software is thrilled to announce that we’ve won a Stevie® Award for the fourth time in the Large Computer Software Company of the Year category! For the past 50 years, we’ve taken pride in our ability to come together as one company with the best and most enthusiastic employees to deliver excellent software, services and support to our clients. As we continue throughout another year of tremendous growth, we’re honored to receive another Stevie Award as a result of our efforts.

Helping clients innovate for the future

Since 2019, MRI has expanded its technology solutions for real estate owners, operators and occupiers through new product launches, enhancements to existing offerings, and strategic acquisitions. MRI’s solutions help businesses respond to the challenges of COVID-19 and plan for the future by using technology to embrace digital operations and prepare for the return to the office. MRI is proud to be a PropTech industry pioneer that helps clients plan for the future by becoming technology visionaries through the execution of several key strategies including:

Transition to digital services – When the pandemic forced a sudden shift from in-person to online operations, MRI clients had access to software that allowed them to easily transition to virtual processes and maintain business continuity — from collecting rent payments online to managing the leasing process virtually and collecting digital signatures.

Reinvent the workplace – As a “new normal” rears its head, MRI has been at the forefront of helping real estate occupiers and landlords adjust to and navigate changes in space requirements, lease agreements and contracts. With space scheduling software and tools that help manage employees and visitors in the physical office, MRI is offering clients a way to reinvent the workplace for their business needs.

Forging a path forward together

This award underlines MRI’s understanding of where the real estate industry has been headed with or without the pandemic. Having the right technology in place will not only enable real estate organizations to preserve business continuity in the short term as they return to the office – it will position forward-thinking companies as industry visionaries that are able to thrive in the face of change. As we move forward into an era where the workplace experience will be more varied than ever, MRI is committed to both innovation and an open and connected approach to real estate software. Learn how you can become part of our award-winning team.

The post MRI Software wins 2021 Stevie® Award! appeared first on MRI Software.

A landlord or property manager has the legal obligation to keep track of the keys distributed for a rental unit. They must exercise all reasonable caution to ensure that keys are always accounted for and only in the hands of those with the authority to possess them. The failure to appropriately track keys not only exposes tenants to potential danger, but opens the door to what might prove to be costly legal liability for a landlord or property manager.

There are other reasons why effective key tracking is a must including convenience, better structure in the work environment, and accountability.

In the absence of a well-structured protocol for key tracking, the whole process can quickly go off the rails, with potentially disastrous consequences in some cases. A wise course is to use proven CMMS software for tenant services. MRI NETfacilities has developed a truly comprehensive key tracking CMMS, among other features that can help

Property Manager Legal Liability for Tenant Safety

Of course, the primary objective of effective key tracking, including using a CMMS as part of the process, is keeping tenants safe. With that said, using a CMMS to track keys is a step that aids in satisfying a landlord and property manager’s legal obligation as it relates to the safety of the property.

While the tenant bears considerable responsibility for the safety of his or her rented home, they are not alone in that responsibility. A legal doctrine known as premises liability places specific legal responsibilities in regards to safety and security at a rental property on a landlord and, by extension, a property manager.

These responsibilities often involve regulating and maintaining the common areas and other spaces not under a specific tenant’s control. For example, the common areas of an apartment building are required to have proper illumination. If there is not adequate lighting in a common area, a landlord and property management company may be held legally responsible for the injuries, damages, and losses sustained by a tenant who becomes the victim of a crime or accident in a common area under these conditions.

The landlord and property manager’s legal responsibility also extends beyond common areas. The control of keys to a rental unit provide a prime example of this type of situation. A landlord and a property manager have a duty, or legal obligation, to keep track of the distributed keys for a rental unit.

CMMS Key Tracking and Tenant Safety

Key tracking CMMS can improve the environment and increase the safety of a tenant, while potentially lessening the possibility of crimes like burglaries and home invasions.

Tenants become particularly vulnerable to these and other types of crimes when there is no proper accountability or consistent tracking of keys.

Enhanced Convenience

A considerable amount of time is wasted while landlords, property manager, maintenance personnel, and others try to track down the keys to a rental property. Needless to say, running around trying to locate keys is a terribly inefficient use of time.

With a CMMS for key tracking, the location of all distributed keys to a particular rental property can be easily logged and located. This is vital when a tenant has sent in a maintenance request and understandably desires prompt assistance. Indeed, if an emergency exists, reliably prompt access to keys (as can be provided with CMMS key tracking) is an absolute must.

Accountability

Staff and third-party accountability is also better served when a key tracking CMMS is used. This type of comprehensive, reliable tracking system provides real-time information about who has possession of keys and how many keys are in circulation. These capabilities not only confirm who has keys at any given time, but also verify when a member of the management or maintenance team has returned the keys to a tenant’s residence after using them.

Better Structure in a Work Environment

When safety considerations and the efficient provision of services, like maintenance and repairs, come together, the need for a well-structured work environment is crucial. Through the use of a CMMS with key tracking, safety interests and effectively completing tasks, like initiating and completing maintenance requests or other work orders, can be easily accomplished.

A CMMS with key tracking capabilities will account for who is accessing property and for what reason. It also tracks the length of time an authorized individual will remain on the premises and has custody of the keys to that residence.

In summary, the benefits associated with a key tracking CMMS are far reaching. Because keys to a rental property tend to change hands frequently between tenants, maintenance workers, property managers, vendors, and so on, it is vital to have a reliable system to keep track of all keys in circulation. Having an appropriate key tracking system in place will make day-to-day operations function smoothly and increase the safety for all tenants.

The post CMMS: an essential tool for key tracking system for apartments appeared first on MRI Software.

As work-from-home restrictions ease for many countries, people around the world are beginning to think about returning to the office. This introduces some challenges for businesses to adapt office environments to a different way of working.

What will the office look like once workers begin returning? Without a doubt, there will be plenty of new safety protocols involving strict personal hygiene and physical distancing, but how do we make this transition as simple and as safe as possible?

As employers, we are all navigating new territory. The workplace we left many months ago is unlikely to be the same when employees return. Most organizations plan to increase their use of technology to manage the flexibility that will be required in the office of the future. In these unprecedented times, the reality is likely to be very different than we anticipate.

Using technology to keep your employees safe

Companies across the globe face many challenges when it comes to returning to the office, and it can be hard to know the best way to ensure employee welfare is maintained. We’ve pulled together the top four features to look out for in any people presence management software:

Employee and guest screening

Screening all employees and guests before they arrive at the property ensures that only those who meet your organization’s onsite criteria are granted access. It’s also incredibly beneficial to get alerted when you encounter a person who does not meet your criteria so their access can be restricted.

Touchless sign in/out

The fewer surfaces we touch in the workplace, the better for slowing the spread of germs. Ensure your software has the option for employees and guests to enter and exit your location using a touchless kiosk, QR code poster, mobile app, or via the front of house team. These systems reduce health risks, improve overall hygiene, and create peace of mind for anyone entering or exiting your property.

Onsite policy acknowledgement

Make sure that everyone who enters your location is aware of your organization’s requirements by using a system that allows them to acknowledge your onsite policies. This could be as simple as asking them to agree that they will use hand sanitizer or stay six feet away from other people. For any question not answered correctly, someone on your team can be notified.

Limit numbers onsite

Automatically set the number of people allowed to be onsite at any one time rather than leaving it up to an individual. This feature takes the responsibility off your receptionist or facilities team and ensures that anyone attempting to gain access after your maximum number is reached will not be allowed to enter, and one of your employees will be notified. This is a great feature to help manage density within your office space.

MRI Workplace Central offers these and other features to help you keep your organization and those within it safe and secure. Watch the webinar here to learn more about how technology can help you prepare for the return to office and beyond.

The post 4 essential workplace tech features to manage the return to office appeared first on MRI Software.

Commercial and residential real estate firms have undergone a digital transformation over the past few years, and when the pandemic forced many to social distance and work from home, that transformation was dramatically accelerated.

Even with return to office discussions underway, work will likely not look the same as it did before, and neither should your business operations and data practices. By implementing cloud services for your real estate business, you can mitigate both risk and cost while preparing for future growth. Here are just a few of the many benefits of cloud migration for commercial real estate firms.

Remote access

This past year has proven that not only can businesses maintain productivity in a work from home environment – some employees thrive in this environment. As organizations everywhere are looking towards what the office of the future will look like, your system’s accessibility or lack thereof shouldn’t have to be a driving force in deciding what’s best for your company or its employees. Cloud services can allow you and your employees to securely access your data and applications from anywhere.

Stay at ease and up to date

Some real estate organizations prefer to house their technology and data on their own servers, but this choice comes with its own set of risks and costs to the business. With cloud services, your staff can focus on tasks that drive value to the business instead of doing double duty as tech experts. Through cloud services, you can ensure that all employees are using the most up-to-date version of software, simplifying the support process and enabling you to maintain consistency across your business.

Scalability

As your real estate firm takes on new properties, projects, and staff, cloud-based solutions will give your business the flexibility it needs to grow. Many real estate companies end up migrating to the cloud only after they’ve outgrown existing systems and reached a point where the business can’t pursue new opportunities. A proactive cloud migration will ensure that your firm’s growth won’t be limited by inflexible technology.

Dedicated help

Using cloud services also offloads the responsibility of having to support servers, software and data backups to the organization you choose as your provider. With the help of dedicated IT support and a toll-free help desk, you’ll receive fast, efficient and effective client services. In addition to dedicated support, you can also work with your provider to develop reports and distribution guidelines that adapt to the way you do business.

Businesses across the real estate industry are pivoting to the digital environment and shaping the future of the office. With MRI Cloud Services, your organization can prepare for tomorrow and implement solutions that work for you, whether you’re at home, in the office or anywhere else. Learn more about how Cloud Services and other digital solutions can benefit your business.

The post 4 benefits of cloud migration for real estate firms appeared first on MRI Software.

MRI Software’s annual users conference is back in person for 2021, and we couldn’t be more excited to see everyone face to face.

Just like previous conferences, you’ll have the chance to network with partners and industry leaders and gain valuable insights from MRI experts and other MRI users.

Here are just a few reasons you should register for our 2021 users conference, MRI Ascend Cleveland.

1) We’re in person and in The Land
Are you tired of virtual meetings? Hit the road and visit the heart of rock and roll in Cleveland! We can’t wait to host you in MRI’s hometown to celebrate our 50th anniversary.

2) Live learning
Attend a variety of live sessions, from panel discussions to partner demos, and earn some sweet CPE credits (10+ hours!)*. See MRI’s latest innovations firsthand and learn how to get the most out of your software.

3) Get your networking on
Step out from behind your computer screen and meet face to face with industry visionaries, MRI staff, and 60+ partners. You’ll expand your personal network more in three days than you did through all of 2020.

4) Hang out in the Support Hub
The Ascend Support Hub is back! Our team of experts will be available throughout the conference for one-on-one meetings to assist with all your needs.

5) Have a rockin’ good time…
We’re celebrating 50 years in business by going all out with the best clients in the world: you! We’re highlighting the best of Cleveland on and offsite, and can’t wait for you to join us.

6) …while being safe, obviously
While we’re super excited to see you in person, don’t worry – the safety and wellbeing of everyone at the event will be our top priority. Enjoy your time at MRI Ascend and rest assured that we will adhere to all CDC guidelines. More hand sanitizer? Yes please.

7) Celebrate with us on our 50th!
Oh, and did we mention that we’re celebrating our 50th anniversary at MRI Ascend? MRI pioneered the real estate software industry 50 years ago, and we can’t think of a better way to celebrate than with our clients, partners and staff.

We can’t wait to see you at MRI Ascend Cleveland! Register today and save your spot.

*MRI Software is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of a continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. In accordance with the standard of the National Registry of CPE Sponsors, 1 CPE credit will be granted per eligible 50-minute hour.

The post 7 reasons to attend MRI Ascend Cleveland appeared first on MRI Software.

When you think about your real estate company’s data and reporting, do you think about how it’s driving positive business outcomes? Or do you think about the hours spent exporting and manipulating spreadsheets to get the information you need?

Most real estate businesses collect ample property data, but many run into challenges accessing their data, curating the data that matters, trusting its accuracy, and putting it to use to drive business outcomes.

The goal is to turn data into actionable insights that drive better decision making. Overcoming the challenges your business faces requires you to make timely and accurate decisions, and the right technology can empower you to do so with confidence while differentiating your business from the competition.

The key data challenges facing real estate businesses

The first challenge facing many businesses is data availability. It sounds obvious, but the people who use portfolio data to make decisions should be able to access it in real time when they need it.

Instead, they likely receive manual ad-hoc extracts of data, subjecting users to what is commonly called “spreadsheet hell.” The information is often difficult to manipulate and understand and becomes outdated quickly.

This siloed data creates a lack of data consistency in the organization. The typical real estate company has several key players with an interest in the business’ data—Executive leadership, property management, leasing, asset management, legal, etc. And each group needs the data for a different purpose, and often may have their own data systems and sources.

This causes an unwanted game of telephone tag or round of emails as frustrated recipients seek to gain clarity over what is accurate and timely. As spreadsheets of exported data are passed from team to team or pulled in isolation of each other, the truth gets messy. The result is an unclear or even inaccurate story.

When decision time comes, data (i.e. the great equalizer) is dismissed in favor of each group’s own biases.

Finally, if the goal is to turn data into action, overcoming data curation issues is critical to real estate business planning. Curation is the process of managing data to make it useful for discovery and analysis. In practice, it’s about providing a structure for the data and a system for maintaining it over time.

During the “How to Win with Data” webinar, Mark Sigal, CEO of Datex Property Solutions said this about data curation:

Light is the best antiseptic. If you shine a light on your data to understand what you have and where it exists, and bring it together in a constructive fashion, it becomes directed and manageable. You get beyond paralysis analysis and can turn data into the key to a solution.

Using technology to turn data into action

The concept of business intelligence has gotten a bad rap over the years. You may have heard horror stories about the time and cost required to fix broken systems and overcome the challenges described above. But it doesn’t have to be that way. Implementing a new system can quickly solve a few basic issues at the outset, then you can fine-tune it over time.

Here’s what technology can do to quickly help you start winning with data.

1) Make data accessible to the individuals that need it. This transparency involves aggregating disparate sources into a single source of truth that the right people can access when they need to.

Remember the telephone game? That frustrating game comes to an end when the property management, accounting, brokers, lenders and others can all refer to the same data source in real time.

2) Make the team users of the data. Now that the right people are looking at the right data, give them a tool that enables them to turn data into insights without ever getting a data science degree. The data should be collected appropriately, easily visualized, and accessible through self-service. An employee should be able to look at a data set and intuitively analyze it in ways that unlock learnings about the business.

We’ve talked about “spreadsheet hell,” which really creates two problems. The first is that the data gets lost in spreadsheets, which are outdated and hidden away in individual computers. The other is that drilling into the information once its in a static form is difficult. To get your team using, learning from, and making data-driven decisions, the system must be easy to use.

Large volumes of data are only helpful to your organization if it can be understood and used to boost performance. MRI Analytix helps your business manage large data sets in a way that could drive business decisions. The system can improve your team’s ability to streamline data and better leverage complex information needed to support the business. The tool can make data visible to stake holders, enable quick decision-making in volatile conditions, and help reduce errors and bottlenecks in the process. Learn more about how MRI can help you use your data.

The post How to overcome your 3 biggest challenges to start winning with data appeared first on MRI Software.

We’re proud to announce that MRI Software has been recognized as a Technology Leader in the SPARK Matrix^TM: Integrated Workplace Management Systems Research, 2021 from Quadrant Knowledge Solutions.

Quadrant Knowledge Solutions, a global advisory and consulting firm, conducts strategic research each year to determine the capabilities of each organization and their ranking and positioning for Technology Excellence and Customer Impact. MRI’s designation of Technology Leader is an affirmation of MRI’s commitment to provide organizations with advanced technology that enables them to become visionaries within their industry.

Equipping clients to be visionaries for tomorrow

MRI pioneered the real estate software industry in 1971, and since then, we’ve provided innovative solutions to forward-thinking technology decision makers so that they can both meet today’s challenges and prepare to overcome the challenges of the future. Even after 50 years, MRI remains a technology leader by being a champion of open and flexible solutions that allow companies to work the way they want.

As proven by the disruptive events of 2020, technology that allows real estate businesses to remain flexible will be the way forward for the real estate industry. In physically separating people from their offices, their employers, and each other, the pandemic has forced organizations across the globe to create connection and flexibility with technology. MRI Software has been helping our clients do that for 50 years, and as a Technology Leader, we will keep arming clients with the solutions they need to succeed in the future.

Learn more about MRI’s Integrated Workplace Management System and how it can benefit your organization.

The post Quadrant names MRI Software a Technology Leader in Integrated Workplace Management Systems appeared first on MRI Software.

In the aftermath of the pandemic, many organizations are re-evaluating the amount of available workspace in their leases, whether for space management or financial reasons. This requires real estate accountants to modify leases properly and stay compliant with GAAP and lease accounting processes.

What is a modification of a lease under GAAP?

Any changes to your financial obligation during the term of the lease will cause a modification to your lease accounting capitalization schedule from the date you realize the change until the end of the term. Modifying a capitalization schedule may require a different set of calculations than your original lease schedule. When you modify your lease schedule due to a change in the term of the lease, or a change to the liability, you can change the discount rate to be based on the new/remaining term.

Common examples of lease modification triggers include:

• Early renewals
• Extension of lease
• Cancel early
• Contraction
• Each time you receive an allowance payment from the landlord
• Blend & extend
• Rent tied to outside index (CPI) – Different rules for FASB & IASB
• Renegotiate your rent
• Expansion – Creates a new ROU Asset, therefore you will create a new capitalization schedule for the new space as opposed to re-measuring the existing schedule.

Lease accountants need to be aware of what will trigger a lease modification and how to properly account for it. Be sure to work with your legal team and management to ensure all lease changes are accurately and completely included in your financial information.

Accounting questions to ask yourself before entering a lease modification

The current trend of re-evaluating available workspace and leases means that lease accountants need to ensure they’re following compliance guidelines and best practices under ASC 842.

Here are four accounting factors to consider before modifying a lease.

1) Dates – What is the effective date of the modification?

The date in which the modification becomes effective is important when you are entering changes under the new standard. Your accounting policy will dictate when the negotiations are considered final, whether it’s in writing or verbally, and this will become your modification date. There is usually a gap between the official modification date and the effective date of the changes in terms. This impacts the recognition of the measurement of lease liability and ROU asset. For example, a lease extension is being negotiated to start in September 2021 but is signed in July 2021. The effective date of the modification will be July 2021 and all financial information should be adjusted as of that date.

Be careful around quarter or year end reporting and make sure all changes in those periods are included by gathering all pending lease modifications from legal or lease administration. It’s important to use the correct date of modification because it determines what interest rates you use, what expenses are recalculated for the remainder of the lease, and the new liability and corresponding ROU asset.

2) Costs – How will a change in lease expense affect my financial balances? How will current interest rates affect my lease accounting when I modify?

Any increase or decrease in your overall cash payments for the existing lease are going to directly impact the liability and asset on your books. Additionally, the modification date will dictate the interest rate to use on the new liability as noted above. The new lease liability will be remeasured as of the effective date of modification using the new interest rate and lease payments. Any difference in the liability from what’s been previously recorded will be adjusted against the ROU asset.

3) Increasing or reducing existing space – How will my accounting numbers change as I downsize or increase my available workspace?

Often, an existing lease will be modified for the addition of space, which changes the terms of the original lease and a brand-new lease is papered for the same property. For accounting purposes, we can treat this as a new lease with a corresponding interest rate as of the “new lease” date for all the new space. The new lease will begin immediately following the end of the old one.

If an existing lease is continuing with no changes and additional space is being leased from the same landlord, then the new space should be accounted for as a new lease with current interest rates, and the existing lease should remain unchanged. These will be treated as separate leases under their respective terms.

Any reductions in lease space would be considered partial terminations and the liability and ROU asset must be reduced as of the effective date of the modification. This may also result in a gain or loss for any difference in reduction of the lease liability as compared to the reduction of the right-of-use asset.

4) Lease term – What if I am extending my lease term? Will I include options on the modification? How are my balances impacted by a reduction in term?

If you are extending a lease, the effective date of the modification will dictate the new interest rate which will be used to calculate the liability and adjust the ROU asset. This should not be accounted for as a new lease, but as a modification. Consider if any options were previously included as reasonably certain upon adoption before adding the new amounts, as they would have already been included in your balances.

A reduction in lease term will result in a modification of the liability and asset that is less than you have recorded. Any early terminations may result in a gain or loss for any difference in the reduction of the lease liability as compared to the reduction of the right-of-use asset.

If you are modifying a lease to end earlier and you had previously included options that were not exercised, you will have a decrease in the liability and potentially an adjustment to expense for the inclusion of the option payments in the original liability. Reasonably certain options that may have been included upon adoption potentially are not deemed certain upon modification of the lease due to new economic circumstances and will need to be considered for the modification.

Using software to simplify the lease modification accounting process

Utilizing purpose-built software can make it easier for you to follow the proper processes when entering lease modifications. MRI offers a variety of lease accounting software solutions for both SMB and enterprise organizations that can help you stay in compliance with IFRS 16, IASB, GASB, and FASB requirements. Keep your organization in good standing with software that simplifies journal entries for rent concessions, capitalization schedules for payments and asset management, and audit trails to easily access and review your data. See how MRI’s lease accounting solutions can benefit your business in the aftermath of COVID-19 and beyond.

The post Key accounting factors to consider when making lease modifications appeared first on MRI Software.

In an era where real estate firms are inundated with data, it can be hard to know what data is most important to your business, and it can be even harder to uncover that information in the first place. CFOs and Controllers in real estate firms need to track commercial real estate metrics to ensure the success of the business, but gathering all the necessary data to calculate key metrics is difficult as it can be scattered across the organization. With all the manual work it takes to track down data, the metrics will likely be out of date by the time you get around to using them.

With a business intelligence and analytics solution, commercial real estate firms can visualize their current business metrics, monitor KPIs and drill down to the granular details to make strategic data-driven decisions and deliver for investors.

Here are just a few of the financial metrics that your commercial real estate firm can and should be tracking with an analytics solution:

1. NOI

The right analytics solution can not only give you a visual representation of your net operating income – it can also show you the underlying metrics that influence it, like capital and operating expenditures. With the capability to drill into these stats, you can better understand the ways in which they impact your business and better identify how best to prioritize your organization’s time.

2. Receivables tracking

All businesses have certain expectations when it comes to payments from their tenants, and with the power to keep track of your receivables in an easily accessible dashboard view, you’ll be able to identify late payments and assess risk and impact to cash flow based on that information.

3. Budgets vs. actuals

Your organization’s budgets are designed to meet the strategic goals of the business, and by not tracking to those budgets, you run the risk of missing your marks. With an analytics solution, you’ll be able to gain visibility into deviations and track your budget against your actuals, without the hassle of digging through data. Comprehensive dashboards can provide relevant information tailored to your business and personalized needs while still giving you the flexibility to expand upon them if necessary.

4. Occupancy

A high-level view of your occupancy rates gives you not only a better understanding of your tenants, but a more thorough picture of how your space is being used. A solution that helps you visualize occupancy metrics and tenant mix can equip your business with a new understanding of the relationship between your leases and your physical space, instilling more confidence in your strategic planning.

Visualize CRE metrics with analytics tools

A powerful business intelligence and analytics solution can give you a more detailed view of the CRE metrics within your organization, equipping you with the ability to make data-driven decisions and measure success. Learn how MRI Analytix Portal and Data Store arms your business with the ability to assess trends and identify outliers and prepares you to become a data visionary.

The post 4 commercial real estate metrics to drive financial success appeared first on MRI Software.

For commercial real estate investors and owners, mitigating risk requires making informed decisions based not only on accurate data, but also on the projected return on investment and rate of return. One such tool asset managers can use to assess the value of a given investment is the internal rate of return (IRR) formula.

Even if your current processes and operations include knowing how to calculate IRR, understanding its purpose and how it’s being used in the real estate industry can help guide you in the use of the formula.

What is internal rate of return and why is it important for real estate?

Before investing in a property, real estate investors need to know if that project will deliver profitable returns. In its simplest form, IRR is the percent that an investor will earn if a certain project performs as expected.

This statistic is important for commercial businesses with multiple properties managed by separate parties because it gives a better picture of what your investments might yield, allowing your business to make the determination as to whether a project is worth the time and effort. Calculating IRR requires an input of real data based on real assumptions, which means the data you’re using to make assumptions should be rock solid to ensure accurate results.

How to calculate the Internal Rate of Return

One way to determine the internal rate of return on a project is to calculate it manually by following a set formula. In this formula, the expected cash flows for your investment are given and the Net Present Value (NPV) equals zero. More information on what that formula looks like in practice can be found here, and once the internal rate of return is determined, your business can put it up against the cost of capital to see the financial value of the project based on your new and existing data.

How IRR is used across real estate

Utilizing the IRR formula can help asset managers in real estate businesses not only assess the value of a property now in comparison to other potential investments, but it can help determine the cost of the project over time and in response to different potential scenarios.

However, most property management systems don’t have the ability to calculate IRR in-system, which leads users to export data from the system into a third-party application, calculate IRR, and then reupload data into their property management systems. Many times, that system can be as unstructured as an excel spreadsheet. The danger in doing this, however, is that the data you plug in to calculate the Internal Rate of Return needs to be as accurate as possible, and whenever you export data into a third-party application that doesn’t integrate with your property management system, errors can come into play quickly.

This problem is exacerbated by the models that many asset managers operate, where employing multiple managing agents means that they have to manually model IRR from multiple disparate data sources. This makes forming a true comparison of IRR across different assets a challenge, often consuming the time and effort of at least one staff member per year.

For asset managers in the real estate industry, knowing how to calculate IRR is becoming an important part of the job. Calculating IRR with a tool that doesn’t integrate with your processes, however, can create increased risk for your business. Learn how MRI Investment Central can integrate with your property management system, keeping all your data on the same track and giving you confidence in your calculations.

The post How to calculate the Internal Rate of Return and what it means for the real estate industry appeared first on MRI Software.

This blog was written by Andy Hamilton, a Consultant at Proactis.

Proactis, a certified MRI Software Solutions Partner, helps property management companies control 100% of their spend. Their solution transforms the Source-to-Pay processes, which helps organizations save money and create efficiency gains while increasing compliance and reducing risk.

Over the years, I’ve worked with many organizations in the property management sector, including CBRE, Knight Frank and Savills, to help them drive better value from their spend control and management processes. Through this experience, a number of key themes have emerged:

1. React to changing market conditions with flexibility and agility

Whether you’re managing your own company’s properties or those of your clients, controlling and managing spend is critical in terms of getting the best value possible for the goods and services you purchase – no matter how things change.

If the latest events have taught us anything, it’s to expect the unexpected. And with that mindset brings the need to develop agile strategies that can change should your environment shift overnight. Time doesn’t stand still, financial obligations must be respected, and business needs to keep going.

Some companies have been able to adapt their processes. For example, Proactis customer Honeywell expanded its production at its aerospace facility to manufacture N95 masks for Covid-19 protection.

Other institutions, such as the University of Sussex, have embraced technology to ensure they can keep functioning and, in this case, deliver higher education.

Agile Purchase-to-Pay (P2P) also proved critical for Bright Horizons, with a portfolio of over 320 nurseries, as it enabled the company to respond to the pressures Covid placed on the business when it was forced to shut the majority of nurseries during lockdown. Having the ability to control and manage cost effectively and centralize more purchasing was key to successfully navigating through the initial lockdown.

For Finance teams in many organizations, I have found that the situation has actually highlighted a number of areas that can be improved – not only short-term fixes, but for the long-term running of the business. For example, systems that connect teams, simplify reporting, centralize data and connect with the wider organisation can redistribute workload and reduce paperwork.

The impact of Covid forced many to accelerate their journey on the path to digital transformation.

2. Make it simple, but accurate

Obtaining the best value is critical, not only to success, but in some cases to survival. An agile approach to spend management helps achieve this by improving the effectiveness and transparency of both strategic and tactical sourcing processes, while reducing administrative time and effort. Savings can be realised by driving on contract spend and proactive expenditure control through the P2P front-end.

In complex property organizations in particular, it is key to be able to accurately determine who should authorize spend, how the recoverability should be classed, and ultimately where it should be allocated through the underlying property management system.

3. Gain visibility and control

Visibility of spend, through the entire process – from request, through comparison against service charge, to summary analysis – is invaluable to every level of decision-making. Budgets are tight across most businesses, with many having to do more with less.

It’s crucial for property management firms to closely manage costs against budgets, ensure that costs are controlled within the boundaries of the service charge provision, and have the flexibility to react to operating changes at any stage in a process.

4. Improve efficiency

A common objective, and challenge, that I often hear is whether Finance functions can improve process efficiency or not. For example, a strong P2P process, underpinned by well-integrated technology, supports ‘right first time’ invoice submission. This in turn reduces invoice queries and processing time. Imagine the value and reduced time when an invoice can be matched first time to an approved PO, goods receipted, and suppliers validated!

5. Eliminate overpayment and reduce fraud

Another important goal for Finance teams is eliminate overpayments and reduce invoice fraud. Well-adopted and efficient P2P processes prevent payments to unknown suppliers, duplicate payments, or payments when goods or services are missing. I have found that this often results in significant reductions in wasted resources for the buying organization.

6. Add value without duplicating functionality

My experiences have proved that you can deploy effective spend control around just about any core system. In fact, deploying spend control that’s aligned with your property management system is the only sensible approach when seeking to deliver truly quantifiable value.

True best-in-class, agile P2P systems are “agnostic” of other systems but are built with clear integration points that utilize industry standards and tools to make integration into a product management system easy to implement and manage. Such integration ensures that you can get best-in-class procurement capabilities aligned with the familiarity of your property management system to deliver simplicity and maximize user adoption.

7. Integration is not just a suggestion

Proactis and MRI Software work in partnership to provide a complete end-to-end system for property companies around the world. Combined, our systems are truly agile and integrate seamlessly with each other. They create a complete solution that enables property management organizations to operate in a more effective way and ultimately better serve their customers.

As we mentioned above, Proactis is an MRI integration Partner! Their procurement and spend management solutions can streamline business processes, ensure compliance and drive down costs. To learn more about Proactis, visit their website.

The post 7 key considerations for better spend control in property management appeared first on MRI Software.

One of the keys to successful facilities management is preventive maintenance (PM). Implementing proactive service inspections for the company’s assets helps your team get ahead of an unforeseen problem.

Here are five quick tips and tricks to optimize your preventive maintenance plan.

1. Identify Preventive Maintenance Systems 
   • When beginning a preventive maintenance implementation, it’s important to remember to keep it simple. You’ll want to create a comprehensive list of your assets to identify maintenance frequency, cost of repair, and liability.
2. Use a Standardized Naming Convention 
   • When recording these assets, efficiency is key! Use a standardized form to avoid unnecessary information.
3. Limit Data Collection for Accuracy 
   • Avoid wasting time by making a plan before collecting your data.
4. Photograph Equipment
   • In addition to your written data, photographing equipment serves as the visual counterpart in your PM plan.
5. Track Asset Location
   • Recording asset location is the final step of a good PM plan. This speeds up the time it takes technicians to find each piece of equipment.

Quality assurance is all about keeping your assets in line to prevent maintenance problems down the road. This also allows you to set your team up for success.

See how pairing a preventative maintenance plan with CMMS Software brings full efficiency to your team’s processes by setting up a time with our team.

The post 5 tips & tricks for a successful preventive maintenance program appeared first on MRI Software.

As the vaccine rollout continues and real estate occupiers across the globe are assessing local health and safety requirements, everyone – from employees to landlords – is asking the same question. When and how will companies bring people back into the office? Answering that question requires finding a solution for the return to work that prioritizes the needs of the business and of its employees. No one office will return the same way, and for that reason, businesses need to have a solid plan in place to address those who wish to work onsite full time and those who are more productive working remotely.

We understand that workplaces are about driving productivity and collaboration, which is why we’re introducing MRI Workplace Central, a set of solutions that enable occupiers to create a safe, flexible work environment that empowers employees to make optimal use of your workplace. Workplace Central can be your one-stop shop for bringing employees back into you’re the office and manage your space requirements as the needs of your business change.

Plan for the right reopening

As one survey showed, most occupiers are planning on bringing their workforce back gradually, with some remaining in their work-from-home schedules full time. Maximize your office space with Workplace Central by easily planning your new occupancy floor plans and return-to-office scenarios to ensure a safe and successful reopening.

When employees come back to the office, they can return to a workplace that is designed specifically for collaboration across teams, whether those teams are in-office or working remotely.

Track who’s on site with presence management

Workplace management isn’t just about office layouts – it’s about establishing clear lines of direction on where employees are supposed to go, having established procedures for visitors, and booking desks for employees working on a hybrid schedule. Gain visibility into who’s on site with solutions that let you fully track the people coming into your building, from visitors to contractors and even full-time employees.

For those who might not spend every day of the week in the office, this means utilizing booking technologies that let them reserve a desk for themselves, schedule a meeting room, and allow visitors into set parts of the premises – all from a mobile application.

Modify the space to suit your needs

The pandemic hasn’t just caused a shift in market trends. It’s completely changed the way we think about office space. The workplace will need to be constantly flexible and open to reinvention based on the needs and desires of its employees. Workplace Central gives you a full view of real time and historical trends to highlight shifts in usage and adjust layouts to meet changing demands for space.

As more employees return to the office and use the space over longer periods of time, you’ll gain a better understanding of how the space is being used. With this knowledge, Workplace Central can enable you to readjust your original plan to better meet evolving space needs, whether that means adding room for collaboration or removing desks.

Optimize your office with usage data

While changes will always need to be made to accommodate your employees, you also need a workspace management tool that gives you greater insight into how changes to your office are impacting the business and how your leases might need to be adjusted as requirements continue to change. Workplace Central lets you leverage reliable, strategic insight into your reconfigured workplace to identify areas of improvement and lease re-evaluation, utilizing AI-powered lease abstraction.

Learn more about how you can utilize Workplace Central to the benefit of your business and your employees in this webinar.

The post 4 ways to build a better office with MRI Workplace Central appeared first on MRI Software.

Organizations that occupy real estate have faced many challenges over the past year. In particular, the spotlight on the relationship between tenant and landlord/agent has intensified – with a greater-than-ever need for clear communication and collaboration. Regardless of sector, the way in which businesses provide services, sell goods and interact with their customers and employees has changed, and many of these changes are here to stay.

The future of leases

Real estate lease agreements as we know them have evolved during the last 12 months, with the introduction of new clauses, increased scenario coverage, more options available, and a shift towards turnover-based structures. The very nature of negotiations over the life cycle of the lease are therefore becoming increasingly key to the long-term profitability of a business, in terms of driving down costs and reducing the extent of obligations.

Occupiers have naturally moved to explore and push for more flexibility within lease agreements to accommodate a rise in scenarios such as underutilized office space due to employees working from home, and account for space that perhaps cannot be legally utilized due to COVID restrictions. Occupiers may become more reluctant to signing up to long-term lease agreements based on fixed space, instead there could be more of a movement to demand more defined types of space around temporary or flexible areas with differing options and unit costs. It begs the question; will we see more short-term leases forming part of occupier real estate strategy? The added attraction of this approach of course is that those short-term solutions often do not require inclusion on financial statements and lease accounting schedules, which may act as an additional driver.

The introduction of COVID-type clauses brings a whole new dynamic to real estate lease negotiations and management. These clauses can vary significantly depending on country, region or property use; however, there have been such scenarios recently of termination options made available to the occupier linked to financial stability of the business based on COVID factors, as well as mutual terminations and break options linked to COVID or pandemic-related scenarios.

Many MRI occupier clients have proactively moved to renegotiate and re-gear leases on mass to agree a more sustainable commercial model, whether that be concessions, deferrals or a change in payment frequency. Recently, particularly in the UK, occupiers have sought to renegotiate quarterly rent payments to monthly, more akin to the US leasing model – spreading the risk thanks to smaller periodic payments. The impact this can have on reporting and internal processes means technology alignment is particularly significant if this negotiation covers a large and complex portfolio.

New lease variables

As the impact of the pandemic forces occupiers to re-evaluate the structure of leases, it’s bringing to the fore other questions and trends around how real estate agreements are put together. Take sustainability, a hot topic in many walks of life, and none more so than sustainability within the property sector. ESG clauses are increasingly being imposed within lease agreements to enable landlords to more accurately track progress on ESG initiatives, which naturally require the occupier’s permission. This is placing responsibility on an occupier to now share sustainability data for more of a detailed indication to the landlord of the premises being a “green building.” We are seeing this become a common requirement within the market where occupier organizations have a need to understand much more than their financial obligations, and now have a potential legal obligation from a sustainability perspective across their portfolio of lease agreements, which we anticipate could have a consequence when negotiating any sublease agreements, too.

For retailer occupiers, we are also seeing an increased movement towards desirable turnover rent based agreements with landlords, with many landlords also proactively presenting a regearing of the lease to restructure the agreement. This model creates a more interdependent relationship between landlord and occupier and is aimed at benefiting both parties. This is evidently a more attractive proposal for when times become tough as we have seen during the pandemic, where stores out of the occupier’s control are legally required to stop trading.

Role of technology

In the same way that there has been a natural evolution to single source of truth; i.e., a single lease record driving all payments, lease accounting schedules, key event alerts, etc., there is now a movement toward Artificial Intelligence-powered occupier management.

For a sector that has been notoriously slow to adapt to change and adopt technology, the pace at which real estate lease structures are evolving demands a faster movement toward innovation and automation. Many occupier technology procurement processes are no longer simply looking at functional requirements around key business processes, but are instead conducting deep evaluations of how best to maximize the integrity and auditability of real estate and lease data, to provide confidence in the data held within systems not just at the point of go-live, but on an ongoing basis. To be able to leverage lease data confidently, to rely on auditable data to inform strategic decisions, to have visibility of the obligations across the portfolio, to identify key clauses and options directly linked to opportunities to drive down costs, are all of paramount importance. The introduction of AI to real estate and integration with core real estate management applications is a game changer, with the ability to move away from manual, time-consuming, error-prone data entry methods and instead leverage clean, structured, and complete data captured at source from lease contracts. With leases becoming more complex, technology needs to be robust, flexible, and scalable. We have seen more and more organizations incorporate additional departments like legal, along with senior stakeholder involvement as part of a procurement process, often with a project steerco, given real estate now has more of a seat of influence at c-suite level than perhaps ever before.

As a whole, customer and employee habits look likely to continue changing, lease agreement structures are evolving and becoming far more sophisticated and far reaching, new trends across occupier requirements are developing, and technology’s role in supporting and underpinning real estate strategy will continue to become more prominent over the coming months and years as the occupier space becomes more complex. It’s therefore absolutely key to the long-term vision of occupier organizations to fully understand their obligations beyond financials in order to leverage their portfolio, and technology will be fundamental to successfully doing so.

Learn more about getting the most out of your leases.

The post The evolution of real estate leases appeared first on MRI Software.

Saving resources and going green is something many of us want to do, but at what cost? When it comes to MRI NETfacilities work order management software the costs of going paperless are dwarfed by the benefits. Instead of piles of forms and papers you have a paper-free web based system that liberates you from paper.

The overall goal in using MRI NETfacilities’ CMMS with work order management software is to automate functions. This eliminates the need for a paper trail and reduces administrative tasks boosting efficiency throughout your organization while increasing ROI.

• Time, energy and resources are saved by cutting out manual processing steps.
• Everyone is connected, whether it’s a tenant, employee or management, enabling them to submit work orders and enabling you to manage how they’re completed.
• Automatic work orders allow preventive maintenance items to be scheduled without paper or calendars.
• Our system is web based so there’s no need to print work orders or reports because it’s accessible anywhere, anytime, via PC, Smartphone and Tablet.
• There are many benefits to a business when its life blood is no longer paper. In a paperless office,
• Email replaces the need to print, send snail mail and ship documents to employees or vendors, cutting costs on postage and eliminating the budget for purchasing paper.
• In a paper-heavy office your documents can be spread out in several different filing cabinets in several different rooms making information at your fingertips in seconds a reality.
• A central, web and cloud based management system can be accessed by multiple people from any location. If your files are stored in one electronic location important information can be retrieved and shared much more easily.
• The risks of losing important documents are less when information is kept on cloud computers.
• With information stored electronically employees working in different facilities and vendors have access without the need for multiple copies of documents floating around. This improves efficiency and employee morale.

Due to today’s lean operation approach facility work order management software has never been more important. A paperless process and “green” approach to operations results in far less paper, printing and filing. In the past you may have wondered how many trees were sacrificed to enable your company’s paper-powered process but the real green to consider is the money saved by MRI NETfacilities’ CMMS due to increased efficiency, the speed at which your department can react and decreased repair costs and downtime and increased ROI.

If you want to learn more about MRI NETfacilities CMMS and how its worker order management software can not only save paper but save you time and effort, making your department more effective and efficient, contact us today by calling us at 1 800 321 8770 or contact us here.

The post Going green: The paperless approach to work order management appeared first on MRI Software.

Yabba dabba do. The origins of asset maintenance management as a concept and business strategy goes way back.

Maybe not quite as far back as the days of Fred Flintstone, but its evolution from the Stone Age practice of using paper and pen for work orders to the Digital Age of seamless integration of data and processes has rocked the world–in a good way–for facility and maintenance managers.

Asset Maintenance Management in the Early Days

The First Industrial Revolution was marked by the shift from making products by hand to machine production and the rise of factories. Asset maintenance management in those days boiled down to running a piece of equipment until it broke down. The idea of preventative maintenance was unheard of.

Then electricity-driven machines flipped the switch on production, and it became necessary to improve on the previous run-to-failure practice. More proactive approaches were put in place to take care of assets. These maintenance approaches included regularly-scheduled tasks like replacing belts or filters. However, this strategy was wasteful because parts would get replaced whether they needed to be or not.

Preventative Maintenance in the Wake of WWII

The need for rapid recovery after World War II led to increased competition in the industry. Manufacturers could no longer afford downtime.

Japan solved this problem by employing a system of following the manufacturer’s instructions on how to care for a machine while it was operating. Although a definite improvement, this preventative maintenance strategy was still inefficient and expensive because parts and materials were used for replacement and maintenance before it was truly necessary.

Reliability-Centered Maintenance Takes Off

The arrival of the Boeing 747 brought with it the concept of reliability-centered maintenance, though it was United Airlines that actually coined the term. The airline industry needed highly efficient maintenance strategies to reduce accidents.

Soon other industries recognized this new maintenance strategy’s value and its impact on profit. 

Asset Maintenance Management Through the Tool of Technology

Innovations in technology have transformed every aspect of our daily lives–including the way asset maintenance is managed. From simply revolutionizing the way work orders are handled and the use of mobile apps all the way to the emergence of “smart” factories,” the advancements of the Digital Age are no longer nice-to-haves for companies who want to stay competitive.

Software Solutions

A computerized maintenance management system (CMMS) and/or enterprise asset management (EAM) system increases efficiency and productivity by optimizing your processes surrounding work orders, preventative maintenance schedules, material use and regulatory compliance.

These automated software solutions help managers organize, track, plan and measure everything relating to maintenance on a digital platform. They also allow managers to collaborate in real-time with technicians and customers alike.

For example, instead of technicians needing to meet in person with a supervisor to get a work order scribbled on a piece of paper, they can log in to retrieve a work order. All the information they need about the job, a part and its location, or when the last service was performed and by whom will be right there where they need it.

And these cloud-based solutions work even harder.

Comprehensive CMMS software can interpret all your data, so you and your team can make better decisions about workflows, vendor assignments, and material orders. It can also help ensure your business stays compliant with regulatory standards.

An enterprise asset management (EAM) solution allows you to store key information about all types of assets and equipment and track their lifecycles. Not only can you input an asset’s make, model and serial numbers, you can upload an image of the equipment and tag it with an internal unique identifier.

In addition, it gives you the insight needed to implement best practice maintenance standards to extend the life of the asset and reduce the total cost of ownership (TOC).

Mobile Apps

Today, a smartphone or some kind of handheld device is as much a part of a technician’s tool belt as a wrench or hammer. Almost every maintenance team depends on wireless technology to communicate from remote locations. And by using the camera or video function of their phones, they can report any issues with an asset with unquestionable accuracy.

But the benefit of using a smartphone on the job is much more than a convenient way to send and receive information.

A mobile app allows field technicians the ability to create work orders on the spot, close them out and record their hours and the materials used to complete the order. In addition, preventative maintenance apps provide an efficient way for users to manage scheduled maintenance tasks and a convenient way to access important information like warranties, repair history or manuals without ever having to sit down at a desktop PC.

Robots and Other Automation

Highly sophisticated technologies like virtual reality (VR) and augmented reality (AR) are being integrated into maintenance management. With VR or AR, experts can guide technicians at a remote location as they carry out inspections, perform preventative maintenance or make repairs.

Also these Space Age advancements can be used when providing training for technicians in real life isn’t practical or convenient. Simulators allow technicians to learn without the risk of harming themselves or damaging expensive assets.

Furthermore, remote automation allows technicians to perform tasks like monitoring and controlling an offsite facility where it’s inconvenient to have maintenance personnel there all the time.

Sensors and the Internet of Things (IoT)

This is where you just want to sit back and say “Wow.” The Internet of Things (IoT) is the interconnection of computing devices which are embedded in machines, objects, people or even animals. These devices enable the transfer of data over a network and don’t require human-to-human or human-to-computer interaction.

Larger manufacturing environments with more complex operations already use IoT for predictive maintenance (PdM). PdM depends on the use of sensors to monitor and track the condition and performance of an asset during normal operation. That way it can detect issues and intervene before the equipment falters or fails.

For industries where equipment downtime can lead to significant losses, using IoT-enabled technology can prevent such costly failures.

In manufacturing sectors, the use of automated PdM is being explored to create “smart factories.” This latest innovation in automation uses sensors factory-wide rather than simply on individual machines. Sensors on equipment, security cameras, HVAC systems and more collect data and respond with adjustments to increase efficiency and productivity. And it all happens with little or no intervention from humans!

Where Are You Today?

Even if your asset maintenance needs don’t require some of the more George Jetson-like advancements we’ve just explained, it’s time to say goodbye to binders, log books, clipboards and other practically prehistoric asset management tools.

As head of facilities, your job is to continually improve processes and look for ways to increase productivity, efficiency and safety. Our team at MRI NETfacilities can help you discover ways to use the tools of technology to achieve your goals. Learn more by scheduling a demo today!

The post Asset maintenance management: Systems to navigate the changing landscape appeared first on MRI Software.

After the lost year that was 2020, many in multifamily are looking forward to the promise of a brisk leasing season in 2021. All signs point to increased demand and strong pricing. However, property managers who are looking to turn units quickly so that new tenants can move in are met with an emerging threat, which all started on a frigid February day in Texas.

Sherwin Williams, a supplier to many multifamily operators, stated, “In an already challenged supply chain due to COVID-19, the February natural disaster in Texas further impacted the complex petrochemical network causing significant disruptions. These production disruptions, coupled with surging architectural and industrial demand, have pressured supply and rapidly driven commodity prices upward. Recovery has been significant in recent weeks and is improving but is still far from complete. The pace at which capacity comes back online and supply becomes more robust remains uncertain. We have been highly proactive in managing the supply chain disruptions to minimize the impact on our customers.”

On the heels of this statement, I posed a simple question to the Multifamily Share Space social media group which focuses on those working in multifamily:

Is anyone having issues turning units due to paint shortages?

More than 100 reactions and 100 answers later, I knew I’d struck a chord. My non-scientific poll received 100 specific answers to the question, with 90 affirming that they were having issues, while only 10 said they were not. Ninety percent is a big deal. This paint shortage is real, especially with the busy season upon us. As one person wrote, “Hard to fathom a shortage in peak season, ridiculous!”

The few responses that mentioned national contracts didn’t report that they weren’t having issues, so there seems to be value in leveraging scale. That, however, is not possible for everyone.

Many commenters have been working to solve this issue, and their insights should be useful to anyone else caught in the same bind:

Upgrade paint
Work with your supplier to upgrade the paint. This seems to have worked for some, a portion of which reported price matches to the regular paint. There are some concerns about compatibility to existing paint and inconsistent finishes actually causing the needs for additional coats.

Change vendors/brands
Another group of respondents went away from their traditional supplier to find paint elsewhere, some going to retail outlets.

Plan and purchase ahead
Getting out in front of this issue is a smart move, but I’d caution against over buying. One reply indicated that they pre-bought paint based on their summer turn budget so they could have it on hand. While prudent individually, mass buying of limited supply will likely raise prices and exacerbate shortages (e.g., COVID-19 toilet paper shortages).

Although the question was focused on paint, many respondents also mentioned other supply issues for items like appliances, plumbing, lumber and even mulch.

If paint and other supply constraints continue, it may make for another challenging summer, albeit one of a different color than 2020.

About Brian

A well-known subject matter expert, industry panelist, and trusted advisor in the real estate tech market, Brian Zrimsek is Industry Principal at MRI Software. Brian leverages his experiences as a former client, IT leader, and Technology Analyst to help shape product strategy and direction. You can connect with Brian on LinkedIn.

The post Short supplies may tone down the colorful summer leasing season appeared first on MRI Software.

As commercial property owners, increasing the profitability of the business is about more than just finding prospects to add to your portfolio – it’s about which tenants are filling the space, the experience you provide to them as a landlord and collecting all the revenue your organization is due.

Boosting property and portfolio performance starts by filling vacancies with the right mix of tenants that are tailored to your business needs, maximizing the value you both receive from the lease agreement and running your operations smoothly to maximize returns.

Evaluate tenant mix

It’s no secret that now is a challenging time for commercial property owners when it comes to finding tenants. But aligning your leasing pipeline by bringing in new, healthy and productive tenants is the first thing you can do when it comes to boosting your portfolio performance.

By assessing the current performance of the tenants within your portfolio, you should be able to identify which types of tenants are currently doing the best. Follow the numbers and determine the value that each tenant brings to the property, giving you a better idea as to who you should be looking for to fill the space. Visualize performance across your portfolio, separate high performers from at-risk tenant types, and understand where opportunities are and what size they may be. Collect all the information into one place so that the different groups within the organization can see how that pipeline is doing from a tracking and opportunity perspective.

Understand your leases fully

Leases contain large amounts of data that are critical in establishing a healthy tenant/landlord relationship and must be executed against in a comprehensive manner so that your business isn’t leaving money on the table.

Having a full understanding of your leases and acting on them properly is a process that starts when you first access the data found in those contracts. Extracting information like key terms and critical dates into a single source mitigates risk by giving all the different teams within the organization access to the same data, leaving less room for money to fall through the cracks in a manual information handoff.

These single sources of information also support agile decision-making across the organization by establishing one format of data that all teams use and understand. This way, company-wide updates can be distributed, tenant invoices are clearly understood by those in your organization and you can recover expenses for which your tenants are responsible.

Be easy to do business with

Building out back-office processes with a focus on efficiency, your organization can boost profitability by executing on the activities needed to maintain operations, managing the relationship with your tenants, and collecting the revenue that’s due according to the lease you’ve both signed.

Running your property efficiently starts with establishing operations that work for both your organization and for your tenants. Many processes within commercial organizations come from manual trial and error, and certain steps might have come about as quick fixes to problems that arose long ago. Assess each step in your process and ask yourself: what problem bore this solution and is it still relevant today? Improving your back-office operations can also reduce friction in your interactions with tenants, making them more likely to renew. Make yourself easy to do business with.

Your organization’s profitability ultimately comes down to collecting revenue from tenants, whether that means invoicing them, accounting for dollars that have come back in, and in some cases, searching it out with initiative if it’s not coming in. Recoveries in particular can be difficult to assess with complex calculations that might be hard to grasp for both your organization and your tenants. Automating those calculations with the right technology solutions can pull together all the different outputs that go into recoveries so that tenants and landlords can clearly understand costs due and plan for the future.

Attracting the right tenants to your property, understanding the lease data fully and managing your operations efficiently can help your commercial property organization maximize profitability across the commercial lifecycle, from the deal to the dividend. Learn more about boosting your portfolio performance and the solutions that can help you do so.

The post Increasing commercial property performance from the deal to the dividend appeared first on MRI Software.

Momentum is growing toward a return to normal. Vaccinated populations are increasing, inching us closer and closer to the activities we once took for granted – including going to the office as part of one’s daily work routine.

As more and more organizations make plans for a return to the office, there are three fundamental questions that organizations are grappling with: 1) when will we go back, 2) how will we go back, and 3) what changes to physical space are needed?

To get more insight into these questions, we at MRI Software along with a few partners, surveyed the three stakeholders most directly involved and impacted by these decisions: landlords, tenants/employers and employees.

When: Closer to the end of 2021

“When” is the hardest question to answer at the moment, as there are many factors that will influence actual outcomes for a return to the office. A combination of virus control, herd immunity, comfort with public transport, availability of consistent schooling/childcare, and adjusted workspaces will all contribute to the logistics and timing of “when” for each organization.

When each of our three stakeholder groups were asked about timing, the results show some misalignment. Landlords and tenants/employers were asked when they expect to have more than 75% of the workforce in the workplace. Employees were asked when they expect to be back in the office.

The end of Q3 is favored by landlords as well as the employee population. This timing makes sense as summer months, when children are home, create childcare challenges in the best of times for working parents. Seeing a preference for an end of Q3 return feels pragmatic, considering the context of the traditional school year which enables parents to leave the home and go to the office without having to solve for childcare issues. This timing will also allow for further adoption of vaccines.

The tenant population, however, is less certain about getting the masses back to the office as they work through plans for re-opening and reconfiguring space to meet new expectations. Respondents who indicated a timing preference favored Q4, but clearly there is still work to do on the time-based plans for a return to the office – which leads us to the second question: how?

How: Nimbler and More Flexible

The first item on the HOW list is its anagram, WHO. We have seen from the last 12+ months that remote work can be successful over a sustained period. In fact, 34% of employees feel more productive at home as compared to 29% feeling less productive and 37% reporting no difference or indifference.² In total, we lean a bit toward the positive as far as impact on productivity.

Many employees do, however, find value in working in the office.

When asked about the most important factors in a return to the workplace, 53% chose people-oriented reasons, citing a variety of face-to-face experiences with clients, colleagues, supervisors as well as simple human interaction. Another 18% were place focused, citing amenities or workstation quality as their drivers, while 15% yearn for a sense of routine.²

The big question is how to balance remote and in office work and for which roles. When asked when they see themselves returning to the office, 18% of employee respondents said their remote work would continue permanently.² This lines up with nearly 90% of employer/tenants saying they would allow remote work post-pandemic, up from 66% prior.¹

From WHO we move to the other WHEN, focused on the type of daily attendance expected. Once an organization settles on a macro policy for remote work, role-specific details must be understood, and it is unlikely remote work will be available to everyone. Even during the pandemic, up to 25% of workers remained on site performing essential tasks.¹

Nearly 60% of employer/tenant respondents indicated that some employees would be allowed to work remotely while others would be on site. This compares to roughly 39% who indicated all employees would be eligible for remote work and a final 1% who are moving to a fully virtual office.¹

Further, for those offering a mix of on-site and remote work, they were split 55% (yes) to 45% (no)¹ on having a formal policy about days in and out of the office for specific group or individuals. Similarly, there was no consensus on how many days would be required, if any.

Employees also have concerns about returning to the office full time. Nearly 60% balk at the idea with the remaining population less concerned. Further, 40% prefer working from home and only 24% prefer to work on site, with 35% preferring a balance of the two.²

Unfortunately, there is no clear consensus on managing a workforce that is blended between on-site and at-home participation. Likely, there will be a substantial learning curve as to what works for specific individuals, teams, and organizations. It is also likely that there will be more formal guidance on attendance as opposed to letting teams self-organize or leave things to chance.

Considering changed attendance habits, it is not shocking that nearly 52% of tenants cite less staff on site as a reason for needing less overall office space.¹

Seeking to be more nimble and to optimize their use of real estate, 54% of tenants are increasing their use of hot-desking, complementing another 14% that are maintaining or growing their hot-desking approach. Increased hot-desking leads to changing physical layouts, which leads us to the third question.¹

What: More safety-conscious and collaborative spaces

Employees were asked what solutions would give them the most confidence in returning.

Temperature scanning tops the list, with a nearly 50% response rate followed by limited people on site at almost 40%. Touch-free doors and touchless sign-in and sign-out are two of the top five, indicating a preference for additional awareness of hygiene as it related to commonly used surfaces. The second most popular response indicates a preference for a limited number of people on site.² This is consistent with the aforementioned plans to allow more remote work post-pandemic.

Landlords, when asked about plans to alter existing spaces, report alterations that are in line with these employee views, focusing on enhancing common areas.

The confined space of elevators is at the top of the list for changes and is followed by common area adjustments that better consider social distancing.

Employers/tenants are also working on alterations to their workspace as evidenced in their responses to a question about altering the layout of existing space.

Adding space between cubes and desks tops the list and signals a reversal of recent trends towards increased density and open plan offices. Additional breakout rooms and larger conference rooms will provide more collaborative spaces for groups and teams. This is especially important to provide two essential capabilities:

• With increased hot-desking, teams will need spaces to collaborate.
• With an ongoing mix of remote and on-site staff, technology needs to be available to ensure remote staff are equally present and enabled during collaborative processes. After a year of digital, video-powered collaboration, we cannot go back to the days when those who aren’t in the office have trouble hearing and seeing what’s taking place in the meeting room.

The “Other” population in this response group often cited multiple items from the list, indicating that the specific results may be a bit understated.

Changes ahead for landlords, tenants and employees

Landlords are making changes to facilitate a return to the office. Tenant/employers are making changes and refining plans as they work to bring their staff back. Employees are increasingly vaccinated, ready to return to the office and recognize the value of face-to-face interaction, even if it only happens a few days a week.

It is almost poetic that Labor Day, the US federal holiday that recognizes the labor movement and the works and contributions of laborers to the development and achievement of the United States, likely stands as the milestone, the turning point where many will be getting back to the office.

Get the full survey data from the reports:

¹Market Insights: Getting Back to the Office, by MRI Software and CoreNet Global

²Home Unbound: Transitioning to The Office After COVID, by Brivo and WhosOnLocation

The post The new normal: Coming soon to an office near you appeared first on MRI Software.

While the concept of sustainability once served as little more than a marketing ploy for commercial landlords, with special plaques and wall-hung certificates to mark a company’s “green footprint,” it now serves as a critical factor in the formation of the lease. According to research from Savills Investment Management, institutional investors believe that green lease clauses will become universally implemented by 2026. But how exactly is the sustainability of a property measured? And what makes sustainability valuable? The answers to these questions revolve around the concept of how properties operate on an environmental, social, and corporate level.

What is ESG?

When commercial landlords or tenants enter into leases, those contracts can include “green clauses” that set sustainability requirements based on the property’s environmental, social and corporate governance (ESG). For example, landlords could agree with tenants to fit a space with environmentally sound equipment, such as energy-saving light fixtures, or use socially responsible processes and procedures.

ESG isn’t about making “eco-friendly” pledges that lack actionable plans or concrete steps on how to achieve that standing – it’s about setting guidelines for sustainability within a lease and then remaining in compliance with those standards by benchmarking your progress.

Why ESG is important for the future of commercial properties

ESG has seen a rise in popularity of the past several years, and trends are pointing to a future where most investors in commercial properties will require landlords and tenants to establish “green clauses” in their leases. The value they see in ESG is multi-pronged.

• Avoiding waste (and wasted money). In addition to protecting the environment, monitoring utility usage can help point out where money is being left on the table through unnecessary use. Sink faucets designed to conserve water save investors’ money on water bills for that property.
• Driving value to workspaces. As today’s workforce gets younger and younger, sustainability is top of mind for employees everywhere. Additionally, as companies seek to empower their employees and reinvent the workplace, properties that meet and maintain certain certifications based around ESG laid out in leases will be more attractive to tenants.

Sustainability is more important than ever to commercial property owners, their tenants and their investors. While landlords and tenants may be able to establish ESG within the lease, maintaining those requirements can be a challenge, especially when it comes to applying for sustainability certifications. MRI Contract Intelligence has a unique experience and pre-trained algorithms to identify green clauses and allow landlords and tenants to quickly identify and act on this data to help inform and drive ESG strategy. Learn more about MRI Contract Intelligence.

The post Why ESG and green lease clauses matter for your property appeared first on MRI Software.

“A place for everything and everything in its place.”

This saying is at the heart of what stock control solutions should achieve, ensuring that the stock an organisation carries is always there when it is required.

But, for companies carrying a significant amount of inventory, across multiple sites, with levels changing day after day, stock control systems have to deliver so much more than the bare essentials.

With this in mind, we’ve collected what we consider to be 7 critical components you should look for in a stock control solution, to maximise the efficiency and effectiveness of how you manage inventory.

The post 7 essential features for your stock control solution appeared first on MRI Software.

After a year of lockdowns and social distancing, governments around the world are starting to cautiously map out the roads to lifting restrictions. Vaccinations have now been administered to over half a billion people globally and are providing the world with a route back to something resembling the “old normal.” Vaccines are helping to reduce transmission and countries like the UK are already seeing a quick decline in the number of coronavirus cases due to its rapid rollout of vaccines.

The early success of vaccination programs provides hope that employees will be able to return to the office in the near future – even as new variants of the virus emerge – but the ramifications of COVID-19 will still be felt in workplaces across the world long after lockdowns have ended. Facilities managers in charge of day-to-day operations and tenant safety now have to shoulder the responsibility of ensuring workplaces are as safe as possible.

Adapting workplaces for the future

Even as vaccination programs continue to reduce the number of coronavirus cases and help ease restrictions, we’re unlikely to see a total and immediate return to offices. Many employees have now seen how remote working can improve their work-life balance and in many cases actually make them more productive. Global businesses have already kick-started projects that will determine when employees begin to return to the office and how frequently – with many expected to adopt hybrid working models.

Facilities managers will have the responsibility of helping people feel safe when they return to the workplace in the coming months. They need to ensure any and all new COVID-secure requirements are being met at all times and make certain the workplace offers an environment that meets all safety standards and guidelines for occupiers. Keeping these spaces Covid-safe means that businesses will have to consider tools that provide greater flexibility – for this, FM technology will be crucial.

Preparing for the long-term impact of coronavirus

The pandemic is likely to have a lasting impact on the way we think about work in the future. While some companies will adopt a fully remote working model, the vast majority will take a hybrid approach and have employees commute to the workplace a couple of times a week to help spark those impromptu chats and watercooler conversations that often lead to enhanced creativity in teams. However, in a post-pandemic world the future of work will likely mean that offices will be reconfigured for shared spaces. A survey from Gartner revealed that over 80% of global leaders plan to let employees work from home some of the time, which will lead most firms to reconfigure their office space. We might expect some companies to reduce the size of their commercial real estate as they continue to evaluate what to do with their square footage in a bid to identify cost-saving opportunities, while others might need more space to enable lower office densities and more collaborative spaces for when employees come in.

This need for more practical space planning, combined with employees potentially mixing working from home with hot-desking rather than having their own full-time, fixed workspaces, means the facilities manager will have to leverage PropTech and the data-driven insights it provides. Having the right technology in place is necessary for understanding how much office space they have, how much square footage they need going forward, and how to execute plans for rearranging floor plans effectively.

Reaping the benefits of PropTech

With the help of space management solutions that offer visibility of room layouts, seating configurations and calendar bookings, businesses are better placed to more efficiently use the space they have – thus cutting down on valuable real estate costs by making the best use of capacity. For the FM professional, this means that they can understand how people are using workspaces and their working patterns and can find innovative solutions to building safety and security issues.

In London alone, businesses will occupy an additional 13 million square feet of office space in the near future and New York is expected to grow its office space by 14.3 million square feet, so the need for FM teams to use software to plan office re-openings and ensure spaces promote the safety and wellbeing of those that occupy them is evident. Solutions that allow employees to book meeting rooms, rather than historically, simply walking in, and more stringent visitor management methods, such as having individuals signing in to record who guests are and who they are visiting, will create a more structured and controlled use of the environment.

Additionally, systems that track hot-desking, informing a manager of when a team member will be coming into a workstation, not only serve to effectively manage space but also help the FM team meet health and safety standards by ensuring that all necessary deep cleans of an area are carried out between uses. This will become essential in implementing acceptable safety measures so that employees can be assured that an organization is doing everything it can to protect everyone’s safety and well-being.

Likewise, technologies for scheduling collaborative spaces such as conference and meeting rooms will be critical to managing the number and flow of employees in an office and ensuring the deep cleaning of those spaces between uses. Furthermore, occupiers can reinforce health, safety and security within a building by utilizing PropTech platforms that record, track and manage everyone with a physical presence in an office at any one time – not just employees but visitors and contractors, providing arrival notifications and access permissions.

The future of the workforce is almost here

There is still a considerable amount of uncertainty surrounding coronavirus, but many businesses are already setting plans in motion for a hybrid working environment that combines the flexibility of homeworking with the collaborative nature of the office. The onus is now on FM teams to manage reconfigured office spaces and ensure they function well. The result is employees can not only stay safe but also improve efficiency and performance. By being equipped with the right tools, FM teams can work with corporate occupiers to prepare ways of working that will become the new reality even as we emerge from the pandemic.

The post How facilities managers are using proptech to safeguard the future of the office appeared first on MRI Software.

This blog was written by Mordechai Katzman, President and Founder of Rethink Solutions.

Rethink Solutions., a certified MRI Software partner, is the developer of itamlink, the only dedicated property tax management software for owners and occupiers of multi-property portfolios. itamlink centralizes all property tax data, helping companies improve efficiency and reduce risk by eliminating manual processes. Learn more about the itamlink-MRI integration here.

Manually re-keying data between property tax and accounting software could be introducing expensive errors, exposing your company to risk, and putting pressure on time-strapped teams. Given the complexities in managing multi-jurisdictional portfolios and the increasing pressure to do more with less, a reliance on disparate systems and spreadsheets can quickly add up to time lost from higher-impact activities.

This duplication of efforts could be creating more harm than just slowing your teams down. A lack of auditability and inability to confirm data accuracy could open you up to significant risks that cost you money, including:

• Late or missed property tax payment penalties
• Duplicated payments
• Misrepresentation or errors in financial reporting

Luckily, integrated software systems, where data is transmitted seamlessly from one to the other, can reduce risk and errors, improve efficiency, and support strategic decision-making. Here are our top five reasons why you need an integrated property tax solution.

1. Reduce risk and errors by eliminating manual processes

Manual data entry is prone to error. Without the appropriate controls and processes in place, inaccurate or incomplete data may cause you to miss important payment deadlines, overpay, or not pay enough.

An integrated system enables you to submit property tax and expense installments directly to your accounting/payment system. This helps you maintain data integrity across systems, reduce the likelihood of errors, and avoid costly penalties or duplicated payments.

2. Improve security and auditability

For large companies, security is a primary concern. Yet if your systems and processes aren’t synced, auditing user access and permissions can be near-impossible.

Integrated systems ensure data accuracy. IT administrators can audit payments, financial information, and data transfers. In some cases, such as with itamlink’s integration with MRI Software, IT configurability is even more robust: administrators can set up email notifications for different actions, such as when and what data is exported. They can also see log records, set up appropriate permissions, and view data trails for activities like approvals and records updates.

3. Increased data accessibility for confident decision-making

When data is scattered across multiple spreadsheets and systems, it can be difficult to make timely decisions – not to mention reliable ones. In some cases, the lack of centralized data may cause you to forego important tasks altogether, like determining what to appeal. Particularly for dispersed or work-from-home teams, this can lead to missed opportunities.

When data transfer is automated between systems, you can rest assured that data is accurate and current. This ensures you have the right data to support important activities and decisions.

4. Accommodate long-term company growth

If you’re already low on resources, how will your team manage a growing portfolio as your company scales? Introducing an integrated property tax solution helps you maximize productivity, as team members are able to dedicate time to tasks they’re specialized for, now and in the future.

5. Reduce costs and missed opportunities

Taken together, each of the reasons listed above add up to time and money saved. Expensive errors can be avoided altogether, important decisions can be made with confidence, and duplicated systems and processes can be eliminated. If you aren’t already, isn’t it time you considered an integrated property tax solution?

As we mentioned above, itamlink integrates directly with MRI Software! You can submit approved property tax and expense installments directly to MRI. To learn more about Rethink Solutions, visit their website.

The post Five reasons to integrate your property tax management and accounting software appeared first on MRI Software.

Facility management system software allows you to coordinate and control multiple operational processes and workflows into one comprehensive automated system–a huge benefit that you’re likely itching to implement sooner rather than later.

But don’t let the desire to acquire such a dynamic transformational solution rush your decision-making. Not all FM software solutions are the same. Take the time to find your perfect fit by focusing on the answers to the following 10 questions:

1. What kind of functionality does the solution offer?

Before you ask this important question you should already have a rough idea in mind of what you want the answer to be. Meaning before you even start your research, it’s a good idea to have clearly defined goals about what you want to accomplish with a facilities management solution. The best platforms offer a flexible suite of configurable tools:

• Work order management, including labor tracking
• Asset management
• Preventive maintenance
• Inventory management
• Vendor management
• Key management
• Space planning
• Reporting and analytics

Keep an open mind to learning about each vendor’s solution–you may discover a tool you want to consider adding to your wish list.  Also make sure to find out if the platform integrates with other systems that your company currently uses.

2. Does it include a mobile app?

Increased efficiency is one of the main motivations  to automate your facilities management. When you add in the ability to use a mobile app for real-time communication and access to databases, the efficiency factor skyrockets.

Field mobile solutions allow users to create work orders, close them out, and enter their labor hours and the materials used to complete the request on the spot. In addition, without ever getting in front of a desktop computer, technicians can manage preventive maintenance tasks and review important asset information including transaction histories, manuals and warranties.

Most mobile apps will be available for Android and iOS devices–but make sure you verify that the solution will work with the type of device your department uses.

3. Can the solution be customized?

While every facility is unique, most of a facility manager’s needs turn out to be consistent across the board. With that in mind, you should easily be able to find solutions that can be configured to your specific preferences and workflows–whether you’re managing a single building or a portfolio of campuses.

It’s also helpful to find out if the vendor has other customers in your industry–whether that’s education, government, healthcare, hospitality, food service, manufacturing or property management.

4. How easy is the solution to use?

The answer to this question ought to be “very easy.” You should always arrange to see a demonstration of a solution’s  functionality before your conversation with a vendor gets too far along. One of the primary reasons that companies end up feeling that their CMMS purchase was a failure is poor adoption rates. If the folks who are meant to be using the software don’t use it, then you won’t realize the return on investment you should.

If you have to be a “techie” to understand a provider’s solution, mark that one off your list. Every employee, from maintenance techs all the way up to C-level managers, should be able to navigate the CMMS on a daily basis.

A CMMS is only as effective as the quality and quantity of data that you put into it. If the data entry process is too frustrating or confusing, employees may not be thorough with the job of data collection and errors are likely to occur. You could risk a critical piece of equipment failing simply because essential information was missing from the system.

This doesn’t mean that training on the system won’t be necessary, but the solution should still be intuitive with a user-friendly interface.  You’ll also want to be able to control levels of access and permissions.

Here’s a tip: find out how many support calls the provider usually fields from new clients in the first few months, this will be a pretty good indicator of how user-friendly the solution actually is.

5. How long will implementation take?

Depending on how many sites are undergoing transformation and how many applications your chosen package includes, implementation varies from a few months to well over a year. Other factors will also impact the time it takes to get you up and running, such as the integrity of your existing data, the manpower you have available to devote to the project, and how quickly your own team is able to learn how to effectively use the system.

Beware of vendors with estimates that are significantly different from the other estimates you’ve received or that your gut tells you are unrealistic.

6. Is your solution web-based or installed?

A cloud-based CMMS solution (also known as Software as a Service or SaaS) is usually hosted and managed by the vendor on their own hardware in their own facilities. It is accessed on the Internet through either a website, software solution, or an app. Typically web-based solutions are less expensive and come with a higher level of support.

There are some CMMS users who prefer to have more control over the system and fear their data isn’t as secure in the cloud as it would be on their own server. They may choose to have the CMMS installed and hosted on-site at their own facility where they can manage it themselves.

However,, CMMS providers generally have high standards for security, so their storage is most likely as secure as hosting on your own hardware.

7. Is the software scalable?

You’ll want the software you choose to accommodate unlimited users–those who need to use it now and those who may be added to your workforce in the future. But that’s only one way the application should be scalable. Make sure it can grow with you as your business expands. If you add buildings, equipment and other assets, or change maintenance tasks, can the facilities management software handle the increases and new challenges?

During your vetting process is the time to verify a solution’s expansion capabilities, so you can be confident that the software will evolve as your company grows.

8. How long have you been in the facilities management software industry?

Check out each vendor’s history and reputation. A reputable provider is going to showcase satisfied customers on their website’s testimonials page. If you don’t see that information on their site, read reviews on social media. If all the reviews are glowingly over-the-top that may be a red flag indicating the reviews aren’t from actual customers.

9. What do you offer in terms of training and ongoing support?

It’s highly unlikely that an FM software provider is going to sell you a solution and leave you to figure out how to use it on your own, but it’s best to know upfront what training includes:

• Will they train you on how to set up your databases, input the data, schedule preventive maintenance plus the ins and outs of work order management and all the tools you’ve selected?
• Is the training included in your monthly fee or the setup fee?
• If not, what is the cost for the training?
• Is the training hands-on in front of a computer?
• Will the training take place at your site?

Regarding ongoing support, get the details:

• How are you supposed to contact support–through email, phone or chat communication?
• Are there specific hours that support can be reached?
• What is their response time?
• When you call support, will you reach their technicians or is support outsourced?

10. What does the cost include?

In today’s competitive marketplace organizations need an edge, and a CMMS delivers that and more. Although facilities management solutions are expensive, they should be considered an investment in your company’s future.

Don’t make the assumption that all vendors’ fee structures are the same. Make sure you have a clear understanding of what you will receive for the money you spend.

Usually setup is handled in two different ways. By choosing to set up the system yourself you’ll save some money. If you’re considering going this route, make sure you have someone with the technical know-how to tackle the project before you commit to self setup. Also keep in mind that web-based systems are easier to implement.

If you don’t have someone with the time and skill needed to complete the implementation yourself, the wise choice in the long run is to pay to have the vendor assist with implementation.

It’s helpful to know from the beginning how many users you expect to allow access to the new application. Some vendors charge a flat license fee that includes unlimited users. Others may charge more as you increase the number of users–which brings up a question of how the vendor defines “user.” Do they consider anyone who simply accesses the system a user, or is it a person who is able to make work order requests.

Conclusion: Become an expert

As you research the benefits of facilities management software, talk with colleagues in the industry and compare providers, you’ll be armed with the information you need to make a wise choice when it comes time to select a CMMS.

The post 10 questions to ask vendors when choosing facility management system software appeared first on MRI Software.

This article was co-written by Brian Zrimsek, Industry Principal, and Arik Kogan, Vice President of Financial and Investment Solutions at MRI Software.

The COVID-19 pandemic has created the most challenging planning and forecasting moment for real estate investors since the Great Recession from over a decade ago. In comparison, the current period is both broader and deeper in its impact on real estate, creating substantial needs for technology to help (re)forecast 2021 and the next few years, in spite of all of the unknowns.

What makes this challenge more complicated for the real estate industry?

Unlike other market downturns in recent memory, there is a uniquely human element to the one that has acutely impacted the real estate investment landscape since March 2020. With the turbulence of the last year behind us, Green Street is already noting a valuation recovery and pointing to a continued positive trend.

Global transaction volume hit record lows through 2020 (anywhere from 13% to 61% across various regions, according to JLL), but these numbers were brought down primarily by asset classes that investors do not believe will bounce back hard and fast in the post-COVID global economy. There is plenty of capital available to be deployed, and while office and retail transactions have been limited, other asset classes, like apartments, student housing, and hotels, are being sourced and acquired eagerly by private equity investors.

How to create opportunity out of the challenge

These phenomena affecting the market, and core assets in particular, create an unprecedented challenge for investors, but also an incredible opportunity for those equipped to navigate it effectively. Strategic planning through this pandemic is not just an exercise in economics and math, but an intricate web created by the intersection of the market with human beings. We will be working from home. We will be shopping online. And when we don’t, we want health, safety, sustainability and an experience worthy of the effort.

As more factors, data points, and potential scenarios come into play for real estate investors looking to make quick and confident decisions, modern technology has become table stakes. For short-term planning and forecasting, integrated planning and budgeting tools make quick work of using past periods to drive future period forecasts, while providing for both general and specific assumptions to be put into specific planning scenarios and then rolled forward from one period to the next.

Driving multiple scenarios is important given the lingering uncertainty, allowing leaders to understand the likely bounds of the playing field in front of them.

Short-term, operational plans should then be used as inputs to longer-term planning processes. With a strong basis in operational realities, longer-term plans can be more reliable for further scenarios and strategic planning, including:

• Planning cash flow in support of expense or capital activities
• Identifying debt covenant opportunities or issues
• Projecting valuations as part of acquisition and disposition scenarios

Using data to model scenarios and gain consensus on plans is truly important given the uncertainty of the current time. In addition to gaining consensus over future plans, you must also ensure that you are leveraging data to both manage risks and ensure compliance.

Learn more about how you can plan to win with financial planning and analysis technology.

The post Planning for the future with FP&A technology appeared first on MRI Software.

As recent as 40 years ago, the question of “what is facilities management?” may have been a puzzling concept. Even considering that at this point of time most offices, stores, factories and schools were in fact, running a form of facilities management, this lesser known name was simply referred to by different titles.

During this origin period, when something needed to be updated, fixed or replaced within any given facility, a custodian would typically be called. And being a one-man show, he would get around to it when he could. He had to know the nuts and bolts of plumbing, electrical systems, grounds-keeping, painting and much more.

But now, in 2020, Facilities Management has come a very long way. Hundreds of institutes of higher learning offer advanced degrees in the subject.

Facility Managers are now strategic executives on the corporate team who are integral to a company’s success.

Whether you refer to it as Facility Management, Facilities Management or simply FM, the industry has rapidly evolved from a catch-all, afterthought of maintenance activity into a sophisticated professional management discipline.

It’s a common misperception to think that property management and facilities management are one and the same. Although there is some overlap between the two, property management focuses more on the buildings themselves as revenue-generating assets.

A property manager acts as a liaison between the building’s owner and tenants, handling lease activities, collecting rents, and coordinating maintenance tasks and renovations.

So, what are the responsibilities of facilities management, exactly?

Contrary to what it sounds like, facilities management actually focuses on processes and people more than on buildings – although maintaining buildings is certainly a big part of FM.

A good place to start unpacking the concept is to take a look at how it is defined. According to the International Facility Management Association (IFMA), facility management is a profession that encompasses multiple disciplines to ensure functionality of the built environment by integrating people, place, process, and technology.

Another helpful definition of FM comes from the The International Organization for Standardization (ISO): The organizational function which integrates people, place, process and technology within the built environment with the purpose of improving the quality of life of people and the productivity of the core business.

Both definitions are similar and refer to the “built environment” which makes sense, because we are talking about managing facilities (any man-made structures used for living, working or playing). But the ISO definition adds an element of customer service which is a trend we’re seeing more of in 2020 and beyond.

The ISO’s expanded definition carries with it the notion that facilities management is no longer just a cost of operation but has value as a strategic service to support an organization’s core business and increase revenues.

In today’s marketplace, facilities management is a huge umbrella term, covering areas as different as equipment maintenance and concierge services.

Basically, facilities management is the efficient coordination of all the activities related to keeping physical spaces and infrastructures operational, from single buildings to complex campuses used for offices, retail, healthcare, education, manufacturing, recreation, government and a host of other revenue-generating businesses.

Keeping a facility operational includes making sure the environment – from parking lot to top floor suites – is safe by meeting relevant regulatory mandates, consistently well-maintained, and most notably, organized in a way that promotes productivity and the well-being of all users.

To break it down further, facilities management generally is divided into two categories: hard services and soft services.

Hard Services

Hard services are related to physical structures, the parts that can’t easily be removed. They are usually required by law to ensure the health and safety of workers or occupants:

• Building maintenance
• Maintenance of HVAC systems
• Energy and water management
• Elevators and escalators
• Lighting
• Fire safety
• Plumbing and drainage

Soft Services

Soft services are related to keeping the workplace more comfortable and secure. Some services are not absolutely necessary and can be added or removed when needs change:

• Housekeeping and custodial services
• Security
• Parking lots
• Pest control
• Waste disposal
• Recycling
• Furniture and equipment
• Information systems
• Document management
• Mail management
• Space management
• Grounds maintenance and landscaping

Many smaller organizations may still manage their facilities internally, but the number that outsource to facilities management companies continues to grow. Businesses of all sizes are depending on outsourced FM to handle functions that go beyond the above lists of hard and soft services.

The burgeoning trend in the industry is to offer bundled services. Known as Integrated Facilities Management, this comprehensive scope of services adds value and drives better quality. Some of the specialities an integrated facilities management company may offer are listed below.

• Move management (churn)
• Meeting room services
• Business risk assessment
• Catering services
• Business continuity planning
• Vehicle fleet management
• Contract procurement
• Concierge and front-desk services
• Emergency response and preparedness
• Utility management

In addition to freeing their own personnel to focus on goals more closely aligned with their core business, companies that outsource to a facilities management company that bundles these ancillary services benefit in several measurable ways.

• Improved efficiencies: A single point of contact and the elimination of duplicate functions streamlines communication and workflow processes.

• Higher productivity: Facilities management includes maintenance strategies to prevent breakdowns that too often bring production to a halt.

• Increased expertise: Outsourced FM employees already have the technical know-how, saving companies from expending unnecessary time and resources on training in-house.

• Reduced costs: In addition to spending less on training, companies save on staffing, employee benefit, payroll expenses, inventory and more.

• Better quality control: with proven systems already in place, FM ensures consistency and reliability.

Technology & facilities management companies

Like almost every industry on the planet, smart technology has accelerated the field of facilities management. To stay competitive in today’s marketplace, facilities management, whether it is handled internally or outsourced, needs to include a computerized maintenance management system (CMMS) complete with a mobile application.

Cloud-based automated solutions reduce the hours of wasted time spent on manual processes and eliminate downtime that results from human error.  A CMMS can revolutionize work order processes, preventative and predictive maintenance tasks, and the management of assets, vendors and inventory.

The job of a Facilities Manager

A typical work day for a Facilities Manager is anything but typical. If there is any vocation that calls for wearing the proverbial many hats, it is this one.

The IFMA lists 11 competencies a Facility Manager should possess: communication; quality assurance; the use of technology; operations and maintenance; human factors; business and finance; emergency planning and business continuity; leadership and strategy; real estate and property management; and environmental stewardship and sustainability.

Conclusion: Facilities management is the future

Facilities management has become a critical factor in a company’s growth. From maintaining equipment to creating an environment that supports the company culture, facilities management adds value on a daily basis and for the long term. High-performing businesses understand the necessity of prioritizing this aspect of their operations and expect facilities management companies to offer solutions based on cutting-edge technological trends.

If you’re not already using an automated solution to manage your facilities–work orders, maintenance, assets And more–that’s a good place to start. Here at MRI NETfacilities, we offer intuitive and flexible solutions to help you transform your organization. Reach out if you have questions, or better yet, take a look at what we can do with our no-obligation, free demonstration.

Schedule a demo here today!

The post What is facilities management? The true definition appeared first on MRI Software.

What if your real estate business could leverage technology powered by artificial intelligence without requiring coding skills on the part of the user? This is the potential that “no-code AI” offers – the ability to let non-technical experts utilize applications that can expedite data extraction and entry processes.

With the digital transformation taking place across the real estate industry, businesses are turning to technology to bring their operations into the modern era. Given its application to lease abstraction and lease management, artificial intelligence offers immediate value for real estate businesses and property management firms. With no-code AI for real estate, these organizations can quickly save time and money.

No-code AI could be a mainstay in the future of the real estate industry for businesses that want to harness the power of AI without the need for deep technical skills. Here are four benefits of no-code AI that can transform the real estate industry:

1. Scales with your business

No-code AI’s biggest advantage is that it can adapt to your business needs as they grow and change. End users don’t have to have a deep technical background to tailor the system or make adjustments. As your business expands, the solution can learn your new requirements over time and easily scale to meet your needs.

2. Allows automation of specific tasks

Most firms in the real estate industry are inundated with manual tasks, and AI can automate these to help commercial organizations and real estate occupiers save time. Processes such as lease abstraction, contract reviews, and hunting for terms and conditions in legal documents can be handled automatically. No-code AI gives real estate executives and analysts the ability to benefit from this tool, even without an IT background.

3. Quick training for regular tasks

With any AI-powered tool, the end user will need to “train” the system by introducing it to sample documents so it can learn what to look for and how to accomplish certain tasks. With no-code AI, this process can be done quickly, and once you’ve trained it to identify the type of information you need, whether it be a key term or critical lease clause, the system becomes more accurate every time it reads a document.

4. Can be used for predictive analytics

Artificial intelligence can be used for more than just documentation and lease management, however. While no-code AI can automate your business’s regular processes and pull key data from your leases, it also has the potential to be used for predictive analytics. AI has the capability to understand the terms that it extracts from a contract, which could give an occupier or lease administrator the ability to make better decisions and budget more accurately.

AI is one of many solutions that can drive the digital transformation of real estate organizations and help save time and money. While no-code AI is beginning to grow at a steady pace, MRI Contract Intelligence has been utilizing this technology since its inception. Contract Intelligence automates the data extraction and contract review process for commercial businesses and occupiers, helping them reduce the risk of costly revenue leakage and providing valuable insights hidden in documents. Learn more about how MRI Contract Intelligence can benefit your business.

The post 4 reasons no-code AI is the future of real estate technology appeared first on MRI Software.

This is an excerpt from “How your multifamily community can implement the smart home benefits renters crave,” originally posted by Zego. Zego, an MRI Software partner, is a property technology company that frees management companies and community associations to go above and beyond for residents. Zego Smart, which integrates with MRI, is a unified platform of multifamily smart home solutions that elevate the resident experience.

Smart home features have gradually gained interest from renters. During the past year, in the midst of a pandemic, the benefits of smart apartments have become even more apparent. Communities with smart locks can easily accommodate the onslaught of grocery deliveries and Amazon packages. Residents using smart thermostats and smart lights can minimize energy consumption to keep utility bills in check. The list goes on.

If you’re considering adding smart home technology to your multifamily community, then you’ll need not only to understand best practices and benefits of this tech, but you’ll also need to communicate these benefits with your residents effectively.

Will renters even pay for smart home capabilities?

When it comes to implementing smart home technology, the cost is not only outweighed by the benefits, but data also indicates that residents are willing to shoulder the cost. Even just a basic package provides enough smart home benefits that, depending on the market, renters are willing to pay for. Zego conducted a market research study on this topic in 2019 and found that renters are willing to pay anywhere from $25 – $45 per month for smart apartment packages. But how do you get your residents to understand those benefits in the first place?

How to talk to residents about the benefits of smart home technology

Modernizing an existing community is an exciting project, but before diving head-first into the upgrades you seek, it’s important to establish a thorough communication plan that will guide the way you share the good news with your residents. Your plan should outline how you communicate the logistics, the installation timing, and talk tracks you want to convey.

While this will minimize the number of questions your on-site staff will receive, be prepared for mixed reactions and questions from your residents. Many will be excited and want to be the first in line for a smart unit, but others might not understand the full extent of smart home benefits.

Before you start spreading the word, on-site team members should have talk tracks prepared about smart devices. The most important points to emphasize will be the benefits of the new amenity and timing of the implementation process.

Assuring residents with the right implementation strategy

For some renters, the benefits of smart home technology might not feel “worth it” if the installation process is too complex. Here are the different methods you can use to install smart apartment devices and how they may impact your residents.

Install devices on the turn – Installing smart home devices can be done in the time between one resident moving out and another resident moving it. This provides minimal disruption to residents. However, from a management perspective, this approach can be difficult as it can drag out the time it takes for you to gain the operational benefits.

Property-wide installation – Installing smart home devices across your property all at once gives you the fastest ROI (if you’re charging residents) and you recognize the operational benefits right away. When choosing this path, make sure you clearly communicate the details to residents, such as what to expect and when. This also presents a great chance to get them excited about their new amenities.

Assuring residents’ privacy throughout

There are a lot of misconceptions about smart apartments and privacy, which may lead some residents to worry about security vulnerabilities. In reality, implementing a smart apartment solution should create little to no security or privacy risks.

Here’s the reality behind questions you might be asked about smart apartment safety.

Can my devices be hacked? – If you provide residents with a commercial-grade hub that runs on ZWave, it’s extremely difficult for anyone to hack your devices.

Will my community managers use this to spy on me? – A base smart apartment package, which includes a hub, locks, and thermostat, doesn’t enable community managers to gain any vulnerable information about a resident. Those devices don’t enable community managers to access resident-installed voice assistants through their platform.

Are you selling my data? – As a management company, you must commit to the ethical use of data. Though it’s not a universal practice among providers, some smart device companies do sell resident data for marketing purposes. If you’re concerned your residents will be sensitive to this, make sure you clarify a vendor’s privacy policy before you begin working with them.

Additional smart home benefits for multifamily communities

The goal as a property manager is to attract new residents and ensure they’re happy living in your community. Smart devices can help accomplish both of those goals, but getting the systems set up community-wide involves several steps.

For more guidance about implementing smart home technology for apartments, be sure to download our free guide: “How to Implement Smart Apartment Technology in your Multifamily Community.”

Not sure if smart tech is worth the investment for your property or portfolio? Use our Smart ROI Calculator to learn how long it will take to see a return on your investment in smart apartment technology.

The post How to implement smart home tech in your multifamily community appeared first on MRI Software.

With the massive shift to online working, learning and socialization that has taken place over the past year, the customer experience is more important than ever. In the real estate industry, the relationship between you and your customers no longer revolves around the lease – now, it relies on the customer themselves, whether they’re a resident or a commercial tenant.

Technology that puts the customer first

With the real estate industry transitioning away from paper documentation and trending towards data and digital usage, it is clear that integrated portals and other forms of mobile and web-based technologies are critical to support customer engagement. But while self-service extensions of transactional systems are the most common starting point, there are a bevy of customer engagement solutions now finding their way into the real estate industry.

These new capabilities are helping businesses place the customer (not the lease) at the center of the relationship by emphasizing certain categories, such as:

• Lifecycle tracking – Understand the tenant from pre-tenancy to post-tenancy, their needs and where they are in the lifecycle. It includes features like pre-tenancy tracking of leasing opportunities, pre-move-in tracking of paperwork and space readiness, tenancy tracking of satisfaction, financial health, lease options and upcoming renewals, as well as post-tenancy tracking of exit reasons and destination.
• Communication history – Track every phone call, email, and text message, both inbound and outbound so that any member of the team can engage with the customer on an open issue or as a follow-up to a prior item.
• Interaction history – See a full history of communications and compile information regarding portal logins, service requests, complaints, payment activity, after hour needs and any other touchpoint between you and your customer.
• Comparative data – Understand how this tenant compares to other, similar tenants. This is especially important in retail, where performance can be similar in a category of stores. Leveraging analytics and BI solutions can drive future business in other properties where tenant profiles match desired tenancy characteristics. It can also show early signs of distress with existing tenants as compared to a peer group.

Tracking and managing the relationship from prospect to tenant and throughout a tenancy provides a richer context for business. Understanding all touchpoints between a customer and the real estate enterprise can provide important color on renewal negotiations. Learn about the other real estate technology strategies that can benefit your business.

The post Maximize customer engagement with real estate technology appeared first on MRI Software.

It’s no secret that real estate businesses generate massive amounts of data as part of their everyday operations. But how can this data be used to your advantage to differentiate your business and make more informed decisions?

Big Data was originally defined by Gartner as larger, more complex data sets, especially from new data sources. These data sets are so voluminous that traditional data processing software just can’t manage them. But however cumbersome this data may be, it can be used to address complex business problems even during an era that’s defined by uncertainty and the need for flexibility.

Developing a data strategy for real estate

To best approach the growing masses of data, you’ll need a plan and an enterprise-wide set of policies that define how data will be collected, stored, processed and communicated. These policies should address data ownership, quality, access, security, privacy, ethics and retention. It should include master data management practices that cover entering, aggregating, consolidating, de-duping, standardizing, and maintaining data throughout the enterprise.

Unfortunately, enterprises typically realize they need data governance and master data management well after data is being captured and struggles to make sense from data become all too real. But in this case, that’s okay! Why? Because the future is full of data – far more so than the past. The trick is to make sure your business is ready for what the future holds.

How can you best harness data?

After tapping into and organizing data, the next challenge is to find the signal in the noise. Your business must find the data that really matters and that can help drive better business results, better workflows and better customer and stakeholder service.

While traditional reporting still serves to memorialize a point in time, you can do better. Real estate executives should not need to search through a wall of numbers, an alphabetically sorted list of properties, to uncover the metrics that need their attention.

It is increasingly important to take those key data elements from reports and move them to dashboards and dynamic grids with the ability to interact and to drill down. Sorting and filtering make data more consumable. The ability to drill down into underlying transactions, lease terms, data sources and contract obligations makes business-critical information more accessible and allows for self-guided discovery of further insights. Finding the signal in the noise is not about all the data, it is about the right data, in the right place, at the right time, for the right user.

Pushing your real estate enterprise to be more data driven is imperative. Enterprises should use historical data to inform on future trends, pointing you to likely outcomes and potential options while using current data to benchmark across your portfolio, driving up performance.

As the Internet of Things (IoT) grows in deployment, more and more data will become available, allowing for smarter uses of data to differentiate both decision making and services. Tuning space conditions to daily occupancy and usage patterns, understanding out-of-norm conditions that require maintenance, and much more. And we have not even scratched the surface of what the data scientists will do to drive further differentiation based on our vast array of data.

In a world that is increasingly dominated by data, those who can see clearly into their data are the ones who will gain the competitive advantage. Learn how you can equip your organization with the tools and solutions needed to harness and understand your data.

The post Differentiate your real estate business with data appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/how-flexibility-driving-reinvention-of-the-workplace/ Fri, 26 Mar 2021 13:30:11 +0000 https://www.mrisoftware.com/?p=35578

In March 2020, when the pandemic hit and a state of emergency was declared, a large portion of the workforce, especially office-based staff, decamped and quickly transitioned to working from home. Business processes pivoted to embrace paperless processing, digital signatures, and video conferencing. Zoom meetings became the rage and “You’re on mute” was the phrase … Continued

The post How flexibility is driving the reinvention of the workplace appeared first on MRI Software.

]]>

In March 2020, when the pandemic hit and a state of emergency was declared, a large portion of the workforce, especially office-based staff, decamped and quickly transitioned to working from home. Business processes pivoted to embrace paperless processing, digital signatures, and video conferencing. Zoom meetings became the rage and “You’re on mute” was the phrase of 2020.

As 2020 wore on, it became clear that working from home was possible, and even successful, at scale. Naturally, this led to the more recent conversation about what we now need from an office, if we need one at all. While some small, satellite offices have been rationalized, the consensus is that an enterprise needs a home and its people need to come together…but maybe not like they did previously.

Considerations for the future of the workplace

While each enterprise must assess what is best for them, discussions and decisions will center around the following:

Density – Space per employee has been shrinking, as has distance from others, and the pandemic will surely drive against that trend, creating more required space per person and raising the importance of space planning and flexibility.

Assigned desks vs. hoteling – The days of assigned seating may be behind us, especially if a significant part of the workforce continues to work from home with increasing frequency.

Meeting rooms and collaborative space – We’ll also have to rethink meeting rooms as it is unlikely that people will be excited to overcrowd any given space just to be part of a meeting. These rooms need to give way to better collaborative spaces as teams return to the office together.

Flexible space – Both indoor and outdoor open spaces have grown in popularity. In order to drive collaboration and culture, having large spaces that can be quickly repurposed will be of increasing importance as ways to bring larger groups together safely without sacrificing utility during more normal business activities.

Space as a service – Ancillary income can be brought into the organization by making some of your space available on marketplaces like WeWork. Similarly, space needs outside of non-core office areas may be met with the use of flexible space from similar marketplaces and providers. The ability to quickly flex space up and down to meet needs is a growing trend.

How technology can transform your office environment

In addition to defining how space will be used, there are a number of opportunities to leverage technologies for space access and usage:

Space planning tools – These can help your organization clearly and visually understand space layouts, staff density, flow and other elements of the configuration and to create alternatives that provide for the space options listed above.

Workspace reservation systems – As space becomes more fluid, technology can be used to facilitate workspace and collaboration space reservations, including in-space displays of current and coming reservations.

Entry/exit timing tools – There are certain high traffic moments that must be addressed when returning to the office. Interestingly, the lunch period is often more densely trafficked than the start or end of the day. To better ensure social distancing, some organizations are using time blocks to manage peak traffic to better address employee safety.

Access control and on-location awareness – Understanding who has access to a space, where they are allowed and, most importantly, if they are on-location is increasingly important. Presence management is key for:

• Air quality and other HVAC/climate sensors – Air quality and efficacy of filtration functions should be added to existing systems to ensure temperature is economically managed in conjunction with space usage.
• On-location messaging – Broadcast or individualized messaging can better facilitate entry and exit windows and space assignments while also providing a method for communications about various safety alerts and visitor services.
• Wayfinding – With more fluid use of space, employees may need wayfinding assistance to get to and from their key locations or to a colleague.
• Health and safety tracking – Unfortunately, contact tracing will still be an important topic as we get back to the office.

In-room video conferencing tools – Given the success that has been enjoyed with video conferencing capabilities, meeting rooms and other collaborative spaces will need to be fit with updated technologies that allow for in-person and remote staff to be equally included in collaborative experiences as the days of poor audio over a speakerphone are long gone.

As we continue further into 2021, the workplace will be reshaped not through incremental evolution, but with the lessons of a prolonged pause, a rapid adoption of technology and much thought about what a mobile, distributed, hyper-connected workforce really needs.

Learn more about the future of the workspace and how technology can help you prepare.

The post How flexibility is driving the reinvention of the workplace appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/simplify-rent-payments-affordable-public-housing/ Thu, 25 Mar 2021 13:30:38 +0000 https://www.mrisoftware.com/?p=35509

Affordable and public housing organizations are beginning to see the benefits of flexible electronic rent payments. Multifamily operators have been providing digital payment options to residents for many years, and while the affordable and public housing sector has a higher rate of cash payments, they can still benefit from implementing a flexible technology solution that … Continued

The post Simplify rent payments for affordable and public housing appeared first on MRI Software.

]]>

Affordable and public housing organizations are beginning to see the benefits of flexible electronic rent payments. Multifamily operators have been providing digital payment options to residents for many years, and while the affordable and public housing sector has a higher rate of cash payments, they can still benefit from implementing a flexible technology solution that simplifies the rent payment process for residents and housing staff.

Benefits of flexible, digital payments for affordable and public housing

Whether your organization is looking to replace your current payments solution or make the switch to electronic payments for the first time, there are many benefits for your staff and your residents.

1. Credit building for residents

According to a recent study from the U.S. Department of Housing and Urban Development (HUD), a low credit score or credit invisibility can limit housing choice and employment opportunity for low-income families. In his blog, “How affordable and public housing are plowing ahead with technology during 2021”, Allen Feliz, VP of Affordable and Public Housing at MRI Software, discusses how RentPayment can play a part to remove barriers for low-income residents to obtain quality housing.

With RentPayment, the credit reporting service is provided to the resident free of charge as an incentive for paying their rent online and on time. We will see what the future holds, but a new law in California is requiring all landlords who own certain government-subsidized properties to give their residents the option of having their rental payments reported to a major credit bureau. This new bill, SB 1157, will take effect July 1, 2021, and it will apply to rental housing developments with five or more units that receive certain types of government assistance. As with all legislation, the assumption is that this will spread to other states.

2. More options, more on-time rent payments

By providing more flexible payment options, you can remove the barriers that prevent residents from paying on time. Giving your residents the ability to pay fixed or variable recurring rent payments makes it easier for them to budget effectively and pay their rent on time, without having to pay in person on the first of the month.

As mentioned earlier, affordable and public housing residents have a higher rate of cash rent payments. By adopting a flexible, digital payments solution like RentPayment, you can provide your residents with the ability to pay at one of the 40K MoneyGram locations across the country. With the RentPayment and MoneyGram partnership, your residents can benefit from electronic payments and have their payment post to their ledger automatically! Whether residents are underbanked, non-banked or simply have a desire to pay in cash, the MoneyGram integration makes it even easier for them to pay their rent.

3. Save time for housing staff

We often hear, “Don’t call us the first week of the month, we are busy processing rent payments.” With a flexible, digital payments solution, your housing staff can take back their rent week and gain a significant amount of time! They will waste less time processing payments and have fewer processing errors with automation. Plus, your organization can spend more time focusing on the needs of the community.

If the COVID-19 pandemic has shown us one thing, it’s that the ability to pay rent online is a necessity that will make the lives of your residents and housing staff easier. Collecting rent online can better position your organization for success, and your housing staff can take back their current rent week. Learn more about MRI Payments.

The post Simplify rent payments for affordable and public housing appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/measure-manage-and-improve-your-kpis-with-cmms-software/ Thu, 25 Mar 2021 12:55:08 +0000 https://www.mrisoftware.com/?p=49447

When it comes to improving KPIs, remember the old business saying: “If you can’t measure it, you can’t manage it.” This is unfortunate news for job sites using traditional Excel spreadsheets or pen and paper, enter CMMS software. While such Excel systems obviously do capture a fair amount of information, it’s difficult to compile into … Continued

The post Measure, manage, and improve your KPIs with CMMS software appeared first on MRI Software.

]]>

When it comes to improving KPIs, remember the old business saying: “If you can’t measure it, you can’t manage it.” This is unfortunate news for job sites using traditional Excel spreadsheets or pen and paper, enter CMMS software.

While such Excel systems obviously do capture a fair amount of information, it’s difficult to compile into reports. Perhaps you can measure everything, but it might not be worth the time. And the figures might not be totally accurate.

And, according to a 2019 survey, only 12% of maintenance managers don’t use any formal system. If you’re in that situation, improving KPIs is more of an art than a science, which is not a good thing.

With a Computerized Maintenance Management System (CMMS), everything is already measured for you. If your CMMS maintenance software is configured correctly, it will generate all the metrics you could need, and thus a more accurate view of your KPIs.

While CMMS is often thought of as automation software, it’s also insight software.  It gives you greater visibility into what’s going on every day at the job site, from nuts and bolts to barcodes and invoices.

If you’re considering adopting CMMS maintenance software, it’s worth considering some examples of how it can help you measure KPIs, and thus improve your team’s performance.

Measuring Mean Time Between Failure (MTBF)

MTBF is obviously one of the key indicators of overall maintenance performance. It represents the most fundamental goal of preventative maintenance: make the machine live longer. However, it alone doesn’t necessarily tell you everything you need to know.

So, your MTBF is a little too low. Specifically, your water tanks are failing every few months. It’s better to know this than not know it, but there are deeper questions that have to be asked if this KPI is to be addressed and improved.

Is there one tank that tends to fail over and over again, having a disproportionate effect on the overall number? Are there failure modes that aren’t being addressed? Has the MTBF fluctuated over time, pointing to larger shifts that may not be immediately apparent?

With CMMS, the overall MTBF is always available, but, more importantly, it can serve as the beginning rather than the end of the story.

Any manager can easily look at the MTBF by asset, and then delve into the specifics of each failure. Underperforming assets can be given special maintenance tasks. They can be made candidates for early replacement, based on cost assessments.

Additionally, given the fact that CMMS stores maintenance notes in an accessible digital log, it’s easy to detect common patterns in failure modes. Preventative tasks can be adjusted accordingly. You can make sure that every technician sees an updated checklist in real-time.

With these features, you can address the vulnerabilities of the specific asset, protecting it and prolonging its lifespan.

Measuring Mean Time to Repair (MTTR)

MTTR is a necessary complement to MTBF, and both are necessary to form a full picture of an asset’s life cycle. If a conveyor belt fails every week, but its repair is routine and takes ten minutes to perform, that’s not necessarily an issue.

Meanwhile, if an asset is failing at a rate that aligns with industry standards, that’s fine. But if the repair takes far too long, the excess downtime can translate into a fortune in lost productivity.

A good and properly implemented CMMS tracks all repairs from the assignment of the work order to its completion. It calculates MTTR is done automatically, both as a global measurement and per individual asset.

As well as with MTBF, good CMMS can capture all of the reasons that MTTR can become inflated. Let’s say it’s an issue with inventory. You keep running out of parts that are crucial for a repair that’s being done more frequently as the asset ages.

Given that CMMS maintenance software tracks which parts are necessary for which repairs, this can be prevented. Managers can easily check whether a healthy level of inventory is being maintained.

If it’s a labor issue, that’s measurable as well. If a repair is repeatedly taking too long because the only staff trained to do it is overtasked, increased employee training can address the issue.

It’s worth noting that CMMS systems can speed up repairs in a lot of small ways.

For example, with CMMS, you can upload documentation into the database entry for a given asset. So, if a member of your staff isn’t sure what’s going wrong, they can easily access a manual or a diagnosis flowchart that you’ve uploaded.

You’ll never have to hear the sentence, “I couldn’t find the manual, but I thought I remembered how it worked.” Additionally, CMMS systems can speed up the work order authentication process with automated workflows administered by a mobile app.

Measuring Preventative Maintenance (PM) Compliance

Establishing the optimal PM schedule is all about balance. Ideally, you want your staff to be spending enough time on PM so that reactive maintenance is being avoided. However, you also don’t want them to be wasting time with maintenance that isn’t necessary.

CMMS software automates PM and tracks its completion, you’ll always be able to measure PM compliance and see which side of the balance you’re on. If PM is frequently being completed at the very last minute or not being completed at all, you’ll know.

Then, you can investigate. For example, because all repairs are tracked by an assigned worker, you can see whether given members of staff aren’t as efficient as others, or whether certain areas of your staff are being overburdened.

Additionally, CMMS makes it easy to address PM issues caused by checklists that have vague or redundant steps. You know, steps like “see what’s wrong with it” or “look at the problem.” In a comprehensive CMMS solution, all maintenance checklists are stored in the database with the asset they belong to.

Measuring and Reducing Repair Costs

Every maintenance professional can point to an asset in their facility that they’re having to maintain with suspicious frequency. However, it’s not always as clear whether these costs really are as unreasonable as they seem.

Without keeping track of the costs of both PM and reactive maintenance, there’s no way to determine whether the MC/RAV (Maintenance Cost/ Replacement Asset Value) percentage for a given asset is creeping up to unacceptable levels.

However, with CMMS software, the costs and labor associated with maintaining an asset are measured on an ongoing basis. At any given moment, you can see how much work has been done on an asset and check up on the costs involved. This will give you an accurate picture.

If the costs are being accrued by lots of reactive maintenance, you can ensure that the asset starts getting the attention it needs in the form of more PM. Thus, maintenance costs will go down.

On the other hand, if the asset remains flaky despite constant attention, you can decide that you’re better off with a shiny new piece of equipment. If it has to go, you’ll always know.

Monitoring and Mastering Inventory Flow

One of the biggest advantages of CMMS software is the way it can handle inventory management. That definitely applies to keeping a handle on inventory KPIs. One of the most helpful measurements is inventory flow.

Inventory flow can, at a glance, give you a clue as to whether you’re consistently overstocked or understocked.

A conspicuously high inventory flow can tell you that you’re edging too close to the “just in time” precipice. On the contrary, a stagnant inventory flow can let you know that you’re ordering too much and thus wasting storage space and overspending.

Better yet, some CMMS solutions let you act on this information in addition to accessing it. You can use a good CMMS solution to set automatic orders when your stock hits a certain threshold.

Some allow for stock figures to be depleted in real time as a work order is being completed. This means that the automated order will take place at the very moment the count dips below an acceptable threshold.

CMMS can also track the location of your stock, ensuring that you won’t lose parts somewhere in a sprawling job site with multiple storage locations.

Noticing Inactive Stock

Inactive stock can stay around for a frightening amount of time because, well, it’s inactive. Unless it’s being tracked, it’s not being looked at.

A properly configured CMMS will track the entirety of your inventory. You’ll always be able to see what’s flowing in and out of your stockroom, and, by extension, what isn’t.

Of course, there are two kinds of inactive stock—parts you’ll need for occasional crucial repairs, and stuff that you just don’t need anymore and should write off immediately. Tread this line carefully.

CMMS software bundles data about repairs, parts, and assets together such that it’s always clear which asset needs which part. Accordingly, you’ll never mistake a “just in case” part for an obsolete part taking up space.

Generate Reports Automatically

Ensuring that you’re improving KPIs over time requires a dual focus.

You have to keep an eye on the micro—why certain work orders are consistently overdue, why certain assets are failing too often, and so on. You also have to monitor the big picture to see whether the little tweaks you’re making are causing an impact over time.

This dual focus can be demanding—unless you just do it all automatically. The right CMMS maintenance software will help you by generating reports on a predetermined schedule. And, if you want, your CMMS can send out these reports automatically on a regular basis.

Once you set this up, key stakeholders can consistently obtain the data they need without you lifting a finger.

The right CMMS will generate both simple and complex reports. So, if you’re looking to send a simple report out to your maintenance team for motivation, now you can. If you’re talking to a member of upper management who wants rich data, that’s easy to produce as well.

Rather than manually collecting and compiling performance data yourself, you can keep doing the work of improvement and simply watch as your efforts are recorded and compiled accurately, every time.

Conclusion

Many maintenance managers avoid implementing CMMS because a new way of doing business can seem confusing and overwhelming. However, what’s less examined is how the traditional maintenance environment is already confusing and overwhelming.

Traditional maintenance management systems leave many areas of daily operation opaque. You can’t see the things you’re trying to improve. That makes it difficult to improve them.

Inventory has to be tracked manually, which means that it can go astray. Asset costs can be unclear, leading to confusion about whether to repair or replace. You might not know why your PM program isn’t protecting your assets as well as you’d like it to.

Fundamentally, a well-implemented CMMS brings clarification for your team rather than confusing them.

That level of insight and support allows our customers to get excellent results.

On average, CMMS users enjoy a 20.1% reduction in equipment downtime, a 19.4% savings on material costs, a 17.8% reduction in MRO inventory expense, and a 28.3% increase in maintenance productivity.

At MRI NETfacilities, when we onboard our customers we make sure that they have visibility into the metrics they need. Our CMMS software is easily adaptable to mirror processes within your facility, so that from day one you receive accurate reporting.  Our support team is also available to help you understand the platform – with an average ticket response of under eleven minutes.

Are you ready to eliminate confusion and stress from your life?

Then schedule a demo with one of our facilities management experts today!

The post Measure, manage, and improve your KPIs with CMMS software appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/mri-atlanta-office-wins-ajc-top-workplace-award/ Tue, 23 Mar 2021 13:30:07 +0000 https://www.mrisoftware.com/?p=35293

We’re thrilled to announce that our very own Atlanta office won an award from the Atlanta Journal Constitution (AJC) for being a Top Workplace in the Small Workplace category! MRI Software wouldn’t be able to help real estate organizations transform the way communities live, work, and play without our employees, so we’re truly honored to … Continued

The post MRI Atlanta office wins AJC Top Workplace Award appeared first on MRI Software.

]]>

We’re thrilled to announce that our very own Atlanta office won an award from the Atlanta Journal Constitution (AJC) for being a Top Workplace in the Small Workplace category! MRI Software wouldn’t be able to help real estate organizations transform the way communities live, work, and play without our employees, so we’re truly honored to be recognized in this way.

Just like the Top Workplaces Award MRI won earlier this year, this award from the AJC was determined through the use of anonymous surveys sent out to employees in MRI’s Atlanta office. MRI is one of 175 companies recognized by AJC’s Top Workplaces, and among only 86 in our category. 2021 marks our 50th year of service, and with these honors that recognize our workplace, along with an award from Inc. 5000 that recognizes our growth, we believe we’re on the right track when it comes to excellence in the industry, and we’re looking forward to the future.

Supporting MRI employees wherever they may be

While MRI has been in business for 50 years, the first Atlanta-based member to join the team was in 2007 – MRI’s very own Senior Vice President of Property Solutions, Chuck McDowell. It wasn’t until 2016 that a full office was opened with the acquisitions of both Integratec and Callmax, and the office has been growing ever since.

Even before the pandemic made connection with one another a bit more difficult, MRI has always placed a high priority on employee engagement and well-being at its offices all around the globe. In normal times, MRI has sought to bring employees together as one team with one mission through HR-led spirit weeks, quarterly social hours across the city, and designated rest and collaborative spaces throughout the office. Not even the transition to a remote work environment has stopped our employees from connecting with one another in new and innovative ways, such as virtual happy hours and online wellness classes.

At MRI, we believe that equipping our employees with high quality services, tools, and support allows them to innovate without boundaries and put their best foot forward. Visit our careers page to learn how you can join our award-winning team in the Atlanta office or at any office around the globe.

The post MRI Atlanta office wins AJC Top Workplace Award appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/3-trends-consider-when-planning-return-office/ Thu, 18 Mar 2021 13:30:00 +0000 https://www.mrisoftware.com/?p=35114

Real estate occupiers have been rethinking the traditional workplace even before the COVID-19 pandemic. A year into the “new normal” of working from home, attitudes and market trends have shifted dramatically, and it’s become increasingly clear that the workspace will not look the same when employees are invited back into their respective offices. Tenants need … Continued

The post 3 trends to consider when planning the return to the office appeared first on MRI Software.

]]>

Real estate occupiers have been rethinking the traditional workplace even before the COVID-19 pandemic. A year into the “new normal” of working from home, attitudes and market trends have shifted dramatically, and it’s become increasingly clear that the workspace will not look the same when employees are invited back into their respective offices.

Tenants need to meet the new and changing expectations of their employees, and organizations are being challenged to rethink their use of office space, consider the safety and well-being of their staff, and understand how hybrid and flexible work models impact the future of office planning.

1. How will offices be used once employees return to work?

Bringing employees back into an office setting won’t be as easy as it sounds. Some employees have settled into this “new normal” and believe that returning to the office full time would be detrimental to productivity, while others look forward to going back to the traditional workplace. As companies navigate changing attitudes, the office space will have to be made appealing again. The office won’t just be a place where work gets done – it will be a place where people come to collaborate. Rows of cramped desks might need to give way to new spacing requirements, and small common areas that once brought employees together for lunch could be expanded into large spaces that focus more on community than rest.

2. Ensure staff safety and wellbeing on a global scale

While companies look to turn their offices into more collaborative, spaced-out environments, many of them will still have to contend with frequently changing health and safety regulations across multiple continents, countries, and cities. In additional to keeping up disparate safety requirements, the culture of work is likely to impact different office locations. While some in the US and the UK may not be comfortable returning to the office, many employees in the APAC region have already returned to their offices comfortably. This will present a unique challenge for global companies.

3. Explore flexible, hybrid workplace models

Taken together, these dynamics paint a picture of a future workplace that focuses on flexibility and adaptability above all else. Each company, region, office, and employee has dealt with the impacts of the pandemic differently, and workplaces will need to throw out the traditional “one size fits all” office layout in order to best accommodate all of the disparate needs and changing market trends.

How technology can help you plan the future of the office

In response both to health guidelines and market trends that favor space, flexibility, and collaboration, workstations across the office will need to be spaced out, and in many cases, rearranged altogether with the help of space management tools. Creating enough space between desks won’t just help the property remain in compliance with local health guidelines, but it can also provide employees with peace of mind, boosting productivity. In addition, visitor management solutions can help offices cut down on foot traffic and manage all non-employee staff that enter the building – a huge step toward ensuring the safety and security of everyone on the property.

On the subject of desks being rearranged, organizations may also have to accommodate employees who don’t want to return to the. office. One of the things we’re seeing in the return to the office is that many people want to remain either fully remote or on a hybrid work schedule, meaning that not every desk within the office will be filled at all times. Taking on an approach of “hotdesking” – where several employees might be assigned to one desk at different times throughout the week – can help offices consolidate desks and desk space.

With companies using fewer desks as a result of hotdesking or even hoteling, commercial tenants might come to find that they no longer need as much office space as they once did. In these cases, landlords and tenants will need to potentially reevaluate lease obligations and reach new lease agreements. Before taking on this process, both parties will need to have clear understandings of what’s in their leases so they can effectively communicate and agree upon new terms moving forward.

As landlords and tenants both look ahead to a time when offices will reopen, both need to be prepared to collaborate in order to address changing market trends and disparate needs among employees and other staff. Learn more about the trends impacting the return to the office.

The post 3 trends to consider when planning the return to the office appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/real-estate-industry-experiencing-digital-transformation/ Fri, 12 Mar 2021 14:30:05 +0000 https://www.mrisoftware.com/?p=34843

The events of the pandemic, in combination with the availability of technology, have forever changed the relationship between the things we do and the place we do them. When many office-based workers were sent home in March 2020, business did not stop. With a quick pivot, business thrived and proved that there was another way, … Continued

The post The real estate industry is experiencing a digital transformation – are you ready? appeared first on MRI Software.

]]>

The events of the pandemic, in combination with the availability of technology, have forever changed the relationship between the things we do and the place we do them. When many office-based workers were sent home in March 2020, business did not stop. With a quick pivot, business thrived and proved that there was another way, a digital way, to continue operations, maintain effectiveness and drive new efficiencies.

The digital pivot, driven by necessity, must now be tuned to the default way to enable business. Actions should continue to eliminate all forms of paper, provide self-service capabilities to all stakeholders, ensure systems can be accessed from anywhere and enable instrumentation and virtual representation.

Eliminate all forms of paper

If success in real estate is based on location, location, location, it seems that the lifeblood of many real estate enterprises is paper, paper, paper. Contracts, drawings, invoices, leases, checks, reports, work orders, and many more paper items are at the core of many business processes.

While some of these items have been reduced during the pandemic, there remain a number of opportunities to further eradicate paper from day-to-day practices. If not already implemented, real estate enterprises should review and implement systems like:

• Automated payables systems to streamline the requisition, procurement, invoicing and AP payment processes
• Digital contracts, leases and other documents with electronic signatures
• Electronic payment capabilities for residents/tenants and other types of receivables
• Digital mechanisms for the assembly and distribution of reporting packages

These types of solutions typically include the capability for the involved stakeholders to interact directly as part of a redesigned business process, through self-service portals.

Provide self service capabilities to all stakeholders

Often in business processes, we move from digital to paper when we exit the four walls of the enterprise or we get outside the specific users of a system. To fully digitize a process, it must be complete from end to end, for all parties, and for all inputs and outputs.

There are many opportunities to service the stakeholders of real estate with portals and mobile apps that are designed for specific roles:

• Residents and Tenants – Offering transactional capabilities for payment and service requests as well as additional features like amenity reservations, package tracking, community forums, property handbooks, emergency contacts and much more
• Vendors and Suppliers – Offering the ability to make requests for good and services, submit invoices and check on the status of payments
• Owners and Investors – Offering an elegant channel for communications on performance, distributions, tax documents and other important updates

When self-service capabilities are leveraged, stakeholders are able to find information on their own rather than asking enterprise staff for it. Staff can be available to answer questions about the content, as opposed to providing the information in the first place. These capabilities are also accessible independent of location.

Ensure all systems can be accessed from anywhere

For both external stakeholders as well as internal staff, access to systems and data independent of location has never been more important. With work from home policies likely to continue through 2021 and a new hybrid model likely to become the new norm, enterprises can no longer assume that every employee will be doing their work in the same place every day. As such, all systems need to be accessible from anywhere.

Further, software applications need to be made simple for employees to use and traverse, especially where multiple applications are part of a role or a business process. This requires close attention to data integration, identity management, and most importantly, facilitation of cross-solution workflows and reporting. This ubiquitous access is typically delivered via cloud-based solutions.

With the operational elements of the business appropriately enabled and paperless, there are other fronts to attack as it relates to digitization.

Enable instrumentation and virtual representation

There is much talk of the Internet of Things (IoT) and the additional capabilities, visibility, and services it can bring. The instrumentation of properties is nearly boundless, and enterprises should work to find the projects that can generate cost savings or improve upon the experience within the building.

HVAC, access control, utility consumption, and contact tracing are just a few areas where sensors are being deployed to gather data, provide insight, and even launch business processes.

As more of a property is instrumented, a digital twin is a very effective way to present the information in the context of the property itself. The underlying building information model (BIM) can also be used for virtual reality and augmented reality applications, both of which are gaining traction as consumers seek virtual or self-guided exploration of spaces, sometimes before engaging with leasing staff.

In physically separating people from their offices, their employers, and each other, the pandemic has forced organizations across the globe to create connection and flexibility with technology. Digitizing your businesses won’t just serve the near-future challenges as we come out of the pandemic, it will prepare you for a future in which keeping people connected will continue to drive productivity, whether people are gathered in one place or many.

The post The real estate industry is experiencing a digital transformation – are you ready? appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/what-exactly-is-preventive-maintenance/ Wed, 10 Mar 2021 12:23:38 +0000 https://www.mrisoftware.com/?p=49453

By definition, Preventive maintenance (PM) is maintenance that is regularly performed on a piece of equipment or an asset to reduce the likelihood of it failing. Preventive maintenance is performed while the equipment is still effective, so that it does not break down unexpectedly. Preventive maintenance is a planned event so that any and all … Continued

The post What exactly is preventive maintenance? appeared first on MRI Software.

]]>

By definition, Preventive maintenance (PM) is maintenance that is regularly performed on a piece of equipment or an asset to reduce the likelihood of it failing. Preventive maintenance is performed while the equipment is still effective, so that it does not break down unexpectedly. Preventive maintenance is a planned event so that any and all required resources are available.

The maintenance is scheduled based on a time or usage trigger. A typical example of an asset with a time based Preventive maintenance schedule is an air-conditioner which is serviced every year, before summer or a heating system scheduled prior to winter months. A perfect example of an asset with a usage based Preventive maintenance schedule is like a car which might be scheduled for an oil change every 3500 miles.

Assets suitable for Preventive maintenance include those that:

• have a critical operational function
• have failure modes that can be prevented with regular maintenance
• have a likelihood of failure that increases with time or over use

Unsuitable applications for Preventive maintenance include those that:

• have random failures that are unrelated to maintenance (such as circuit boards)
• do not serve a critical function

Advantages of Preventive maintenance: Planning is the biggest advantage of Preventive maintenance over less complex strategies. Unplanned, reactive maintenance has many overhead costs that can be avoided during the planning process. The cost of unplanned maintenance includes the loss of production; increased costs for parts and shipping, as well as time lost responding to emergencies and diagnosing faults while equipment is not working not to mention the costs of downtime of machine and resources. Unplanned maintenance typically costs three to nine times more than planned maintenance. When maintenance is planned, each of these costs will be reduced. Equipment can be shut down to coincide with production downtime. Prior to the shutdown, any required parts, supplies and personnel can be gathered to minimize the time taken for a repair. These measures decrease the total cost of the maintenance. Safety is also enhanced.

Advantages compared with more complex strategies: Preventive maintenance does not require condition-based monitoring. This eliminates the need and cost to conduct and interpret condition monitoring data and act on the results of that interpretation. It also eliminates the need to own and use condition monitoring equipment.

Unlike reactive maintenance, Preventive maintenance requires maintenance planning. With MRI NETfacilities CMMS, the software will schedule in advance the dates to insure coverage. This does require an investment in time and resources that are not required with less complex maintenance strategies but the cost differential of a breakdown is massive.

The post What exactly is preventive maintenance? appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/prepare-2021-beyond-6-proptech-strategies/ Thu, 04 Mar 2021 14:30:54 +0000 https://www.mrisoftware.com/?p=34390

The past year has been challenging for nearly every segment of the real estate industry. The COVID-19 pandemic initiated massive changes in behavior and transformed how people interact with property. Working from home, non-essential store closures, increased demands for home delivery, a collapse in dining, sports and entertainment, eviction moratoriums and mass unemployment have challenged … Continued

The post Prepare for 2021 and beyond with these 6 PropTech strategies appeared first on MRI Software.

]]>

The past year has been challenging for nearly every segment of the real estate industry. The COVID-19 pandemic initiated massive changes in behavior and transformed how people interact with property. Working from home, non-essential store closures, increased demands for home delivery, a collapse in dining, sports and entertainment, eviction moratoriums and mass unemployment have challenged every corner of real estate. At the same time, in order to maintain operations and serve customers, the pandemic also accelerated technology adoption, shining the spotlight on PropTech.

In 2021, PropTech continues to be at the forefront of the ongoing transformation of the real estate industry. There are six key strategies that should be embraced to ensure success, to drive value and to get the most from the technologies that are available today while positioning for the ones on the horizon.

Digitalize now

Technology continues to be the main enabler in separating activities from the places in which they usually occur. The pandemic has accelerated many of those trends, especially in real estate. With quick pivots from companies across the globe, business went forward even as office-based employees were sent home. Business thrived and proved that there was another way, a digital way, to continue operations, maintain effectiveness and drive new efficiencies. Driven by necessity, the digital pivot must now be mainstreamed as one of the default ways to enable business.

Differentiate with data

With such a rapid transition to online activities over the past few years, many traditional data processing systems can no longer manage the voluminous data sets of the modern era – what we know today as “big data.” No matter how overwhelming it may be, this mass of data can be incredibly useful when it comes to addressing business problems that you might not have been able to tackle before. The trick is finding the signal in the noise. To best utilize and manage all of this data, you’ll need an enterprise-wide set of policies that define how data will be collected, stored, processed and communicated. In short, you’ll need a strategy and a set of tools to enable it.

Plan to win

This pandemic has created the most challenging moment for planning and forecasting since the Great Recession over a decade ago. But where the Recession impacted real estate in very specific ways, the effects of the pandemic are disrupting real estate in a much broader and deeper sense. In spite of all the unknowns, the need to reforecast 2021 and the years ahead provides an opportunity for technology to help lead the way. For short term planning and forecasting, integrated planning and budgeting tools can make quick work of using past periods to drive future period forecasts while providing for both general and specific assumptions.

Manage risk and compliance

Managing risk and compliance is a job with no end. New challenges arise and old ones evolve in unexpected ways. As new regulations are enacted by federal, state and local agencies, technology and data can make the never-ending quest to mitigate risk and remain in compliance a little less daunting. When risk is managed and fraud is eliminated, both the property and residents benefit and create a stronger, safer community.

Engage customers

With the world going paperless, it is clear that integrated virtual portals and other forms of web-based technologies are critical for customer engagement. While self-service extensions of transaction systems are the most common starting point, there are plenty of other customer engagement solutions now finding their footing in the real estate industry. These new capabilities are placing the customer (or in this case, the resident/tenant) at the center of the relationship, which is where the lease used to be. It’s about relationships, not accounting.

Reinvent the workplace

When the pandemic first started to impact organizations a year ago, a large portion of the workforce, especially office-based staff, decamped and quickly transitioned to working from home. Business processes quickly pivoted to paperless processing, digital signatures, and video conferencing. With 2020 behind us, we can confidently say that working from home full time is not just possible for many; it can be a setup for success. This begs the question: What do we need from a future office space…if one is needed at all?

Technology adoption and innovation continues, and PropTech has never been in a better position to drive positive change for real estate enterprises and their customers. Digitalized processes, data-driven differentiation, tech-powered planning processes, improved risk and compliance management, greatly enhanced customer engagement and the reinvention of the workplace are six key technology strategies that should be embraced in 2021 and used as a foundation for the rest of the decade.

The post Prepare for 2021 and beyond with these 6 PropTech strategies appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/4-types-of-maintenance-management-strategies/ Fri, 26 Feb 2021 11:08:22 +0000 https://www.mrisoftware.com/?p=49380

There are 4 key types of maintenance management strategies including run-to-failure maintenance, preventive maintenance, predictive maintenance, and reliability-centered maintenance. These maintenance management strategies can be used together, or independently. But, how do you know which strategy will work best for your organization? And when to use each one? Breaking it Down: Types of Maintenance Management Strategies Run-to-Failure: … Continued

The post Maintenance management strategies: The 4 main types & when to use them appeared first on MRI Software.

]]>

There are 4 key types of maintenance management strategies including run-to-failure maintenance, preventive maintenance, predictive maintenance, and reliability-centered maintenance.

These maintenance management strategies can be used together, or independently. But, how do you know which strategy will work best for your organization? And when to use each one?

Breaking it Down: Types of Maintenance Management Strategies

1. Run-to-Failure: This is the simplest maintenance strategy where assets are actually allowed to operate until they break down. The asset receives no maintenance until the failure event occurs and then it’s (hopefully) fixed without causing any production issues. However, when using this method, it’s really critical to have spare parts and reliable staff on hand to replace the failed parts in a timely manner. This strategy is mostly used on assets that don’t have safety risks and have a minimal impact on production.
2.  Preventive Maintenance (or Preventative Maintenance): This type of proactive maintenance approach includes adjustments, cleaning, lubrication, repairs, and parts replacements. Preventive maintenance software keeps assets in good working order and reduces unscheduled downtime and major repairs.
3. Predictive Maintenance: This is a technique that uses condition-monitoring tools to track the performance of equipment during normal operation to detect possible defects and fix them before the asset fails.
4. Reliability-Centered Maintenance: This is a strategy that is implemented to optimize the maintenance program of a corporation or a facility. It means having a specific maintenance strategy for each asset that is optimized so that productivity is maintained using cost-effective maintenance techniques.

Now that you have a better understanding of the different types of maintenance management strategies, let’s talk about the pros and cons of each one.

Run-to-Failure Maintenance

Almost every facilities manager/director uses this simple and credible strategy for non-critical assets, like light bulbs and batteries. There are several reasons why a company would choose to implement this maintenance management strategy.

Pros

• It’s super simple and easy to understand
• There’s minimal planning required
• Fewer people resources are needed since less work is done day-to-date

Cons

• It’s highly unpredictable
• It can be expensive in some cases
• Makes scheduling/planning for staff difficult
• There’s a safety risk involved

To implement a run-to-failure maintenance strategy, you could use paper-based systems or spreadsheets. If you are combining this maintenance management strategy with others, it’s a good idea to use a CMMS so you can track the number of times an asset has been repaired or replaced and all of the costs that go along with it. You can also use a CMMS to track the inventory of spare parts needed to support your run-to-failure maintenance strategy.

Preventive Maintenance 

Preventive maintenance is probably the most popular maintenance management strategy…at least it gets the most buzz in the industry. When the quality of production is impacted due to unreliable equipment and costs skyrocket because of unplanned servicing, it’s probably time to consider a preventive maintenance program.

Pros

• Minimized asset breakdowns
• Reduced downtime
• Safer work environment
• Increases asset’s productive life
• Improves production quality

Cons

• More labor intensive
• Unnecessary maintenance of equipment (loss of man hours and revenue)
• Doesn’t eliminate catastrophic failures
• Can cause early deterioration of equipment

Even though there are tons of benefits that come along with a preventive maintenance program, the plans can really suffer if there isn’t a reliable way to organize the information. A CMMS or facilities management software can help eliminate the need for stacks of paper and confusing spreadsheets. If used correctly, your team can receive reminders and notifications of upcoming repairs and inspections.

Predictive Maintenance 

Predictive maintenance is next on the list and can easily be used in conjunction with preventive maintenance. In fact, preventive maintenance usually provides the processes and insights needed to build an efficient predictive maintenance program. This type of maintenance management strategy is mostly used in larger organizations with more complex operations.

Pros

• Decreased maintenance costs
• Reduced unexpected failures and repair time
• Increased production efficiency
• Increased service life of parts
• Improved worker and environmental safety

Cons

• High start-up costs
• Limitations of some equipment
• Misinterpreted data, leading to false maintenance requests
• Difficult to install, configure, and run

When used correctly, the goal of predictive maintenance is to understand the best time to do work on an asset so maintenance frequency is as low as possible and reliability is as high as possible – and avoid all of the unnecessary expenses.

Reliability-Centered Maintenance 

Reliability-centered maintenance (RCM) is a concept of maintenance planning to ensure that systems continue to do what their user requires in their present operating context. Put simply, it’s the process of determining the best effective maintenance strategy for each asset inside your building or facility by combining all of the methods above.

Pros

• Increases equipment availability and reliability
• Reduces maintenance costs
• Lowers staff costs
• Helps to prevent loss of life, property damage, and environmental harm
• Incorporates root cause analysis

Cons

• Really high up-front costs for training and equipment
• Savings potential not evident to management
• To be effective, RCM requires a certain level of maintenance maturity to ensure accurate and complete asset data

Pulling It All Together

Above all, your job as the head of facilities is to create a comprehensive maintenance strategy that is efficient, cost effective, and safe. Unfortunately, there isn’t one right answer when it comes to maintenance strategies. You’ll have to come up with the correct blend of strategies that works best for your specific organization. Planning it all out and making sure to revisit your strategies frequently is the key to success. MRI Net Facilities can help you and your team increase the effectiveness and reliability of your maintenance management strategy. Want to learn more? Schedule a demo here today!

The post Maintenance management strategies: The 4 main types & when to use them appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/affordable-public-housing-plowing-ahead-2021-technology/ Thu, 25 Feb 2021 15:51:52 +0000 https://www.mrisoftware.com/?p=34241

As we approach the month of March, the one-year mark since all 50 states initially reported cases of COVID-19, we have our first opportunity this year to examine the ongoing impact of the pandemic on the low-income housing industry. Still working through the health crisis, low-income housing operators remain committed to their residents and operating … Continued

The post How affordable and public housing are plowing ahead with technology during 2021 appeared first on MRI Software.

]]>

As we approach the month of March, the one-year mark since all 50 states initially reported cases of COVID-19, we have our first opportunity this year to examine the ongoing impact of the pandemic on the low-income housing industry. Still working through the health crisis, low-income housing operators remain committed to their residents and operating their portfolios. In the meantime, MRI’s Affordable and Public Housing group, with its comprehensive set of software products, continues to help housing organizations keep residents safe and operate efficiently. This month, I’m delighted to highlight our RentPayment platform, one of the many solutions low-income housing operators are leveraging to thrive during these challenging times.

January 2021 MRI Market Insights Report

Although new Coronavirus cases and hospitalizations are down in America and around the world; sadly, we have surpassed 500,000 deaths in the United States. The emergence of new variants, possibly more contagious and more lethal, has caused concerned and is increasing the urgency to make the vaccine widely available. In addition, we continue to follow employment trends given the economy’s impact on the ability of residents to keep up with rent payments. After initial jobless claims experienced recent highs from late December to mid-January, mid-February data indicates that the recovery’s momentum has stalled. It may be months before the pandemic is effectively contained and the economy is consistently trending upward. Nonetheless, as reported in the latest edition of MRI Software Market Insights: The Impact of COVID-19 on the Affordable and Public Housing markets, the early weeks of 2021 show that low-income housing operators are pulling through.

In the affordable and public housing sectors, residents continue to generally stay in place. In the affordable segment, January 2021 new admissions were at 88% of the prior year level and applications and move-outs were significantly lower than the prior year (close to 20% for both metrics).

On the public housing side, applications during January are comparable to the prior year but new admissions and move-outs were both well below the prior year levels.

Rent collection for low-income housing

One of the most important trends we continue to follow in the low-income housing industry is rent collection. Through January 2021, affordable housing payments remained above 80% of the prior year and public housing is only 2 percentage points off the prior year level.

Although overall rent collection is down, low-income housing properties have managed to stay afloat by relying on rental subsidies and residents who have benefited from federal assistance. The second COVID relief bill signed in December provides $600 in direct payments and $300 per week in extra unemployment insurance for 11 weeks.

The latest on the policy front

The December relief bill also includes $25 billion in emergency rental assistance (“Emergency Rental Assistance” program) to be distributed and overseen by the U.S. Department of Treasury. The funds are being sent to states and local jurisdictions and is intended for past and present rent, as well as fees and utilities. Residents must show that they suffered financial hardship due to the pandemic, have incomes below 80% of their area median income and are at risk of experiencing homelessness.

An analysis from Mark Zandi, chief economist of Moody’s Analytics, and Jim Parrott, a fellow at the Urban Institute, reminds us that this federal assistance can only address a fraction of the overall problem. Their analysis concludes that the typical multifamily renter who is behind on rent payments now owes $5,600, nearly four months behind on their monthly payment. Overall, approximately $57 billion is owed. Zandi and Parrott’s analysis also indicates that if the $25 billion in rental assistance is deployed efficiently (a major unknown), it could help to decline the arrears until April. By March approximately 6.3 million renters would be behind on payments, with total accrued back rent of about $33 billion. Then the numbers would begin to increase again.

The current administration is proposing an additional $25 billion in rental assistance in its stimulus package and the extension of the federal eviction moratorium through the end of September 2021. The bill also includes $1,400 in direct payments and $400 in extra unemployment benefits through August. The unemployment checks approved in December are set to expire in March. While this relief package and several of its core aspects have not yet been finalized, the House is expected to vote on the bill later this week.

The continuing role of technology

As affordable and public housing operators await new developments on the policy front, at MRI, we continue focusing on how to help low-income housing operators brave the early months of 2021. Before the pandemic we witnessed greater adoption of technology by managers who sought more efficient systems for exchanging information and documents with residents, working remotely and operating more efficiently. However, the health crisis and need to work socially distant led to an exponential rise in the use of online tools.

How our industries have handled payments is a fitting example of this recent trend. Among the many ways managers and residents are keeping safe during the pandemic is by using online tools to manage rent payments. Beyond the traditional check there are a few ways in which managers are leveraging technology to collect rent. The most convenient method is by allowing payments via a website using a resident portal that accepts ACH, debit and credit cards.

According to the MRI Insights data, during 2020, the multifamily rental industry experienced an increase of over 19% in electronic payments with a disproportionate volume of payments occurring via credit or debit cards. ACH payments increased 11% on average and card payments increased on average 52%.

Comprehensive payments solution

RentPayment from MRI Software offers the industry a comprehensive solution for managing payments. This platform gives renter’s the convenience of paying rent online or through a variety of other methods – including check, money order, or cash-based payments – within an efficient, fully integrated solution. RentPayment allows property managers the ability to collect rent online while also leveraging the time of leasing staff and site managers and offering convenience to the residents. This product also integrates with MRI Living, our comprehensive residential management system, and with our various affordable and public housing compliance and property management solutions, allowing operators to capture and store payment data to be used for other vital management tasks. RentPayment helps operators increase on-time payments, reduce manual workload and streamline the onboarding experience for new residents.

Using online rent payment tools offers direct economic, operational and health benefits for low-income housing operators and residents. These tools can also help indirectly address credit reporting issues afflicting many low-income residents as highlighted in the February 14, 2020 HUD press release, “New Report Explores Problems of ‘Credit Invisibility’ Among HUD-Assisted Households: First-of-its-kind study examines reporting rent payments to credit reporting agencies.” This release reminds us that low credit scores can limit housing choice and employment opportunities for low-income families and it highlights a study from HUD and the Policy and Economic Research Council (PERC), Potential Impacts of Credit Reporting Public Housing Rental Payment Data, which concludes that many households would cease being “credit invisible” if the rent payments of HUD-assisted families are reported to credit reporting agencies. The study analyzed credit scores of more than 9,000 HUD-assisted households in Cook County, Illinois; Louisville, Kentucky; and Seattle, Washington, and it found that reporting rental payment information led to a significant increase in the number of HUD-assisted tenants. RentPayment offers a feature that provides credit reporting to the credit bureaus.

During these early uncertain months of 2021, MRI is not only delighted to play a small part in helping low-income residents remove barriers to obtaining quality housing, but we’re also proud to serve affordable and public housing operators as they plow ahead.

The post How affordable and public housing are plowing ahead with technology during 2021 appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/manage-risk-prevent-fraud/ Wed, 17 Feb 2021 21:33:37 +0000 https://www.mrisoftware.com/?p=34100

For property managers, risk management and fraud prevention are seemingly jobs that never end. New threats arise and old threats evolve. Similarly, new regulations are enacted by a variety of federal, state and even local agencies, and keeping up with changes can be difficult. Technology and data can help address property risk management in the … Continued

The post Manage risk and prevent fraud appeared first on MRI Software.

]]>

For property managers, risk management and fraud prevention are seemingly jobs that never end. New threats arise and old threats evolve. Similarly, new regulations are enacted by a variety of federal, state and even local agencies, and keeping up with changes can be difficult.

Technology and data can help address property risk management in the real estate enterprise. When risk is managed and fraud is eliminated, both the property and residents benefit and create a stronger, safer community.

How technology helps reduce property management risk

As the pandemic’s economic impact continues, bad actors are increasing their use of technology to perpetuate fraud. In order to secure housing, they are using false forms of identification, fake pay stubs, and stolen identities. Fortunately, technology exists to identify these increasingly common types of fraudulent activity and further mitigate risk.

• ID verification – Identifying false forms of identity, like drivers’ licenses and passports, can stop a bad actor early in the process. Often required as part of a tour process, identification can now be quickly validated, in person or online, to deny a fraudster the ability to engage with the property, ensuring site staff do not spend time on a fraudulent applicant and that they are not put at risk during a tour with someone who is misrepresenting themselves.
• Screening – Credit and background screening processes continue as table stakes in residential leasing processes. While these common screens are being processed, additional validation is now available. Understanding if the applicant’s credit file has had recent fraudulent activity can be a key indicator of potential issues, as can an applicant’s inability to perform a two-factor identity verification using their mobile device.
• Income validation – Validating income is also becoming more challenging as fake paystubs and instruction on how to doctor paystubs are available across the internet. Google “fake paystubs for apartment” and you might be surprised how easy it is to misrepresent one’s income. Emerging products to validate income are the next clear wave of fraud prevention and they are currently making their way to market.
• Insurance – In residential markets, establishing a resident insurance compliance program helps reduce risk and minimize loss by closing gaps in coverage, which can occur when new residents move in or cancel a policy. Conveniently, renter’s insurance policies can be paid along with rent on a monthly basis.

More technology savvy and sophisticated fraudsters drive more sophisticated detection capabilities. In this ongoing battle, landlords have an advantage. Landlords have historical data in renter performance and can utilize data, analytics and artificial intelligence to better predict outcomes based on applicant profiles.

Learn more about risk management for property managers in this webinar.

The post Manage risk and prevent fraud appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/lease-administration-key-uncovering-hidden-costs-leases/ Thu, 11 Feb 2021 16:44:13 +0000 https://www.mrisoftware.com/?p=34010

For a corporate occupier, managing the complex leases within the organization’s property portfolio is a tedious endeavor, especially given how difficult it can be to ascertain the true monetary value of a lease. When it comes to managing a large portfolio of complicated leases, human error is one of the biggest risks your organization faces … Continued

The post Lease administration: The key to uncovering hidden costs in your leases appeared first on MRI Software.

]]>

For a corporate occupier, managing the complex leases within the organization’s property portfolio is a tedious endeavor, especially given how difficult it can be to ascertain the true monetary value of a lease.

When it comes to managing a large portfolio of complicated leases, human error is one of the biggest risks your organization faces as the simplest of mistakes could cost a lot of money. At MRI Software, our team of lease administration experts interact with clients daily to catch many of these errors before they happen.

Here are three key areas in which common slip ups could have resulted in real estate occupiers losing out on big money.

Unreliable lease abstraction

It’s not uncommon for important data points to get lost in the time-consuming process of manually pulling information from your leases and contracts. Collecting all of the data, provisions, and terms from your leases – and knowing where that information can be found quickly – is a top way to drive cost savings. Utilizing “deep lease data” can benefit your business by bringing to light automatic renewal provisions, security deposit billings, and improvement allowances.

With inefficient lease abstraction, automatic renewal provisions in leases and contracts can sometimes go unnoticed, especially if the lease has been added to your portfolio through a large acquisition. If left undiscovered, these renewal provisions can cost your organization a whole 12 months’ worth of rent. In large acquisitions like this, you could also be losing out on security deposits that your accounting department won’t have an accrual for, meaning the deposit will be paid out. With a more efficient review of these leases and through cross-referencing with legal documents, these deposits could be accounted for.

Poorly tracked improvement projects

Major facilities management projects that involve multiple departments (and, as such, multiple points of contact) could also be exposing your organization to financial losses. If the improvement allowances tied to these projects aren’t properly tracked, it could end up costing millions of dollars in delay costs and funds not collected from landlords.

Rent payment and processing errors

There are plenty of steps in the rent payment and collection process that could be exposing your organization to financial risk. Whether due to technical errors, oversights, or landlords in accidental misalignment with their leases, money can easily fall through the cracks, and considering that rent serves as the largest dollar spend in most organizations, that money can add up fast.

One step of the rent collection process where errors can occur is in the application of late fees. Sometimes, late fees are applied when they’re not supposed to be – it’s even possible that a landlord might have set their system to charge rent as late until marked otherwise. If rent is paid on time and charged with late fees anyway, that could end up costing your organization thousands. Similar errors can occur in the simple act of rent payment. If a payment isn’t applied to the corresponding account in a timely manner, there’s a risk that the money could get lost in a landlord’s bank account.

Catch mistakes before they impact your business

Having the right technology and expert advice to manage your leases can save your organization thousands of dollars. Whether it’s through AI-powered lease abstraction tools that pull critical terms and key data out of your leases or through a committed team of experts that can catch errors in rent payment processes through monthly reconciliation, MRI Software’s lease administration solutions can enable you to tap into the full potential of your data, drive cost savings, and simplify your leases. Learn more about how much your leases could be costing your organization.

The post Lease administration: The key to uncovering hidden costs in your leases appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/improving-tenant-satisfaction-with-property-management-software/ Thu, 11 Feb 2021 13:28:58 +0000 https://www.mrisoftware.com/?p=49412

A common tenant satisfaction complaint heard among people who rent their homes, whether it’s an apartment, condo, or single-family residence, is difficulty with property management. While there will always be some degree of conflict, but some of the dissatisfaction expressed by tenants is rooted in problems that are easily fixed. A property manager can ease … Continued

The post Improving tenant satisfaction with property management software appeared first on MRI Software.

]]>

A common tenant satisfaction complaint heard among people who rent their homes, whether it’s an apartment, condo, or single-family residence, is difficulty with property management. While there will always be some degree of conflict, but some of the dissatisfaction expressed by tenants is rooted in problems that are easily fixed.

A property manager can ease tenant frustration, minimize complaints, and enhance overall renter satisfaction through the use of property management software like MRI NETfacilities. There are a number of features associated with a CMMS, computerized maintenance management system, that can simplify and ease the interaction between tenants and management.

Track Work Orders and Maintenance Requests

When something goes awry with a tenant’s home, the renter is often inconvenienced while understandably concerned and frustrated. Unfortunately, these feelings can be amplified if property management isn’t able to respond to the issue promptly and thoroughly. Without a decent system in place, like a CMMS, maintenance requests and work orders won’t be tended to in a satisfactory manner and will lead to even more conflict.

Tenant frustration can mount at the very start of the process with submitting a work order. Too often, property managers either have no clear system for tenants to submit requests or have one in place that is outdated or isn’t user friendly.

If a tenant can manage to submit a work order or request, the process usually gets infinitely more frustrating from then on. After a request is submitted tenants often feel like they’re in a state of limbo, not hearing anything back from management or worse, never seeing the request fulfilled. There is usually no clear confirmation that the request is being processed, and this lack of clarity can frustrate tenants even further.

Even if a property management team receives a work order and completes the repair in a timely manner, not communicating progress to the tenant will leave them dissatisfied with how the request was handled. Instead of being relieved that the request has been fulfilled, the tenant will likely focus on the lack of communication and label the experience a negative one.

With property management maintenance software from MRI NETfacilities, a tenant can easily submit and track maintenance and repair orders. The process begins at the moment a maintenance request is submitted through the web portal and is transparent until the request has been resolved, leading to a dramatic increase in tenant satisfaction.

Property Resource Reservations

Some properties offer tenants an array of amenities, ranging from a business resource center, to a gym, to tennis courts, and so on. Without a reliable CMMS in place, the process of booking and using those resources can be a challenge for tenants. For example, properties that still rely on paper sign-up sheets can easily lose records or misplace and mishandle reservations. Even properties that have gone digital often use older systems that aren’t reliable or user friendly.

The tale of President Jimmy Carter and the White House tennis courts underscores this point: During the early days of his presidency, President Carter kept the sign-up sheet for the White House tennis court in the Oval Office with him. Staff members were reluctant to venture into the Oval Office to sign-up to use the tennis courts, even when they wanted to play a match during their free hours.

Implementing a comprehensive CMMS is the best way to avoid the bloom of tenant frustration. Tenants like to be able to access facilities onsite without the hassle of tracking down one person with a sign-up sheet or using an unreliable online reservation form. Giving tenants more autonomy and ready access to property facilities with dynamic tenant management software can increase tenant satisfaction and reduce conflict.

Simplified and Reliable Discussion

Yet another area in which tenant satisfaction runs into trouble is when a renter has a question, even a simply one, and is unable to get an answer. In the absence of reliable property management software, a tenant will be left sending an email or leaving voicemail messages that may sit unanswered. A simple question that could have been resolved in 30 seconds can go unanswered for a frustrating period of time.

With a comprehensive CMMS solution like MRI NETfacilities, property managers have the ability to host documents in a tenant portal for easy access. Tenants can view rules and regulations, tenant handbooks, request forms, and more. Tenants can get the information they need in a timely and reliable way. Quick answers to their questions assure tenants that their issues matter, which elevates their level of confidence with a property and its management.

After-Hours Access

Tenants who have reliable after-hours access to management will be significantly more satisfied with the overall renting experience. They feel like management wants to help them and will prioritize their needs day or night. Naturally, this includes having confidence that building management will respond to off-hours emergency maintenance issues.

After-hours tenant access, via a comprehensive software platform that provides tenant management assistance, is an important resource when it comes to ensuring a tenant satisfaction with a rented home and with the associated management.

Using reliable property management software, these issues and many more can be quickly and effectively addressed by building management in a way that satisfies the vast majority of tenants. In the end, the tenant experience is what motivates the success of a rental property. If tenants are happy and the system is easy to navigate, renters will be more satisfied leading to higher rates of quality tenant attraction and retention.

The post Improving tenant satisfaction with property management software appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/celebrating-50-years-mri-software/ Tue, 02 Feb 2021 14:30:10 +0000 https://www.mrisoftware.com/?p=33798

2021 marks the 50th anniversary of MRI Software, and we are thrilled to celebrate this milestone with our clients, partners and staff around the world. We were excited to close out 2020 (I mean, who wasn’t?) because we couldn’t wait to kick off our anniversary festivities! The golden anniversary of MRI Software The PC hadn’t … Continued

The post Celebrating 50 years of MRI Software appeared first on MRI Software.

]]>

2021 marks the 50th anniversary of MRI Software, and we are thrilled to celebrate this milestone with our clients, partners and staff around the world. We were excited to close out 2020 (I mean, who wasn’t?) because we couldn’t wait to kick off our anniversary festivities!

The golden anniversary of MRI Software

The PC hadn’t even been invented when MRI was founded in 1971, but we were already pioneering the real estate software space. The business was launched in Cleveland, Ohio, and initially focused on residential real estate clients, with commercial products added soon after.

Wondering how we automated our clients’ property accounting functions in the days before fancy computers? We processed client paperwork and turned it into professional-looking printed reports overnight with our IBM 360-20 mainframe, mag tapes, punch cards and disk packs. Once we got our hands on a Xerox 9700 printer, our commercial real estate product was unstoppable!

A history lesson: Global expansion and growth

The industry was poised for revolution – there was a huge opportunity to provide business services for the unique needs of commercial and residential real estate companies. MRI pioneered the industry and set the stage for Proptech as we know it today.

If you follow the history of MRI, you know that the company has grown significantly in recent years, notably in the EMEA and Asia-Pacific regions. MRI’s presence in APAC actually dates back to the 1990s, when we were one of the first providers in the region. The expansion outside of our Cleveland headquarters accelerated in 2002, when MRI became part of Intuit and was known as Intuit Real Estate Solutions (IRES). In 2010, Intuit spun out the real estate division and MRI Software was once again a standalone business.

Fast-forward a few years to 2015, when our aggressive growth strategy took off. The company expanded even more, first to Toronto, then Atlanta, bolstering its Investment Solutions offering along the way. The journey accelerated after that, with the addition of teams in South Africa, UK, Australia, New Zealand, and India. But MRI’s growth was about more than increasing its global footprint – the company strategically expanded its offerings and entered new markets, adding innovative solutions for automated communications, risk management, payments, and the underserved government-subsidized housing sector.

Today, we are proud to have clients and staff on all continents except Antarctica (we’re working on it). We continue to push the limits of innovation for real estate technology, and as a result, MRI was named to the Inc. 5000 list of fastest-growing companies in the US in 2020 (and 2021!). Not bad for an established business that’s been around since 1971.

And the beat goes on

Much has changed in the world of technology since MRI was founded, but the important things have stayed the same. Our obsession with client success has been around since day one, and we still strive to amaze our clients and learn from them in our quest for innovation. In the early days, working at MRI felt like being part of a family, and our culture still embodies this today. Even now, MRI employees have opportunities to try new things and explore different roles within the organization.

As MRI continues to grow, our mission to help organizations transform the way communities live, work and play remains at the core of the business. It’s true even after 50 years, and it will remain so 50 years from now. Learn more about who we are.

The post Celebrating 50 years of MRI Software appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/facilities-management-services-future-growth-and-global-insights-for-the-next-10-years/ Sat, 30 Jan 2021 12:30:02 +0000 https://www.mrisoftware.com/?p=49460

Facilities management services (FM) has rapidly evolved since its recognition as an industry in the early 1980s when the International Facilities Management Association was formed. The days when FM centered around assets, buildings and plants are in the past; the future will focus largely on customer service and improved outcomes. The next decade will see significant transformation … Continued

The post Facilities management services: Future growth and global insights for the next 10 years appeared first on MRI Software.

]]>

Facilities management services (FM) has rapidly evolved since its recognition as an industry in the early 1980s when the International Facilities Management Association was formed. The days when FM centered around assets, buildings and plants are in the past; the future will focus largely on customer service and improved outcomes.

The next decade will see significant transformation of the industry driven by several key trends that are already having an impact in the global marketplace.

Smart Technology

Right now in 2020, the use of facilities management software, mobile applications and connected devices is fairly widespread. Facilities management services will continue to rely on these tools of technology as standard operating procedures.

However, the addition of artificial intelligence, robotics, sensors and the internet of things (IoT) will create environments where just about every aspect–the doors, lights, windows, HVAC units and CCTV–has a unique identifier and is fully integrated.

The result is a facility with increased energy efficiency, sustainability and a more satisfied workforce–who wouldn’t like getting coffee from a machine that recognizes you and pours your cup to order? Or automatically adjusts the temperature in a meeting room based on the number of attendees?

Obviously, creating these intelligent, or smart, buildings takes extensive planning, foresight and capital. Organizations should note that it’s usually more cost-effective to build rather than retro-fit and take that into consideration when looking ahead to future projects.

Still, these sleek automated facilities will no longer be the stuff of sci-fi movies, but a reality in the facilities management of tomorrow.

Predictive Maintenance

Space-age technological advancements will continue to shape the future of FM, especially with regards to predictive maintenance management strategies. Sensors allow for monitoring just about any component within a facility without the need for human interference. This real-time data and tracking means organizations can move away from preventive maintenance tasks and toward more predictive maintenance measures.

Preventive maintenance will still have its place, but the value of predictive maintenance will require organizations to implement this strategy in order to remain competitive.

Flex Space

With the increase in the number of employees who work remotely, flexible schedules, hot desking and coop work spaces, the traditional idea of each worker having his or her own office is likely going the way of the fax machine.

Keep in mind, though, there’s a significant number of workers who aren’t crazy about not having a personalized space of their own. So building maintenance management needs to be thoughtful and flexible in how it accommodates this trend over the next 10 years.

Nevertheless, employees who are physically at the office often prefer the option to work in collaborative “third-spaces” such as lounges, coffee bars or other gathering spaces free of confining walls.

Millennials and Gen Z workers want features such as bright open spaces in innovative buildings that offer amenities such as fresh food options and other extras that make leaving home for the office worth the effort.

It’s estimated that by the end of 2030, 30% of commercial real estate will be flex space, up from today’s figure of <5%. The area usage per person will drop from just over 200 sq. ft. to less than 150 sq. ft.  As the demand for flex spaces rises, it will be vital to consider how building retrofits can improve your space utilization.

Health and Wellness

Dovetailing the trend for increased flex space is the growing focus on the health and well-being of employees and occupants. Facilities management services will need to address this issue in two major ways.

First, as more workplaces face the challenge of having a multi-generational employee base and the occurrence of lifestyle-related diseases such as diabetes increases, there will be a need to reassess building design. This new field of  “wellness architecture” means buildings are designed with humans and their health in mind.

The workplace of the future needs to facilitate and promote a more comfortable, active and productive lifestyle for employees, young and old. For instance, instead of the dark enclosed stairwells that are common today, open and attractive stairways encourage workers to make a healthy decision to take the stairs.

Second, what a company has to offer in terms of wellness will be a weighty factor when it comes to recruiting and retaining top talent. According to a recent CoreNet survey, a whopping 80% of respondents said a health and wellness program at work was important to them.

Strategies to make the workplace healthier include things as simple as adding more live plants and increasing access to nature by creating peaceful outdoor spaces or expanding outdoor views. Meeting rooms can be used for yoga sessions at lunch.

Other changes to improve the health of a facility are less visible, but have a significant impact on the quality of the indoor environment. They include making sure construction projects are completed with non-toxic building materials, using chemical-free cleaning products and low-VOC finishes, and installing proper HVAC and air recirculation equipment.

The benefits of focusing on health and wellness go beyond making occupants feel better. Healthier environments reduce the cost of absenteeism and increase productivity–employees in green buildings scored higher in cognitive function than when they were breathing the air in conventional buildings.

Sustainability and Energy Maintenance

Fueled by the challenges of global warming and sustainability, an increase in environmental regulations will require companies to continue to look for ways to be more energy efficient and reduce their carbon footprint.

FMs may find pressure to innovate in this area comes from all angles–the public, investors and  board members in addition to regulatory agencies. Facilities management services will need to make concentrated efforts to reduce their energy and water consumption, use alternative and renewable energy sources, increase responsible sourcing and practice comprehensive recycling.

Forward thinking FMs will invest now in energy-saving improvements such as LED lighting, high-efficiency HVAC systems and preventive and predictive maintenance programs which monitor equipment to ensure its efficient operation.

Through technological advancements like the Internet of Things (IoT), managing energy use is now a set-and-forget task. Sensors provide real-time tracking which allows those in charge of building maintenance management to be proactive regarding energy consumption. In the most advanced building systems, usage can even be predicted and adjusted accordingly.

Outsourcing

Outsourcing certainly isn’t new, but more and more companies will rely on outsourcing’s agility to allow their in-house teams to focus elsewhere while saving costs.

The job of a facilities manager continues to grow in complexity. From the more traditional areas of overseeing leasing costs, personnel, asset management, energy consumption, and equipment maintenance to the newer areas that focus on customer service aspects like user experience and innovation to enhance their clients’ businesses, the responsibilities are exhaustive.

Outsourced facilities management services provide expertise, support and resources that together act as a strategic partner without the overhead and hassle.

Integrated Facilities Management (IFM)

When companies are looking for a provider to outsource their FM to, many will choose one who offers Integrated Facilities Management (IFM). As noted above, facilities management is quickly evolving, growing more complex at an unprecedented rate.

Ensuring the quality of their physical environments in a cost efficient manner demands a focus that simply isn’t part of an organization’s core mission. In addition to managing assets and maintenance, there’s the need for research and development in order to innovate and stay ahead of the competition.

Add to that the need to orchestrate a shift to a service culture; recruiting, training and retaining talent; and keeping abreast of health and safety regulations and the most advanced technologies, and you end up needing skill sets and a knowledge base covering a wide range of services.

The future of facility management will be marked by an increase in IFM providers whose purpose is to fill the gap and offer organizations streamlined operations to supercharge their business productivity. Not only does this reduce the number of suppliers an organization has to deal with, it allows for one point of contact, enhancing accountability and control.

Conclusion: Kickstart Future Growth

The future growth of facilities management will be influenced by several key trends that center around technology, sustainability and people. The way ahead may seem daunting, but as with eating the proverbial elephant, just start with one bite at a time.

If you’re not already using an automated solution to manage your facilities–work orders, maintenance, assets and more–that’s a good place to start. Here at MRI NETfacilities, we offer intuitive and flexible solutions to help you transform your organization. Reach out if you have questions, or better yet, take a look at what we can do with our no-obligation, free demonstration.

The post Facilities management services: Future growth and global insights for the next 10 years appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/mri-software-wins-2021-top-workplaces-award/ Thu, 28 Jan 2021 13:40:07 +0000 https://www.mrisoftware.com/?p=33752

Here at MRI Software, we strive to amaze in all that we do, and that includes amazing partners, clients, and especially our own employees. It’s for this reason that we’re thrilled to announce that MRI Software is a 2021 Top Workplaces Winner in the Technology Industry! Awarded to companies on both national and regional levels, … Continued

The post MRI Software wins 2021 Top Workplaces Award appeared first on MRI Software.

]]>

Here at MRI Software, we strive to amaze in all that we do, and that includes amazing partners, clients, and especially our own employees. It’s for this reason that we’re thrilled to announce that MRI Software is a 2021 Top Workplaces Winner in the Technology Industry!

Awarded to companies on both national and regional levels, Top Workplaces are evaluated based on surveys sent out to all MRI employees in the U.S. These surveys are used to gauge employees’ overall satisfaction at their workplace in categories including but not limited to:

• Work/life balance
• Support of managers
• Clued-in leaders
• Company values
• Helpfulness
• Culture and adaptability

This year, MRI Software has placed in the Top 100 Workplaces on a national level based on anonymous, positive feedback from MRI employees and without the knowledge of senior leadership or supervisors. MRI ranked well across all categories, but we’re particularly proud of our high scores in the specific areas of work/life balance, support of managers, and culture and adaptability.

Supporting employees with a flexible workplace

This award is an incredible honor that we at MRI do not take lightly. After a challenging year for many, our organization has adapted to the changing landscape in public health and the global real estate industry. When strict public health measures became necessary in March 2020, MRI Software was already equipped with the work practices necessary to implement an immediate, company-wide work from home policy with relative ease. The transition was handled well by employees and supervisors alike, with teams participating in virtual happy hours and with supervisors frequently checking in on employees to ensure they were equipped for success in their day-to-day operations.

We’re grateful for this exciting award win, and we’re thankful for our incredible employees whose work and support keeps MRI moving into the future. Learn more about MRI Software and our award-winning team here.

The post MRI Software wins 2021 Top Workplaces Award appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/early-glimmers-hope-affordable-public-housing-2021/ Wed, 27 Jan 2021 21:26:16 +0000 https://www.mrisoftware.com/?p=33749

The affordable and public housing industries welcomed 2021 with a renewed sense of optimism, despite the ongoing gravity of the COVID-19 pandemic. Recently, Dr. Fauci warned that the crisis remains a “very serious situation” as healthcare professionals grapple with a new, more infectious variation of the virus. On the economic front, we continue to experience … Continued

The post Early glimmers of hope for affordable and public housing in 2021 appeared first on MRI Software.

]]>

The affordable and public housing industries welcomed 2021 with a renewed sense of optimism, despite the ongoing gravity of the COVID-19 pandemic. Recently, Dr. Fauci warned that the crisis remains a “very serious situation” as healthcare professionals grapple with a new, more infectious variation of the virus. On the economic front, we continue to experience relentless unemployment as employers cut payroll by 140,000 in December 2020, the first decline since the mass layoffs of last Spring.

The latest MRI Software Market Insights report, however, offers glimmers of hope. As revealed in 2020 in Review: The Impact of COVID-19 on Conventional, Affordable and Public Housing, affordable housing rent payments rose above 80% year-over-year, the highest level since June 2020. Rent paid for public housing ended the year on an even stronger note, increasing to 97% year-over-year.

The MRI Software Market Insights’ rent collection data shines a positive light on the low-income housing industry; nonetheless, affordable housing operators are bracing themselves for looming financial obstacles. Although affordable landlords are expected to do everything possible to avoid widespread evictions (given their inherent mission), growing receivables from accrued back rent will likely create cash flow problems for many owners. Last month, at the time the second coronavirus relief bill was signed into law, the National Low Income Housing Coalition issued a statement about the shortfall properties are facing, estimating $70 billion in accrued back rent.

Our industry is facing strong headwinds, but there are other hopeful signs. First, an executive order was signed on inauguration day calling for the extension of the eviction moratorium for renters who have fallen behind on rent due to reduced wages during the pandemic. The order asks the CDC to extend the federal eviction moratorium, set to expire on January 31, through at least March 31. The following day, the CDC agreed to this request. The executive order also calls on federal housing agencies to extend the foreclosure and eviction moratorium for federally backed mortgages through March. The Federal Housing Administration and Rural Development announced these extensions on January 21. In addition, the second COVID-19 relief bill includes $25 billion for rental assistance. The relief funds will be delivered to the states and eligible cities and counties as grants through the Emergency Rental Assistance Program (ERAP), which requires participating jurisdictions to provide ongoing certification of eligibility and other compliance requirements for the life of the program and beyond.

ERAP makes available $25 billion to assist households that are unable to pay rent and utilities due to the pandemic. The funds must first flow from the federal government to the cities and states requesting aid. Allocations are expected to be distributed in late January. Housing advocates are concerned that rent relief funded by this program won’t arrive quickly enough to adequately cover the growing past-due balance. It’s up to state and local agencies to distribute the funds to eligible renters or landlords who apply on behalf of the residents. The success of this program – measured by the number of households financially stabilized – will depend on speed and focused collaboration across different levels of government and all major stakeholders.

MRI’s Affordable and Public Housing group is available to help our industry efficiently manage this precious resource. Our products, Waitlistcheck and Assistance Connect, provide technology to housing authorities and other agencies so they can receive and distribute funds to residents in need. Waitlistcheck, a solution for accepting online applications, helps agencies quickly collect the required information from those who need assistance. Assistance Connect, MRI’s self-service assistance portal, allows organizations managing the wait lists to remain in communication with applicants and provide them with information on their status 24/7. MRI’s state-of-the-art and proven products, Waitlistcheck and Assistance Connect, help agencies nationwide remotely and safely exchange information, including compliance data, with applicants of ERAP assistance and allows the stakeholders to facilitate the efficient flow of the funds. MRI’s tools are essentially helping the industry address immediate concerns, responding to the growing revenue shortfall and stabilizing housing for families in need.

Additional rental assistance policies notwithstanding, the most severe issues plaguing our industry require an end to the pandemic and a start to the economic recovery. At the current pace, it could be until the fall or winter before we’ve turned the corner. Until then, all major stakeholders must employ consistent dedication and ingenuity – including making the most efficient use of the available resources – that helped us thrive during 2020. MRI is proud to continue providing the right tools in 2021 to help the affordable and public housing industries capitalize on the early glimmers of hope.

The post Early glimmers of hope for affordable and public housing in 2021 appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/best-ways-collect-rent-online/ Wed, 27 Jan 2021 14:00:39 +0000 https://www.mrisoftware.com/?p=33715

Residents are consumers, and as such, they expect the same conveniences and flexibility when paying their rent as they do with everything else in life. Even before the pandemic accelerated the rush towards mobile and online life, residents expected to be able to pay their rent online. Whether your multifamily community is looking to replace … Continued

The post Best way to collect rent online appeared first on MRI Software.

]]>

Residents are consumers, and as such, they expect the same conveniences and flexibility when paying their rent as they do with everything else in life. Even before the pandemic accelerated the rush towards mobile and online life, residents expected to be able to pay their rent online.

Whether your multifamily community is looking to replace your current payments solution or looking to adopt electronic payments for the first time, there are many benefits that can help your residential property collect rent online efficiently. Understanding your operational structure during rent week, which includes payment channels, payment types and points of friction is necessary as you evaluate online payments solutions. These elements, along with your future vision of collecting payments, is the starting point to conduct a complete payments evaluation.

Here are some best practices to take advantage of residents moving to online payments.

Culture

What does culture have to do with online payments? Well, if you want residents to pay online, you need to have a culture and technology that supports electronic payments. This includes everything from the resources you provide your leasing agents to the payment options you allow your residents to use. It begins with the core foundation of an organization and the rest is implementing a plan to encourage online payments.

Move-in packet

There’s no better time to set the right expectations with a new resident than when they stop by and get their new keys! When you have a new resident move-in, they have multiple tasks they need to complete – this ranges from moving, to setting up utilities, getting WiFi up and going and then of course paying their upcoming rent. You have vendor relationships for all these services we’ve outlined and providing residents with a checklist that covers all of this plus a line item to setup their online payments is a win/ win!

Credit reporting

Considering that today’s residents are younger than ever before, many of them may be just starting their financial profile. Rent is one of their most expensive monthly bills, and this needs to be reported on their credit. This allows residents that have less than perfect credit or residents trying to build credit for the first time a convenient way to build credit while paying rent. This credit reporting service is often provided to the resident free of charge as an incentive for paying their rent online.

Incentives

Incentives can influence behavior of both residents and leasing agents. This includes both monetary and non-monetary incentives. For leasing agents, monetary incentives can be tied directly to KPIs that govern quarterly and annual bonus payments. There are non-monetary incentives as well. With monthly usage reports, you’re able to see exactly what sites are using or adopting online payments and what sites are not. By using these reports, it’s easy to encourage and use friendly competition among managers to see what sites can have the most online payments. If you have monthly or quarterly staff meetings, this is a good opportunity to set expectations with the group.

Residents can also benefit from monetary incentives, which can include gift cards, coupons to local restaurants and possibly rent concessions. A key opportunity lies with new move-ins – providing an incentive for paying their first month’s rent online or tying the incentive to a recurring payment is an optimal time to set the desired payment behavior. This added nudge can increase your cash flow and alleviate the need for additional reminders.

Social media

Remember, residents are consumers, and consumers want to use their smartphones. They’re using social media apps like Facebook, Twitter and TikTok, and if you have one of these social media accounts, you’ll be able to engage your residents even further. If your residents see your posts and are reminded of the payment methods you support, this is just another avenue to advertise to your residents.

Email & texting

If your portal or payments solution allows texting and/or email campaigns, this can provide another avenue onto the resident’s phone. As consumers, we all need and appreciate friendly reminders to pay our bills. Sending a message to all residents at the same time is a good place to start. Most applications allow for targeted emails based on the resident’s payment behavior. If you have a group of check payers, select a specific message for this group of residents. If you’re able to select only your one-time payers, it’s good to target them with a reminder to set up recurring payments.

Payments options

The best way to collect rent from tenants is to give them multiple payment options. We know that the majority of renters are going to pay with an eCheck, but some residents might prefer to pay with a debit card or credit card. While credit cards are more expensive to process, some residents are willing to incur and pay a convenience fee if they feel they’re able to arbitrage reward points and/or the fee is less than the late fee. Also, your underbanked and non-banked can benefit from electronic payments by using an integrated relationship with MoneyGram. This might surprise most owners and operators, but your underbanked and non-banked do have smartphones. This means they can use their smartphone to access a payment coupon when they go to pay at one of the 40K MoneyGram locations.

If the COVID-19 pandemic has shown us one thing, it’s that the ability to pay rent online is no longer an amenity; it’s a necessity. Collecting rent online can better position your properties in the eyes of prospects and residents, and it can improve efficiency throughout the organization. Still have questions regarding online payments? See how one of MRI Software’s clients simplified their payments process with an online solution.

The post Best way to collect rent online appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/leveraging-technology-transform-facilities-management-software-reopen-commercial-properties/ Fri, 22 Jan 2021 20:19:05 +0000 https://www.mrisoftware.com/?p=33692

2021 has started with more uncertainty than many had hoped for despite the development of multiple COVID-19 vaccines. The spread of new, more transmissible variants of the coronavirus has left many who were looking forward to a return to the office now facing further doubts and fresh restrictions aimed at controlling the pandemic while the … Continued

The post Leveraging facilities management software to reopen commercial properties appeared first on MRI Software.

]]>

2021 has started with more uncertainty than many had hoped for despite the development of multiple COVID-19 vaccines. The spread of new, more transmissible variants of the coronavirus has left many who were looking forward to a return to the office now facing further doubts and fresh restrictions aimed at controlling the pandemic while the new vaccines are rolled out. Indeed, it will still be months before we see a return to something even resembling the “old normal.” For a facilities manager in charge of building maintenance and ensuring staff and tenant safety, that means making ongoing adjustments for both sites that must remain open and those that plan to reopen as circumstances improve.

As the situation continues to evolve, commercial property operators need to re-evaluate the way they carry out day-to-day operations to ensure everyone is safe and healthy – and technology can play a crucial role in meeting new challenges. Given the ongoing necessity of social distancing, facilities managers need to continue to provide updates on health and safety procedures and communicate what steps are being taken to protect everyone working or visiting a workspace. These include deep cleaning processes, building security measures and efforts to minimize physical proximity.

It has become clear that, as restrictions change and the COVID situation continues to shift, effective facilities management in the commercial sector will be vitally important. It becomes critical not just in providing safe working environments for those who must venture back to offices and other workspaces, but in instilling confidence that everyone onsite is safe. Indeed, the task of managing facilities maintenance (FM) will become more complex and increasingly important to efforts aimed at a safe return to normality in the long run.

Managing the workplace as restrictions ease

When more people begin returning to offices, facilities managers will shoulder an important responsibility. They need to ensure any and all new requirements are being met during any transition period in the coming months when people may feel safer returning to buildings, but there are still concerns about the spread of the virus. The need to work with occupiers to make certain the workplace offers an environment that meets all safety standards and guidelines – such as one-way systems or desk placements.

Indeed, we will likely see numerous examples of how organizations will need to rethink and repurpose their use of space, both to meet interim requirements and in fact, on a permanent basis in many cases. This could include areas that are isolated or “out of bounds” for specific individuals or groups – or may even stretch to areas for testing facilities. What’s more, many FM departments and workplace managers will be tasked with completely reimagining their organization’s use and utilization of real estate given shifts in working patterns and increased numbers of remote employees.

Technology will play a critical role in handling the changing nature of work. Paper-based, manual methods are not robust or reliable enough to manage this evolving situation. They cannot be relied on to guide well-informed, strategic decision-making which is required.

Digitalizing the facilities management process

The need to plan spaces more effectively means facilities managers have to rely on complete and accurate information – and have the right solutions in place to visualize and manage their space and related workplace data – so they can take all necessary steps. To properly address these challenges, space management solutions that offer visibility of room layouts, seating configurations and calendar bookings in one place will help ensure that locations are utilized in the best and safest way. Through software, actions or assets can be assigned to users, and can all be tracked on the system, while requests, assignments and approvals can be applied and automated. In what has the potential to be a confusing and sensitive time for stakeholders, this clear communication will be vital.

Furthermore, building security and safety will continue to be a significant issue as conditions change in the coming months. There is a growing need for facilities managers to look at how to streamline visitor management and lobby traffic. Knowing the who, when and where of everyone in a commercial property – whether visitors, contractors, tenants, or FM staff themselves – will be more important than ever in ensuring the safe operation of facilities and complying with any government track and trace requirements.

Facilities managers can utilize technology that allows the capture and analysis of real-time data on new working patterns and visitor activity to ensure commercial properties’ smooth running. For instance, visitor management solutions that offer an intuitive interface to quickly check in staff and register visitors will be critical to ensuring the overall safety for everyone, while efficiently managing the process.

Employing technology that ensures effective measures are in place and enables organizations to communicate that to all staff will be important in inspiring confidence and assuring those returning to work that their health and safety are being protected.

Opening clear lines of communication

The COVID-19 pandemic emphasized the importance of communication across estates and property teams today. Corporate occupiers and building staff alike need information on everything from social distancing and cleaning, to procedures for maintenance and contractors, to visitor management and where to enter/exit. Tenants, employees and customers, as well as FM teams and contractors, need to be made aware of all new rules, restrictions and actions taken in every physical working space, and digital solutions are a quick way to communicate up-to-date information to ensure safety.

Utilizing online portals, for instance, not only enables facilities management teams to maintain clear and consistent lines of communications, but they also provide a straightforward, agile way to handle day-to-day queries, as well as urgent issues – particularly those raised by COVID-19. Issues that might have previously been considered non-urgent could suddenly become critical in the context of maintaining a COVID-secure environment. FM teams will want to rely on their software’s flexibility to track and monitor new and ongoing issues.

Workplace communications have already taken on a new level of importance, and this will continue as new requirements develop. For example, FM managers will need to have digital tools for ensuring that engineers and contractors have all the information they need. They will also need to run an effective multi-discipline helpdesk to deal with reactive jobs and manage COVID related issues. Facilities managers will likely need to have procedures in place, for instance, if a COVID case is reported at their location. With an appropriate FM system, they could have built-in workflows of the steps needed to manage and respond to such an incident.

The pandemic and its fallout also continue to impact how teams communicate and execute planned work. For example, suppose there are simultaneous jobs at a building. In that case, measures might need to be taken to prevent separate teams or engineers from being in a building together and to allow for cleaning to occur between their visits.

Boosting efficiency and agility through FM technology

The impact of the coronavirus crisis on facilities management will reverberate for some time, even once the rollout of vaccines signals that it is safer to return to workspaces. Facilities managers were already facing mounting pressure to provide better customer service than ever while also cutting costs, and that will continue as people filter back into workplaces.

Everyone coming into offices and other workspaces today has high expectations on the use of digital technology to live, work and play. Investing in the right digital solutions not only improves the working and customer experience but boosts efficiency by optimizing the use of staff and time needed to deal with tenant issues – leading to savings.

COVID-19 has drastically accelerated technology adoption and, as the remit of facilities managers continues to broaden, going digital will be an essential component for commercial properties looking to optimize facilities management and ensure the safety of all involved.

The post Leveraging facilities management software to reopen commercial properties appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/boost-manufacturing-productivity-with-asset-tracking-and-management/ Tue, 19 Jan 2021 14:45:50 +0000 https://www.mrisoftware.com/?p=49395

If your employer is flush with resources and life is easy, consider yourself blessed. For us normal Joe’s our margins are thinner than a slice of salami, operations are tight and competition is more fierce than ever before which makes a proper asset management solution vital. “Asset Mis-management” can impact your company’s bottom line and … Continued

The post Boost manufacturing productivity with asset tracking and management appeared first on MRI Software.

]]>

If your employer is flush with resources and life is easy, consider yourself blessed. For us normal Joe’s our margins are thinner than a slice of salami, operations are tight and competition is more fierce than ever before which makes a proper asset management solution vital. “Asset Mis-management” can impact your company’s bottom line and is a major competitive disadvantage. MRI NETfacilities CMMS with Asset Tracking Management including Down Time Tracking will provide peace of mind and ROI.

In the average manufacturing or distribution operation maintenance department costs may be 5% to 15% of operating costs. The positive financial impact of asset tracking and management impacts all parts of your operation.

The time and cost of repair of malfunctioning equipment can be three to five times the cost of planned repair and maintenance of the same equipment, prior to failure. That cost can go up dramatically if the equipment failure also results in an injury to an employee.

Nobody has to tell you that when disruptions occur, you need to react to them as quickly as possible in order to minimize the amount of time lost. Every hour without necessary replacement parts is an hour of productivity lost; historical machine downtime analysis establishes benchmarks and minimizes unplanned production downtime. Reduced costs because of the reduction of downtime and more revenue due to improved capacity are just some of the benefits your business can obtain using MRI NETfacilities CMMS with Asset Tracking Management.

Since assets have value, it’s important that you know where your assets are at all times, and they must be maintained at the very least in accordance with the manufacturer’s recommendations, and must be maintained by proficient technicians applying modern maintenance best practices.

CMMS plays a critical role in achieving the most optimal results. Without it out, you’re likely to see a shortened life-span. With a well implemented CMMS program you’re able to track the purchase price, planned preventive or scheduled maintenance, unplanned or emergency repairs, and depreciation over the life of the asset.

A world-class asset management program can keep breakdown maintenance to less than 5% of all maintenance man hours. If it’s more than 25% this probably is a serious competitive liability. Once asset tracking and management is in place, total cost of maintenance may be reduced to half compared to a mostly breakdown approach.

Unreliable equipment is a main cause of lost production capacity. This lost capacity can result in problems with current customers and make it harder to attract new ones. The cost of these lost opportunities varies with each business and each problem, but it will bring many multiples of maintenance departmental savings by using an asset tracking and management software, especially if the system is web/cloud based.

Because of today’s lean manufacturing world, many businesses sell everything they can make. The longer assets can go before a breakdown and as uptime improves your business may be able to convert this improved capacity to additional business and ROI. Keeping existing equipment running may also allow postponing investment into new equipment as well as newly budgeted, valuable resources.

To learn more about how we can help your business reach its goals in cutting costs and boosting revenue, contact us today by calling us at 1 800 321 8770 or contact us here.

Don’t take our word for it, try it for yourself!

The post Boost manufacturing productivity with asset tracking and management appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/technology-helps-avison-young-safely-welcome-employees-back-to-the-office/ Mon, 18 Jan 2021 11:58:02 +0000 https://www.mrisoftware.com/?p=34745

In the wake of COVID-19, organizations around the world are rethinking space utilization, employee engagement and well-being, sustainability and the overall real estate portfolio. Even the short-term task of reconfiguring floor plans, assigning desks and managing routing is incredibly complex and based on constantly-shifting factors. For global real estate advisor Avison Young, bringing employees back … Continued

The post Technology helps Avison Young safely welcome employees back to the office appeared first on MRI Software.

]]>

In the wake of COVID-19, organizations around the world are rethinking space utilization, employee engagement and well-being, sustainability and the overall real estate portfolio. Even the short-term task of reconfiguring floor plans, assigning desks and managing routing is incredibly complex and based on constantly-shifting factors.

For global real estate advisor Avison Young, bringing employees back to the office has been a long-term strategic process. It’s a combination of teamwork, technology and new ways of thinking that put people front and center. “Remote working was far more effective than we could have imagined and we welcome the fact that many people have entirely shrugged off the lingering belief that equates presenteeism with productive working,” said Jason Shaw, global leader of technology operations at Avison Young.

“We fundamentally believe in the importance of physical offices for people in different stages of their lives and careers and we need to ensure that our workplaces facilitate collaboration and are safe.”

In June 2020, Avison Young announced a phased plan for welcoming some employees back to the office. The pandemic was a pivotal moment for the firm to consider new possibilities for a hybrid approach, enabling employees to work from home or in the office based on which best suited their day’s activities and personal situation. Balancing the needs of its employees, led Avison Young to embrace a safe blend of home working and utilization of dynamic office space. “It’s important that we treat our employees as individuals and give them a choice in where and how they work,” said Shaw. “For those who prefer to continue working remotely, we made returning to the office voluntary. By allowing our workforce to maintain a level of flexibility and agility, our employees can enhance their work-life balance, put themselves and their families first and improve productivity as a result of greater freedom from workplace restrictions.”

Rethinking Strategy and Leveraging Technology

To safely welcome those who wished to return, Avison Young optimized plans for a variety of physical distancing measurements. Office spaces were adapted to ensure distancing and guidelines were established for rigorous cleaning and hygiene protocols, as well as track and trace protocols and space reservations.

With the careful planning and strategy underway, Avison Young needed to rethink how space and services would be managed. Before COVID-19, the company operated a flexible, collaborative workspace environment for its 1600+ employees. However, the post-pandemic return to the office required greater workspace control and more effectively managing space and services to ensure employee safety.

At the time, Avison Young was using MRI Software’s ManhattanONE to manage reservations and utilization for meeting rooms and associated services across its 17 offices. To help ensure safe distancing and protect the wellbeing of employees, the firm expanded its use of the platform to take advantage of its FlexiDesk and Mobile Booking modules for control over desk access and configuration, touch-free QR code check-in and contact tracing.

ManhattanONE’s FlexiDesk is a workspace reservation solution that makes it easy for employees to book a desk from their desktop or mobile devices. FlexiDesk provides planners with support for desk zoning by department and desk type classification, reservation rules and control, and reporting for analyzing the use of workspaces.

When used in conjunction with ManhattanONE’s mobile booking app, the solution gives Avison Young employees easy access to interactive floor plans and search functions that allow them to quickly find and book safe, sanitized workspaces directly from their mobile devices. The app also allows employees to locate colleagues without leaving their designated workspace, which minimizes unnecessary movement around the workplace.

Future-Proofing the Return to the Office

In recounting the firm’s path to returning employees to the office, Shaw shared that there is no “one size fits all” approach to safe social distancing. “Re-opening our offices meant considering numerous, complex scenarios and required a mix of strategy, collaboration and technology,” said Shaw.

“Initially, we could only accommodate 25 percent occupancy. With mandatory pre-booking through FlexiDesk and mobile booking, we’re able to allocate those limited workspaces fairly and safely.”

The unpredictable nature of COVID-19 also requires businesses to make adjustments and changes at a moment’s notice. “With ManhattanONE, we can quickly make more desks available or make other changes to our plan as needed and if the safe distancing guidelines and requirements change.”

Capturing Critical Data

Contact tracing is also a crucial part of Avison Young’s return to the workplace. “Key to keeping our offices COVID-secure is knowing which employees are on-site and where they are seated so we can use the information for COVID-19 tracking and tracing if needed,” said Shaw.

Today, employees use QR codes to check-in to spaces and the corresponding data is stored in ManhattanONE, allowing Avison Young to identify others who may have been exposed should an employee test positive for COVID-19. This data also provides space utilization trend data that helps Avison Young’s corporate real estate team make informed decisions and maximize the firm’s real estate portfolio.

The Road Ahead

For businesses around the world, the pandemic is presenting an opportunity to fine-tune the way workspace is utilized, managed and optimized. It is changing the way we work and presenting new challenges for businesses to consider both in the short- and long-term. While welcoming employees back to the office during a pandemic is nothing short of complex, the right mix of strategy, communication and technology can simplify the process and make a safe workplace a reality.

The post Technology helps Avison Young safely welcome employees back to the office appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/meeting-needs-affordable-housing-loan-servicing/ Wed, 13 Jan 2021 21:49:38 +0000 https://www.mrisoftware.com/?p=33575

This blog was written by Elaine Magil, Director, Advisory & Transactions at TCAM, An MRI Company Affordable housing loans are far more complex and varied than standard first mortgage commercial and homeownership loans. Often issued to fill gaps in the financing structure, affordable housing loans can have a wide variety of funding sources, payment terms, … Continued

The post Meeting the needs of affordable housing with loan servicing appeared first on MRI Software.

]]>

This blog was written by Elaine Magil, Director, Advisory & Transactions at TCAM, An MRI Company

Affordable housing loans are far more complex and varied than standard first mortgage commercial and homeownership loans. Often issued to fill gaps in the financing structure, affordable housing loans can have a wide variety of funding sources, payment terms, and compliance requirements – all of which have changed over time as programs have evolved. Most affordable housing loans are also very long-term; now, after decades of funding loans to promote affordable housing, most lenders find themselves with complex portfolios of non-standard loans.

TCAM, An MRI Company (TCAM) has first-hand experience of these complexities, having worked with affordable housing portfolios across the country for over 10 years. For instance, among our city housing department clients, TCAM recently found that one had more than 100 borrowers, 23 funding programs, a changing definition of “surplus cash” or “residual receipts” over time, multiple deferral period arrangements, and 46 different interest rates – all in a portfolio of roughly 300 housing loans. Similarly, a recent public housing authority client’s portfolio included not only developer interests in its properties, but a total of 76 loans that included seller notes, ground leases, gap financing to co-developers, and bond issuances on its own properties as well as others. For organizations involved in financing affordable multifamily and single-family homes as well as community facilities, the volume and complexity of oversight can rapidly grow overwhelming.

Why loan servicing?

Most loan servicers, and most mortgage servicing systems, are designed to service highly standardized loans – 30-year fixed single-family mortgages, for instance, or must-pay FHA or Fannie Mae multifamily loans. The affordable housing industry today lacks comprehensive loan servicing for government and non-profit housing lenders that provide a variety of debt products including single-family loans, cash-flow contingent subordinate loans and hard/must-pay amortizing loans. Most servicing systems are designed to help mortgage lenders track and collect payments on must-pay senior debt including amortizing single-family and multifamily loans. These traditional loan servicing systems and operations cannot handle loans on which regular payments are not due or loans that are repaid subject to available cash flow.

The complex and varied loans of many affordable housing and community development lenders call for specialized loan servicing. For these portfolios, loan servicers must have the technical skills and systems needed to process and track large volumes of transactions and information. However, they also need to be able to handle extensive variation in payment terms and amortization schedules, and to calculate cash contingent payments. They need to track complex and varying compliance requirements – on the part of both the borrower and the lender’s funding sources. They need to understand the client’s goals and stakeholders – and what those goals mean for the servicer’s interaction with borrowers.

How TCAM can help

Recognizing this need among our clients and colleagues, TCAM – supported by the technological capabilities of MRI Software, our parent company – is now providing specialized loan servicing. Our highly customized loan servicing is able to support organizations whose portfolios include:

• Multifamily property loans, including those funded by HOME, CDBG, NSP, trust funds, AHP and local housing programs
• Commercial facility loans
• Economic development loans
• Single family property loans including down payment assistance, shared appreciation, and local programs
• Ground leased or land trusted properties
• Loans repaid from cash flow or sales proceeds, as well as those making monthly payments of principal and interest
• Loans forgiven over time

Building on our extensive experience in loan oversight, reporting, compliance, and administration, as well as our well-earned reputation for providing flexible, responsive supports to affordable housing owners and capital providers, TCAM is ready to take on portfolios of any size. Our staff have worked with over 15 clients in markets across the country to carefully calculate soft- or non-traditional loan payments due, credit these payments correctly across principal, interest, and accrued balances, and even help lenders anticipate payoff events. We tailor a scope of work that responds to each client’s needs and in-house capabilities, but TCAM’s offering includes all major loan affordable housing loan administration needs, including:

• Client and borrower online portals to easily check balances, view reports, make electronic payments, and more
• Generate and send borrower invoices and statements
• Provide a call center for borrower questions
• Tailored investor reporting
• Operate a client-specific lockbox
• Bookkeeping of loan balances with careful administration of credits, accruals, and debits
• Reconciliation and data validation of bank and borrower data
• Delinquency management
• Specialized processing and data management software systems able to accommodate non-traditional loan types
• Online storage of key property and loan documents
• Multiple payment processing options

The TCAM-MRI platform provides a comprehensive solution to loan servicing that is uniquely capable of helping organizations service and meet their goals for subordinate, cash flow, and deferred payment loans as well as loans with periodic required payments. Clients are better able to maximize collections on cash flow loans and/or other debt with deferral periods. In addition, the TCAM-MRI platform provides the data and document collection and management information systems and reporting capacity needed to track the many program features that fall outside traditional mortgage servicing needs. Learn more about loan servicing here.

The post Meeting the needs of affordable housing with loan servicing appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/key-tracking-security-vs-convenience/ Sun, 10 Jan 2021 11:06:05 +0000 https://www.mrisoftware.com/?p=49409

Tenant security is a main priority for landlords and property managers and key tracking is one way to help accomplish this. But convenience and efficiency are also prime considerations, so it becomes necessary to weigh safety against convenience when completing tasks as a landlord or property manager. The potential exists for security objectives to come … Continued

The post Key tracking: Security vs. convenience appeared first on MRI Software.

]]>

Tenant security is a main priority for landlords and property managers and key tracking is one way to help accomplish this. But convenience and efficiency are also prime considerations, so it becomes necessary to weigh safety against convenience when completing tasks as a landlord or property manager.

The potential exists for security objectives to come into conflict with matters of convenience. But there are strategies and technological solutions available that can be effective in reducing the prospect of a clash between security and convenience.

Key management provides a real-world example of how security, convenience, and efficiency can be satisfied all at once. This can be accomplished consistently and effectively by incorporating key tracking into a CMMS, like the solution created by MRI NETfacilities.

Strategies must maintain an appropriate level of convenience while enhancing security

Before diving deeper into balancing security with convenience and efficiency, a look at a broader spectrum of steps that can be taken to maintain convenience and enhance security is helpful. There are numerous specific strategies that a landlord or property management company can (and should) employ to improve security at a residential rental property. When properly executed, these security enhancement strategies not only increase safety but rarely impact convenience and efficiency in a noticeable way.

These strategic tactics include:

• Systematic key tracking
• Meet or exceed state and local housing safety and security standards (including any requirements addressing locks and peepholes)
• Provide adequate exterior lighting
• Keep bushes and hedges suitably trimmed
• Get a security appraisal from local law enforcement (many police and sheriff’s departments do this at no cost)
• Consider retaining the services of a security guard (for larger, multi-unit properties)
• Maintain open communication with tenants

An overview of key tracking using a CMMS

As previously mentioned, the most effective way of key tracking is to take advantage of the solutions available via a CMMS. Through a CMMS, a landlord or property manager can immediately access information about the location of any key and why a key has been distributed to that individual.

For example, if a maintenance request is made, the location of all keys to a particular property can immediately and securely be ascertained. Arrangements can be made to distribute a key to the appropriate worker. The use of the key can be tracked, including its return when the request has been resolved.

Another example involves tenant move-ins and move-outs. A CMMS accurately tracks the specific keys that were tendered to a tenant at the time of move-in and again track the return of the keys at the time of move-out.

Time and again, property managers are plagued by issues with keys going missing at the time of a move-out. If the missing key involves a property in a multi-unit building, the keys to the specific residence are likely to be changed, but not the keys to the building itself. Having a CMMS with key tracking capabilities in place can make sure keys are accounted for at the time of move-out. In these ways, a CMMS effectively serves the objectives of both security and convenience.

Lack of key tracking hampers convenience and security

The absence of a CMMS with key tracking will have an overall negative impact on convenience, efficiency, and security. With a CMMS, you have real-time tracking of all keys. You know who has them and why they have them. Without a CMMS, you have none of that. And as a result, keys can “fall through the cracks” and end up in places and with people that could potentially jeopardize the safety and security of a tenant.

Tenants who feel safe are happier renters

In general, tenants who feel safe and secure in their homes or offices are happier and more satisfied than those renters who worry about crime and other security issues.

There is a practical side effect associated with tenants who feel safe and secure in their home or office. A satisfied tenant takes up less of a property manager’s limited time. Property managers must be prudent in how they expend resources, including their valuable time.

When tenants feel safe, content, and happy, landlords and property managers are able to tend to other important tasks. This creates a positive cycle wherein when a property manager has time to address items that may have been put on a back burner, tenants are likely to reap benefits. And this possibility has the potential to create even more satisfied tenants.

By using a CMMS with key tracking, a landlord or property manager never needs to sacrifice security for convenience, nor do they need to short tenants on convenience. In fact, with the right CMMS, both vital objectives of efficient property management can fully be realized.

The post Key tracking: Security vs. convenience appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/the-future-of-work-reopening-offices-after-covid-19/ Fri, 08 Jan 2021 16:32:26 +0000 https://www.mrisoftware.com/?p=33467

When the Coronavirus pandemic first led businesses around the globe to close offices at the beginning of 2020, few would have expected that so many people would still be working remotely at the end of the year. But despite ongoing uncertainties and restrictions, the future is certainly looking brighter each day, especially as the rollout … Continued

The post The future of work: Reopening offices after COVID-19 appeared first on MRI Software.

]]>

When the Coronavirus pandemic first led businesses around the globe to close offices at the beginning of 2020, few would have expected that so many people would still be working remotely at the end of the year. But despite ongoing uncertainties and restrictions, the future is certainly looking brighter each day, especially as the rollout of the COVID-19 vaccine is already underway in the UK and North America, and the prospect of reopening offices after COVID-19 is sooner than ever. The pandemic has accelerated trends many expected to take off a few years down the road – namely, the reimagining of how office spaces will function and the rise of flexible workspaces.

In a panel moderated by Beth Schwartz, MRI’s Senior Director of Product Management, at our recent ‘Ascend Anywhere‘ virtual users conference, leading experts from across the real estate industry joined a panel to discuss “The Future of the Office” and how the pandemic is affecting trends in the sector. There were a few areas that the panel picked out as ones to watch, which will be of keen interest to both commercial landlords and corporate occupiers in the New Year.

Meeting the need for greater flexibility

While the return to the “old normal” appears to be on the horizon, it is unlikely to be the same workplace “normal” that existed before the pandemic. Having many people in the office only part of the time and teams spread across geographies is no longer the huge challenge it may have seemed in the past, and organizations have had the opportunity to test remote working scenarios while considering how to better utilize their physical spaces. As we move into a post-pandemic world, traditional work methods will likely make way for flexible working. Many people within businesses are far more likely to mix working at home with hot-desking rather than having their own full-time, fixed workspaces in the office.

The attitudes of many people – and employers – towards working remotely and being in the office have undergone a fundamental change now that they have seen how efficient working from home can be. Many office workers live a substantial distance from their workplace and faced a substantial commute before the pandemic. They have now seen how working at home – at least part of the time – has positively altered their work-life balance and in many cases improved their productivity, which is an encouragement for employers. During the pandemic, many people have only been venturing into the office one or two days a week even when lockdown restrictions have been lifted, a pattern that promises to become much more of the norm post-COVID.

We may also see more shared spaces where people can come together to collaborate on tasks and meeting goals. Another Ascend panelist, Robert Pavese, Partner at Atlanta Property Group, expects to see a post-COVID uptick in demand not just for flexible workspaces but spaces for “common area gatherings”, which he noted was already a trend before the crisis. “We have a lot of designs which we put on the shelf. We haven’t thrown anything away because I do think that it will come back – but everything is on hold right now.”

Modern-day amenities – plus safeguards

The Future of the Office panel kicked off by looking at a rise in a variety of amenities, designed into commercial properties and offered to tenants – a trend the panel saw continuing. Beth Schwartz noted that “things like onsite dining, specialty shops, gyms, activities like yoga and so forth” were emerging as key requirements for corporate occupiers and that employees were often looking at those amenities when deciding on a potential employer. Tim Curran, CEO of Building Engines, adds that those sorts of amenities – which have been pushed further into the mainstream of the modern workplace by coworking spaces such as WeWork – are no fad and are now seen as “fundamentally valuable to tenants.”

Panelist Scott Morey, Executive Director at One11 Advisors commented that many companies were looking beyond these sorts of amenities as a result of COVID. “We’ve seen a shift from amenity to necessity as tenants see more value in safety, security and transparency.” Indeed, while pre-coronavirus trends indicated a steep rise in amenities being designed into properties, employees now also want to make sure the facilities address factors such as how clean the air is, how safe building procedures are, how safely space management is handled, and other factors to help tenants feel comfortable in an office building.

The vital role of PropTech

In rethinking properties as we move out of the pandemic, PropTech will play an essential role in helping both building owners and occupiers understand how their employees are using workspace, what their working patterns are, how the building can be adapted to those – and using all this information to reconfigure existing commercial spaces or guide new developments. Another outcome of coronavirus is that it has accelerated the need for technology at almost all levels of work and space management. As Tim Curran noted, it is critical for businesses to now have “flexible software and processes in place” so that everyone can adapt to new ways of working and move forward together.

Forward-thinking leaders in the real estate industry will embrace PropTech solutions as they continue to deal with the fallout of the pandemic and its aftermath. By leveraging purpose-built digital tools, those landlords and tenants that move towards putting technology at the heart of their business will be able to unlock a new depth of understanding that enhances property use and efficiency. The reality is that operating a building safely, efficiently and effectively is no easy task, and there has never been a time more important than now to create a foundation of agility and adaptability.

Watch the on-demand webinar to learn how space management software can help you in reopening offices after COVID-19.

The post The future of work: Reopening offices after COVID-19 appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/how-hospitals-benefit-from-cmms-software/ Thu, 07 Jan 2021 11:48:16 +0000 https://www.mrisoftware.com/?p=49402

CMMS, or computerized maintenance management systems, are proven to increase productivity in the workplace. Traditional tracking methods, such as spreadsheets, come with many disadvantages and are generally inconvenient, especially for hospitals. This is because human errors can result in harm or negligence of patients who depend on specific care. CMMS software is computerized and automated, … Continued

The post How hospitals benefit from CMMS software appeared first on MRI Software.

]]>

CMMS, or computerized maintenance management systems, are proven to increase productivity in the workplace. Traditional tracking methods, such as spreadsheets, come with many disadvantages and are generally inconvenient, especially for hospitals. This is because human errors can result in harm or negligence of patients who depend on specific care. CMMS software is computerized and automated, meaning there is little to no room for error. You will no longer need to dedicate hours to tracking and administrators will have more time to focus on other important tasks.

Some of the main advantages of CMMS software in hospitals include:

1. Easily Track Assets and Equipment

CMMS software for hospitals can help you track your assets and equipment with ease. Hospitals and clinics typically have a lot of equipment to keep track of including, but not limited to:

• Medical imaging machines
• Surgical devices
• Infusion pumps
• Medical lasers
• Life support equipment

Additionally, with CMMS software, you will be able to identify the exact locations of company vehicles and schedule maintenance accordingly.

CMMS software will also store the history of your assets, meaning you will be able to see what work has been done on a specific machine in the past. The reliability, downtime, and labor hours spent on your machines will be accessible, which can help you quickly fix any bugs or assess the reliability of a particular machine at any given time. New employees will find this information useful when acclimating to your system.

Simply put, CMMS software will help you keep tabs on the location and work performed on every asset in your hospital. This will ensure that your operations don’t get interrupted and run more smoothly.

2. Increase Efficiency

CMMS software will store all of your documents in one place. This eliminates guess work and makes it simpler to find your documents, thus helping to increase efficiency in the hospital.

Since the software keeps tabs on your equipment and assets, you will be able to know when to carry out maintenance. You can schedule maintenance jobs in advance or whenever the need arises.

3. Schedule Preventive Maintenance

The scheduling of maintenance is one of the key functions of CMMS software. As noted before, the software can help determine when maintenance is necessary. In hospitals, preventive maintenance on assets is critical and can potentially help to save a patient’s life.

Regular preventative maintenance also has the potential to make patients more comfortable during the day-to-day. For example, doors and windows should be kept in perfect condition so that they don’t start to work improperly or making distracting noises when opened or shut. CMMS software will also help you keep the premises accessible and convenient for handicapped patients.

4. Respond to Patient Requests Promptly

With CMMS software, you will be able to receive and respond to requests from your patients. Those requests will be stored in the system, so you won’t have trouble recalling them when you need to solve problems. This will increase the overall comfort of your patients and add convenience for the hospital staff who fulfill the requests.

5. Help with Budgeting

CMMS software is not necessarily meant for accounting purposes; however you can easily track your business expenditure by looking at the records in the system. This can help you determine your budgets and even predict your financial future as a hospital. CMMS software is able to track and provide printable records of costs of labor, replacement parts, and other regular maintenance procedures, which can help you come up with or adjust the details in a budget.

6. Increase Productivity in the Hospital

Hospital CMMS software is configured to help you identify the tasks that are assigned to certain employees, including the expected deadlines in place. The software will also help you schedule regular maintenance, meaning there will be less downtime. Overtime costs will also be significantly reduced with CMMS because of the ability to track all elements of a task. Emergency repairs will be minimized thanks to the software’s ability to schedule recurring and preventative maintenance of your assets and equipment.

7. Reduce Manual Workload

Unstructured manual methods, like spreadsheets, will end up wasting a lot of your time and money. It is estimated that hospitals spend an average of 2 entire days every week entering data with these manual methods. This time should be spent on more productive and important work in the hospital.

CMMS software is automated and purposely doesn’t take a lot of time to work with. In addition, the software can offer insight into your assets and equipment. For example, you will be able to see how many hours you spent on downtime and that will allow you to make any necessary changes.

You should also note that these systems are computerized and will not have the trappings of possible human errors. With manual methods, administrators can easily make errors and this can have major consequences in hospitals. Ambulances and hospital equipment must be regularly maintained because any small errors may risk the lives of patients.

8. Track Employee Performance

CMMS for hospitals don’t just track your assets and equipment; they also follow the performance of your staff. At the end of the day, you will be able to determine which employees are excelling and which may need extra training. With this data, you will be able to increase employee efficiency throughout the hospital. It will show you how much time employees are spending on individual tasks and this metric can help you analyze their capacity. The performance of your drivers can also be tracked with CMMS, as accidents can cause you to lose a lot of money.

9. CMMS Software Pays for Itself

CMMS for hospitals has a high return on investment. On average, the software pays for itself within the first 15 months of use. That makes it a worthwhile investment for any medical institution.

With CMMS software, your hospital will run more efficiently and save you money. The software helps you schedule maintenance for your equipment and assets, so you never have to carry out emergency repairs. A CMMS system is a wise investment and will pay for itself in a short period of time.  CMMS software for hospitals will also help you analyze employee performance, primarily based on the time they spend on certain tasks. With this information, you can easily determine which members of staff need further training.

Improve the efficiency and overall productivity of your hospital by using CMMS software.

The post How hospitals benefit from CMMS software appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/idc-names-manhattanone-a-leader-in-integrated-workplace-management-systems/ Tue, 05 Jan 2021 11:01:45 +0000 https://www.mrisoftware.com/?p=39876

Large and mid-market enterprises should consider the ManhattanONE integrated workplace management system (IWMS) when looking for a financial-focused IWMS solution with deep functionality from a company with extensive real estate industry experience. That’s the advice contained in a report from International Data Corporation (IDC), the premier global provider of market intelligence and advisory services for … Continued

The post IDC names ManhattanONE a leader in Integrated Workplace Management Systems appeared first on MRI Software.

]]>

Large and mid-market enterprises should consider the ManhattanONE integrated workplace management system (IWMS) when looking for a financial-focused IWMS solution with deep functionality from a company with extensive real estate industry experience.

That’s the advice contained in a report from International Data Corporation (IDC), the premier global provider of market intelligence and advisory services for the information technology, telecommunications and consumer technology markets.

The report, IDC MarketScape: Worldwide Integrated Workplace Management System 2020–2021 Vendor Assessment, provides an assessment of prominent IWMS vendors and discusses what criteria are most important for companies to consider when selecting an IWMS software solution. The appraisal looks at both quantitative and qualitative characteristics which offer guidance about IWMS vendors and their solutions.

The IDC MarketScape report focuses on three key areas of vendors’ offerings: financial functionality, CRE industry expertise, and innovation.

Financial functionality

When assessing financial functionality, the report notes that the ManhattanONE software solution delivers “excellent value” by streamlining, standardizing, and automating customers’ real estate processes.

ManhattanONE is a flexible, integrated decision platform that was designed to simplify the complexities of managing a diverse portfolio. It delivers the deep operational and financial insights that allow organizations to define new ways of working and innovate more freely. The software delivers 360-degree enterprise visibility, which enables users to gain the foresight to anticipate and prevent problems while also identifying and mitigating potential risks.

ManhattanONE stands out in terms of its ability to handle large, complex real estate portfolios underpinned by a subledger. This allows organizations to align financials with each operational element of IWMS.

The report also points to ManhattanONE’s “robust functionality”, adding that the system “continues to improve with net-new modules for financial planning and lease compliance”.

Industry expertise

When evaluating vendors’ industry experience, the report recognizes that ManhattanONE has been in the real estate portfolio software market for nearly four decades. It highlights the “distinct staff knowledge and industry expertise,” which ManhattanONE brings to new deployments and the enhancement of existing customer systems.

In addition to ManhattanONE’s formal functional-based user groups, the report notes the way the company also hosts regular conversations across its client base to discuss handling the new challenges raised by the COVID-19 pandemic.

Innovation

When evaluating innovation, the report acknowledges that the ManhattanONE team are focused on continually improving the system’s user interface and user experience.

The report states: “The ManhattanONE road map emphasizes enhancements to decision support, AI, mobile, and well-being by using its expertise to guide decision-making and provide data-driven recommendations.”

IDC analysts also noted customer satisfaction with the ManhattanONE IWMS strategy and the company’s efforts to add more intelligence to the platform. As just one example, the use of AI to interpret data from a building’s consumption of energy and automatically set up a meter if there’s no meter to capture it – streamlining the implementation and instantly providing a secure home for all the data.

Learn more about IWMS or request a demo of ManhattanONE.

IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of ICT suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor’s position within a given market. The Capabilities score measures vendor product, go-to-market and business execution in the short-term. The Strategy score measures alignment of vendor strategies with customer requirements in a 3-5-year timeframe. Vendor market share is represented by the size of the circles.

The post IDC names ManhattanONE a leader in Integrated Workplace Management Systems appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/return-work-3-ways-restore-tenant-confidence-commercial-office-buildings/ Mon, 21 Dec 2020 14:34:28 +0000 https://www.mrisoftware.com/?p=33368

During 2020, many commercial office buildings faced an unexpected challenge: empty offices. The pandemic created a sudden shift to remote working, which will likely continue even after vaccines become more widely available. Businesses of all types are reevaluating their use of office space, and as a result, the relationships between commercial landlords and tenants are … Continued

The post Return to work: 3 ways to restore tenant confidence in commercial office buildings appeared first on MRI Software.

]]>

During 2020, many commercial office buildings faced an unexpected challenge: empty offices. The pandemic created a sudden shift to remote working, which will likely continue even after vaccines become more widely available. Businesses of all types are reevaluating their use of office space, and as a result, the relationships between commercial landlords and tenants are more important than ever.

While the pandemic will eventually abate, its impact on tenants’ comfort levels could last years. So, what can commercial property managers and building operators do to create trust and make tenants feel comfortable in an office again?

Build tenant relationships with space planning, communications and visitor management

Commercial landlords and tenants have negotiated many uncommon things over the past year, including lease concessions related to COVID-19 and multiple options for rent deferment or abatement. The relationships built over the course of those conversations will hopefully open the door for more collaboration on an effective return-to-work strategy.

1. Space management practices

Even before the pandemic, space planning and occupant comfort were becoming an important part of portfolio management. The increasing need for flexibility is top of mind for landlords, since tenants are rethinking their use of space. In some cases, employees may become spread across a distributed hub-and-spoke model in which a company has a central office in the city but offers employees the option to work from a satellite office in the suburbs.

Here are a few space planning questions to ask your tenants to find out how much flexibility they require:

• Will employees be working part-time or flexible hours?
• Will you be rethinking your space to accommodate social distancing?
• What percentage of your workforce will continue to work remotely? How are you assigning and tracking assets?
• Will portions of your office space be temporary or hotelling space?

Effective space management software can help optimize your use of space and leverage it as part of your lease management strategy.

2. Tenant communications

Landlords can proactively communicate with tenants to increase their comfort level in the office space. Sending messages about HVAC updates, cleaning protocols and other activities lets your tenants know that you are concerned for their wellbeing and are taking steps to protect the property. MRI Tenant Communications software can help you proactively communicate with tenants and keep them engaged to measure the effectiveness of your actions.

3. Visitor management

It’s essential to understand the capacity of your space and to manage the number of people on your property at a given time. Visitor management software for commercial office buildings can help you manage tenants and guests across multiple control points to get an accurate picture of activity in your space.

Flexibility is key

As the past year has demonstrated, commercial property managers need to be prepared for anything. Using technology to better understand space planning, communicate with tenants, and manage visitors can improve tenant satisfaction and help building operations run more smoothly. As the office space will also need to welcome back vendors and visitors down the line, learn how to mitigate risk as more people come back into the office.

The post Return to work: 3 ways to restore tenant confidence in commercial office buildings appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/meeting-challenges-rad-conversion-public-housing-agencies/ Fri, 18 Dec 2020 14:38:39 +0000 https://www.mrisoftware.com/?p=33344

Through the utilization of MRI Software’s technology and consulting, Saint Paul Public Housing Agency (PHA) successfully closed its Rental Assistance Demonstration (RAD) transaction, the largest RAD conversion in the history of the program, converting 3,836 units to RAD Project-based Rental Assistance (PBRA). This historic conversion is a huge achievement for both Saint Paul PHA and … Continued

The post Meeting the challenges of RAD conversion for public housing agencies appeared first on MRI Software.

]]>

Through the utilization of MRI Software’s technology and consulting, Saint Paul Public Housing Agency (PHA) successfully closed its Rental Assistance Demonstration (RAD) transaction, the largest RAD conversion in the history of the program, converting 3,836 units to RAD Project-based Rental Assistance (PBRA). This historic conversion is a huge achievement for both Saint Paul PHA and MRI, and it’s been a long process to arrive at this point. Let’s take a look at how Saint Paul was able to complete this conversion in order to ensure the future stability of their finances and provide top-of-the-line service for all of their residents.

An introduction

Saint Paul PHA has been a longtime believer in the traditional Public Housing and Housing Choice Voucher (HCV) programs. They’re a housing agency with about 9,000 affordable housing units – about 4,300 traditional LIPH and about 4,900 HCV. Their mission statement is to help families and individuals with low incomes achieve greater stability and self-reliance by providing safe, affordable and quality housing and links to services.

The promise of RAD and the need to convert

RAD was created in order to give public housing authorities a precious tool to preserve and improve public housing properties and address the $26 billion nationwide backlog of deferred maintenance. RAD also gives owners of three HUD “legacy” programs (Rent Supplement, Rental Assistance Payment, and Section 8 Moderate Rehabilitation) the opportunity to enter into long-term contracts that facilitate the financing of improvements.

The biggest motivator for Saint Paul PHA to start the RAD conversion were the numbers, which indicated that their capital fund (and operating fund) history over 20 years was trending down. Saint Paul knew that the traditional funding vehicle was severely challenged. While this served as an indication that a conversion might be necessary, the call wasn’t officially made in-house until the Trump Administration’s 2019 proposed capital fund budget was reduced to $0. The year before, in 2018, the proposed budget was a 60% reduction from the prior year. This got the attention of Saint Paul leadership, who quickly begin making inquiries about RAD.

Why MRI Software?

Saint Paul PHA began the conversion to RAD in 2018. Given the more complex compliance and regulatory requirements surrounding the combination of Public Housing and Section 8 programs, they decided to procure and adopt a more state-of-the-art technology platform to oversee its portfolio. Saint Paul PHA selected MRI Software, a leading provider of technology for public housing authorities and owner-operators of affordable housing. MRI provides the PHA with the following:

• Housing management, including extensive tools to simplify the PHA’s process with HUD’s PIC system (Public and Indian Housing Information Center),
• SaaS services, allowing PHA staff to access their systems and data remotely,
• Ongoing software maintenance and software, and
• RAD conversion services.

How the conversion was completed

For their near portfolio-wide RAD conversion, MRI assisted Saint Paul PHA by providing services such as project management for oversight of the conversion and ensuring alignment with agency staff goals and timelines set forth. Saint Paul also utilized MRI’s technical data services to convert, configure, and prepare their systems for the transition to the new subsidy and tracking methodology. Functional assistance with handling waiting lists and validation calculations for accuracy was provided, as was dedicated assistance for the initial Multi-Family voucher submissions. All of this resulted in continued support through voucher acceptance and signature collection for all required documentation.

Throughout the entire process, MRI had staff on-site to assist, especially during the biggest push to complete certifications. The team was agile and accepted staff recommendations for how to streamline the process in light of the size of Saint Paul’s conversion, and they had a dedicated MRI staff member that they could directly access for questions and fixes.

Through their historic conversion to RAD Project-based Rental Assistance, Saint Paul PHA now has the stability and agility to stay ahead of the curve and tackle any incoming financial challenges in the public housing space. If your housing agency is considering a RAD conversion, contact us to learn more about MRI’s software and services and how we can help you navigate this process.

The post Meeting the challenges of RAD conversion for public housing agencies appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/3-reasons-rethink-office-space-planning-covid-19/ Thu, 10 Dec 2020 16:57:21 +0000 https://www.mrisoftware.com/?p=33119

COVID-19 has dramatically accelerated trends in office space planning. Work from home practices were already impacting the modern workspace before the pandemic, but now, organizations eager to bring employees back into stable and sustainable work patterns are rethinking office space. As a post-COVID office environment draws near, a key consideration for business leaders will be … Continued

The post 3 reasons to rethink office space planning after COVID-19 appeared first on MRI Software.

]]>

COVID-19 has dramatically accelerated trends in office space planning. Work from home practices were already impacting the modern workspace before the pandemic, but now, organizations eager to bring employees back into stable and sustainable work patterns are rethinking office space.

As a post-COVID office environment draws near, a key consideration for business leaders will be managing the workflow between those who are coming back into the office and those who are still going to be working from home for a period of time. Let’s take a look at some of the ways that space management can help you bring employees back to the office safely.

Creating a flexible work environment

While previous wisdom called for a desk setup that fostered collaboration, future office space planning will need to take into account that any given space may not be filled with the same people at the same times. With a possible rise in employees who alternate their work schedule between home and the office, consider desks that don’t have permanent assignments. “Hotdesking” can help employees who only come into the office occasionally to find a seat anywhere and access the office’s features and amenities just as easily. This would also mean enabling each desk with access to the company network and arranging common spaces so that collaboration with coworkers can take place in a more spread-out environment.

Balancing work/life integration

The post-COVID office environment is going to include plenty of employees trying to balance work both in the office and at home. How can this balance be facilitated so they can properly collaborate with their counterparts and be as productive at home as they could be in the office? You’ll have to equip your employees who work from home with the tools and technology necessary to establish their home office, but you’ll also need to keep track of those assets from a financial and accounting standpoint.

Increasing square footage requirements

With all this discussion regarding employees no longer working in the office full time, one might think that this would add up to a decrease in square footage. But in rethinking the office to accommodate for that flexible nature of work going forward, it’s possible that larger work areas may be needed. This goes beyond the need for a collaborative workspace or hotdesking, but to facilitate social distancing as people now have illnesses like COVID-19 and the flu on their minds. Establishing more amenity space might be needed, whether it’s for a common space or for additional office space.

No matter which of these issues has the biggest impact on the modern workplace, it’s guaranteed that 2021 office space planning will look a lot different than what many initially planned. Properly managing the space in your office can be the key to success when it comes to bringing employees back safely. Using space planning software is one way to accomplish all this in a visual way, driven by the needs of your organization and availability of the space. Learn more about how space management software can help you smooth the transition back into the office.

The post 3 reasons to rethink office space planning after COVID-19 appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/the-significant-power-behind-cmms-solutions-for-the-facilities-management-industry/ Thu, 10 Dec 2020 11:41:23 +0000 https://www.mrisoftware.com/?p=49421

Facilities management is the process of managing and maintaining the facilities within an organization. Think janitorial services, security, property management, safety, and more. And tying it all together can be extremely complicated. But it’s essential for organizations who need to create an environment that encourages productivity, is safe, is welcoming to customers and employees, meets … Continued

The post The significant power behind CMMS solutions for the facilities management industry appeared first on MRI Software.

]]>

Facilities management is the process of managing and maintaining the facilities within an organization. Think janitorial services, security, property management, safety, and more.

And tying it all together can be extremely complicated.

But it’s essential for organizations who need to create an environment that encourages productivity, is safe, is welcoming to customers and employees, meets government requirements, and is efficient.

To run effectively, the complex and risky coordination of these functions requires an intricate and robust system.

So, what are some of the significant factors that a successful facilities management system incorporates?

• Data Storage
• Risk Mitigation
• Operational Standards
• Emergency Preparedness
• Portfolio Transparency
• Time & Resource Allocation

This list is just the tip of the iceberg regarding FM vitals.

And yet it does not even touch the extensive array of foundational functions—such as maintenance, security, daily procedures, and IT services—that are tackled daily.

With this constantly growing scope of expectations, where does a company turn in order to survive—let alone flourish—in today’s digitally saturated world?

There is only 1 answer: A CMMS solution.

The adoption of a CMMS into any organization results in a vast decrease of manual, inefficient tasks, allowing an impressive increase of strategic thinking for long-term success, competitive advantages, and maximum ROI.

But what is a CMMS, exactly?

The technical translation of CMMS is a Computerized Maintenance Management System, yet it is often substituted for EAM software (or Enterprise Asset Management). In the totality of a CMMS package, the database uses smart technology to accomplish and recommend maintenance functions that are way beyond human capabilities. At a minimum, it will store, connect, produce, and report on all your facility and equipment needs.

But the benefits go far beyond that.

CMMS software will interpret all your data helping you and your team do your jobs more efficiently. The software helps supervisors make more informed decisions and helps to keep your establishment up to date and compliant with regulatory standards.

• COMPUTERIZED – Broken down further, the “computerized” portion refers to all the information that is stored through a digitized processor, ensuring virtual storage. This has become the ideal procedure over traditional means of data filing through manual actions, or even antiquated technology (by today’s standards) such as an Excel spreadsheet.
• MAINTENANCE – The “maintenance” section describes the day-to-day tasks performed, such as on-demand work orders or urgent tenant requests. When a company’s responsibilities focus on building maintenance, entertainment facilities, and architectural infrastructures, CMMS software removes the burden from accountable parties by addressing the concern within the platform.
• MANAGEMENT – Possibly the most essential part of CMMS would be the “management” piece. By reducing all the paperwork and labor-intensive processes, managing maintenance becomes instantly accessible. This includes comprehensive work/job site needs, bandwidth and resource calculations, inventory and asset forecasts, and over hundreds of intuitive reports available based on specific needs.
• SYSTEM – Although the “system” segment is somewhat self-explanatory, the difference between a CMMS database and other automated systems is the ability to duplicate existing corporate practices. It can mimic your current business model and departmental procedures, instead of forcing you or team to adapt to a new platform’s specifications.

The core maintenance functionalities of a CMMS

When breaking down the features and functionalities of what a CMMS offers, customization options support an array of industries, including hospitals, utilities, athletic arenas, fleets, and any type of facility housing equipment or assets. These massive structural organizations require a robust and powerful system to supply their customer demands.

Expectations range from on-time delivery, constant equipment/facility reliability, up-to-date safety regulations, and top-notch customer service. Without implementing a modern, intuitive software system to align and unite these efforts across the board, a company’s reputation and survival is at risk.

A CMMS solution takes these responsibilities and assembles them into one holistic platform to enhance the possible outputs and positive results.

To run an efficient, safe and productive operation, a database would provide the following assistance:

1. Work Order Management
2. Resource & Labor Tracking
3. Preventive Maintenance
4. Inventory & Material Audits
5. Vendor Management & Inspections
6. Scheduling & Planning
7. Site/Jobsite Management
8. Purchasing & Budgeting
9. Compliance Regulation
10. Reporting & Analysis

How will a CMMS help my FM efforts?

At the highest level, implementing a CMMS solution will help you achieve higher asset efficiency and control. Automated systems ensure that the production systems operate as they should, minimize downtime, and increase productivity.

Every solution has its own feature set with bells and whistles, but the result of having a solution in place should help with the following performance enhancements:

• Reduced Downtime: You can’t prevent all maintenance backlog altogether, but a CMMS solution balances resources and maintenance costs, so backlog remains manageable. It also makes it easier to repair and inspect assets reducing downtime as much as possible.

• Preventive Maintenance: Considered one of the most imperative duties of facilities management, preventive maintenance is vital to longevity and corporate sustainability. With this as a CMMS function, you’re able to move those stubborn and traditional routines from reactive to proactive. Getting your team 1 step ahead—or 5 steps ahead—of any urgent matter before failure occurs.

• Increased Visibility: Get complete clarity on all purchased assets, maintenance performance, faulty or risky environments, equipment involved, and efficiency reporting. One central dashboard provides a quick visualization of the status of priority projects. Any report showcasing an abnormality in performance is instantly noticed with the ability to retroactively find a resolution.

• Automation of Manual Tasks: Task setting of any amplitude—work-orders, sustaining inventory, employee scheduling, or administration duties—can be configured on a one-time basis. From that point, manual tasks are set to autopilot, which saves time, refocus efforts, and reduce errors.

• Increased Transparency: This permits access to all parties involved to view availability of resources, priorities, and scheduling. When expectations and bandwidth are openly shared, there is no room for uncertainty for clients or leadership teams.

• Knowledge Transfer & Corporate Consistency: It can be difficult to manage an asset through its entire lifecycle if you don’t have the history. If this information is handed down manually, there’s a high risk for miscommunication, flawed execution, or total loss of information. Using a CMMS ensures you have all the details you need about every asset – from repairs to inspections – making it much easier for your facilities management team.

How to choose the right CMMS software for your needs

Are you ready to transform your facilities management processes by improving cost efficiency, creating asset longevity, upholding health and safety regulations, all while maintaining compliant standards? You have choices.

MRI NETfacilities offers intuitive and flexible solutions for your unique business. Providing a holistic view and expansive capabilities for any industry and size, we’ve got you covered. With that said, we understand the need for due diligence and research into this costly implementation. That’s why we always offer a no-obligation, free demonstration of what our CMMS solution entails. We’ll customize the demo just for you. And if it’s not what you’re looking for, we’re glad to help you determine the right path to success through other avenues.

We’re happy to answer any questions you may have as you explore your possibilities. You can set up your customized consultation today. Just get in touch here. We look forward to helping you in your journey to adopt a CMMS solution!

The post The significant power behind CMMS solutions for the facilities management industry appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/the-long-term-impacts-of-covid-19-on-the-broader-real-estate-portfolio/ Wed, 09 Dec 2020 12:01:41 +0000 https://www.mrisoftware.com/?p=35379

While much of the discussion around COVID-19 and the workplace is focused on the return to work, many organizations are also considering the long-term implications of the changing workplace and shifting corporate perspectives on remote work. Some of the world’s largest technology companies, including Facebook and Google, are allowing employees to work from home for … Continued

The post The long-term impacts of COVID-19 on the broader real estate portfolio appeared first on MRI Software.

]]>

While much of the discussion around COVID-19 and the workplace is focused on the return to work, many organizations are also considering the long-term implications of the changing workplace and shifting corporate perspectives on remote work.

Some of the world’s largest technology companies, including Facebook and Google, are allowing employees to work from home for the remainder of 2020. Others, such as Twitter, are giving employees the option to work from home indefinitely. Even with Facebook employees expected to eventually return to work, CEO Mark Zuckerberg predicts that 50 percent of the company’s employees could be working remotely within the next five to 10 years. In addition, Larry Fink, chairman and CEO of BlackRock, recently said he doesn’t ever foresee all of the company’s employees returning to the office.

With shifts in thinking leading to changing space needs, these scenarios provide a window into the many ways Covid-19 will present increasingly complex real estate scenarios to organizations worldwide. This major shift is evidenced already with nearly one-fourth of the corporate real estate in Manhattan up for sublet.

These are not the kind of trends that will reverse overnight. Businesses around the world are grappling with how to balance dynamic and decreasing space needs with their current real estate portfolios. Even when a vaccine is widely available, the genie is already out of the bottle on working remotely. Working outside of the office has now become a way of life and, for many, a preference.

A Supply and Demand Mindset

In the wake of Covid-19 especially, managing the real estate portfolio, the needs of its occupants and the need for maximum optimization, is a matter of shifting supply and demand. Access to accurate and actionable data will be the key for real estate and finance teams as they make critical decisions both for today and for the future. While getting a handle on the supply, or existing real estate assets, is relatively easy, understanding demand is hard to do in today’s climate. With workspace needs drastically changing, organizations must consider the types of space employees needed by employees, as well as their occupancy.

Luckily, we have more access to data than ever before. We also have the technology to dive deeper into that data to uncover insights that drive smarter, more strategic decision making. Technology, such as Integrated Workplace Management Systems (IWMS), will play a critical role in helping businesses adapt to this new “elastic” workplace and better understand “demand” by way of workspace utilization data. The resulting insights will inform, guide and validate strategy and long-term decision making.

As an example, many organizations are starting to understand and combine the occupancy of their space with strategic management of the wider property portfolio. Access control, space usage sensors and reservation systems are valuable data streams that can further tighten control over the allocation of space and identify spare capacity that could be recycled for improved returns. Space usage data can also be used to make significant changes through consolidating or terminating leases on unrequired buildings, as well as redesigning space to meet changing needs.

By looking at data on how space is being utilized alongside financial data across the portfolio, organizations can discover ways to derive more value from the space, reduce global real estate costs in times of contraction or expand during times of growth. Taking a broad look at space utilization and financial data can provide insight into which leases have the highest exposure on financial statements and help evaluate the business units occupying them, how densely those spaces are populated and how they’re being utilized.

Capturing and analyzing occupancy data can also help lower costs and reduce an organization’s carbon footprint. For example, if a business occupies multiple floors of a building and sensor data shows that consistently the number of people working on those floors on Fridays decreases by half, those floors could be closed on Fridays. Not only would this reduce maintenance costs and the need for cleaning, it would also reduce electricity usage and consumption which in turn, will impact an organization’s sustainability goals. Imagine what could be achieved if this was applied across the entire global portfolio.

The Road Ahead

It’s no doubt that the pandemic is forcing every organization to view and plan office space more strategically. Moving forward, real-time data will play a critical role in establishing benchmarks, uncovering patterns and yielding deep insights into changes that will deliver long-term benefits to businesses, as well as their employees and real estate portfolios. Gathering and analyzing this data will require a centralized place to store and analyze it, and collaboration between facility management, corporate real estate, human resources and information technology teams to act on it.

Rather than seeing it as an obstacle, organizations should view the pandemic as a unique opportunity to reframe the way they think about real estate, the workplace, people and how technology and data can support the journey ahead.

The post The long-term impacts of COVID-19 on the broader real estate portfolio appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/when-account-covid-19-lease-concessions/ Mon, 07 Dec 2020 16:32:06 +0000 https://www.mrisoftware.com/?p=33024

Commercial tenants and landlords have spent their year adapting to the challenges of the pandemic. As stores, restaurants, and other commercial venues shuttered, lease terms and conditions had to be renegotiated and some rent payments needed to be deferred. The question remained: how were these concessions supposed to be recorded on a balance sheet? FASB … Continued

The post When to account for COVID-19 lease concessions appeared first on MRI Software.

]]>

Commercial tenants and landlords have spent their year adapting to the challenges of the pandemic. As stores, restaurants, and other commercial venues shuttered, lease terms and conditions had to be renegotiated and some rent payments needed to be deferred. The question remained: how were these concessions supposed to be recorded on a balance sheet?

FASB and IASB have both released comprehensive guidance on how to account for COVID-19 lease concession (termed as “COVID concessions”), but such a new and potentially complex process might understandably lead to confusion. Below, we answer some common questions about the guidance on COVID concessions.

When to mark a COVID concession as a lease modification

The guidance on lease concessions from both FASB and IASB states that COVID concessions can be classified one of two ways:

• As a lease modification – A concession in which original terms of the lease agreement contained no obligation by the lessor to grant any COVID-19 rent concession.
• Not as a lease modification – A concession that has been determined to have enforceable rights to it in the original contract, such as force majeure language.

Making this distinction might not always be easy. Further legal assessment might be required and, depending on how many leases you have in your portfolio, those processes could take quite a while. In order to make things a bit easier, let’s consider some additional elections that should be taken into account.

What should you do if you receive a COVID concession?

In the event you receive a COVID concession, you should have plans and procedures in place. This will help you to ensure proper communication between the various stakeholders in the organization, such as lease administration, lease accounting, and accounts payable operations.

While there’s sadly no one process that can be applied to your entire portfolio, there are three factors that can help guide you in accounting for COVID concessions in each lease.

• Which accounting elections you make about (a) evaluating if a lease contract contains provisions for the COVID-19 Concession (both FASB & IASB) and (b) whether to treat the COVID-19 Concession as a lease modification or not a lease modification (FASB only).
• How you code the COVID-19 Concession in your A/P system.
• What General Ledger account you credit when you record the monthly Lease Liability amortization and interest on the Lease Liability.

Additional lease concessions questions

Even after all this, it’s okay to still have questions about the guidance, what journal entries should look like, or even further questions about lease modifications. For more granular detail about the FASB and IASB guidance, and to see what journal entries containing COVID concessions might look like, be sure to download our detailed guidebook.

After becoming familiar with COVID-19 rent concessions guidance, you’ll want to know more about the technology that can make your lease accounting processes easier. Learn how MRI’s comprehensive lease accounting solution can help you with all of your lease administration and lease accounting needs here.

The post When to account for COVID-19 lease concessions appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/2021-real-estate-technology-trends/ Wed, 02 Dec 2020 21:45:16 +0000 https://www.mrisoftware.com/?p=32937

Predicting real estate technology trends for 2021 may seem like an impossible task, but in many ways, the economic uncertainty of 2020 was the catalyst that accelerated trends already in place. The shift to remote working and the need to keep one’s distance from others sped up technology adoption in unprecedented ways across the commercial … Continued

The post 2021 real estate technology trends appeared first on MRI Software.

]]>

Predicting real estate technology trends for 2021 may seem like an impossible task, but in many ways, the economic uncertainty of 2020 was the catalyst that accelerated trends already in place. The shift to remote working and the need to keep one’s distance from others sped up technology adoption in unprecedented ways across the commercial and multifamily sectors.

It doesn’t take a crystal ball to see that there’s no going back. In 2021, we will continue to see reliance on digital tools to help real estate businesses increase agility, leverage operational efficiencies and embrace flexibility like never before.

Here are a few Proptech trends that we expect to see in 2021.

Landlord/tenant relationships remain vital

At the start of 2020, the commercial real estate industry was already cognizant of the value of relationships and the connections between people and property. The events of 2020 tested those relationships as commercial and retail tenants struggled to pay their rent and negotiated with landlords for lease concessions, rent deferments and abatements. Looking ahead to 2021, these relationships will be essential to weather the storm and ensure success for all parties.

Rethinking use of office space

Even pre-pandemic, real estate occupiers were increasingly focused on space planning as part of a portfolio strategy, and the events of 2020 only accelerated this trend. If fewer people will physically work in an office, then less space will be required. But if a business thrives on in-person collaboration, then they may need more space per employee. Will these requirements balance out? As building owners and operators adapt their processes to meet new tenant requirements, space management software will be an important tool to create a clearer picture of how to optimize your space and leverage it as part of a lease management strategy.

Proactive communications

Improved tenant and resident communications practices will be essential to maintain the strong relationships forged with landlords in 2020. Reliable communication plays a big part in making them feel comfortable in their living and workspaces, and it helps property managers and building operators gauge the effectiveness of their new processes and activities. Keeping tenants and residents engaged and aware of regular cleaning protocols, visitor management practices, and other maintenance updates can help them feel safe in your properties.

Multifamily goes digital

We’ve been tracking the impact of COVID-19 on the multifamily, affordable and public housing sectors in our Market Insights reports since March 2020. While digital services and amenities were already considered table stakes pre-pandemic, we’ve seen a surge in electronic payments, online maintenance requests and online applications during 2020. Initially, these may have been short-term solutions to meet social distancing requirements, but they’re here to stay. In 2021, multifamily properties have an opportunity to reevaluate the role of the leasing office and shift from centralized operations to a distributed model – in fact, many new properties have been developed without a physical leasing office, relying completely on online services.

Fraud is on the rise

The flipside of an increase in online transactions associated with digital services is that fraud triggers have increased significantly since the onset of the pandemic. Savvy property managers would be wise to invest in fraud prevention technology to ward off this significant business threat. Multiple layers of fraud protection and screening, combined with up-to-date knowledge of local and federal regulations, will be essential to identify potential fraud before it impacts your community.

Bottom line: Flexibility is key

The best thing that your real estate business can do to prepare for 2021 is get agile. Recovery is coming but it will be uneven throughout 2021, by both geography and sector. Commercial firms should understand the degree of flexibility they have with commercial tenants, gauging their health and offering terms that are mutually beneficial. Residential businesses need to stay focused on converting leads with flexibility in price and term in order to maintain occupancy through the first half of 2021.

In times of uncertainty, flexibility is key and technology offers a path forward. 2020 was a wild card. Here’s hoping that 2021 will be somewhat more predictable.

The post 2021 real estate technology trends appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/data-reveals-impact-covid-uk-commercial-property-leases/ Wed, 02 Dec 2020 14:37:06 +0000 https://www.mrisoftware.com/?p=32905

While there are hopeful signs of relief from the COVID crisis thanks to new vaccines, we’re still some way from a return to ‘normal’. For many in the retail, leisure and hospitality sectors, it could be months before trade returns to pre-lockdown levels. Many are already struggling to pay rents and, with less revenue coming … Continued

The post Data reveals the impact of COVID on UK commercial property leases appeared first on MRI Software.

]]>

While there are hopeful signs of relief from the COVID crisis thanks to new vaccines, we’re still some way from a return to ‘normal’. For many in the retail, leisure and hospitality sectors, it could be months before trade returns to pre-lockdown levels. Many are already struggling to pay rents and, with less revenue coming in, there’s no easy fix on horizon. The health crisis has hit these businesses hard, and their landlords are feeling the effects, too.

Anonymised data from more than 150,000 live leases managed via MRI Software’s enterprise property and accounting solutions paints a picture of millions of pounds of commercial rents outstanding – and it’s clear that the tenant/landlord relationship is being tested to its limits. But it’s not all doom and gloom: the data also shows that many real estate owners are being flexible and working with their occupiers to get through the crisis, with an increasing number offering rent reductions. It’s clearly an uncertain time, but the evidence of cooperation brings hope.

Data shows true scope of the problem

Our analysis reveals that the proportion of outstanding rent payments in the commercial sector (retail, shopping malls, logistics, warehouses and office spaces) is growing at an alarming and unsustainable rate.

Current data shows that for March, when the government introduced the first lockdown, 19% of the total rent invoiced remains outstanding. Since then, the amount due has peaked at nearly £400 million for September (33% of the total owed), with the proportion rising to 58% in October (a little over £200 million). It might not be a surprise in the circumstances, but the sheer scale proves there will be no easy way out.

Another key finding from the data is the significant decrease in the number of new leases signed since the pandemic struck. New leases being set up in the MRI solutions were down by a third (33%) from March to August this year, compared to the same period in 2019. In April, May and June specifically, the figures dropped to 433, 268 and 406 respectively, compared to 599, 524 and 630 during the corresponding months of 2019.

Early steps on the road to recovery

The headlines give some concern, but dig deeper into the data and there are positive takeaways. Analysis of the figures indicates that the continuing uncertainty around COVID is leading to commercial tenants and landlords working together to find ways to make it through the pandemic.

There are encouraging signs that landlords are supporting tenants through rent reductions, rent deferrals and agreements for shorter leases. From March through June 2020 there were 30% more rent reductions compared to the same period the previous year. Additionally, the length of new leases has declined by 25% year-on-year over the same period – dropping from 69 months to 52. These both point towards landlords offering a greater degree of flexibility, and being willing to negotiate key terms and conditions to ensure at least some continued income rather than risk it disappearing altogether.

New normal, new opportunities

However, despite the best efforts of many commercial landlords to help tenants and ease the burden, there are changes ahead. In some form, social distancing restrictions will continue into the spring at least, and that will put serious pressure on businesses and their performances. As landlords plot their routes forward out of the pandemic and beyond, they will need to consider ways of keeping their operations financially viable.

For many, the answer will be diversification – and branching into last-mile logistics and/or mixed-use residential redevelopment could help them avoid being left with empty commercial space generating low income. Owners with city- or town-centre portfolios, for instance, will surely begin to explore opportunities to turn some commercial spaces into campus-style developments combining retail, space as a service and Build-to-Rent, student accommodation and senior living. Previous research from MRI has shown that, before the pandemic and lockdown, two-thirds of property professionals already believed that former retail premises could be the UK’s biggest untapped resource for new residential development. Another option, driven by the growth-upon-growth in ecommerce, will be to redevelop space for warehousing and fulfilment centres. The beginnings of this movement could be seen before coronavirus, and the resulting uncertainties around the performance and returns of traditional commercial will accelerate the trend. It may not be the panacea for the high street conundrum, but building communities could contribute to arresting years of decline.

Navigating change with flexible tech

Ultimately, regardless of the changes that happen and the speed at which they take place, technology will play an increasingly important role in the strategic planning, execution and ongoing validation of landlords’ strategies. Connected digital solutions that can quickly and accurately identify strengths, weaknesses and opportunities are required. Those that embrace software to take decisive, data-driven actions will find routes to success. Those that continue to operate reactively, and don’t effectively use the insights at their disposal – they will fall behind in an environment that will remain uncertain, and often volatile, for some time to come.

The post Data reveals the impact of COVID on UK commercial property leases appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/data-led-lease-strategies-guide-commercial-landlords-retailers-uncertainty/ Tue, 01 Dec 2020 16:36:32 +0000 https://www.mrisoftware.com/?p=32893

There are definite signs that we are seeing the light at the end of the tunnel when it comes to COVID-19, as great news on the slew of vaccines in development continues to make headlines. But that does not change the fact that the pandemic has sorely tested the retail sector and could continue to … Continued

The post Data-led lease strategies can guide commercial landlords and retailers through uncertainty appeared first on MRI Software.

]]>

There are definite signs that we are seeing the light at the end of the tunnel when it comes to COVID-19, as great news on the slew of vaccines in development continues to make headlines. But that does not change the fact that the pandemic has sorely tested the retail sector and could continue to impact commercial real estate, even as the world begins to return to normality.

If lockdowns and restrictions persist, they could take a heavy toll on brick-and-mortar retailers – not to mention restaurants, bars, cinemas and storefront services – as the northern hemisphere heads into winter. Many businesses are focused on finding ways to survive financially and make the best strategic and legal decisions amid ongoing uncertainty. To do that, they need comprehensive and accurate data on their businesses – with gaining insights into their lease portfolios as an essential goal.

Indeed, to weather the storm, retail tenants – and the commercial landlords they rent space from – need to ask tough questions about their lease portfolios and what they need to do to position themselves to withstand COVID-19 and its aftermath. That means they need to understand what their position is across their lease portfolios, whether they are the lessor or the lessee – and, in most cases, the two need to work together to come out of the situation with their businesses intact.

The good news for MRI clients is that Leverton Intelligence – described by MRI CEO Pat Ghilani as “new DNA within MRI” at our recent ‘Ascend Anywhere’ users conference – employs AI and machine learning to rapidly abstract lease data from a broad range of digital and paper sources. Ghilani noted: “In today’s marketplace, the ability to know what’s happening inside your lease or your tenants’ leases is paramount to survival.”

In a recent article for Forbes, Abe Somani, Managing Director of Leverton Intelligence at MRI, takes a detailed look at how the lack of access to good quality data is one of the major challenges the retail industry and commercial landlords have faced during the coronavirus crisis. At a time when they require more information and data-driven insights for quick decision making, both sides are slowed down by leases that hold inaccurate, out-of-date or simply inaccessible information. To understand where they really stand with respect to leases, not least their legal obligations and options, rapid AI-driven lease abstraction is vital.

In his article, Abe looks at the issues facing retailers and their landlords, what they need to understand to overcome these, and how they can do that. View the full article here on the Forbes website. Learn more about MRI’s AI-powered lease abstraction solution here.

The post Data-led lease strategies can guide commercial landlords and retailers through uncertainty appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/how-future-movie-theaters-impact-commercial-real-estate/ Thu, 19 Nov 2020 18:00:21 +0000 https://www.mrisoftware.com/?p=32743

If you own commercial retail space that includes a movie theater, you should be paying attention to the state of the theater exhibition industry. AMC Theaters, one of the largest theater chains in the world, recently warned of potential bankruptcy as a result of ongoing impacts of the pandemic. With 1,000 theaters and more than … Continued

The post How the future of movie theaters will impact commercial real estate appeared first on MRI Software.

]]>

If you own commercial retail space that includes a movie theater, you should be paying attention to the state of the theater exhibition industry. AMC Theaters, one of the largest theater chains in the world, recently warned of potential bankruptcy as a result of ongoing impacts of the pandemic. With 1,000 theaters and more than 11,000 screens globally, AMC’s Q3 revenue was down 90%+ year over year, and the company’s year-to-date revenue was down roughly 75% as compared to last year.

AMC isn’t alone. With the pandemic still impacting businesses across the globe, movie theaters today look a lot like the ghost towns that we’re used to seeing in old John Wayne and Clint Eastwood movies – desolate, empty, and in desperate need of a hero on horseback to save the town. With theaters occupying large footprints in retail centers around the world, the eventual outcome for theaters represents a substantial risk for landlords. There are a number of ways things could turn out, and each of these possible scenarios are likely to have impacts on landlords everywhere.

1) Third parties might make theaters an offer they can’t refuse

While movies have become more advanced and expensive every year, theaters themselves have largely kept the same business model for over seventy years: a production company would make a movie and the theater chains would have sole rights to show that movie for a certain amount of time. But recently, the Justice Department threw out the regulations that made that model possible, meaning that production companies can now own their own theaters and show their own movies.

As mentioned previously, theaters are hurting, and they might just need a superhero like Iron Man to fly in and save the day, even if that means getting bought out by the likes of Disney or Netflix. This would pose an interesting challenge for commercial property owners that have theaters in their retail spaces. If a company like Disney were to hypothetically acquire AMC and only show Disney movies at AMC theaters, how would that impact your tenant mix? What will that do to foot traffic?

2) Theaters need the banks to “show them the money”

The worst-case scenario for theater chains big and small, of course, is for no action to be taken. Major theater chains can’t round up the usual suspects for buyouts, no federal bailout money comes in, and smaller, community-driven theaters can’t get the bigger boat they need. The bigger theater chains file bankruptcy and restructure their debt and smaller theaters close for good. The movie theater industry ends up looking like the small country town at the end of Twister.

The impact on landlords would be mixed with some sure winners and some sure losers. Where theaters remain, high volume foot traffic will follow, providing much needed patronage for the shopping and dining elements of the retail center. Theater closures, on the other hand, will leave large, purpose-built structures vacant and will require reinvestment in order to renew and repurpose.

3) The new home of movies ends up being the matrix

For movie theaters everywhere, this pandemic didn’t create new problems; it exposed and expanded upon existing problems. Streaming services like Netflix and Disney+ were already pulling audiences away from theaters, and studios were already itching to put their movies on video-on-demand (VOD) platforms before their contracted time in theaters expired. The closure of theaters early this year gave studios an excuse to make their newest films available in the form of premium VOD rentals. With indications that this model may be here to stay (such as Universal Studios’ release window deals agreements with AMC Theaters and now Cinemark, or news that the new Wonder Woman 1984 will be released on streaming and in theaters simultaneously), movie theaters may end up going the way of the dinosaur.

This option, unfortunately, would be a veritable death knell for the traditional theater experience. With larger TVs being more affordable, and high quality sound being more achievable, the availability of content is the biggest barrier to a fully home-based theater experience. For commercial owners with theaters in their retail spaces, this would mean clearing out a purpose-built space and putting serious resources into remodeling. For commercial owners with retail near large theater complexes, this could mean a huge drop in foot traffic.

Whatever future comes true for the movie industry, commercial landlords will be faced with the challenges and opportunities to reinvest, reinvent and renew. While none of these outcomes are certain, it’s important for commercial owners to be watching this space and preparing to adapt to whatever changes may end up affecting them. The movie theater industry isn’t in Kansas anymore, and landlords should be watching for falling houses.

The post How the future of movie theaters will impact commercial real estate appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/mri-software-wins-national-partnership-award-nahro/ Wed, 18 Nov 2020 22:00:02 +0000 https://www.mrisoftware.com/?p=32739

MRI Software was named the 2020 recipient of the Business Partners Council Partnership Award by the National Association of Housing and Redevelopment Officials (NAHRO) for its partnership with the Saint Paul Public Housing Agency. An award presentation will be held during NAHRO’s online National Conference. MRI provided technology and consulting services to the Saint Paul Public Housing Agency for its near-portfolio wide … Continued

The post MRI Software wins National Partnership Award from NAHRO appeared first on MRI Software.

]]>

MRI Software was named the 2020 recipient of the Business Partners Council Partnership Award by the National Association of Housing and Redevelopment Officials (NAHRO) for its partnership with the Saint Paul Public Housing Agency. An award presentation will be held during NAHRO’s online National Conference.

MRI provided technology and consulting services to the Saint Paul Public Housing Agency for its near-portfolio wide conversion of the agency’s portfolio to Project-Based Rental Assistance using the Rental Assistance Demonstration (RAD) as the primary financing vehicle. All told, they converted 3,836 out of 4,255 units – the largest conversion to date in the history of RAD. The agency retains full ownership of its properties and continues to maintain and operate its portfolio. The conversion was debt-free and did not require access to Low Income Housing Tax Credit equity or other forms of financing. The project will bring greater long-term stability to the homes that the housing agency provides for its residents.

Jon Gutzmann, executive director of the Saint Paul Public Housing Agency, congratulated MRI, commenting: “MRI was a true partner in our conversion as it related to the software and the completion of the required certifications. They had staff on-site to assist during our biggest push to complete certifications, they were agile and accepted staff recommendations to streamline the process in light of the size of our conversion, and we had a dedicated and talented MRI staff member whom we could directly access for questions and fixes.”

According to Allen Feliz, MRI’s industry principal for affordable and public housing, the most rewarding aspect of the project was not its enormous scope, but rather the sense of shared commitment between the St. Paul PHA and the MRI team. “We’re honored to receive the BPC Partnership Award, which reflects the power of collaboration in achieving ambitious goals,” he noted. “The successful RAD conversion project enables St. Paul to better serve its communities in the long term, and we are proud to be part of it.”

“Many housing authorities rely on their business partners to carry out their mission and to bring additional expertise to their organizations,” said NAHRO CEO Adrianne Todman. “We applaud MRI Software for being this year’s recipient of our BPC Partnership Award for the innovative work they’re doing with their clients.”

About the Business Partners Council Partnership Award

The original Manufacturers and Suppliers Council (MSC) community Service Award was established in 2002 by the Executive Board of the MSC.  In 2018, the MSC changed its name to the Business Partners Council (BPC) to better reflect the diversity of vendors and emphasize their partnerships with housing and community development agencies.  In order to acknowledge and honor those joint ventures and partnerships, the BPC made changes to the previous MSC Award in order to create the BPC Partnership Award.

About NAHRO

NAHRO, established in 1933, is a membership organization of nearly 20,000 housing and community development agencies and professionals throughout the United States whose mission is to create affordable housing and safe, viable communities that enhance the quality of life for all Americans, especially those of low- and moderate-income. NAHRO’s membership administers more than 3 million housing units for 7.6 million people.

The post MRI Software wins National Partnership Award from NAHRO appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/3-drawbacks-spreadsheets-lease-accounting-transition/ Thu, 12 Nov 2020 16:22:27 +0000 https://www.mrisoftware.com/?p=32630

Private companies looking to transition to the new lease accounting standards may be in for a rough ride if they rely on spreadsheets. The deadline for compliance with FASB ASC-842 isn’t until December 2021, but considering that transition efforts shouldn’t be left until the last minute, some companies may already be looking at their spreadsheet-reliant … Continued

The post 3 drawbacks of spreadsheets in your lease accounting transition appeared first on MRI Software.

]]>

Private companies looking to transition to the new lease accounting standards may be in for a rough ride if they rely on spreadsheets. The deadline for compliance with FASB ASC-842 isn’t until December 2021, but considering that transition efforts shouldn’t be left until the last minute, some companies may already be looking at their spreadsheet-reliant processes with a healthy dose of skepticism.

The huge role that data has to play in the new lease accounting standards could make it difficult to manage the transition using spreadsheets. Accounting departments need to focus on the technology that supports business processes and operations to ensure a smooth transition to the new standards. Here’s why:

1) Too many collaborators

Even if the majority of your real estate data exists in spreadsheets handled by your financial department, the data you’re going to need to access for ASC-842 won’t be owned by just Finance. Data will be coming in from your Real Estate team, Procurement team, Legal team, HR, and really from anyone who plays a part in managing leases and signing new lease contracts going forward.

You’ll have a sizable list of collaborators as you look to gain compliance with the accounting standards. With multiple departments coming together to handle this data, a spreadsheet-based system that doesn’t connect to a centralized data source will be at a higher risk of human error. Data integrity is critical, especially when there are more people involved.

2) There’s A LOT of data you’ll need to handle

In addition to the participation of multiple departments, it’s impossible to overstate the sheer volume of data that will need to be handled as you transition over to new standards. Take a moment to think about all of the nuances that are included in your portfolio. Will you need to do dual reporting? Do you have any embedded leases? Do you have any foreign currency translations to do?

While you should be starting the transition with enough time to spare, the process of filling up spreadsheets with all the necessary formulas and calculations is going to put an excessive amount of stress on your operations. Even if you think you might be able to pull it off for the transition, you need to remember that the transition is just the beginning. Handling static data is one thing, but handling constantly changing data with processes that aren’t easily scalable is another.

3) Data will be in flux after transition

Getting all of your data through the transition to new lease accounting standards may be possible with spreadsheets, but when new information starts to come in, the trouble will REALLY pick up. As new leases are signed and new terms and clauses go into effect, the complex data you put into a cumbersome spreadsheet will be difficult to accurately manage. It could compromise your data integrity, which could ruin all of your reporting and even jeopardize your compliance.

Even though spreadsheets aren’t a sustainable choice for private companies transitioning to the new lease accounting standards, you still have options when it comes to leveraging technology that benefits your business and optimizing your processes as you move towards compliance. Learn more about how the right lease accounting solution can not only help you on the path to compliance, but also help you run efficiently long afterwards.

The post 3 drawbacks of spreadsheets in your lease accounting transition appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/apartment-leasing-tours-perform-better-personal-touch/ Tue, 06 Oct 2020 13:00:22 +0000 https://www.mrisoftware.com/?p=31545

Since the onset of the pandemic, apartment leasing teams have had to get creative in order to balance leasing activities with social distancing. We took a quick look at roughly 10,000 tours that took place during the traditionally busy summer months from May through August of 2020, as tracked in MRI Lead Management, to see … Continued

The post Apartment leasing tours perform better with a personal touch appeared first on MRI Software.

]]>

Since the onset of the pandemic, apartment leasing teams have had to get creative in order to balance leasing activities with social distancing. We took a quick look at roughly 10,000 tours that took place during the traditionally busy summer months from May through August of 2020, as tracked in MRI Lead Management, to see which ones were most effective.

While agent-guided tours (tours that are led by an experienced leasing agent) have traditionally served as the go-to apartment tour type, this summer has seen a clear rise in alternatives to that model. Three different tour types have gained popularity since the onset of the pandemic to accommodate social distancing requirements:

• Self-guided tours allow prospects to access models or available units on an appointment basis, leveraging programmable keypads or smart locks to manage physical access.
• Video tours using Zoom, Facetime and the like allow a leasing team member to walk through a model or available unit with the prospect on the other side of the video call, creating an opportunity to emphasize key selling points of the unit with color commentary on location features and property amenities.
• Apartment virtual tours allow prospects to experience a 3D walkthrough of a property from their own computer or device, and these are typically managed on a request basis so the lead can be captured before providing access to the virtual experience.

Even though agent-guided tours still dominate the market, these three new tour types listed above now represent 25% of all apartment tours given. Here’s a breakdown of how popular each of the four tour types currently are:

What makes each tour type different is how much contact the prospect has with a leasing agent and where that tour takes place. When we chart all four of these tour types by how much human interaction is required and where they can be performed, we’re left with the following two-by-two matrix.

Attendance

Video and virtual apartment tours get the highest marks for attendance rate with virtual tours averaging 94%. This is due to the convenience of taking the tour from a location remote to the property, likely, in the prospect’s current home. Tours on property, while most popular by volume, have relatively poor attendance, dipping as low as 67%.

Conversion

Generally speaking, the pandemic has dampened conversion rates. As reported in the MRI Software Market Insights report for August 2020, traffic has been above prior year levels since May, but move-ins continue to lag 2019’s pace.

In the current market, especially as we enter a traditionally slower leasing season, every lead matters. Unfortunately, strong tour type attendance does not translate into similarly strong lease conversion rates.

As we follow scheduled tours through the resident lifecycle, we see a much stronger conversion rate for video tours followed by agent-guided tours, while virtual tours convert the least. While the sample size is more limited for newer tour types, the behaviors indicated can be telling:

• Prospects taking apartment virtual tours on their own terms, own time and without the benefit of a knowledgeable leasing consultant rarely convert. They’re likely just shopping the market and gathering information in a low contact, low expectation manner.
• Prospects who physically experience the property, whether self or agent guided, convert at nearly the same rate. Making an effort to physically visit the property is a strong lead qualifier and indicates the importance of interacting with the physical space as part of the touring process.
• Prospects who experience a personal interaction convert at higher rates than those who do not, showing that knowledgeable leasing staff clearly make a difference to prospective residents.

The bottom line is that while all of these tour types are needed to provide flexibility for today’s prospective resident, more focus should be placed on ensuring that a human is part of the activity in order to provide contextual information that enhances the leasing process and closes more deals.

The post Apartment leasing tours perform better with a personal touch appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/how-great-disassociation-impact-commercial-real-estate/ Tue, 29 Sep 2020 16:54:29 +0000 https://www.mrisoftware.com/?p=31521

In our previous blog, we discussed the role of technology in the “Great Disassociation” and how the COVID-19 pandemic has accelerated existing trends in remote activity and created new challenges for industries where a consumer’s presence is traditionally required. We covered the many ways in which activities like work, banking, retail, dining, entertainment, fitness and … Continued

The post How will the Great Disassociation impact commercial real estate? appeared first on MRI Software.

]]>

In our previous blog, we discussed the role of technology in the “Great Disassociation” and how the COVID-19 pandemic has accelerated existing trends in remote activity and created new challenges for industries where a consumer’s presence is traditionally required. We covered the many ways in which activities like work, banking, retail, dining, entertainment, fitness and education have become more and more disassociated from the locations in which they normally take place.

Commercial real estate owners, operators and investors have some analysis to do as they seek to determine a path forward amid these shifts. This analysis should take place across two dimensions: change drivers and population trends.

Drivers of change

The disassociations listed above should be put into context by assessing if they are a result of the acceleration of pre-existing trends or if they are created by an acute impact of the pandemic – expected vs. unexpected, natural vs. unnatural. The acceleration of an existing trend, like a continued rise in ecommerce, is wholly different than the sudden and drastic impact on restaurant businesses.

The dissociations largely fall into the categories of impact as follows:

The fundamental difference between the two columns is one of transaction vs. experience. While the rationalization of retail stores and bank branches is being driven by retailers and financial institutions, the underlying motivations should be used as a guide for future planning.

If shopping or banking experiences only offer a commoditized transaction, today’s consumers will prefer automation. A more personal experience can, and will, win shoppers, much like Nordstrom, where the guest experience is part of the culture.

Acute disassociations are more challenging to forecast as there is not a point of reference from which to plot a trend in order to determine what the future may look like. The most prevalent driver for these disassociations was the need to be socially distant. The path forward will mostly be defined by changing guidelines and societal norms for what is deemed safe. Eventually, however, the experiences provided at these locations will most likely be desired over what can be done from a distance.

Much like retail and banking, less personal and more commoditized experiences will continue remotely. Collaborative needs for professionals will move back to physical spaces where interactions happen differently and where teams work toward common outcomes. Culture is also created more fully when teams are physically together. More personal experiences in dining, entertainment and fitness will also return as specific capabilities and facilities simply cannot be fully replicated at home.

Impacts of population changes

The other dimension of analysis that needs to be explored is how the population’s post-pandemic habits could alter the locations in which they spend their time, and how changes in the locations themselves could conversely alter the population’s habits.

The number of people commuting into a city for work is sure to decrease. New-found comfort with work from home combined with an aversion to public transportation and the need for social distancing will reduce the daily population in offices without requiring a commensurate reduction of office space as employers reduce office density and create more collaborative space.

The population of city dwellers, especially in dense, major metropolitan areas, is showing some signs of erosion as well. Empowered by the ability to work from home as well as low interest rates, some are seeking more private space in suburban areas and smaller cities. Populations of fans and patrons of sports and the arts remain unable to enjoy these experiences live. Populations of business travelers and tourists remain grounded.

Location, location, location is the mantra of real estate, and typically a great location is a combination of population proximity, access to transportation, convenience of amenities and access to a vibrant cultural scene of dining and entertainment. Unfortunately, each of these elements is under pressure as the pandemic continues to impact the economy.

Most importantly, owners, operators and investors will need to assess if the foot traffic in a building, block, or city will decrease as fewer people transit the area daily, especially when considering the future of service and dining-related establishments.

Moving forward

With a bead on the future, plans for redevelopment, renewal and reinvention will come. Recent strategies will continue, like the combination of retail and entertainment, and new strategies will emerge. Creative thinkers and entrepreneurs will define new uses for current spaces much like they have been doing for years. Factories and warehouses become lofts. Industrial sites get reclaimed for waterfront green space or redeveloped into apartments. Big box retail sites get transformed into a wide array of uses for boutique retail or community programming. The options are virtually endless. With interest rates continuing at historical lows, access to capital should not be a barrier for renewal. The largest challenge will be finding the appropriate use and optimal timing given ongoing uncertainty in the economy due to the pandemic.

The post How will the Great Disassociation impact commercial real estate? appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/great-disassociation-accelerating-separation-activity-place/ Fri, 25 Sep 2020 17:23:59 +0000 https://www.mrisoftware.com/?p=31484

The first quarter of the 21st century may be remembered as the time when technology finally allowed people to stop doing specific activities in specific places and enabled us to do most anything from basically anywhere. The COVID-19 pandemic will be seen as the accelerator of a “Great Disassociation”: a time when the relationship between … Continued

The post The Great Disassociation: Accelerating the separation of activity and place appeared first on MRI Software.

]]>

The first quarter of the 21st century may be remembered as the time when technology finally allowed people to stop doing specific activities in specific places and enabled us to do most anything from basically anywhere. The COVID-19 pandemic will be seen as the accelerator of a “Great Disassociation”: a time when the relationship between an activity and where it took place was changed forever.

Separating activity from place

The earliest forms of technology started us on the path of separating activity from place. The telegraph and its successor, the telephone, allowed communication between two people regardless of their vicinity. The radio and then the television brought news, sports and entertainment directly into our homes.

The launch of the Internet and the persistent progress into the digital superhighway of today has allowed the disassociation of activity from place to grow and accelerate.

The disassociations impacting Commercial Real Estate

As we leverage technology to separate activity from place, we continually reshape commercial real estate with rapidly changing conditions and short-term uncertainty.

Work vs. the office

In a study from June 2020, Stanford economist Nicholas Bloom found that 42% of the US workforce was working from home full time, accounting for more than two thirds of all US economic activity.

The last time the US workforce worked from home in such high volumes was in 1900, when work was literally at home because home was a farm. Around 40% of the US population lived on a farm, and 11.7 million people of the 29 million in the workforce worked in agriculture.

It took more than a century for the work and home paradigm to blur again. Corporate leaders are learning from their current experiences, and they are starting to question what the post-pandemic office needs to look like. Should density be relaxed? Should collaborative spaces be added, and should individual work-from-home practices increase?

Banking vs. the bank

The automated teller machine became mainstream in the late ’80s, creating a convenient way to withdraw and deposit funds at any hour of the day. This would later be seen as the first step in a digitally powered movement toward self-service banking. With direct deposit, online bill payment, mobile check deposits, and the use of electronic signatures, we are making fewer visits to our local bank branch to do the same banking we used to do in person. A recent report by Keefe Bruyette & Woods, a New York investment bank, found that teller transactions are down 30-40% this year, and they conservatively estimate up to 30% further branch consolidation.

Shopping vs. the store

For the past 25 years, ecommerce has grown by creating frictionless buying experiences, next day deliveries and hassle-free returns. This continued growth forced retail center and mall landlords to rethink their strategies and offer more comprehensive experiences. More dining and entertainment venues have been added to the shopping experience, as well as more special events and attractions.

COVID-19 caused many malls, shopping centers and non-essential retailers to close, driving even more business online and accelerating an industry-wide correction. Further, the experience-driven components of shopping centers, including restaurants, have been greatly impacted by social distancing needs, thwarting the most common strategies used to combat ecommerce.

Announcements of permanent store closures continue to pile up and have well surpassed any historical peaks…and the year isn’t over yet.

Essential shopping still takes place in the store (grocery, pharmacy, home goods, home improvement, etc.), and technology is being introduced to allow for the use of a mobile device to scan products and check out in an independent manner. Additionally, the activity of grocery shopping can be outsourced through apps like Instacart and other grocery pick-up and delivery services.

Dining vs. the restaurant

A 2019 study commissioned by the National Restaurant Association found that off-premise dining (drive thru, takeout and delivery) had claimed a majority and was growing. Then the pandemic struck, increasing the importance of off-premise dining for restaurateurs seeking ways to recover revenues in the face of social distancing measures. Expanded services also allowed customers to continue to support their favorite establishments throughout the pandemic. The off-premise model, however, does not facilitate alcohol sales like the in-store model does, placing an upside damper on off-premise revenue streams.

Growing services like Grubhub and DoorDash have contributed to this trend, allowing delivery from more than the traditional delivery sources like the local pizza shop or Chinese restaurant.

While the maintenance of food quality from kitchen to table remains a challenge, more and more people are trying to enjoy restaurant-prepared meals at home. As the colder months approach and the demand for outdoor dining decreases, more reliance will be placed on off-premise dining.

Recent reports estimate that up to one third of America’s 660,000 restaurants face permanent closure this year as a result of the COVID-19 fallout. Embracing a mixed model (on and off-premise) is likely the best go-forward path for survival as revenue is not solely a factor of dining room size and table turns.

Entertainment vs. the venue

Once the pandemic hit, the lights went down on Broadway and on every other theater across the country. Movie premiers have been rescheduled and stage productions halted. Some content, however, found its way onto streaming services instead of waiting for a return to traditional theaters. A recording of the hit musical Hamilton, as well as movies like Frozen II, The Invisible Man and Bill and Ted Face the Music all landed on streaming services and Video-On-Demand (VOD) formats well before their original home release dates.

Traditionally, it would take 90 days for a hit movie to reach VOD platforms, a window that is surely shrinking on the heels of Universal’s optional 17-day release agreement with AMC, the largest theater chain in the country.

While you might expect sports to be in this category, most professional leagues have already been reaching audiences in their homes with live broadcasts for years via radio and television. Bundesliga, Premier League, NBA, WNBA, NHL, and MLB have all proven that they can separate the game from the fans, playing in “bubbles” and empty stadiums. Other professional sports such as cricket and rugby have already resumed play in Australia, while the UK is taking a measured approach and South Africa rugby is currently restarting in September. The NFL season in the US has begun with vastly limited attendance in most cases. The NCAA is currently fragmented on its approach. Unlike movie production companies who can postpone the release of a movie for better times, sports leagues have heavy fiscal incentives to play on, even without the fans in the stands.

Outlying disassociations

Among all of the disassociations we’ve seen over the past few months, there are a few scenarios that are in a unique position. For example, home fitness has been around since Jack LaLanne in the 50s, but companies such as Peloton, and competitors like Mirror, FightCamp, NordicTrack, and Tonal have become more popular as they create live and on-demand classes that participants join from home, avoiding the gym altogether.

In an entirely different situation, however, are teachers and students, who have been forced to resume education separately from a classroom. With the onset of the pandemic, all students were sent home to finish the 2019-2020 academic year. As the 2020-2021 school year launched, a variety of in-person and remote options were made available to students and parents. In many cases, the teachers are in their classrooms doing their job for a decentralized class. The higher education situation is more fluid with a variety of colleges and universities all trying their hand at continuing to deliver content across an array of in-person, on campus and fully remote options. Given the individual costs associated with higher education, the entire system could be destabilized by prolonged distance learning.

Renew, rethink, redevelop

Work, banking, retail, dining, entertainment, fitness and education cover a broad array of commercial real estate assets, many utilizing large or purpose-built locations. Unfortunately, the pandemic has greatly impacted the current use and state of many real estate assets. As the disassociation between “activity” and “the room where it happens” accelerates in light of the COVID-19 pandemic, owners, operators and investors need to undertake analysis to figure out what a technology-driven path forward will look like.

The post The Great Disassociation: Accelerating the separation of activity and place appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/mri-software-wins-third-stevie-award/ Mon, 14 Sep 2020 13:21:54 +0000 https://www.mrisoftware.com/?p=31270

MRI Software is thrilled to announce that we’ve won a Stevie® Award in the Large Computer Software Company of the Year category at the International Business Awards for the third year in a row! We’ve spent the last year and a half delivering on the promise of innovative solutions for the real estate industry, and … Continued

The post MRI Software wins third Stevie® Award! appeared first on MRI Software.

]]>

MRI Software is thrilled to announce that we’ve won a Stevie® Award in the Large Computer Software Company of the Year category at the International Business Awards for the third year in a row! We’ve spent the last year and a half delivering on the promise of innovative solutions for the real estate industry, and we’re proud to have won this Stevie Award that acknowledges those innovations.

An innovation-driven approach

In 2019, MRI Software introduced several new products designed to further enable clients to transform the way their communities live, work, and play with an open and connected ecosystem of software solutions. One such product was MRI Application Gateway, a consumer-friendly homepage that allows users to access all of their MRI and third-party applications through one point of entry.

MRI also introduced a comprehensive payment solution that supports online and check payments for residential properties. Since the introduction of this product, MRI clients have been able to utilize its dashboard that tracks payment trends, alerts, and notifications for complete visibility into all transactions. MRI’s payments solution has served as an intuitive addition to the platform with the potential to expand into global markets in the coming years.

Delivering for our clients in times of crisis

The COVID-19 pandemic has challenged companies across the globe in ways they never thought possible. As North American companies were starting to see impacts to their business, MRI developed new features for our software solutions to help clients rise to the many challenges. Driven by a belief that leveraging technology was one of the best options property owners and managers could take to ensure business continuity while observing social restrictions, MRI introduced tools to help multifamily and commercial landlords account for deferred rent payments, outbound call routing capabilities to assist property leasing agents working remotely, and new analytics dashboards to give clients deeper insights into risk.

In addition to these product offerings, MRI also formed and mobilized a Market Insights team to monitor key indicators of health in the multifamily, affordable, and public housing industry. Every month since May, the Market Insights team has released data on how these industries compare to one another in terms of move-in rates, new application rates, and lease term statistics. These trends help to paint a picture of how the three housing sectors are faring amid a volatile environment. The report covering data through August 2020 is available here.

Market expansion and growth

In addition to all of this, MRI has been greatly expanding into underserved markets and building upon our own product offering to better serve people in these markets. In the past year alone, MRI has made several acquisitions to boost our offerings for the social housing industry on a global scale, extending the reach of our solutions in the UK and Australia. MRI has also taken on a greater role in the real estate occupier space, broadening our solutions around lease management, lease accounting, space management and more.

At MRI Software, the past several years have seen a team of highly talented professionals execute on a mission of strategic growth and innovation, and this award is only one of the latest indications that this approach is working. Recently, MRI Software’s growth was recognized on the Inc. 5000 list of fastest-growing private companies, and our success in expanding the reach of MRI’s product offerings was acknowledged with a Stevie Award win in the APAC region. MRI Software is proud to have received all these honors, but in terms of innovation, expansion, and growth, the best is yet to come.

The post MRI Software wins third Stevie® Award! appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/cafm-software-reduce-real-estate-costs/ Thu, 10 Sep 2020 15:09:44 +0000 https://www.mrisoftware.com/?p=31108

The COVID-19 pandemic has created uncertainty in nearly every aspect of our lives. But, for those managing real estate, your CAFM (computer aided facility management) software can help provide some clarity. Now more than ever, it’s imperative that your company has accurate, real-time information about costs, space requirements, remote workers, and asset management. Think about … Continued

The post Using CAFM software to reduce your real estate costs – the 15 key questions you should be asking appeared first on MRI Software.

]]>

The COVID-19 pandemic has created uncertainty in nearly every aspect of our lives. But, for those managing real estate, your CAFM (computer aided facility management) software can help provide some clarity. Now more than ever, it’s imperative that your company has accurate, real-time information about costs, space requirements, remote workers, and asset management.

Think about costs – property and facilities management are an organization’s second-biggest expenditure after its people. During times of flux, it’s essential to have a deep understanding of what these costs are. Likewise, whether expanding or contracting in space and/or personnel, you need to know exactly what space is available and needed. You should also know the location of your assets, whether these are assigned to a person or not, and be able to quickly run an inventory report.

To help you tackle the immediate impacts of the pandemic and to plan further ahead, here are 15 key questions you should be asking:

1. If 40% of our employees are remote working for an extended period, how does that impact our real estate costs?
2. How will our portfolio look when our employees return?
3. Are we able to temporarily shut down some of our facilities to reduce costs?
4. What is our company’s standard RSF (Rentable Square Footage)/person?
5. What is our company’s RSF/capacity?
6. If we have to shed space now, where can we increase occupancy in the future?
7. What floors can we shut down to reduce costs?
8. Where are the opportunities for restacks?
9. What spaces can be doubled up?
10. What spaces can be used as workrooms?
11. Is the shift to remote working reducing the need for work, meeting, cafeteria, amenity and other support spaces?
12. Are we utilizing or considering flexible workspaces?
13. Where are our assets located?
14. Are remote workers taking their office and mobile devices home?
15. What assets are employees responsible for?

Your CAFM solution can help you answer these. The data-driven metrics generated provide you with a deeper understanding of your portfolio utilization, vacancy, occupancy, department allocations, asset management, and personnel management – and should allow you to report to senior leadership in minutes, not days.

Relational databases, such as CAFM systems, can also bring disparate information together into one centralized location. Employee data, asset data, and space information can all be integrated together. When one set of data is updated, all of the associated data is updated too. For example, if an employee moves, all of their assets are moved with them automatically. The space allocation chargebacks are updated, as is occupancy/vacancy information, all without even having to log into the system. These efficiencies free up your facilities teams so they can focus on the most pressing issues and deadlines.

Additionally, Software as a Service, or SaaS, provides a centralized solution for managing your facilities without you having to take on backups, redundancies, or servers – the provider does that for you. And the best part is your employees can access the system anywhere, anytime, whether working remotely or in the office, or visiting another building off site.

Our clients have relied on our solutions to help them in times of uncertainty for more than 20 years. This might be the greatest challenge we’ve all faced in that period, but we are here to help and advise you in any way we can. If you feel there are aspects of your CAFM solution (or any of the applications you use) that can help you address essential processes at this time, or could inform your ongoing strategic approach, then please leverage our experience and expertise. Our team is ready to support you!

The post Using CAFM software to reduce your real estate costs – the 15 key questions you should be asking appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/mri-software-wins-13th-northcoast-99-award/ Wed, 02 Sep 2020 17:09:07 +0000 https://www.mrisoftware.com/?p=31121

For the 13th time, MRI Software is proud to have won the Northcoast 99 award as one of the top workplaces in Northeast Ohio! Even as the COVID-19 pandemic pushed MRI to implement strict and comprehensive work from home policies, the company had the capabilities to equip employees with the software solutions they needed and … Continued

The post MRI Software wins its 13th Northcoast 99 Award appeared first on MRI Software.

]]>

For the 13th time, MRI Software is proud to have won the Northcoast 99 award as one of the top workplaces in Northeast Ohio!

Even as the COVID-19 pandemic pushed MRI to implement strict and comprehensive work from home policies, the company had the capabilities to equip employees with the software solutions they needed and implement standard work practices to make a smooth transition. While the company’s office spaces are designed to foster community, strengthen each team, and encourage creativity, MRI has always maintained that its culture is not determined solely by floor plans or in-office amenities. The heart of the company is its endless desire to seek out new opportunities for innovation combined with a community of hard-working and dedicated professionals. Together, these factors have ensured that the many challenges faced by businesses in 2020 have not slowed MRI down.

A growing and thriving work environment

MRI Software’s strategic growth plan continues to drive the development of innovative solutions and expand its presence in new markets. Almost fifty years after its inception, MRI recently was named to the Inc. 5000 list of fastest growing private companies, a list that often features exciting new businesses that are at the beginning of their corporate journeys. From 2016 to 2019, MRI Software experienced 161% revenue growth. And even while MRI holds to its Northeast Ohio roots, its global expansion has brought it hundreds of new employees, bringing the total to 2000 professionals.

MRI Software is an organization that’s defined by its unified mission to empower companies with the ability to transform the way their communities live, work, and play. Want to learn more about our award-winning workplace or join the MRI Software team? Be sure to check out our current career openings!

The post MRI Software wins its 13th Northcoast 99 Award appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/reinventing-multifamily-enterprise/ Mon, 31 Aug 2020 13:30:35 +0000 https://www.mrisoftware.com/?p=31073

In a recent post, we discussed the demise of the multifamily leasing office, driven by accelerated technology adoption as a result of COVID-19. The main point being that with today’s technology, much of the work associated with the leasing office no longer needs to be done on site. When you ask yourself where it should … Continued

The post Reinventing the multifamily enterprise appeared first on MRI Software.

]]>

In a recent post, we discussed the demise of the multifamily leasing office, driven by accelerated technology adoption as a result of COVID-19. The main point being that with today’s technology, much of the work associated with the leasing office no longer needs to be done on site. When you ask yourself where it should be done, you find a unique opportunity to reshape the multifamily enterprise in ways that will better serve prospects, residents and site staff.

Broadly, work typically conducted on site can be grouped into the following categories:

• Marketing, Sales and Leasing – advertising the property and available units, pricing, prospect engagement, lease execution, move-in inspections
• Resident Service – servicing existing residents’ concerns, intake of maintenance requests, lease changes for roommates/pets/rentable items, package handling, amenity reservations, lock outs, notice to vacate processing, move out inspections
• Billing and Collections – processing monthly rental collections, driving online payment adoption, sending late notices, managing eviction and collection processes, SODA processing
• Renewal Processing – generating renewal notices and processing renewals
• Site Service and Vendor Management – coordinating with the maintenance service team on unit turns, service request processing, vendor contracting and scheduling, renovation planning as well as safety, security and emergency preparedness
• Reporting, Budgeting and Forecasting – managing the property P&L, forecasts for revenue and expenses and future year budget creation

In the current highly decentralized model for most multifamily operators and managers, many, if not all, of these activities are performed on site by a relatively small team of employees. As such, these employees become jack-of-all-trade-types, spanning from high-touch customer service to detailed financial analysis and resident accounting. On-site staff typically have high attrition, with national averages hovering around 33%.

As we have proven that we can separate the property office work from the property office, we are given an opportunity to rethink how to better organize to get the work done.

Advantages of centralization and specialization

We can now leverage technology to perform traditional on-site activities remotely and we can organize around process or function. We can create specialists who excel in their area of focus by leveraging their core strengths. We can create more career paths and growth opportunities. We can further leverage technology to drive efficiencies.

• Marketing, Sales and Leasing – A centralized sales-focused function would drive lead generation and lease conversion. The people in this role would facilitate video and self-guided tours while also being available for in-person tours as requested. They will ensure that applications are completed, application fees are collected, screening results managed, and lease documents executed, typically in an electronic format. These sales professionals would become product experts and closers. They would be measured on lead generation, leasing velocity, pricing compliance, and customer satisfaction. The pricing function in many organizations is already centralized and enabled by revenue management technologies.
• Resident Service – A centralized customer service-focused team would be the contact point for current residents and be well versed in the variety of services and resources that are available for residents. A resident service team would be a gateway to amenities, local discounts, social programs and additional concierge services. They would track and log all resident requests and concerns for appropriate follow-up. They would facilitate changes to existing leases due to roommate changes, pet additions and the rental of other items (parking/storage). They would also manage all courtesy activities including package notifications and lock-out assistance (especially if the digital locks are in place). They would be measured on customer satisfaction, renewal retention and their ability to drive ancillary revenue through amenity and service utilization.
• Billing, Collections and Renewals – A centralized resident accounting-focused team would manage all billings and prorations, renewal offers and negotiations, vacate notices, SODA preparation and processing, late fees and late notices, as well as managing eviction and collection processes. This group would also drive online payment adoption. They would be measured on arrears and bad debt, online payment adoption and renewal effectiveness and NTV reversals.
• Site Service and Vendor Management – A centralized team for vendor management and site service would drive procurement best practices for goods and services in coordination with site maintenance staff. Metrics would include turn duration and cost per turn, improved pricing through volume contracts, and renovation project timeline and budget. Additional processes and metrics on property quality, safety, security and emergency preparedness would be monitored and tracked.

Centralizing these functions will create more specialization and focus on each. Focus will lead to process improvements as well as the ability to leverage economies of scale and to adjust staffing levels to best cover peak and low volumes times. Each role will attract staff whose skills are aligned to the unique requirements of the job. Centralized teams will naturally have internal career paths and cross-organizational career paths may also emerge. Attrition should reduce as role expectations are consistent and well documented within each area.

Some physical presence required

Beyond the activities of the leasing office, there will continue to be tasks that require staff to be onsite. This, however, does not mean that the staff needs to be on site full time. They just need to be in reasonable proximity. This will create opportunities for regional offices, sometimes called pods, as central points for leasing and maintenance staff.

Much like working with a real estate agent when purchasing or leasing a single-family home, the leasing agent will meet the prospect at the property to facilitate a tour at a pre-scheduled time.

Maintenance work can also benefit from a regional pod as inventory can be shared across properties, trade skills can be deployed to the best-suited jobs, resources can be cross trained across properties and a larger pool of resources can be leveraged for on-call and other emergency situations.

Impacts on current technology providers

As more activities become centralized, users may encounter challenges in how current software systems operate. Many property management systems are built around the property construct with limited capability to drive processes centrally, across many properties, in bulk.

Before adopting central processing, users should assess how to best enable the new processes with their existing technologies.

Emerging technology for centralized operations

There are many new technologies finding traction in multifamily properties, and they all have the ability to further the remote management of properties. A few to consider include:

Smart Home Technology:

• Gate systems, smart door locks and other access fob systems will allow for remote management of property access, the ability to remotely solve lock out issues and the ability to enable resident and guest access to the property, amenity spaces and units themselves
• Water sensors and usage sensors will automatically alert to out-of-norm usage patterns signaling leaks or the need for usage-based preventative repairs
• Smart parking systems can understand if authorized cars are parked in authorized locations, provide guidance for handicapped parking and reduce the need to search for open spaces

AI & Chat bots:

• Teams no longer have to answer every call or chat as chat bots are able to answer routine and repetitive questions while still gathering important information on leads and service opportunities
• AI tools can interrogate repetitive documents, like proof of insurance, and appropriately extract data for storage in systems of record for further events and processing

Drones:

• Exterior conditions can be assessed without walking the site by leveraging drones covering predefined paths throughout a property to ensure quality and safety standards are met and creating a more thorough documentation of property condition from one visit to the next

A transformation opportunity

The multifamily industry is at a pivotal moment where long-standing processes and methods have been interrupted and new ones quickly put in place, often further leveraging technology. Before automatically reverting to how things were, organizations should assess opportunities to transform their operations and determine what can work better in a less traditional and highly decentralized manner. There is great opportunity to unlock better prospect engagement, customer service and employee satisfaction, all of which will contribute to a better bottom line.

The post Reinventing the multifamily enterprise appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/mri-software-proud-inc-5000-list-fastest-growing-private-companies/ Thu, 27 Aug 2020 21:14:25 +0000 https://www.mrisoftware.com/?p=31065

For the past 49 years, MRI Software has taken its label as a pioneer of real estate software seriously, and as a result, we’ve never stopped pushing forward. We’re proud to have been named to the Inc. 5000 list of fastest-growing private companies in the United States. The list, compiled by Inc. Magazine, is regarded … Continued

The post MRI Software is proud to be on the Inc. 5000 list of fastest growing private companies appeared first on MRI Software.

]]>

For the past 49 years, MRI Software has taken its label as a pioneer of real estate software seriously, and as a result, we’ve never stopped pushing forward. We’re proud to have been named to the Inc. 5000 list of fastest-growing private companies in the United States. The list, compiled by Inc. Magazine, is regarded as the definitive ranking of the nation’s most successful independent businesses based on revenue growth from 2016 to 2019. MRI Software increased its revenue by 161% during this time, even as we prepare to celebrate five decades of service.

The Inc. 5000 list is often filled with exciting new companies that are at the beginning of their corporate journeys. To be included in this list after almost half a century of operation shows not only continued demand for our open and connected software solutions, but also, a sizable growth made possible by the innovation, hard work, and excellence MRI Software has championed throughout its lifetime. We’re extraordinarily grateful to the teams across MRI who have always been united as a global community to drive the business forward. Together, the MRI family has been expertly executing the strategic growth plan that our CEO, Patrick Ghilani outlined six years ago, which prioritized new technology innovations, expansion into key markets and geographic growth. Some highlights of our recent accomplishments include:

New solutions for the single experience platform

In line with MRI’s mission to transform the way communities live, work, and play, the company announced a range of new solutions in 2019 that further enhance MRI’s open and connected platform. These new products bring advanced payment, lead management, AI-powered lease abstraction and secure signature capabilities to MRI’s comprehensive solution set.

Product innovation and market expansion

Over the past several years, MRI has strengthened its commitment to innovation for the affordable housing sector. In 2019, MRI launched MRI Affordable Housing, a property management and compliance solution for owners and operators of affordable housing and mixed portfolios in the US. The new software offers a modern, intuitive user experience to a historically underserved market that can benefit greatly from specialized industry-specific technology. Today, MRI’s software supports government-subsidized housing providers in the US, UK and Australia.

Global growth

MRI users conferences have been the catalyst for collaboration, community and innovation, bringing together clients and partners in one unique open ecosystem. With an expanded global presence and clients operating in nearly every corner of the world, MRI transformed its conference schedule from one major event – the MRI International Users Conference – to several region-specific conferences called MRI Ascend. Between 2019 and 2020, MRI Ascend users conferences were held in the US, UK, South Africa and Australia, serving the local needs of MRI clients in the region.

Awards and recognition

While these accomplishments help to form the basis of MRI’s unprecedented growth, our success has been recognized several times over by organizations such as ERC, Cleveland Plain Dealer, Realcomm, International Business Awards, and even Aetna. MRI CEO Patrick Ghilani was honored as a real estate industry leader when he received the Julie Devine Digital Impact Award from Realcomm, became a finalist for Ernst & Young’s Entrepreneur of the Year Award, and was recognized by the Northeast Ohio Smart 50 Awards.

In the past few years, MRI’s global employee base has rapidly increased to nearly 2,000 professionals. With ongoing demand for open and connected software, our growth shows no signs of slowing down. We’re always looking for smart people to join our team, so check out our career opportunities and learn more about our award-winning culture.

The post MRI Software is proud to be on the Inc. 5000 list of fastest growing private companies appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/demise-leasing-office-multifamily-properties/ Mon, 24 Aug 2020 16:18:22 +0000 https://www.mrisoftware.com/?p=30969

In spite of COVID-19, the multifamily industry has soldiered on into the busy summer. Residents are on property in higher volumes throughout the day. Leasing has transformed into a technology-enabled process with self-guided and video tours, resulting in online applications and electronic signatures. Paper checks have turned into online payments. Many properties stopped accepting packages … Continued

The post The demise of the leasing office for multifamily properties appeared first on MRI Software.

]]>

In spite of COVID-19, the multifamily industry has soldiered on into the busy summer. Residents are on property in higher volumes throughout the day. Leasing has transformed into a technology-enabled process with self-guided and video tours, resulting in online applications and electronic signatures. Paper checks have turned into online payments. Many properties stopped accepting packages for residents. As little as six months ago, we would have not predicted such rapid change.

It is safe to say that we are operating our properties very differently than we anticipated at the start of the year. We have had office closures and a transition to appointment-only operations. More and more property staff are working from their homes leveraging a myriad of technologies to keep properties open and operational. In so quickly adapting to new business practices and in further leveraging technology, we have accelerated the demise of the leasing office.

Have we proven that we no longer need a leasing office?

These recent changes beg the question of whether property managers and leasing agents still require a leasing office in order to do their jobs. What follows are leasing agent and property manager job descriptions summarized from Monster.com:

Leasing Agent Job Responsibilities:

• Provides current and prospective residents with the best possible customer service to retain residents and lease properties.
• Discovers, engages, and advances each prospect and follow up until they have set an appointment, found a home within our portfolio, or decided not to move.
• Handles incoming sales by phone, email, and online chat.
• Provides information regarding specific communities as well as services offered with the goal of generating leases for the sites.
• Logs all activity into company provided databases in a timely and accurate manner.
• Accurately communicates the benefits and features of the property portfolio.
• Stays up to date with all promotions/leasing incentives.
• Provides accurate information to residents and prospects in a courteous manner and fills all reasonable requests or requirements.
• Maintains company’s customer service and sales standards.

Property Manager Job Responsibilities:

• Maintains property rentals by advertising and filling vacancies, negotiating and enforcing leases, and maintaining and securing premises.
• Establishes rental rate by surveying local rental rates and calculating overhead costs, depreciation, taxes, and profit goals.
• Attracts tenants by advertising vacancies, obtaining referrals from current tenants, explaining advantages of location and services, and showing units.
• Contracts with tenants by negotiating leases and collecting security deposit.
• Accomplishes financial objectives by collecting rents, paying bills, forecasting requirements, preparing an annual budget, scheduling expenditures, analyzing variances, and initiating corrective action.
• Maintains property by investigating and resolving tenant complaints, enforcing rules of occupancy, inspecting vacant units and completing repairs, planning renovations, contracting with landscaping and snow removal services.
• Maintains building systems by contracting for maintenance services and supervising repairs.
• Secures property by contracting with security patrol service, installing and maintaining security devices, establishing and enforcing precautionary policies and procedures, and responding to emergencies.
• Enforces occupancy policies and procedures by confronting violators.
• Prepares reports by collecting, analyzing, and summarizing data and trends.

If you look at these with a critical eye, you will see that the vast majority of these activities can now be done independent of the physical property by leveraging technology such as:

• Internet listing services and property websites
• Lead management software
• Video and self-guided touring software
• Online application, lease generation and digital signature software
• Online payment and screening software
• Call management and call answering software
• Web chat software with Artificial Intelligence
• Electronic access systems and digital locks
• Maintenance software with mobile access and online request submission
• Online renewal software
• Property management and accounting software with integrated budgeting and forecasting
• Procurement and AP automation software

Over time, leasing offices have gotten smaller as paper gave way to paperless. Now we see location giving way to connectivity, with physical security and maintenance becoming the only activities that require an onsite staff presence.

One longtime MRI Software client, AvalonBay Communities, is opening a new community this Fall at Kanso Twinbrook in Rockville, MD, outside of Washington, D.C. This new development comes without a leasing office and also without physical amenities. It is heavily reliant on technology for all aspects of its operations.

This new development style may be exactly what the future holds, charting a course for properties to focus on efficiency and affordability while leveraging technology and connectivity to enable remote prospect and resident service. The future may reshape the operating model for apartment communities in an increasingly connected and mobile environment.

For the first time in history, technology has created a situation where we do not have to revert to how and where we worked before the pandemic. We have fundamentally proven that we can separate the work from the place where the work was always done. We have an opportunity to rethink, to innovate and to set the foundation for the next iteration of multifamily business.

The post The demise of the leasing office for multifamily properties appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/space-planning-occupant-comfort-cost-cutting-biggest-drivers-commercial-real-estate-before-covid-19/ Thu, 20 Aug 2020 13:00:15 +0000 https://www.mrisoftware.com/?p=29634

There is little doubt that COVID-19 and lockdown have had a profound and lasting impact on how commercial tenants are viewing their real estate. The devastating global economic impact of the crisis has left a huge proportion of corporate occupiers looking for ways to control and even slash costs – whether retailers struggling with shuttered … Continued

The post Space planning, occupant comfort and cost-cutting are biggest drivers in commercial real estate – even before COVID-19 appeared first on MRI Software.

]]>

There is little doubt that COVID-19 and lockdown have had a profound and lasting impact on how commercial tenants are viewing their real estate. The devastating global economic impact of the crisis has left a huge proportion of corporate occupiers looking for ways to control and even slash costs – whether retailers struggling with shuttered stores and then a sobering lack of footfall, or enterprises with large parts of their office spaces, warehouses and other properties now painfully underutilised.

Furthermore, as lockdown is eased, other factors come into consideration: the requirement for social distancing, stringent hygiene measures and other restrictions; the urgent need to ensure employees, customers and visitors all feel safe and reassured as they go about their work in business settings. These now put space planning and space usage, well as occupant comfort and efficiency, at the heart of conversations about changes businesses are facing in light of the pandemic.

Space planning as a portfolio strategy

But it’s not all about COVID. The priorities and trends shaping strategies for real estate occupiers were already firmly on the radar of organisations, according to a report from MRI Software and independent research and consulting experts Verdantix. We spoke to top real estate and financial decision-makers at a broad range of organisations just at the time the global pandemic led to a wholesale shift to homeworking and impacted other ways in which businesses operate.

Interviews with leading executives from global enterprises such as ABB, Oracle and Vodafone showed that 72% identified space usage maximisation as a major trend affecting their property strategies, while 67% named occupant comfort and productivity. The respondents ranked their most important real estate priority as cost reduction (47%), with a further 37% identifying it as their second biggest priority – for a total of 84%. We would expect these numbers to now be even higher, given the stark reality of the coronavirus crisis and the havoc it has wreaked on households and businesses.

It is clear that COVID-19 has placed significant financial pressure on companies around the world and efforts to control spending will only intensify, leading many organisations to examine how they can use space – not only safely, but more efficiently going forward. Technology can play a critical role here, providing data that can be used to make informed and accurate decisions while space management can be optimised to create both a healthy and productive work environment.

Tooling up to deal with lease management as more than just a COVID priority

Lease flexibility to support operational agility was third on the list of top real estate priorities (19%), behind presence in prime locations (25%). Lease flexibility, however, will likely now be seen as a more urgent priority by many corporate occupiers as they take stock of their property portfolios and assess their options in the current climate – looking at where they are making a profit, where they are not and what they can do about it.

But again, the challenges go far beyond the impact of COVID. Many companies are still looking for help in navigating the challenges of lease management and ongoing compliance under new and tighter lease accounting changes (ASC 842 and IFRS 16), and the vast majority are looking for technology to help them, our research showed.

The in-depth interviews, which took in the 53 decision-makers’ views on proptech investments, looked at how they were using technology to deal with the requirements of the new lease accounting standards. Nearly two-thirds (63%) said software was an indispensable or effective means of speeding up compliance, while just 6% failed to see it as essential to meeting their reporting obligations.

In discussing how to maximise value from these investments, the respondents identified the leading critical or strong benefits of software for lease data management as:

• Data centralisations and scalability (70%)
• Enabling data-driven internal discussions (66%)
• Reduction in erroneous data/ ensuring data consistency (64%)
• Process control via data change tracking (59%)
• Speed of data capture via automated data extraction (53%)

Commenting on how real estate software provides value, the interviewees offered key insights:

• “The core benefit of software is that it massively helps co-ordinate the data reporting process, saving time and improving internal communication. If you have more accurate data, you make better decisions faster.” – Finance Director at an oil and gas firm
• “By putting everything in one place, the opportunity is to avoid complications when assembling data. You can compare location, as well as payment and escalation terms, all in the context of IFRS.” – Senior Finance Manager from a retailer
• “Software standardises and centralises data storage practices and gives us more time to double check accounting calculations. I can have peace of mind when reporting the results to key stakeholders outside the finance department.” – Chief Financial Officer of an electrical and electronic manufacturing firm

Pulling teams together moving forward

It is evident that real estate and finance teams the world over need to pull together to meet the many challenges they now face. Once again, the research showed this was the direction businesses across the Americas, APAC and EMEA have been taking. The interviews revealed that, going forward, 70% of the respondents saw their teams either collaborating more closely or merging together. As one head of real estate at a telecoms firm told the researchers: “We are working to make the property team more financially astute and the finance team more portfolio-aware.”

The more organisations enable cooperation across departments, geographies and teams – and provide technologies and approaches to support that – the better equipped to mitigate the impacts of the global financial crisis and put in place strategies for future success.

Download the report here to see the full results of our research.

The post Space planning, occupant comfort and cost-cutting are biggest drivers in commercial real estate – even before COVID-19 appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/market-insights-july-affordable-public-multifamily-housing/ Wed, 12 Aug 2020 19:13:36 +0000 https://www.mrisoftware.com/?p=29564

Throughout July, the multifamily, affordable and public housing markets in North America continued to deal with what could charitably be described as a cruel summer. With the ongoing spread of COVID-19, the MRI Market Insights Team continued its reporting on the impact of the pandemic on the conventional multifamily housing market, as well as the … Continued

The post Market Insights for July in affordable, public, and multifamily housing appeared first on MRI Software.

]]>

Throughout July, the multifamily, affordable and public housing markets in North America continued to deal with what could charitably be described as a cruel summer.

With the ongoing spread of COVID-19, the MRI Market Insights Team continued its reporting on the impact of the pandemic on the conventional multifamily housing market, as well as the affordable and public housing sectors. Comparing key metrics from January through July 2020 to the same months in 2019, the Market Insights team found that in the multifamily market, some of the positive trends from June receded while others continued their upward trajectory; however, in the affordable and public housing markets, trends continue to lag behind 2019’s numbers.

A mixed bag in multifamily

While July brought some changes to the key metrics we’ve been tracking in the multifamily space, move-in volumes continued an upward trajectory from June, hitting a post-pandemic high of 86% of 2019’s volume. This is the third consecutive month of improvement for move-in volumes. When it comes to traffic, this metric dipped from June to July but still remains 16% ahead of prior year volumes and remains a positive indicator.

Much like burgers on an uneven grill, however, several other metrics didn’t turn out as well. When the June report showed application volume reaching 97% of 2019’s numbers, we were hopeful that these numbers would continue to rise. Instead, that metric dropped down to 81% of prior year volumes. In addition, new lease pricing gave back the 5% regained in July, and expiration management practices are quite visible with eight- and nine-month terms being 7% off prior year with 14-month terms only 3% off 2019.

Affordable and public continue to lag

On the whole, all metrics in the affordable and public housing spaces lag behind 2019’s pace. One of the most notable changes is in rent collections, where affordable and public both experienced opposite changes. In affordable housing, rent collections dropped below 80% in July for the first time in 2020. This is similar to the drop public housing saw in June, but since then, that number has leapt back up to 98%.

When it comes to applications, move-out certifications, and new admission certifications, the differences in affordable and public housing are more apparent. In the affordable sector, there’s been a sustained drop in applications and move-out certifications, with new admission certifications again falling as compared to 2019 after a bit of recovery in June. Public housing has been impacted more substantially across these three metrics with trends continuing well off of 2019 volumes.

Even with trends diverting from one another on a seemingly consistent basis, the multifamily, affordable, and public housing sectors all share one attribute in common. As uncertainty around governmental assistance for displaced workers, unemployment, and case spikes in major metro areas continues, residents are staying in place. To learn more about the impacts of COVID-19 on housing, be sure to read the full reports on the affordable, public, and multifamily sectors.

The post Market Insights for July in affordable, public, and multifamily housing appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/erp-commercial-real-estate-industry-cios-perspective/ Thu, 06 Aug 2020 19:42:46 +0000 https://www.mrisoftware.com/?p=28106

CIOs of commercial real estate firms have a lot of responsibility resting on their shoulders. For large companies, the ERP system that supports business operations, accounting and data sharing forms the backbone of the organization. These technology systems enable the business to grow, scale and achieve its strategic goals, ultimately preparing it for success on … Continued

The post ERP for the commercial real estate industry: A CIO’s perspective appeared first on MRI Software.

]]>

CIOs of commercial real estate firms have a lot of responsibility resting on their shoulders. For large companies, the ERP system that supports business operations, accounting and data sharing forms the backbone of the organization. These technology systems enable the business to grow, scale and achieve its strategic goals, ultimately preparing it for success on the road ahead.

So what does the road ahead look like? Among other things, 2020 has taught us that we can’t predict what’s around the corner. Phrases like the “new normal” are frequently used, but what exactly does that mean? It seems the only certainty is that there will be lots of new normals.

MRI partner One11 Advisors aptly refers to this future state as the “next normal.” And no matter what that brings, it’s important to have ERP real estate technology in place that can roll with the punches to help your business adapt, stay agile, and continue to succeed.

The value of open commercial real estate ERP software

In this podcast, Scott Morey of One11 Advisors speaks with some of today’s top CIOs in the real estate industry to discuss their property management ERP journey and how it has prepared their organization for the next normal. He speaks with Tom Taddeo of Kimco Realty, Shaun Smith of Benderson Development, and Kevin McCann of Phillips Edison (PECO) to see how they have evaluated their ERP software over the years to find the technology that will future-proof their business.

MRI took the time to understand our business and our people. As you choose solutions, take a good look at the people that come with it.

Shaun Smith, CIO
Benderson Development

How can you be confident that your core applications will allow your commercial real estate firm to adopt industry best practices as technology evolves? Is your provider committed to innovation and support for your solution? Are you dependent on a waning number of specialists to manage it, or can you hire technology professionals with skills that can carry your business into the future?

Technology to future-proof your commercial real estate business

For CIOs, preparing for the future requires a software provider with an open and connected platform that will never limit the growth of the business. At MRI, we proudly pioneered the open and connected approach to real estate software, and we’ve been recognized many times for our dedication to the future of real estate tech. Enabling true integration gives our clients the flexibility to take advantage of new technologies as they emerge, without being boxed in by closed systems.

Listen to the podcast to learn how top CIOs approached ERP migrations to position their commercial real estate organizations for the future.

The post ERP for the commercial real estate industry: A CIO’s perspective appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/five-steps-for-creating-the-new-normal-workplace/ Fri, 31 Jul 2020 11:43:24 +0000 https://www.mrisoftware.com/?p=34742

With the economy slowly opening up, the gradual return to the workplace will need to be carefully choreographed by a collaborative team of leaders across facility management, real estate, human resources, finance and IT. While HR and IT have awakened to the importance of both the physical and digital workplaces in recent years, finance is … Continued

The post Five steps for creating the ‘new normal’ workplace appeared first on MRI Software.

]]>

With the economy slowly opening up, the gradual return to the workplace will need to be carefully choreographed by a collaborative team of leaders across facility management, real estate, human resources, finance and IT. While HR and IT have awakened to the importance of both the physical and digital workplaces in recent years, finance is now realizing the value real estate and facility management functions bring to not only cost cutting efforts, but workforce productivity and talent retention. In the wake of COVID-19, it’s even more clear that office space is not just an amortized asset, but also a strategy tool for growth.

The return to the workplace will present new challenges and opportunities. It offers us a chance to rethink space utilization, employee engagement and well-being, sustainability and how we view and manage the overall real estate portfolio. Embarking on the path to make the most of this “new normal” and use what we learned during the pandemic to fine tune how we manage the workplace and broader real estate portfolio can leave many organizations overwhelmed. If you’re unsure where to start, consider taking these five critical steps:

1. Capture Workplace Data

Successfully preparing to welcome employees back to the workplace and maximize your real estate portfolio require data on your existing portfolio of buildings, including information on the location of each rented or owned property, local conditions (including the latest data on the virus), as well as regional and country information and any current new legal or government regulations. If you haven’t already, inventory buildings to gather basic data on both the condition of the exteriors and interiors. Exterior information should include the condition of exterior cladding and the roof. Interior information should include as-built floor plans and major equipment information, along with preventive maintenance schedules and history.

If buildings or floors of a building are leased, make sure you’ve documented critical dates and current capacity, utilization and occupancy for each floor, as well as required usage across businesses and functions. You should start thinking about the workplace policies you’ll roll out in the months to come. For example, move to all or partial reservable desks, reassign existing workstations according to new ways of working or assign people to fixed desks/workstations and create schedules for occupancy. With the right technology in place, you should be able to create space plans based on new configurations that follow requirements for physical distancing.

2. Prepare the Workforce

Taking care of employees is more important than ever. Your human resources team should be preparing the workforce for re-entry and leading efforts to alleviate any anxieties they have around returning to the workplace. This includes establishing a detailed change management plan and task force focused on helping employees return to the workplace. You should have a list of employees and contractors returning to the workplace and information on the type of work area/workstation each person requires based on their job category, their assigned phase or shift for moving into the building and a schedule for remote work.

Social distancing strategies should be determined based on the latest scientific findings. Your FM workforce could also be augmented with people who could assume the role of a Covid-19 block captain(s), PPE training experts, quarantine marshals and supply managers.

3. Get Strategic

Through this pandemic, we’ve seen phenomenal proof that remote working can be effective. As Kate Lister, a leader in the IFMA Workplace Evolutionaries Community, states, “the genie is out of the bottle and can’t be put back.” Now that they’ve had success with remote working, some organizations may need less space.

This is the time to execute various ‘what-if’ utilization scenarios for both short- and long-term planning. James Gorman, CEO of Morgan Stanley, believes his company will more than likely come out of this crisis with a smaller real estate footprint due to a successful remote work program that involved 90 percent of the financial institution’s 80,000 employees.

4. Ensure Facilities are Safe

In preparation of the next phase, evaluate and address any issues with air, thermal, water and ventilation quality to ensure employees can safely return to the workplace.

5. Embrace Technology

Both new and proven technologies are available to help you plan, design, construct, manage and operate workplaces. Collecting and analyzing the data needed to create action plans requires a Computer-aided Facility Management System (CAFM) or Integrated Workplace Management System (IWMS) that becomes a centralized repository of existing conditions and other baseline data, and allows for strategic planning, space planning, move management, room booking and financial analysis.

CAFM consists of basic inventory data, maintenance functionality, strategic and tactical planning applications with integration to 3D models of buildings (BIM) or 2D floor plans (CAD). IWMS is ideal for more complex portfolios of leased and owned buildings and offers CAFM functionality plus robust financial capabilities.

If you haven’t experimented with or implemented these tools, the time is now. Technology is critical for the planning re-entry to the workspace and allows you to create space plans based on a variety of algorithms that consider various social distancing guidelines and plans. Move management software can also help schedule the movement of workers back into the office.

In addition to successfully operating today, technology will also help you strategically plan for future pandemics, or if the virus cases increase again in the fall.

Coming out of any crisis, it’s important to think about the lessons and opportunities that came to light. As your dream team of facility management, corporate real estate, human resources, IT and finance come together to devise your next steps and new “normal” workplace, remember that cross-team collaboration, strategic planning, technology and data-driven decisions can help create a workspace that is safe and runs more efficiently than it ever has.

If you have an immediate need to address the unique workplace planning and management challenges COVID-19 has created, please contact us for a demo or more information.

The post Five steps for creating the ‘new normal’ workplace appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/another-pivotal-moment-affordable-public-housing/ Thu, 30 Jul 2020 20:07:38 +0000 https://www.mrisoftware.com/?p=28051

The Coronavirus pandemic offers a stark reminder – no matter how much we plan, unexpected and life-altering events are inevitable. Unforeseen change can be healthy. It can pave the way for personal growth and help us realize opportunities once considered unimaginable. Alternatively, change can cause long-term disruption especially for people who lack the resources and … Continued

The post Another pivotal moment for affordable and public housing appeared first on MRI Software.

]]>

The Coronavirus pandemic offers a stark reminder – no matter how much we plan, unexpected and life-altering events are inevitable. Unforeseen change can be healthy. It can pave the way for personal growth and help us realize opportunities once considered unimaginable.

Alternatively, change can cause long-term disruption especially for people who lack the resources and networks needed to navigate a crisis. The low-income housing industry in America faced a variety of headwinds before the pandemic including housing cost-burden, severe lack of supply and unmet capital needs in aging portfolios. The outbreak and ensuing economic downturn brought greater uncertainty to already vulnerable populations. Few of us predicted the timing and magnitude of the pandemic, however, timely collective action has helped to stem the tide.

During the early weeks of COVID-19, countless owner-operators and housing authorities, policymakers across all levels of government, housing advocates, non-profit organizations and other stakeholders worked together to keep residents safe and housed. As the economy continues to crawl and the prospect of sustained federal financial assistance grows murkier, the housing industry finds itself in another pivotal moment. Is the length of the crisis finally wearing out our patience and ability to work together? Or, can we stay on the path of united and resolute action?

Where we are now

Six months after the first reported case of COVID-19 in the United States, the health and economic impacts of the virus are not letting up. As of July 29, more than 4.4 million people in our country have been infected and more than 150,000 have died. The disease has more deeply impacted our most vulnerable populations including our public housing communities. For example, the New York City Housing Authority, which houses approximately 400,000 residents including over 160,000 residents over the age of 62, has experienced almost 1,000 confirmed and 300 probable deaths related to the virus and 8,000 confirmed cases.

While some of the hardest-hit states during the early part of the pandemic have flattened the curve, infections have continued to surge among the first states to reopen their economies. Many out of work, low-income families are making the painful trade-off between paying for rent (and other bills) or eating healthy. These communities are experiencing severe food insecurity. Since February, 26% of Americans report they or a member of their household have gone without meals or relied on public assistance or private charity to obtain food, according to the Kaiser Family Foundation’s May health tracking poll. The toll on our national economy has also been staggering – through July 23, about 1 in 5 American workers (approx. 30 million people) were receiving unemployment benefits and 20 million renters were at risk of eviction.

What industry data tells us

MRI Software Market Insights: The Impact of COVID-19 on the Affordable and Public Housing markets, a data-driven look at the impact of the pandemic on property operations, provides a glimmer of hope. The report examines key property management metrics including rent collection, applications, new admissions certifications, move-outs and work orders from February through June 2020 and makes year-over-year comparisons with the same period in 2019. Findings from June reveal the continuation of tenants staying in place as compared to 2019 in addition to an ongoing decline in applications and move-out certifications with new admission certifications starting to increase across June.

As landlords and operators enforce social distancing practices to keep residents and staff safe, routine work order volumes are trending below 2019 levels. One of the most promising metrics has been rent payments, which have not materially changed since pre-pandemic levels. Despite the financial challenges, low-income families have been afforded the resources to stay in their homes. The MRI Market Insights data paint a picture of stability made possible by the cross-sector collaboration the housing ecosystem required to stay afloat. However, the future remains unclear as the extra $600 per week in coronavirus unemployment benefits approach expiration at the end of this week and a Congress that is far from reaching an agreement on what will replace it.

Possible uncertainties ahead

The MRI Market Insights report shows that renters have been keeping up with payments, however, at what cost and for how much longer if the emergency federal benefits expire? It’s likely that households are relying on scare funds from unstable sources that may not be available in the immediate future. The increased unemployment insurance has helped many households continue to pay their bills, but even at its current level it’s not enough to ensure housing stability during and after the pandemic. Millions of workers who have experienced pay cuts or reduction in hours or other loss of income may not be eligible for unemployment benefits and will struggle to afford rent.

In addition to the impending expiration of the coronavirus unemployment benefits, on July 24, the eviction moratorium put in place by the CAREs Act expired (some cities and states have implemented their own bans). Knowing it’s only a matter of time before many low-income households are unable to continue paying rent, housing advocates have called for $100 billion in rental assistance in addition to a uniform nationwide eviction moratorium to prevent a tsunami of evictions. This proposal made its way into the U.S. House-passed coronavirus bill (HEROES Act) in May. However, the House will need to negotiate with the Senate in order to pass another relief package.

What comes next?

On July 27, the Senate Majority Leader began releasing a series of bills (HEALS Act) which represent a $1 trillion proposal for the next relief package. The HEALS Act does not extend the eviction moratorium, but it provides the following (among other funding initiatives):

• Extension of federal unemployment benefits at a rate of $200 per week, as opposed to the $600 per week provided under the CAREs Act, for 60 days until states are able to reconfigure their systems to allow unemployment benefits to be tailored to individual recipients in an amount that equals 70 percent of their previous wages.
• Another round of direct $1,200 payments.
• $2.2 billion for Section 8 tenant-based rental assistance to maintain current voucher assistance for low-income families experiencing a loss of income due attributable to the pandemic.
• $1 billion for the Public Housing Operating Fund to help public housing agencies maintain programs, supplement reduced tenant rent payments and contain the virus’s spread in public housing.
• $113.4 million for the Section 521 rural rental assistance program to help current residents who have experience a loss of income.

The Republican leaders in the Senate now turn their negotiations to the Democratic-controlled House. The House bill includes $75 billion for homeowner assistance, $100 billion for rental assistance and $951 billion in flexible funding to state and local governments, as well as significant funding for other HUD and USDA housing programs. The HEROES Act also seeks to increase the supply of affordable rental units with measures to strengthen the low-income housing tax credit (LIHTC) such as implementing a 4 percent minimum floor and lowering the private activity bond financing percentage.

The Senate is scheduled to leave Capitol Hill for the August recess in less than two weeks and is not expected to return until after Labor Day. Throughout the COVID-19 era, owner-operators of affordable housing and local housing authorities nationwide have been heroic in stretching the available resources, keeping their residents safe and housed and operating portfolios in the black. With no end in sight to the pandemic, the economic health of our low-income residents and the properties in which they reside hang in the balance.

The major segments of our industry collectively rose to the challenge during the early stages of the pandemic. Nevertheless, the prolonged nature of the crisis might be testing our ability to remain steadfast and united. This is another pivotal moment for affordable and public housing. Let’s hope that all key players act swiftly and remain unified in helping our most vulnerable populations.

The post Another pivotal moment for affordable and public housing appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/affordable-public-multifamily-housing-trends-june/ Thu, 30 Jul 2020 17:00:33 +0000 https://www.mrisoftware.com/?p=28047

June data from the MRI Software Market Insights report indicates that the impacts of the pandemic are still being felt across the multifamily market. While traffic for the conventional multifamily housing industry is on the rebound, the affordable and public housing industries are lagging behind 2019’s numbers on a much broader scale. MRI’s report from … Continued

The post Affordable, public, and multifamily housing trends in June appeared first on MRI Software.

]]>

June data from the MRI Software Market Insights report indicates that the impacts of the pandemic are still being felt across the multifamily market. While traffic for the conventional multifamily housing industry is on the rebound, the affordable and public housing industries are lagging behind 2019’s numbers on a much broader scale.

MRI’s report from May showed promising trends for all three sectors, despite the fact that affordable and public housing were recovering at a slower pace. However, in June, the data tells a different story – the only unified attribute among these three is divergence. Traditional multifamily housing appears to continue its steady rebound, but affordable and public housing are lagging behind 2019’s pace in two different ways. They’re diverting away from each other and from the conventional market.

While the Market Insights team has been tracking the impact of this pandemic on housing statistics such as lease terms, pricing, and move-ins since February, several of MRI’s partners shared their own data in a recent webinar. These unique perspectives give us a better look at what happened in the affordable, public, and conventional multifamily housing markets throughout the month of June.

Inspections

MRI’s partner in the residential property operations management business, Happy Co., took a close look at data surrounding residential inspections in the first half of 2019 compared to the first half of 2020.

As seen above, move-in/move-out inspections only dropped by about 8.4% from 2019 to 2020. This data generally lines up with MRI’s own findings that work orders across the multifamily market have dropped, but are currently on their way back up. The story changes, however, when it comes to preventative maintenance inspections, which have seen a 26.6% drop. This also seems to line up with the drop in work order requests referenced in MRI’s report on the affordable and public housing markets.

Customer service calls

MRI partner Conservice, a leading utility billings company in the multifamily market, presented data that shows an unprecedented drop in customer service call volumes between 2019 and 2020.

This statistic ties back not only to the drop in preventative maintenance illustrated by Happy Co., but also to MRI’s own data about the lack of move-ins and move-outs throughout the month of June.

Debt collection trends

Data from Fair Collections & Outsourcing Inc. (FCO) shows that throughout the first half of 2020, managers have been mostly holding rental debt and not placing new debt. This is because managers are, in large part, working with payment plans and other accommodations. In spite of this, FCO says that debts held by residents are still being repaid, which might mean that consumers who received financial relief from the CARES Act are paying off old or current obligations.

How should operators and other property managers respond to this information? According to FCO, proactively managing resident payment plans and communicating with residents will be crucial, as will responding to debtor disputes with proper documentation.

With affordable, public, and conventional multifamily housing markets all moving in different directions, what will it take to adequately respond to the challenges that property owners and managers will face in the coming weeks? In a survey conducted by AvidXchange, they found that out of the 500 finance executives surveyed, three out of four respondents indicated that their organizations had implemented at least one new technology or system in the wake of COVID-19. This also lines up with an approach that Happy Co. has taken, developing two entirely new solutions to help housing markets mitigate the impact of the pandemic.

In a market where the only certainty is uncertainty, leveraging technology solutions to face unique challenges is shaping up to be one of the best ways to mitigate risk. To learn more, watch the full webinar based on the MRI Market Insights Report from June.

The post Affordable, public, and multifamily housing trends in June appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/track-monitor-performance-commercial-real-estate-business/ Thu, 23 Jul 2020 14:53:50 +0000 https://www.mrisoftware.com/?p=27976

Tracking the health of your commercial organization enables you to measure your business’s performance against its competition, the state of the market, and its own expectations. With MRI @Work, your commercial organization can leverage connected solutions to make data transparent across the company and improve your reporting and decision-making to prepare for tomorrow’s challenges. While … Continued

The post Track and monitor performance for your commercial real estate business appeared first on MRI Software.

]]>

Tracking the health of your commercial organization enables you to measure your business’s performance against its competition, the state of the market, and its own expectations. With MRI @Work, your commercial organization can leverage connected solutions to make data transparent across the company and improve your reporting and decision-making to prepare for tomorrow’s challenges.

While commercial organizations might excel at attracting the right tenants, maximizing the information in their leases, and running their businesses smoothly, they also face additional challenges that can hinder greater success. Different internal stakeholders need to see different types of data, information needs to be pulled from disparate sources, and at the end of the day, all this data needs to be reported to investors and acted upon in order to know the score and drive the business forward.

Stay ahead of the curve with accurate data and reporting

Ensuring your business is on track to meet its short-term goals and long-term strategy starts with utilizing your key data and making it transparent across the organization. MRI @Work helps you get that data into the hands of those who need it through actionable dashboards that are tailored to fit the needs of any given role, helping your commercial organization stay ahead of the curve and easily identify and weed out areas of operational inefficiency.

With budgeting and forecasting tools, MRI @Work also gives you the ability to test different scenarios and anticipate market shifts. Easily bring your forecast into the general ledger to compare actuals vs. forecast to understand how you are performing against your initial expectations. Other accounting tools in the suite can be used to develop reports that are tailored and timely, from the investor level to the property level to keep all your stakeholders happy.

Streamline and integrate your financials

One of the biggest challenges in reporting, however, is mitigating the risk for errors in the manual data entry process. Integrating your accounting system with your property management system helps reduce errors, maintain accuracy within your data, and eliminate any chance for duplicate data entry.

This integration, made possible by MRI @Work, can also streamline your procure-to-pay process by automating your invoices, helping you manage your purchase orders, route your workflow, and consolidate your financial reporting. Your finance team may also want a better method to manage fixed assets and ensure compliance. This can be done through creating and managing capital assets for their full life cycle, meeting international accounting standards, reducing overall tax obligation, and more.

Ascertaining the health of your business isn’t a one-time solution – it requires constant attention to keep your commercial real estate organization functioning at its best. MRI @Work can make this process easier by giving you better access to the data hidden within your books to track performance and prepare for any challenges that the future may hold. Learn more about MRI @Work in this webinar.

The post Track and monitor performance for your commercial real estate business appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/run-commercial-property-business-smoothly-integrated-solutions/ Thu, 16 Jul 2020 20:09:24 +0000 https://www.mrisoftware.com/?p=27920

The time of being an absentee landlord or manager in the commercial real estate industry is over. The experience that your property provides for tenants influences retention, occupancy levels and business performance. A reliable, top-of-the-line tenant experience is shaped by how efficiently your back office is operating, how your business responds to challenges, and how … Continued

The post Run your commercial property business smoothly with integrated solutions appeared first on MRI Software.

]]>

The time of being an absentee landlord or manager in the commercial real estate industry is over. The experience that your property provides for tenants influences retention, occupancy levels and business performance. A reliable, top-of-the-line tenant experience is shaped by how efficiently your back office is operating, how your business responds to challenges, and how you position the organization for future growth.

The best way to stay ahead of your competition is to run your commercial property well, ensuring that your tenants have a superior experience and that the business is prepared for the future.

Live up to the lease agreement

Adhering to the lease agreement is a process that goes both ways – while commercial properties need the right tenants to fill the space, property and facilities managers are responsible for maintaining an experience that meets the needs of their tenants. Providing a well-maintained space, timely responses to work orders and limiting the need for additional services is all part of running your property smoothly. Empowering tenants with self-service tools such as online payment options and an easy-to-use maintenance request system can also help set the standard for good landlord/tenant interactions.

Streamline back office operations

By providing you with full visibility into your data, MRI @Work enables you to easily access information and leverage key data points that make managing day-to-day property operations easier. Whether you manage a commercial retail, mixed-use, office, or industrial property, this central hub of data can be the resource you need to access the necessary information that will enable you to operate efficiently across your entire portfolio.

With the right commercial solutions, you can easily process billing and deposits with the confidence that the payment is being logged to both your company’s accounting system and the tenant’s record. With solutions from MRI @Work, you can better protect your company from both a financial and legal standpoint by evaluating risk from bad debt and collections, easily tracking and managing disputes, and utilizing accurate and timely CAM calculations.

Taking proactive steps to provide for your tenants and ensure a quality experience for them also means engaging in good maintenance practices. Manage tenant maintenance requests through MRI @Work’s dashboards and enact preventative maintenance measures that can help decrease the frequency of work orders. Gain visibility into task status and portfolio performance, helping you to stay ahead of the curve.

Align budget, financials, and long-term strategy

Managing your property operations goes beyond the surface-level tasks that can be accomplished and checked off a list, however. Stepping back to examine your property operations and financials at a high level is more important than ever when it comes to understanding where money may be slipping through the cracks.

In many areas, automating your organization’s revenue-generating tasks, such as your lease clauses, break points, and recoveries can tighten up the way your properties run and capture more profit. This kind of automation can enable your staff to work more efficiently and effectively, and it allows you to easily accommodate variable lease types and drive tenant renewals.

Taking it one step further, any conversation about streamlining workflow and property operations has to address your organization’s budget. The solutions in MRI @Work can assist you in structuring a budget that looks out into the future and prepares you for both the best case and worst case scenarios. With the ability to extract data from a set time period and apply market assumptions, you can make more informed decisions around costs and investments, and then measure performance against those assumptions. All of this leaves you better prepared to adapt to whatever challenges the future may hold and, as a result, operate more efficiently.

Simplifying day-to-day property operations with the powerful tools found in MRI @Work’s suite of solutions lets you manage complex lease terms, facilitate tenant billing, and streamline facilities management so that your property can run smoother than ever. Learn more about MRI @Work and the commercial solutions that can help you streamline your workflow.

The post Run your commercial property business smoothly with integrated solutions appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/the-role-of-data-in-transforming-the-post-covid-workplace/ Wed, 15 Jul 2020 11:01:59 +0000 https://www.mrisoftware.com/?p=35382

In the aftermath of the COVID-19 pandemic, businesses are facing entirely new utilization and wellness challenges. When bringing employees back to the workplace, there is no one-size-fits-all plan. Each organization will face unique circumstances. Some will have too much space; some may stagger the return to the office; and others may ask that most of … Continued

The post The role of data in transforming the post-COVID workplace appeared first on MRI Software.

]]>

In the aftermath of the COVID-19 pandemic, businesses are facing entirely new utilization and wellness challenges. When bringing employees back to the workplace, there is no one-size-fits-all plan. Each organization will face unique circumstances. Some will have too much space; some may stagger the return to the office; and others may ask that most of their employees continue to work remotely. At the same time, the risk of regional flare-ups of COVID-19 that could result in “local lockdowns” also impacts scenario planning.

For this reason, data and technology play a significant role in the return to the workplace, not just in keeping employees engaged and safe by maintaining social distancing and creating a productive environment, but also in maintaining buildings, maximizing space, and analyzing costs.

Organizations, and specifically CRE and facility management professionals, need to understand the variables and restrictions for each of their sites around the world so they can review workplace scenarios at micro- and macro-levels. With this understanding, organizations can determine the number of people they can safely fit into each floor or building using a variety of physical distancing measurements.

Quickly Identifying Optimized Plans can be Challenging

Testing different scenarios will be an ongoing process in an effort to welcome employees back in phases and respond to a rise in cases, changing company policies, or new government regulations. Organizations that rely on manual processes to compare multiple office floor plan scenarios or seating charts will find the process time-consuming, costly and, sometimes, inaccurate.

For years, workplace management technology has helped organizations streamline processes and maximize workspace utilization. In the COVID-threatened workplace, that same technology is now being used to safely return employees to the workplace.

Integrated workplace management systems (IWMS) make it easier for CRE and facility management professionals to gain a clear understanding of the optimum workspace capacity for each setting. Integrated space planning tools enable users to model different scenarios — from setting safe physical distancing limits between desks to splitting common functions between different floors and/or buildings to reduce risk.

Even more importantly, before the pandemic, some organizations were turning their facilities into “smart buildings”, using different types of sensors to provide accurate, real-time data for improved automation and control.

Today, sensors can be used to support a phased return to work for employees. When combined with an IMWS solution, organizations can leverage sensors to collect and report on key data for monitoring and planning workspace occupancy, usage, and cleaning.

At global design, architecture, and engineering firm HOK, planning the return to work brings new opportunities. “As we return from remote work, we acknowledge that there are big and small adjustments we can make to improve sanitation and safety in the workplace,” said William Mitchell OAA, LEED AP, Architect and Principal at HOK. “A silver lining of our forced COVID-19 isolation is that it has given us a lot of time to think more holistically about our built environments and use this time to make them better.”

The firm is being proactive in creating healthier environments with reduced opportunities to transmit germs and viruses. For example, considering ways to dilute airborne contaminants and lower transmission opportunities, as well as maintain optimal humidity because viruses survive better in low humidity environments. By adjusting HVAC systems, the firm can obtain an optimal range of 40% to 60% humidity. As we return to the workplace, “we must be proactive and create healthier environments with reduced opportunities to transmit germs and viruses,” said Mitchell.

HOK is also using MRI Software’s IWMS software to plan and manage its post-pandemic workplace. With this IWMS technology in place, HOK can analyze data to plan and deploy a successful back to the office strategy and optimize safety in a pre-vaccine workplace.

A Safe Return To The Workplace

Across the world, the main challenge faced by organizations is maintaining social distancing in workplaces built for higher utilization. However, with accurate building data on hand, workplace management technology such as IWMS can help create space plans based on new configurations that follow requirements for physical distancing. For example, organizations can create teams of employees, each with its own designated bank of desks for use on certain days of the week. Algorithms automatically apply physical distancing policies to the floor plans relative to the number of employees that need to occupy the space. This allows decision makers to compare different scenarios and as regulations or circumstances change, easily make adjustments or test entirely new scenarios.

Adding sensor technology to the mix can help organizations understand, in real-time, which areas have been occupied and need to remain unoccupied until they are cleaned and sanitized. And, sensors can track evolving usage and utilization, monitor policy versus culture, and highlight hotspots.

However, the biggest challenge for many organizations is capturing data when they lack the systems to do so. Organizations without sensors can bring data into an IWMS from other sources such as badge swipes and IP addresses. For example, if a worker tests positive for COVID-19, badge data can help investigate the movement of an infected individual and identify others they may have come into contact with so that notification can begin to prevent further spread.

Using Data To Make Real Estate Decisions

Organizations are also tapping into data to make informed decisions about their real estate portfolios. As the second largest expense on the balance sheet, there’s no doubt that real estate will come under increased scrutiny as organizations emerge from the initial phase of COVID-19.

For many, their space needs will never be the same again. At the same time, the rise in remote work and potential decrease in revenue will force some organizations to re-evaluate their entire real estate portfolio as they look for opportunities to lower costs and maximize critical assets. Easy access to a combination of utilization and financial data, and the ability to analyze that data is the best way to make informed decisions. Managing lease obligations on both a micro and macro level and understanding the impact decisions will have on the overall portfolio is best done with real-time data.

James Gorman, Morgan Stanley Chairman and CEO, believes that company will more than likely come out of this crisis with a smaller real estate footprint due to its successful remote work program, which involved 90% of the financial institution’s 80,000 employees. For organizations in this same situation, making both short- and long-term strategic decisions to downsize the portfolio is best done with accurate data and the ability to explore various options to mitigate unnecessary cost while providing a safe and healthy work environment.

With IWMS software, organizations can assess outcomes from alternative leasing and occupancy scenarios — and the likely change to variable costs from further lockdowns or reduced occupancy periods. Decision makers can also use this data within an IWMS to identify areas of wasteful consumption, such as HVAC or lighting, and the financial impact of potentially reducing this consumption and thus, lowering costs.

The New Normal

Leaders in organizations around the world are being forced to make strategic decisions faster than ever. Real-time data will not only ensure that employees are safe and productive, but will also help forecast further changes to workplace requirements as COVID-19 restrictions are gradually eased. Beyond this, data and technology that consolidates information for a single source of truth can help organizations plan for the future with confidence and contract in times of need or expand in times of growth. Regardless of your role in planning for workplace change in a post-pandemic world, data can give you the confidence in the decisions you make, from distancing to cleaning and beyond.

The post The role of data in transforming the post-COVID workplace appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/multifamily-maintenance-make-ready-costs-covid-19/ Thu, 09 Jul 2020 13:32:41 +0000 https://www.mrisoftware.com/?p=27873

Has your multifamily property management business started to see a positive variance in your operating budgets? Are you spending less on maintenance and turns? While it is likely that you are saving money on these expenses, you would be wise to move the dollars forward in your forecasts, as a catch-up is sure to come. … Continued

The post Multifamily maintenance and make-ready costs in the age of COVID-19 appeared first on MRI Software.

]]>

Has your multifamily property management business started to see a positive variance in your operating budgets? Are you spending less on maintenance and turns? While it is likely that you are saving money on these expenses, you would be wise to move the dollars forward in your forecasts, as a catch-up is sure to come.

In a recent webinar, we sat down with a few of our key partners in the industry to discuss current trends and how their clients’ use of technology has evolved to support new challenges. Below is some of the data our partners shared with us regarding maintenance and make-ready savings in the conventional multifamily and affordable housing markets.

Maintenance

Wonder what happened to all of the service requests and work orders?

In our webinar, we highlighted the continued trend relating to work order/service request volume in conventional, affordable and public housing.

Since the onset of the pandemic in mid-March, we have seen a substantial drop in volumes across all three housing sectors. Even as MRI’s own Multifamily Market Insights Report indicates that May brought a slight recovery, volumes are still more than 40% off from the prior year.

We also triangulated this trend with ServusConnect, a partner that focuses on the unique operational maintenance needs of multifamily, and noted a similar drop in volume.

We believe this reduction in volume is attributable to two main factors:

1. Properties focusing on emergency requests only
2. Properties providing residents videos and other forms of technician assisted DIY capabilities

While we might be able to explain the current trend, it should bring some worry for operators because repairs are likely being deferred but will eventually need to be addressed. Further, with more people being at home due to lockdowns and closures, it is expected that wear-and-tear items will need attention more frequently than under normal circumstances.

As budgets are reforecasted for the second half of 2020, unspent dollars should be reallocated into future periods and adjustments should be made for more frequent replacement of wear-and-tear items.

Make-Ready Savings

Similar to maintenance volumes, we have also documented a sustained drop in move outs across the three sectors which we believe is driven by residents choosing to eliminate uncertainty and stay put.

Fewer move outs directly drive a reduction in turn-related spending. For additional insight, we triangulated this data point with our partner Nexus Systems, a leading supplier of AP automation systems, to see how make-ready spending has been impacted since the onset of the pandemic.

It is clear that make-ready spending dropped precipitously to nearly zero for eight weeks, and while there has been some recovery, it is more than 75% off the prior year’s pace.

With ongoing uncertainty, we expect to see residents remain in place until they have clarity on their individual situation. Further, with eviction moratoriums in place through July 2020 for many, there is an artificial damper on move-out volumes. Unless carefully considered, a wave of pent-up evictions could overwhelm staff trying to make units ready for new residents and suddenly ramp up spending in this currently dormant category.

Landlords should carefully examine their rent rolls to understand the full complement of activities that will drive turn volumes, such as existing notices to vacate, lockdown-paused evictions, month-to-month leases, and residents who are currently under duress from COVID-19 impacts. With a clear view of these volumes, a realistic plan can be created for the remainder of 2020 and it should be reflected in your multifamily property management company’s budget reforecasts. See our full discussion with MRI’s partners in this webinar to learn more.

The post Multifamily maintenance and make-ready costs in the age of COVID-19 appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/perfect-storm-multifamily-covid-19/ Thu, 02 Jul 2020 12:18:13 +0000 https://www.mrisoftware.com/?p=27797

20 years ago this week, the movie “The Perfect Storm” was released into theaters. A gripping tale of a fight against unknown forces created by the confluence of a hurricane and two powerful stormfronts. In the movie, the crew of the Andrea Gail had a choice to sail through the storm to save their catch … Continued

The post A perfect storm for multifamily appeared first on MRI Software.

]]>

20 years ago this week, the movie “The Perfect Storm” was released into theaters. A gripping tale of a fight against unknown forces created by the confluence of a hurricane and two powerful stormfronts. In the movie, the crew of the Andrea Gail had a choice to sail through the storm to save their catch or to wait it out and see the catch spoil. They went for it, with perilous results.

The multifamily industry is now faced with our own perfect storm, and unfortunately, we have no choice but to take it as it comes.

The hurricane in our perfect storm is the COVID-19 pandemic. It is the driver of both a health and an economic crisis. A recent rise in coronavirus cases has caused many states to pause or roll-back reopening, keeping the economy in a constrained state with record unemployment, while dealing with the ongoing public health crisis.

Normalcy is on hold

The table below looks at the five largest multifamily markets, which represent five of the top six most populous states. These five states rank similarly in labor force and total unemployment – they make up 35% of the total labor force and hold 39% of overall unemployment in the US.

The table combines the following four important metrics and includes both the actual value as well as the relative 50-state rank:

• Total Apartment Stock
• Total Population
• Unemployment Rate
• Number and date of peak COVID-19 cases

While New York has successfully emerged from the grip of the pandemic, California, Texas and Florida have each set new daily case volume highs in the last week.

The new spikes in case volume have led to a roll-back in reopening plans, putting a pause on a meaningful recovery and return to normalcy. The timing of the pause is unfortunately coincidental with two additional factors that will shape the recovery in multifamily: the coming end of enhanced unemployment benefits and the lifting of eviction moratoriums.

These are the two stormfronts in our perfect storm scenario. They were put in place to help impacted people get to the other side of the pandemic curve, based on a fundamental assumption of reopening and a return to economic normalcy once the virus was contained. Unfortunately, the virus has not abated, and those who have been impacted economically are likely to continue to be impacted beyond the safety net horizons as defined in the CARES Act:

• $600 monthly federal unemployment enhancement is currently scheduled to expire on July 31, 2020
• Eviction moratoriums for tenants in certain rental properties with federal assistance or federally related financing expires on July 25, 2020, plus 30 days for notice or August 23, 2020

Unemployment

As things currently stand, enhanced unemployment benefits will expire by mid-August. Unfortunately, unemployment figures are likely to remain high as long as reopening and a return to normalcy is delayed. And, to be clear, some of the impacts from this pandemic will last well beyond a short-term horizon, specifically on the job front.

The unemployment impact from the pandemic is truly on a scale that we have not experienced in modern times. It hit quickly and broadly and upended the day-to-day for most everyone. From the coffee shop to the bodega to the deli counter, many small businesses are reliant on neighboring large businesses and the foot traffic they bring. That traffic is sure to be reduced as work-from-home scenarios will be more prevalent moving forward and public transport, at least in the short term, feels risky.

Bankruptcies hit many industries with substantial impact on travel (Hertz), retail (J.C. Penney, Neiman Marcus), and oil and gas (McDermott Intl., Chesapeake Energy). Service reductions, permanent location closures, layoffs and furloughs have also happened nationwide, affecting a range of businesses from airlines to hotels, theaters to theme parks, and fine dining to fast casual. Professional sports ground to a stop and are just now trying to find a path forward.

Colleges and universities, while still open, are adapting their in-person and online offerings and changing academic calendars. These changes directly drive uncertainty for local business who are reliant on a vibrant student population and sports programs in their college town, including student housing.

And if all of the above were not enough, education and childcare issues add another layer of challenges for working parents. Many parents became homeschoolers with limited warning and preparation while dealing with their own work upheaval. When the school year ended, the challenges did not, as summer camps and other programs were not available, and uncertainty remains on what the return to the classroom looks like for this fall. Unfortunately, ongoing uncertainty or material scheduling and attendance changes may drive some parents to seek employment changes in order to better care for their family, despite the added risks.

Evictions

The impact of the pandemic on the economy, on the closing of businesses and driving so many to unemployment at the same time, creates the risk for a cascading wave of evictions that landlords have every legal right to process.

To date, as evidenced by the NMHC Rent Payment Tracker, rent collection has been strong and quite similar to last year. Once unemployment benefits reduce, however, we can expect to see more tenants struggle with rent payment, and they will do so just as eviction moratoriums are set to expire.

In addition to the CARES act, many states have enacted some form of eviction moratorium (the states noted above are shown in the following table). Additionally, some larger cities have further refined eviction moratorium dates. Unlike the sharp deadline for enhanced unemployment benefits, evictions return in more of a jagged and uneven edge.

As our industry thoughtfully considers evictions at a never before seen scale, we are faced with both ethical and economic considerations that are fully intertwined. Where will the evicted go, and who will replace them in the homes they leave behind?

The next home for the evicted will span the gamut that includes: downsizing, doubling up, going to a family home, seeking housing assistance, seeking shelter or, unfortunately, homelessness. With affordable housing already in short supply, this “migration” is sure to put more pressure on existing systems of support.

Landlords are in new territory with the potential volume of evictions, and they should be as careful with eviction processes as they are with their pricing processes.

As an industry, we closely and carefully manage apartment pricing based on a combination of supply, demand, local market conditions and comparables. A sudden rush of vacancies caused by evictions may have negative impacts on overall economics by creating a flood of supply.

Landlords should be aware that finding replacement renters may be challenging. Our data, through May, does show a recovery in new leasing traffic, but that traffic is not yet converting to applications or new leases as compared to 2019 rates. New lease prices are also falling and concession volume is increasing.

As for the offer of payment plans for tenants who were impacted by the pandemic, landlords should work with individual tenants on outcomes that balance everyone’s interest. When you consider the fixed costs of mortgages, property taxes and insurance, some income may be more beneficial to the landlord than none if cash flow is in question. Certainty may be more beneficial than uncertainty, even if it yields reduced revenue in the short term.

The perfect storm for multifamily is forming, and we have never before seen anything like it – a persistent pandemic-driven employment crisis on a collision course with expiring safety nets. As such, we proceed in largely new and uncharted water fraught with peril for both the landlord and the tenant. Unlike the crew of the Andrea Gail, we have the benefit of being able to plan and adjust without trying to climb our own rogue wave.

The post A perfect storm for multifamily appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/affordable-public-housing-market-insights-impact-covid-19/ Wed, 01 Jul 2020 13:09:24 +0000 https://www.mrisoftware.com/?p=27776

While the affordable and public housing industries have faced unique challenges from COVID-19, many residents, prospects, and landlords alike are reacting to the pandemic in the same way as the broader multifamily industry. Residents aren’t keen on leaving their established places of dwelling. According to a MRI Software Market Insights report on affordable and public … Continued

The post Affordable and public housing market insights: The impact of COVID-19 appeared first on MRI Software.

]]>

While the affordable and public housing industries have faced unique challenges from COVID-19, many residents, prospects, and landlords alike are reacting to the pandemic in the same way as the broader multifamily industry. Residents aren’t keen on leaving their established places of dwelling.

According to a MRI Software Market Insights report on affordable and public housing, applications, new admissions, move-outs, and transfers are all pointing to the conclusion that many residents feel safer staying in place in these times. Below are some of the key findings.

New applications and admissions have slowed

New application data shows that residents are unwilling to change their living situation, which may suggest either a shortage of waitlist openings or decisions made by the applicants themselves. As such, new applications have dropped since the onset of the pandemic in mid-March. Public housing applications have dropped, on average, by 29% as compared to 2019. Affordable housing, already off 2019’s pace, dropped an additional 6% on average through May. Both trail 2019.

With a reduction in applications, of course, comes a similar reduction in new admissions, which are off an average of 36% from mid-March, trailing 2019’s pace. When comparing new admission certifications with conventional move ins, the trends are very similar.

The drops are consistent with the data from the multifamily industry and does not show material signs of recovery as May 2020 closes.

Residents are staying put

As mentioned before, move-out volumes lag 2019, down 43% for affordable and 46% for public housing, from mid-March. Again, as compared to the multifamily industry, move-out volumes are well below 2019 with both public and affordable sectors remaining close to 40% off 2019’s pace. These trends can be explained by the COVID-19 lockdown. Between March and May, fewer people have been able to move, particularly in larger urban areas where a significant portion of the affordable and public sites are located.

Even when residents were able to move with a guaranteed home to move into, MRI’s data indicates that they are still electing not to do so. This can be seen in how transfers continue to lag 2019 by an average of 40%. This again lines up with data from the multifamily sector, where a substantial reduction in transfers is evident.

Taken together, the May data from the report on affordable and public housing industries echo one of the key takeaways from the multifamily market insights: Even when shelter-in-place orders are slowly lifted, the COVID-19 pandemic’s impact will continue to be felt through more people choosing to to stay put. Read the full report on the affordable and public housing industry to learn more.

The post Affordable and public housing market insights: The impact of COVID-19 appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/open-rent-receivables-in-commercial-real-estate-retail-vs-non-retail/ Tue, 30 Jun 2020 16:09:30 +0000 https://www.mrisoftware.com/?p=27714

In March 2020, the COVID-19 pandemic initiated a period of uncertainty for the global economy, and the commercial real estate sector was no exception. Many office workers quickly shifted to remote-working scenarios, while retail businesses and restaurants instituted temporary closures. In April 2020, MRI Software compiled data from a subset of commercial and retail users … Continued

The post Open rent receivables in commercial real estate: retail vs non-retail appeared first on MRI Software.

]]>

In March 2020, the COVID-19 pandemic initiated a period of uncertainty for the global economy, and the commercial real estate sector was no exception. Many office workers quickly shifted to remote-working scenarios, while retail businesses and restaurants instituted temporary closures.

In April 2020, MRI Software compiled data from a subset of commercial and retail users of our property management software to gain a better understanding of the impact on the sector. Within this pool, we discovered that 27% of commercial tenants didn’t pay their April base rent. This was almost three times higher than February’s pre-COVID numbers, when 10% of tenants did not pay their rent.

As May closed, we decided to look at open rents by NAICS category to see which types of businesses were having the most trouble paying their rent. We explored approximately 20 different NAICS categories between February and May, with the assumption that the retail sector was presumably the hardest hit.

Comparing commercial retail properties with non-retail

We see a major difference between leases in retail-only properties and those in other types of properties. Retail-only portfolios have an open rent average of 39% for May, whereas non-retail properties are at 14%.

Within retail trade, the categories with the highest open rent rates include Clothing and Clothing Accessory Stores (80%), Furniture and Home Furnishings (83%), Shoe Stores (85%), and Luxury (94%). These areas, while struggling, only represent a small portion of the total value of the Retail Trade category. Mid-tier pressure points include Florists, Sporting Goods, Hobby, and Musical Instruments (62%), Specialty Food (45%), and General Merchandise (40%). These by nature are broad categories and make up about 25% of the leases in the overall Retail Trade category in our data set.

However, we see open receivables for Grocery (4%), Building Materials (2%), and Gasoline Stations (5%) in line with pre-COVID numbers. Grocery stores are not surprising, and the high rate of payments for gas stations could be because their grocery sales are offsetting their losses. Companies that sell building materials could be positively affected by the rise in household improvement projects being taken on by people who are spending more time at home.

What happens next?

It’s no surprise that retail tenants are more affected by the pandemic than office tenants, many of whose employees can work from home. As lockdowns are lifted and businesses reopen, we hope to see some improvement in payment rates among retail tenants.

But landlords and tenants may still need to work together to develop flexible payment plans to benefit both parties in the long-term. In the month of May, many businesses may have benefitted from government programs such as Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) or figured out other ways to ensure business continuity. When these safety nets are removed, decisions regarding expenses, cashflow, and operating costs can no longer be delayed. Both landlords and tenants need to mitigate the business risk of COVID-19, and working together to reach mutually beneficial agreements will be in the best interest of both parties.

The post Open rent receivables in commercial real estate: retail vs non-retail appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/mri-software-named-top-workplace-cleveland-plain-dealer/ Mon, 29 Jun 2020 14:14:12 +0000 https://www.mrisoftware.com/?p=27701

MRI Software is proud to once again be included in The Plain Dealer’s list of Top Workplaces! MRI joins the 2020 Top Workplaces list of 175 companies selected by The Plain Dealer, which have been recognized based solely on surveys about the workplace completed by their employees. The anonymous survey uniquely measures 15 drivers of … Continued

The post MRI Software named a Top Workplace by Cleveland Plain Dealer appeared first on MRI Software.

]]>

MRI Software is proud to once again be included in The Plain Dealer’s list of Top Workplaces! MRI joins the 2020 Top Workplaces list of 175 companies selected by The Plain Dealer, which have been recognized based solely on surveys about the workplace completed by their employees. The anonymous survey uniquely measures 15 drivers of engaged cultures that are critical to the success of any organization: including alignment, execution, and connection, just to name a few.

As a workplace, MRI Software excels with its support of employees through a robust set of perks and benefits, an extraordinary physical office space that encourages innovation and collaboration, and MRI’s support of local communities.

Supporting the MRI Family in and out of the office

At MRI Software, we believe that equipping our employees with high quality services, tools, and support allows them to innovate without boundaries and put their best foot forward. The perks and benefits offered to employees in our Cleveland headquarters and around the globe include open office spaces designed to promote coordination and community, two things which are absolutely vital to MRI as a company.

MRI’s technology tools and remote working capabilities enabled employees around the world to smoothly transition to a work-from-home setting in mid-March as a result of the COVID-19 pandemic. In addition, MRI has been able to stay connected as a global company through HR-led spirit weeks, social events via video calls, and even a month-long health and wellness challenge. Our culture of collaboration and innovation continues to thrive in a virtual environment, and we’re proud to maintain our sense of community even when we’re not in the office.

Giving back to the community

MRI is proud to support the local Cleveland community, which happens through our “ROAR” program – Reaching Out & Representing. Employees have the opportunity to volunteer at MRI-sponsored philanthropy events during the work day. Since launch, we have partnered with 30 different organizations including local food banks, shelters, Boys & Girls clubs, Make-A-Wish Foundation, and more. We are excited to continue making an impact in our local community!

To learn more about working at MRI Software, visit our careers page, or see the Top Workplaces list in The Plain Dealer.

The post MRI Software named a Top Workplace by Cleveland Plain Dealer appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/automate-leasing-lease-abstraction-cre-tech/ Tue, 23 Jun 2020 14:00:09 +0000 https://www.mrisoftware.com/?p=27640

Automating leasing and the lease abstraction process can enable commercial real estate firms to better manage data across the business and effectively integrate data across multiple systems. Today, as the commercial real estate industry navigates uncertain times due to the COVID-19 pandemic, one thing is certain: continuing to rely on what worked yesterday no longer … Continued

The post Automate leasing and lease abstraction with CRE tech appeared first on MRI Software.

]]>

Automating leasing and the lease abstraction process can enable commercial real estate firms to better manage data across the business and effectively integrate data across multiple systems. Today, as the commercial real estate industry navigates uncertain times due to the COVID-19 pandemic, one thing is certain: continuing to rely on what worked yesterday no longer works today. Modern commercial real estate organizations should be looking for new technologies that enable them to shape innovative strategies, work more efficiently, and stay competitive during and post pandemic.

Problems that can arise during manual workflows

In a recent webinar, industry experts from MRI Software, Leverton, and VTS discussed the challenges of manual processes and how technology can streamline leasing and lease abstraction.

Manual leasing processes have several obvious disadvantages including time-consuming work for the in-house lease admin team, the expenses associated with lawyers, and outsourced abstraction teams. However, there could also be profound effects on your organization that may not be immediately apparent in your every-day process, but can hold your organization back nonetheless.

1) Disconnect between the pipeline and in-place leases. When inputting new in-place leases, it may take some time to get your systems updated for a variety of reasons, and when the new lease is finally uploaded, information may have changed or might get entered incorrectly, which could lead to errors. The longer this process takes, the longer your reporting could be inaccurate.

2) Missed opportunities through lack of data-driven insights. There are many strategic advances that you can make by surfacing the data buried within documents and folders, and users often don’t even know it’s there. By missing these critical data sets, your organization can miss out on key opportunities.

3) Manual data migration. Oftentimes, double data entry can occur when manually uploading data into an ERP system, which then leads to errors and inconsistencies. Getting data out of a contract and into a document that is then added to an ERP can lead to discrepancies that affect revenue. With that, there’s also limited or no data analysis in an ERP system, or aggregation with other data sources.

Using technology to automate leasing processes for commercial organizations

Automating your leasing processes with technology from VTS, a leasing and asset management platform that focuses on workflows and functionality, can make reporting easier and more trustworthy. With so many stakeholders handling the lease data at the center of your business, the data is at risk of becoming disparate and unreliable. Do you trust that the data in your reports is correct? Do you trust that it’s been verified? Do you have data coming from the source system? Technology that integrates with an integrated ecosystem can pull from one source of data, providing you and your stakeholders with trustworthy reports.

Additionally, automating your lease abstraction with MRI Lease Intelligence, an AI tool powered by Leverton, An MRI Company, can establish good data governance within your organization. Automating lease abstraction cuts out the manual effort of pulling data from leases and manually uploading them into target system. Instead, it pulls specific data sets, including those that a manual lookover might not have found, into one central source for all of your lease data.

Using automated leasing solutions can help ensure the accuracy of your data and eliminate manual, error-prone data aggregation and entry. They also give users the ability to make more informed, data-driven decisions by utilizing source data rather than conjecture or stale information. With these benefits, commercial owners and operators can utilize automated lease tools to bolster their businesses in uncertain times and gain a competitive edge, even in challenging circumstances. Learn more about how automating your lease processes can prepare you for the future in this webinar.

The post Automate leasing and lease abstraction with CRE tech appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/may-2020-insights-impact-covid-19-multifamily-market/ Tue, 16 Jun 2020 13:00:35 +0000 https://www.mrisoftware.com/?p=27577

The May 2020 edition of the MRI Software Market Insights report explores data from February through May 2020 to better understand the impact of COVID-19 on the multifamily market. Building on the trends uncovered in our previous report, the May report provides further indication that the summer busy season that apartment complexes usually see this … Continued

The post May 2020 Insights: Impact of COVID-19 on the multifamily market appeared first on MRI Software.

]]>

The May 2020 edition of the MRI Software Market Insights report explores data from February through May 2020 to better understand the impact of COVID-19 on the multifamily market. Building on the trends uncovered in our previous report, the May report provides further indication that the summer busy season that apartment complexes usually see this time of year will lag prior years. Similar to our last entry, the following blog examines some of the key takeaways from the report and evaluates the overall data to best interpret the multifamily industry’s continued response to COVID-19.

1) Shopping continues to recover

The multifamily market experienced a drastic drop in traffic between mid-March and mid-April, but the data from May shows a promising recovery. Looking at the year-to-date numbers, traffic for 2020 is tracking at 101% of 2019, indicating that the traffic lost mid-March to mid-April returned to the market, showing signs of continued strength. New rental applications, on the other hand, show continued improvement through May but have not exceeded 2019 volumes.

These two stats alone show a multifamily market that is still functioning despite the lockdowns and shelter-in-place orders, and as sectors of the economy begin to reopen around the country, we may see these numbers catch up to last year’s.

2) Residents are “riding it out” in place

We continue to see signs of a renter population tending to stay in place as compared to 2019. Even with traffic rebounding, applications, move-ins, and notice to vacate (NTV) volumes are still dragging behind 2019, matching the trends that we saw in April. At the same time, current residents are also staying put more frequently with move outs lagging 2019 while renewals and notice to vacate (NTV) cancellations, a measure of residents deciding to rescind a prior NTV, are trending at or above 2019 levels.

Like almost all numbers, move-out volumes continue to lag, down 17% from mid-March year over year. The reduction in move outs naturally leads to an increase in renewals from mid-March through the end of May. Given these statistics, residents are clearly hesitant to tinker with their current housing situations in the face of an uneasy economy.

3) Pricing is trending further downward and 12-month lease terms are all the rage

The small pricing decreases we observed in April have led to more drastic pricing changes in May. Pricing for new lease terms from 8-14 months are all down an average of 5%, signaling price softening as a reaction to softening occupancy. Continuing the trend reported in April, we still see a greater prevalence of 12-month terms for both new leases and renewals. Seemingly, this continued focus on a 12-month term indicates good lease expiration management practices designed to protect the 2021 summer leasing season. Concession volumes also continue to be well ahead of 2019. It is still too soon to tell if this data will persist, but continued tracking and analysis of this data will help inform on our collective impact, response and progress.

4) Changes in how residents are paying

One of the most unique statistics has to do with the exact way residents are paying their rents. May 2020 electronic payment volume, as compared to February 2020, went up 58%. One of two likely explanations for increased card usage could be that residents struggling with cashflow opted to use a card to pay rent. The other reason might be that as landlords waived card-related fees, residents chose to pay rent via card to collect points as a perk. Our data, unfortunately, does not foretell the “why” behind resident payment choices.

While some of these data points may be cause for optimism, it is important to note that at the end of May, nearly one in four American workers were unemployed. Historically, job growth has driven growth in all facets of real estate, including multifamily. As we look back over the last decade of expansion, continued job growth is strongly correlated with rental demand, driving pricing and new construction.

Enhanced unemployment benefits and government stimulus monies presumably allowed the unemployed to continue paying their rent at near normal rates (see the NMHC rent tracker data here). As the economy reopens and enhanced benefits burn off, a clearer picture of the remaining employment situation will emerge. We expect things to remain fluid throughout the summer, but unlike prior years, an understanding of current trends at a macro level is of the utmost importance. Read the full Market Insights report here.

The post May 2020 Insights: Impact of COVID-19 on the multifamily market appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/using-space-management-software-post-covid-19/ Thu, 11 Jun 2020 20:02:50 +0000 https://www.mrisoftware.com/?p=27513

This article was written by Philip Lehrman, MRI Software. Every business has been affected in some way by the COVID-19 crisis. Successful businesses will see this as an opportunity to re-imagine their workplace and adapt to changing times. Space management tools are essential when it comes to managing costs during normal business cycles, but it’s … Continued

The post Using space management tools post-COVID-19 appeared first on MRI Software.

]]>

This article was written by Philip Lehrman, MRI Software.

Every business has been affected in some way by the COVID-19 crisis. Successful businesses will see this as an opportunity to re-imagine their workplace and adapt to changing times. Space management tools are essential when it comes to managing costs during normal business cycles, but it’s even more vital in times of change like we’re seeing now.

Space management tracks people, places and things. Combining floor plans with data makes space management systems extremely powerful, consolidating disparate information into one system. Department, personnel, and asset information can work together with your CAD drawings to create powerful color-coded plans and reports which will inform your business decisions going forward, saving your company valuable time and expense.

5 questions to ask when reopening your facilities post-COVID-19

As companies start planning to reopen their facilities, there are several important factors to consider. Here’s how implementing a space management system can help:

• Will much of your workforce continue to work from home, or is your company reducing headcount? If so, will your company look to shed space to save money? A benchmarking report that returns the rentable square footage (RSF) per person, and RSF per capacity of each floor and building, can be used to calculate potential reductions in your real estate portfolio. If you decrease 10% of your in-office workforce, for example, you will be able to calculate the corresponding square footage should you decide to reduce it. Once these portfolio reductions have been determined, a space management system would be essential for planning restacks and portfolio consolidation. Moves can be scheduled in phases and set to future dates.
• Are employees going to return to work on a part-time basis? Some companies are bringing their employees back into the office part time, with the remainder of their work week spent at home. With a space management system, you can track which employees work Mondays, Wednesdays, and Fridays, and which work Tuesdays and Thursdays on alternate weeks.
• How are you implementing social distancing at your offices? We can help you put 1×1 grids on all of your CAD drawings so you can assign employees to desks at least six feet away from each other. Using move management tools, this information can be combined with alternate day office worker schedules and office evacuation plans to maximize social distancing while still meeting safety requirements. In addition, directional arrows can be placed on the floor plans to show foot traffic direction in common areas such as hallways and corridors, which can be easily printed and posted, as well as distributed electronically to your staff.
• What about employees that will still be working from home? For those employees, regional maps can be added that show where these employees are located, and those maps can be automatically color-coded by department or personnel type. Maps can be created by country, state, city, or whatever region you require. Assets can be assigned to remote employees, giving you the ability to track all mobile devices, laptops, or other company equipment that your personnel have brought home.
• Do you need flexible space planning? Spaces can be designated as free spacing, hoteling desks, and drop-down desks, setting those aside from permanently assigned spaces for occupancy planning.

Companies that already have space management tools in place have access to all of this information at their fingertips. It does not take much effort to adapt a tool for post-COVID-19 planning, and companies that don’t currently have a space management solution would be well served to implement one now. The MRI ProLease Space Management module can be implemented quickly, within weeks, providing you with a detailed understanding of your real estate portfolio to inform your business decisions going forward.

Learn more about MRI ProLease and request your free consultation here. We’ll help guide you through these turbulent times.

The post Using space management tools post-COVID-19 appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/investment-opportunities-arise-despite-economic-disruption/ Thu, 04 Jun 2020 20:58:50 +0000 https://www.mrisoftware.com/?p=27468

This article was written by Joseph Ferguson, Industry Principal for MRI Investment Solutions. At the dawn of the new decade, there was still a bright outlook towards 2020 investing potential. Although new twists and turns were expected, none were as twisted and sharp as the COVID-19 pandemic. 2020 entered with: The disruption of retail by … Continued

The post Investment opportunities arise despite economic disruption appeared first on MRI Software.

]]>

This article was written by Joseph Ferguson, Industry Principal for MRI Investment Solutions.

At the dawn of the new decade, there was still a bright outlook towards 2020 investing potential. Although new twists and turns were expected, none were as twisted and sharp as the COVID-19 pandemic.

2020 entered with:

• The disruption of retail by Gen Z’s experience-focused spending habits and the growing influence of mobile and social media on retail buying channels.
• The reinvention of senior housing caused by the changes in lifestyle of the aging baby boomer population.
• Continued e-commerce growth and pent-up demand for supply-constrained state-of-the art industrial warehouses.
• A changing geographic of where professionals wish to live, work, and more.

There were plenty of investing twists and turns to navigate.

However, real estate still remained popular as investors continued to seek returns in a zero-rate environment. They insulated exposure to the risky asset by increasing capital flows into alternative asset classes with continued growth, such as self-storage, student housing, senior housing, renewable energy, infrastructure, and infra-tech assets. An uptick in alternative investment strategies sought to weather the fact that we are in a late cycle of slowing growth for real estate. Medical real estate assets remained favorable since it is necessity-based and people need medical care in both good and bad times. Co-living and co-working space continued to have a positive outlook as the inventory became more and more condensed. The multifamily market was also originally expected to see another superior year.

Then, in the midst of navigating these winding but still somewhat prescriptive roads, came a sharp twist and turn: The COVID-19 Pandemic.

How a pandemic changed the investment landscape

With much confusion in the air and a nosedive in transaction volume, the investing market was suddenly forced to pause and rethink much of its strategy. COVID-19 changed much of the original 2020 investing outlook, particularly around co-living and co-working assumptions, and multifamily investments as a result of rising unemployment and lost wages.

Areas for investment opportunity despite the pandemic’s disruption

However, as sectors of the economy begin to gradually reopen and institutional investors have thought long and hard on the next steps, the writing on the wall is actually starting to indicate some cause for optimism.

• Honing in on where young professionals wish to live and work may continue to produce healthy investment strategies.
• Real estate looks to be sustainable for those investors seeking resilience even through the COVID-19 pandemic.
• Although the industrial market was slowed by COVID-19 in the first half of 2020, we’re hearing that it may kick back up as demand for state-of-the art industrial warehouses returns.
• Continued growth and increased capital flows into alternative asset classes such as self-storage, student, and senior housing look promising as investors search for yield.
• Although multifamily slowed from the COVID-19 crisis due to wages, the market looks promising as investors continue to seek returns in a zero-rate environment.
• The COVID-19 pandemic seems to have bolstered the favorability of medical real estate.

The importance of understanding economic dislocations

Investment funds are looking to capitalize on the dislocation of these assets and may face heavy competition in a post-COVID-19 world. New and soon-to-be-launched funds seeking investment opportunities could acquire assets or the debt secured on them at a discount to their “true” value. Thus, new funds are poised to face a lot of competition from existing vehicles because there is still “plenty of dry powder at hand.” There is a vast and bewildering array of funds looking to take advantage of current economic dislocations.

When the abnormal array of asset dislocations emerges, will your fund have the right technology in place to manage a potential onslaught of capital flows and acquisitions? Learn how MRI Investment Management software can equip your firm to handle the twists and turns ahead.

The post Investment opportunities arise despite economic disruption appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/instant-resident-screening-services-multifamily-property-managers-risk/ Wed, 03 Jun 2020 14:06:47 +0000 https://www.mrisoftware.com/?p=27463

This article was written by Aaron Durkee, Director of Product Management for MRI Resident Screening and Robyn Kunz, Senior Director, Screening. A recent advisory opinion from the Consumer Financial Protection Bureau affirmed that background screening companies who carelessly assign a false identity to housing applicants are breaking the law. The organization specifically calls out name-only … Continued

The post Why “instant” resident screening services put multifamily property managers at risk appeared first on MRI Software.

]]>

This article was written by Aaron Durkee, Director of Product Management for MRI Resident Screening and Robyn Kunz, Senior Director, Screening.

A recent advisory opinion from the Consumer Financial Protection Bureau affirmed that background screening companies who carelessly assign a false identity to housing applicants are breaking the law. The organization specifically calls out name-only matching procedures, which don’t ensure maximum accuracy.

What do the repercussions of incorrect screening reports look like for apartment applicants? And how can property managers trust that their screening service is doing more than just matching names?

In an article entitled “How Automated Background Checks Freeze Out Renters,” we see real-life examples of how inaccurate screening reports harm prospective residents, and in some cases result in being wrongfully denied.

Such reports are known as “instant” background checks, and they rely on algorithms and computer-based “matching logic” to determine which criminal, eviction, and sex offender records are reported to a landlord during the tenant screening process. These algorithms are far from perfect, and often report records that belong to a different person with a name similar to the applicant.

When the data doesn’t add up

One example cited in the article was that of William Hall Jr., whose housing application was turned down after a background screening company labeled him a sexual abuser. The William Hall who actually committed that crime was 30 years older than Mr. Hall Jr. It would only take a minute or two for a human to determine that the record should have been excluded from the resident screening report. However, a representative from a company that provides instant background checks is quoted in the NYT article as saying that verifying the information on its reports “would be an overwhelming task.”

Risks for multifamily apartment landlords

An incorrect screening report not only creates disruption for the applicant, but it also puts the apartment landlord at risk. Wrongfully denied applicants can quickly turn into plaintiffs in lawsuits against landlords and background screening companies. Many of these cases are settled for undisclosed sums, so it’s difficult to calculate the true cost to landlords and background screeners. But even cases that are settled quickly often result in tens of thousands of dollars in legal fees alone. And those numbers can multiply when the lawsuit turns into a class action, which is exactly what happened when William Hall Jr. sued over his inaccurate background check.

Compliance violations

Additionally, inaccurate screening practices pose a compliance risk for multifamily property managers. Fair Housing laws apply to screening services, and if your property is wrongfully denying a prospective renter based on false information, then you could be in violation of the Fair Housing Act. Understanding how your screening service aligns with fair housing laws can prevent legal issues for your multifamily property.

Competitive edge

Today, as a result of the COVID-19 pandemic, the rental market is more competitive. Prices for new 12-month leases decreased by 2% from March to April 2020, according to the MRI Software Market Insights report. With increased reliance on technology and digital services to avoid face-to-face interaction, it’s important to ensure that those technologies deliver the right results. Landlords have an opportunity to leverage screening practices that prioritize accuracy over speed to select the right tenants for their community.

Human touch

Multifamily professionals are not experts in background screening, and they should rely on a provider that incorporates human oversight into the screening process. So how can multifamily property managers reduce risk and more accurately screen tenants?

MRI Resident Screening allows multifamily properties to run comprehensive credit and background checks with the appropriate efficiency and risk management. With drill-down reporting capabilities, a team of in-house investigators, and proprietary credit check technology, MRI’s resident screening service offers a configurable approach to reduce risk for property managers and their communities.

Accurate background screening is not an overwhelming task

As a society, we often think instant is better. Instant purchases, instant service, instant results from the web are all logical markers of advancement and improvement in technology and commerce. But when instant also equates to inaccurate, it’s time to take a step back. Is it really better to continue damaging the lives of renters and causing landlords to miss out on good tenants? Immediate results aren’t always the right results.

Learn more about resident screening best practices in this on-demand webinar: What your Resident Screening Solution isn’t Telling You.

The post Why “instant” resident screening services put multifamily property managers at risk appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/addressing-deferred-payments-mri-residential-management/ Fri, 29 May 2020 13:00:26 +0000 https://www.mrisoftware.com/?p=27439

This article was written by John Seaton, Enterprise Sales Executive from our partner, RealFoundations. In response to shelter-in-place orders and the rise in unemployment caused by COVID-19, the National Multifamily Housing Council (NMHC) published a series of recommended principles that residential owners and property managers should follow to help financially impacted residents retain their housing. … Continued

The post Addressing deferred payments for MRI Residential Management appeared first on MRI Software.

]]>

This article was written by John Seaton, Enterprise Sales Executive from our partner, RealFoundations.

In response to shelter-in-place orders and the rise in unemployment caused by COVID-19, the National Multifamily Housing Council (NMHC) published a series of recommended principles that residential owners and property managers should follow to help financially impacted residents retain their housing.

As companies pause on evictions, cease rent increases and implement payment deferment programs for residents, they must also consider the impacts on financial reporting as well as the evolving requirements for maintaining accurate and detailed records that municipal, state and federal law may require for compliance purposes. Developing a strategy that includes consistent general ledger accounting, information management and portfolio reporting is crucial.

Recognizing the significance of the situation, RealFoundations, a long-term MRI Certified Partner, quickly engaged with MRI and other industry vendors to assist our mutual clients in deploying rent collection strategies that reduce disruption and enable quality oversight by management.

The deferred payment agreements feature developed by MRI Software undoubtedly assists property managers in meeting their residents’ needs and accounting for future repayments on individual resident ledgers. Recording each individual repayment plan is critical when dealing with this fluid situation, but additional components need to be addressed when designing and deploying a full-scale solution, including but not limited to:

• Deployment of MRI’s deferred payment agreements feature
• Configuration of deferred rent and repayment charge codes
• General ledger account mapping for consistent financial reporting
• Modification of existing operating policies and procedures
• Documentation and training of new required processes
• Report development for repayment projections, automated resident correspondence, etc.
• Implementation of new controls for information management
• Management reporting and process governance

At RealFoundations, we have a clear understanding of the deferred payment agreements functionality, as well as MRI’s Commercial Management solution for tenants, and have thoroughly tested various scenarios and reporting within our own MRI system. Our team has unparalleled experience helping even the most complex real estate organizations forge ahead in uncertain times. Our Management Consulting and Managed Service practitioners are prepared to help guide you through the decision making and planning process to account for a variety of resident scenarios while considering the major concerns of management and identifying areas of risk. Leveraging our Modern Digital Workplace, all solutions can be delivered over distance, using the collaborative tools of the Microsoft 365 ecosystem.

Visit the RealFoundations website to learn more.

The post Addressing deferred payments for MRI Residential Management appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/real-estate-investment-valuations-post-covid-19/ Wed, 27 May 2020 16:38:26 +0000 https://www.mrisoftware.com/?p=27431

Ah, 2019, you wily rascal you. You strung us along with your record-breaking rental growth and transaction volume. The people I met in 2019 were either giddy with celebration of another year of strong performance, or eyeing the situation with utter skepticism, asking “what’s the catch?” I found myself speaking at several MRI and industry … Continued

The post Real estate valuations in the post-COVID-19 era appeared first on MRI Software.

]]>

Ah, 2019, you wily rascal you. You strung us along with your record-breaking rental growth and transaction volume. The people I met in 2019 were either giddy with celebration of another year of strong performance, or eyeing the situation with utter skepticism, asking “what’s the catch?” I found myself speaking at several MRI and industry conferences around the world, discussing both the lucrative exploits of real estate investors as well as the likely timing, severity, and characteristics of the next downturn.

We of course considered the cyclical nature of the real estate cycle – the transition from recovery to expansion to hyper supply to recession – and predicted that this cycle, like the last one that came to an abrupt end during the 2008 global financial crisis, would likely be a short cycle…though, with a much milder downturn that, for many, would be barely an inconvenience.

Oh, but how wrong we were. Enter 2020 – 2019’s evil cousin. If I had stood up at those conferences and said “Adjust your investment valuations, my friends, and hold onto your cash, because your real estate investments, regardless of asset class or location, are going to see sharp declines in KPIs due to a global pandemic in Q1,” I’m sure I would have been booted out of the building with no buffet lunch to show for it. I might as well have been saying that aliens in giant spaceships will hover over each major city on the 4th of July and destroy all the real estate in a 10-mile radius with green lasers!

But here we are, and whilst the real estate industry dedicates a lot of attention to managing receivables and their financial run rate, there is much to consider in terms of property valuations and the cap rates that are on the rise. Sure, transaction volume has nosedived, with the exception of distressed assets that the PE community are lapping up, so perhaps folks are willing to ignore the near-term volatility. But what about the longer-term effects of this pandemic on how our valuation market chooses to function in the future? Let’s look at a few possibilities:

1. A renaissance for discounted cashflows?

Many regions of the world do not standardize their portfolio and investment valuations around the DCF methodology, and perhaps that will need to change. The consideration of NOI and NCF over a prolonged hold period means you can reduce the impact of any cashflow volatility that occurs within that timeframe, or even offset it by applying a stabilization factor at different points in time to negate anomalies.

On the other hand, the standard 10-year hold period itself may need to change, since the once-lauded steadiness and predictability of real estate investment is now a debatable concept. The modern real estate market is forced to evolve more frequently, primarily due to tenants and residents adopting new technologies and innovations, which in turn alters their expectations of where they live, work, and play. This type of flux is extremely difficult to predict over a 10-year timeframe, thus potentially discrediting any portfolio valuation based on assumptive data that extends that far into the future.

So how do you address this dilemma? One option is to leverage reliable software. For example, MRI Valuations has the means to navigate this issue and accommodate any eventuality. In one tool, property and portfolio valuations can be generated using multiple valuation methodologies – DCF, Equivalent DCF, Capitalization, Cost, Hardcore, Term & Reversion, and more – and the results can be compared to one another on a rolling monthly basis. The hold period for a DCF calculation can also be adjusted to any number of years, or automatically tapered to the end of your forecast timeframe as you roll from one period to the next.

2. An evolving dataset to manage the big picture

The current pandemic has also proven that cashflow and tenancy data alone are insufficient to determine a property’s true value. Other data points, and qualitative data in particular, are becoming more and more pertinent, such as sales and footfall in retail, automated communications and facilities in conventional residential, environmental metrics across the board, and so on.

This was already a changing landscape ahead of COVID-19, but appraisers now have the additional challenge of limited access to the physical site due to social distancing. Those responsible for collecting and reviewing all this information will rely more and more on third-party data providers and virtual/augmented reality to visualize the site from afar.

Services like MRI’s Data Management Services that make data collection, normalization, and aggregation a quick and simple proposition – regardless of data source and format – are emerging as essential services for most medium to large-scale real estate businesses. Asset/portfolio management tools like MRI Investment Central and MRI Analytix that empower users to visualize this data, including custom attributes, begin to deliver even greater value and ROI.

3. Not just an appraisal…an advisory service

Pre-COVID, third-party investment valuation service providers were primarily responsible for delivering a current appraisal based on tenancy data and cashflows. Today’s job description is greatly expanded. In addition to managing many more data points, which in many cases are client-specific, the market will likely look to these seasoned professionals to provide more than just today’s value – they could assume the responsibility of an advisory service to help maximize value over time and weather the storms ahead.

This means performing sensitivity analyses; shocking a portfolio with pessimistic hypotheticals, such as tenant insolvency, reduced sales activity, government restrictions that impact cash flow, stricter lending criteria or higher margins, market rent and inflation fluctuations, and more. MRI Asset Modeling and Fund Modeling solutions build on the fundamentals for producing a property or portfolio valuation by layering on scenario modeling capabilities to deliver valuations, returns, yields and other metrics based on any number of potential futures. We will likely see valuation service providers being asked to become more and more savvy in this area, thus adopting more sophisticated tools than before.

Does 2020 have more curve balls up its sleeve? All predictions aside, the best path forward for real estate firms is to create business agility through flexible tools and processes. New challenges may have long-lasting effects on the approach to real estate valuations in a post-COVID-19 market.

The post Real estate valuations in the post-COVID-19 era appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/gasb-vs-fasb-differences-lease-accounting-standards/ Thu, 21 May 2020 15:43:33 +0000 https://www.mrisoftware.com/?p=27402

In this article, we look at GASB vs FASB and highlight the major differences between the GASB 87 and ASC 842 lease accounting standards. It is not intended as a comprehensive listing of all contrasting points. It likely came as good news for state and local government accountants that the Governmental Accounting Standards Board (GASB) … Continued

The post GASB vs FASB: The key differences between new US lease accounting standards appeared first on MRI Software.

]]>

In this article, we look at GASB vs FASB and highlight the major differences between the GASB 87 and ASC 842 lease accounting standards. It is not intended as a comprehensive listing of all contrasting points.

It likely came as good news for state and local government accountants that the Governmental Accounting Standards Board (GASB) delayed the effective date of its Statement No. 87 last week.

The 18-month postponement means those required to adopt the new lease accounting standard have until 2021 to prepare – the extra time granted due to the various and significant effects of the COVID-19 pandemic.

But, a note of caution; the extension, however welcome, should not be seen as an opportunity to push GASB 87 to the bottom of the to-do list. Implementing processes and systems to meet the new requirements, and then actually reporting to it, is a complex project. It’s something we’ve seen publicly listed companies struggle with when moving to FASB’s equivalent ASC 842 standard.

Indeed, governmental entities can take useful lessons from the private sector transition in terms of both successes and pain points. ASC 842 and GASB 87 are ultimately intended to achieve the same outcome – ensuring that organisations recognize their lease commitments on balance sheets. There are, however, differences to be aware of between the two – key examples of which are outlined here:

GASB vs FASB: The main differences

GASB vs FASB capitalization model

GASB 87: All leases are finance leases.
ASC 842: Leases are classified and accounting for as either operating leases or finance leases based upon an assessment of lease classification criteria.

GASB vs FASB short-term leases

GASB 87: Leases are not capitalized and are not disclosed.
ASC 842: You have the option of whether or not to capitalize. If a lease is not capitalized then the expense must be disclosed.

GASB 87: The short-term assessment must include the maximum possible lease term. That is, all possible extension/renewal periods are included in the lease term regardless of the probability that the lease will be extended.
ASC 842: The short-term assessment only includes renewal or termination options that are reasonably certain of being exercised. Additionally, a lease cannot be short-term if there is a reasonably certain purchase option.

GASB vs FASB ownership transfer

GASB 87: A contract that transfers ownership of the underlying asset to the lessee at the end of the contract generally is not accounted for as a lease, but instead is accounted for as a financed purchase, with a few exceptions for certain options.
ASC 842: A contract that transfers ownership of the underlying asset to the lessee at the end of the contract is accounted for as a finance lease.

GASB vs FASB separating components

GASB 87: As a general rule, lease and non-lease components (i.e. receive a service such as CAM) should be accounted for as separate contracts (i.e. non-lease components should not be capitalized as a ROU Asset but rather should be accounted for as a service contract). If it is not practicable to determine the price of the components in the contract then, on an exception basis, the non-lease components may be combined with the lease component and capitalized as a single lease component.
ASC 842: As an accounting policy election, non-lease components may be combined with the lease component and capitalized as a single lease component.

GASB vs FASB contingent lease incentives

GASB 87: Contingent lease incentives (e.g. contingent upon a future event such as constructing tenant improvements) are not included in the initial measurement of the lease liability.
ASC 842: Contingent lease incentives can potentially be included in the initial measurement of the lease liability based upon a company’s accounting policy that is consistently applied.

GASB vs FASB disclosures

GASB 87 disclosures are very similar to ASC 842, but there are some differences to note:

GASB 87: The maturity of the lease liability is presented separately for the next five years. After year five, the maturity is presented in five-year increments until the expiration of the latest lease.
ASC 842: The maturity of the lease liability is presented separately for the next five years. After year five, the maturity through the latest lease expiration is presented in one ‘and up’ bucket.

GASB 87: Disclosure requirement for other payments, such as residual value guarantees or termination penalties, not previously included in the measurement of lease liabilities.
ASC 842: This disclosure not specifically called out.

GASB 87: Disclosure requirement for the components of any loss associated with an impairment, such as the impairment loss and any related change in the lease liability.
ASC 842: Does not require the related change to the lease liability to be separately identified.

Transition methodology

GASB 87: There is only one transition method and that method requires all prior period financial statements that are presented to be restated to GASB 87. As an exception, prior period financial statements do not need to be restated if it is not practicable to do so.
ASC 842: There are two transition methods: (1) Modified Retrospective Comparative Period Method – essentially the same as the GASB 87. (2) Modified Retrospective Effective Date Method – Prospective-type transition, with no need to restate prior period financial statements.

Understanding these differences and the full scope of the GASB 87 standard will be key to successful adoption. Organisations have been given more time to prepare, and should make sure they use it to get the right processes and systems in place to make the transition as smooth as possible.

To learn more about how lease accounting software can help, watch the webinar here.

The post GASB vs FASB: The key differences between new US lease accounting standards appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/5-key-takeaways-impact-of-covid-19-multifamily/ Wed, 20 May 2020 13:43:12 +0000 https://www.mrisoftware.com/?p=27405

The MRI Software Market Insights team recently issued a report covering the impact of COVID-19 on the US multifamily real estate market. Data from across MRI’s client base shows that the COVID-19 crisis prompted substantial changes to leasing activity, operations, and renter behavior between February and April 2020. Here are five big takeaways from the … Continued

The post 5 key takeaways: The impact of COVID-19 on multifamily appeared first on MRI Software.

]]>

The MRI Software Market Insights team recently issued a report covering the impact of COVID-19 on the US multifamily real estate market. Data from across MRI’s client base shows that the COVID-19 crisis prompted substantial changes to leasing activity, operations, and renter behavior between February and April 2020.

Here are five big takeaways from the MRI Software Market Insights Report on Multifamily.

1) Shopping is steadying out while leasing is hampered

The lead-to-lease funnel has been hit from the top down by the COVID-19 crisis, with each level impacted having an effect on the one below it. From March 15, 2020 through April 11, 2020, the industry saw a significant shift in traffic, which fell an average of 29% as compared to the same period in 2019. By mid-April, traffic had nearly rebounded and remains ahead of the 2019 pace.

Traffic is, however, a leading indicator for applications, the next step in the leasing funnel. Multifamily properties across the US saw a similar decline in new rental applications, which dropped 29% in the four-week period starting on March 22, 2020 before improving, but remaining 11% off prior year levels as April ended.

The next step in the funnel is move-ins. A reduction in traffic and applicants led to a 38% reduction in move-in volume from March 22, 2020 through April 18, 2020 and remained 26% off the prior year’s pace as April closed. Taken together, these three metrics paint a picture of the kind of potential resident we can expect to see during this crisis: a more patient prospect who may shop for a new apartment as before, but is less inclined to apply or subsequently move in.

2) Residents are staying in place

The report indicates that between February and April 2020, the typical resident may not have felt comfortable moving around as freely as before. Notices to vacate (NTV) were down 16% in February and continued to fall behind 2019’s pace. Overall, they were down slightly over 11% from last year and remained off by over 30% as April closed. NTV cancellations, a measure of residents deciding to rescind a prior notice to vacate, were also behind pace through March and increased roughly 5% across April.

In addition, move out volumes, which were already slightly behind 2019, dropped and held at 79% of 2019’s pace from March 15, 2020 through the end of April, appropriately following the waning in NTV volume. Reduction in move outs naturally led to a 4% increase in renewals.

All in all, this shows that throughout these past few months, residents have been hesitant to make changes to their renting and leasing patterns. This also contributes to the reduction in shopping, application and move-ins.

3) Pricing is declining

As shown so far, many residents did not appear eager to leave their current living situations any time soon, and the drop in demand for new apartments is having an impact on pricing. New lease pricing, up 1-2% year-over-year for both February and March, saw a decline in April for an average net reduction of 0.8% for 9-month to 15-month terms, with the most prevalent 12-month term being off 2% from March 2020. In addition to this, renewal pricing for April has also softened for the 12- to 14-month terms.

Likewise, the number of concessions given by landlords saw a substantial increase year over year. A slight 3% increase in March gave way to a significant increase of 53% in April. While the average monthly concession value dropped by 22.5%, the total value of monthly concessions granted increased by 19%. With new lease and renewal prices decreasing, and concessions increasing, it’s clear that landlords are looking to make up for the drop in demand from residents due to the COVID-19 pandemic.

4) Lease terms are increasing

Just as new lease and renewal pricing declined, lease and renewal terms appeared to head in the opposite direction. Lease terms for February, March and April 2020, as compared to 2019, increased in 12-month terms, with April being up 10% over 2019. Renewal terms for April also saw a continued focus on the 12-month term, noting a 3% increase at the expense of 14-month terms that decreased 1.6%. As new lease and renewal terms move conversely with pricing, we have a clear image of potential residents who are less inclined to significantly alter their current living situations, and as a result, we have a softer multifamily market. The question, however, remains: How will resident behaviors and attitudes be affected in the long run?

5) Residents are making better use of technology

COVID-19 is pushing people across the country to adopt new technologies in order to hang on to some semblance of “normal,” and multifamily residents are no different. Since the start of the pandemic, resident portal usage has gone up 33% with a focus on paying rent as more people remain indoors. The most dramatic change in portal usage arrived in April, however, when it came time to pay rent under shelter in place orders. Total electronic payment volume for April increased more than 12% from February, with a changing mix of ACH and card payment methods.

But residents weren’t the only ones turning to technology. Broadcast email and text messages from the property office to residents saw a spike in volume by almost twice the normal rate as properties worked through the upheaval caused by the pandemic. As April closed out, volumes returned to expected levels. Package handling, a service many properties stopped as a result of the pandemic, also dropped precipitously to 30% of prior volumes. Even when the use of specific technologies did not necessarily increase, there’s no question that multifamily residents and landlords are using technology in more efficient ways.

The MRI Software Market Insights report illustrates not just how residents and property owners responded in the wake of a crisis, but also what the overall multifamily market might look like on the other side of the COVID-19 pandemic. When a vaccine is developed and people can once again travel safely outside their homes, many of the results found in this report will likely still be affecting the industry. Read the full Market Insights report here.

The post 5 key takeaways: The impact of COVID-19 on multifamily appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/getting-started-commercial-real-estate-reforecasting/ Fri, 15 May 2020 17:46:47 +0000 https://www.mrisoftware.com/?p=27396

Performing a complete reforecast for your commercial real estate business is not a common task. It typically takes place only in the event of sudden economic shifts, like the one triggered by COVID-19. When your commercial real estate firm went through the budgeting process in Fall 2019, you probably didn’t account for the impact of … Continued

The post Getting started with commercial real estate reforecasting appeared first on MRI Software.

]]>

Performing a complete reforecast for your commercial real estate business is not a common task. It typically takes place only in the event of sudden economic shifts, like the one triggered by COVID-19. When your commercial real estate firm went through the budgeting process in Fall 2019, you probably didn’t account for the impact of a global pandemic on your business. For many properties, it’s time to throw your best laid plans out the window and create a new forecast, but where do you start? What are the main areas to consider?

Here are some tips to keep in mind when diving into commercial real estate reforecasting:

A new basis for assumptions

The whole point of budgeting is to make an educated assumption as to where your business is going to land at the end of the calendar year based on lease contracts, actual and historical data. But what historical data can serve as a reference for something as unpredictable as COVID-19? You will have to use your actuals from March and April and incorporate timelines from your property reopening plans. MRI Budgeting and Forecasting software can distribute variances from what actually happened through March/April over the rest of year for the whole workbook or, as is more applicable now, differently from account to account.

Finding the variables of new importance

You’ll need to identify areas of your commercial business that have been disproportionately affected by the pandemic, which are likely to vary based upon property types, locations, and tenant mix. Certain categories of maintenance, such as cleaning, might actually go up in terms of keeping the property running. Rent will play a bigger role, especially if tenants have trouble paying or need to negotiate deferred payment agreements. If you won’t be able to rely on certain revenue streams, then everything from landscaping costs to capital projects may need to be reevaluated.

Commercial real estate budgeting software from MRI offers an efficient way to draft a new budget and start pulling levers like these to test for different outcomes.

Budgeting and forecasting for what lies ahead

You might be inclined to keep some or all of your leasing assumptions in the new forecast, but many properties will need to start over. Will more deals trend toward shorter lease terms or smaller footprints? The future of commercial office space could look very different than it does today if corporations decide to reevaluate their needs. Effective space management tools and forecasting based on new assumptions can help your business reassess the different best and worst case scenarios in a market that looks completely different than your previous assumptions. A short-term plan will impact the long-term strategy for your business, and technology can provide the agility to respond to change while driving the business forward.

Commercial real estate organizations need to make reforecasting a priority for the business. Even with continued uncertainty in the economic environment, evaluating the impact of different scenarios on your organization will influence strategic decisions for the business. The ability to leverage technology to operate with agility has never been more essential, and MRI’s Budgeting and Forecasting software can help you pivot efficiently and stay focused on running your business.

The post Getting started with commercial real estate reforecasting appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/renaissance-properties-simplified-residential-payments-mri/ Thu, 14 May 2020 20:04:21 +0000 https://www.mrisoftware.com/?p=27387

Efficient multifamily payment processing systems that provide insight into property management make life easier for residents and back-office staff, especially in the midst of a crisis like the COVID-19 pandemic. Renaissance Properties adopted MRI Payments before 2020, and having a flexible payments system in their arsenal has better prepared them for uncertain times. As a … Continued

The post How Renaissance Properties simplified residential payments with MRI appeared first on MRI Software.

]]>

Efficient multifamily payment processing systems that provide insight into property management make life easier for residents and back-office staff, especially in the midst of a crisis like the COVID-19 pandemic. Renaissance Properties adopted MRI Payments before 2020, and having a flexible payments system in their arsenal has better prepared them for uncertain times.

As a multi-faceted real estate development firm based out of New Jersey, Renaissance Properties manages residential, commercial, and mixed-use facilities in the New Jersey area, all of which require different accounting systems to handle rent collections. In an effort to cut down on the number of accounting systems used, Renaissance sought a payments solution that was built specifically to integrate with software their team already knew. As users of MRI Software, they chose MRI Payments to simplify their residential payments process in one of their largest mixed-use properties. Since implementation, MRI Payments has streamlined the rent process for residents and has also increased back-office efficiency on the collections side.

Payments: Rent simplified for residents

Renaissance Properties wanted the implementation of MRI Payments to run as smoothly as possible, and sure enough, they started to benefit from the service on day one. Implementation went so well that Renaissance recorded 90% user adoption for their first rent week.

The quick adoption was due to both the steps taken by Renaissance and the flexibility offered through MRI Payments. The resident-facing side of the software allows residents to submit their monthly rent payments when it’s convenient for them, and in any format they choose, whether it be through cash, check, credit card, or even money order. With MRI Payments, residents can also establish automatic recurring rent payments that go out on the same day every month without having to go through the manual process of cutting a check, visiting the office, or going online every time they need to make a payment.

Previous accounting systems used by Renaissance had proven cumbersome, particularly when it came time for the back-office staff to deposit the paper checks that had been sent in by residents. In many cases, checks would take days at a time to clear, which served as a problem not only for Renaissance, but also for residents who kept watch over their bank accounts and were often left waiting for their rent to go through. With MRI Payments, a process that once took up to a week now takes only a day or two, meaning that residents can plan their budgets just as accurately as their landlords can.

Collections: Rent simplified for the back office

In the same way MRI Payments gives residents peace of mind when their checks clear quickly, it also allows Renaissance Properties to receive rent from each resident on a more consistent basis and with minimal turnaround. The time of waiting five to seven business days for a payment to be processed is over.

MRI Payments also provides added visibility for back-office staff into all payment activities. With a single dashboard that displays transaction statuses, trends, alerts, and other notifications, Renaissance Properties is able to more accurately predict cashflows, which has helped put them in a better position to respond to COVID-19’s financial impact. And because MRI Payments integrates with other MRI products and simplifies the rent collections process, back-office staff now has more time on their hands to execute value-adding and business-growing measures that help ensure the continued operation of the property.

Through their implementation of MRI Payments, Renaissance Properties has been able to not only maximize back-office efficiency, but also provide their residents with a flexible payments solution that makes paying monthly rent easier for everyone involved. Learn how MRI Payments can help you save time and simplify rent collections.

The post How Renaissance Properties simplified residential payments with MRI appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/respond-the-dance-steps-required-today-before-we-return-to-the-workplace/ Fri, 08 May 2020 11:38:54 +0000 https://www.mrisoftware.com/?p=34777

Part two of four articles dedicated to ‘business resilience’ in the world of the ‘new normal’ This is the phase we are currently working in (April-May 2020) which is mainly focused on keeping buildings in the real estate portfolio either closed successfully and maintained and secured and/or ensuring the ones that need to be open for … Continued

The post Respond: The dance steps required today before we return to the workplace appeared first on MRI Software.

]]>

Part two of four articles dedicated to ‘business resilience’ in the world of the ‘new normal’

This is the phase we are currently working in (April-May 2020) which is mainly focused on keeping buildings in the real estate portfolio either closed successfully and maintained and secured and/or ensuring the ones that need to be open for limited part-time occupancy are safe, secure and healthy for limited occupancy by employees.

There has also been phenomenal proof during the use of a hammer for our “shelter-in-place”  dictate that remote working can be effective. This has been picked up by  the media looking for new news items as journalists could no longer report on the glamorous worlds of the rich and famous so they have examined topics on the “new normal” and focused on under reported topics like the “workplace”. As Kate Lister, an expert in remote working and key leader in WE (not the Madonna movie on Wallis and Edward, but the IFMA Community, Workplace Evolutionaries), “the genie is out of the bottle and can’t be put back” talking about working remotely which had great resistance from management through the years.  Eight years ago, the then CEO of Facebook called all remote workers back to their offices in Silicon Valley as she thought they were ‘hiding’ in their homes.  So much for trust.

At the same time, this is also the period to prepare for the next phase when the world opens its doors again and which is currently just beginning, the ‘Recover’ Phase.  However, these concepts and action items, as Dr. J. Allen Director of Harvard’s Healthy Buildings Program has said, “Everyone has to be really clear, there is no such thing as no risk.” The goal of this phase is to reduce that risk and begin to work on the UN’s Sustainable Development Goals (SDGs are shown in the previous section of this series of articles) and at the same time follow the short term strategic plan that fits the current scenario.

The following are some action plans for this first phase based on categories:

1. The Workplace

What is needed immediately is data on the existing portfolio of buildings which includes information on the location of each rented or owned property, the local conditions (including the latest data on the virus), as well as regional and country information and any current new legal or government regulations. Buildings’ inventories should include basic data on both the condition of the exteriors and interiors which will be used for the preparation for occupancy again in the next phase. Current exterior information should include the existing condition of exterior cladding and the roof. Interior information should include existing as-built floor plans and major equipment information along with preventive maintenance schedules and history.

If buildings or floors of a building are leased, the critical dates are required. It is also necessary to have an inventory of current capacity, utilization and occupancy for each floor and each business/functional unit required usage. Then you also need to determine what kind of workplace policies you have determined for the next phase: move to all or partial reservable desks; reassign existing workstations according to new ways of working or assign people to fixed desks/workstations and create schedules for occupancy.  Depending on the tools you use (see Technology section below), you should be able to work out new space plans based on new configurations following existing requirements for physical distancing (see Technology section below). The “foundation” of planning for the re-entry in the next phase is:

1. Hazard Elimination (the hammer of ‘shelter in place’)
2. Personal Substitution (scheduling bringing key employees back in stages)
3. Engineering Control (see Operation below)
4. Administrative Controls (See sections below and includes change management  and signage programs )
5. Personal Protective Equipment (PPE) (provide protective gear like masks  or other devices and disinfectants in critical and common areas)

2. The Workforce

Taking care of employees is now, more than ever, a top priority for organizations. HR should prepare the workforce for re-entry and should be leading the efforts to try and alleviate any anxieties (physically, emotionally and psychologically) of returning to work.  There should be a detailed change management plan in place.Also what should be provided to the Taskforce is the employee/contractor list of who is returning with information on the type of work area/workstation required according to their job category, which phase/shift they will be moved into which building, and/or how many days/week they will be working remotely There also may be a classification as to which occupants are immune and which are not (this looks unlikely that one who has had the virus previously will not mean they are immune, but with the latest data coming from the scientists daily, their findings changing often, will have to monitored closely).. Social distancing strategies will also have to be determined based on the latest scientific findings. The current distancing recommended (CDC) reveals that a 6’ separation greatly reduces the transmission of harmful droplets in the air transmitting to another person.Added to the FM workforce could be people who could also assume the role of a Covid-19 Block Captain(s), PPE Training Experts, Quarantine Marshalls and Supply Managers.

3. Strategic Planning

With the above baseline information, it is possible to execute various ‘what-if’ scenarios for both short term and long term planning. One CEO, who has been overseeing Morgan Stanley’s strategic planning, is James Gorman who has himself recovered from COVID-19.  He believes that his company will more than likely come out of this crisis with a smaller real estate footprint due to their successful remote work program which involved 90% of the financial institutions 80,000 employees.  Its positive results he credits both his technology and operations teams. According to Nestor Rindon, Vice President at Morgan and one of the key people involved in the team that Mr. Gorman was referring to, has said ‘planning moving back to the office changes daily (for a phased move which is scheduled for May, June and September) and is HR driven.’ There are two cardinal rules: 1) don’t ______with the revenue generating function and 2) cut costs in the back office.”

4. The Market (RE)

Due to small business and retail closures, as well as corporations realizing they may need less space due to successful remote working from home experiences necessitated by the hammer.  Commercial real estate brokers are suffering from the pandemic and do not see much good news on the horizon.  The one positive light for them at the end of this dark tunnel is that due to Social Distancing, organizations which still need workspaces will require enough space to include layouts that take Social Distancing. into consideration.

5. Facility Operations/ Buildingomics

There is the current need to follow the most up to the minute guidelines from the CDC, EPA, OSHA, WHO and any other national, regional or local health services organization. For buildings that need to be closed, it is most likely you have done procedures like the following: keep HVAC running to prevent the growth of mold.

For preparation of the next phase, the following 9 areas (all pertaining to SDG#3- ‘good health and well-being’) could be used as a foundation for the short term plan:

• Air quality – choose supplies, furnishings and materials with low chemical emissions; check for legacy pollutants (i.e. lead, asbestos), use vapor barrier to limit any intrusions; humidity levels should be 30-60% to mitigate odor issues.
• Thermal health – meet minimum and comfort standards for temperature and humidity and keep both consistent throughout the day (as well as monitoring).
• Moisture – conduct regular inspections of roofs (see technology section), plumbing, ceilings and HVAC equipment and determine underlying source if a problem is found.
• Dust and pests – use filter vacuums which are high-efficiency and clean surfaces more than normal cleaning schedules; develop pest management plan.
• Safety and security – ensure fire safety and carbon monoxide standards are met and emergency action plans are available to all building occupants.
• Water quality – meet the US National Drinking Water Standards.  Install water purification system for removal of contaminants; prevent water stagnation in pipes.
• Noise – control as much exterior and internal noise as possible.
• Lighting and views – during the day provide as much natural light as possible and/or blue-enriched lighting; plan to provide as much exterior views for workers and incorporate as much nature as possible in work environments.
• Ventilation – meet or exceed air ventilation guidelines;  monitor ventilation in real-time.

6. Technology

If you have not done so to date, now is the time to join the 4th Industrial Revolution (as described in part one of this series of articles). In order to collect and report on all of the data that you need for the action plans, you will need to implement a computer-aided facility management system (CAFM) or an integrated workplace management system (IWMS).  This becomes the centralized repository of existing conditions and other baseline data, as well as providing strategic planning, space planning (programming), move management, room booking and financial analysis.

• CAFM & IWMS: CAFM consists of basic inventory data, maintenance functionality, strategic and tactical planning applications with integration to 3D models of buildings (BIM) or 2D floor plans (CAD). IWMS is for more complex portfolios of buildings (often with both owned and leased buildings) with CAFM functionality plus robust financial capabilities (including FASB and IASB accounting). Technology is critical for the planning of moves back into the office for this phase: 1) new space plans based on different algorithms that look at various social distancing guidelines and new plans that take some desks/workplaces out of use when using those guidelines and 2) move management software which schedules the movement of workers back into the office. Either of these systems allow for whatever dance steps one has to prepare for to respond to changes in plans which are predicted to come in the next phase, like the virus is predicted to come back with a force again in the fall.
• BIM (Building information Model):  Many of us have been singing the values of BIM and the creation of ‘digital twins’ of cities (Singapore) and buildings (integrated with IWMS data) for virtual communication for management, workers, designers and clients, but the costs were more prohibitable until lately when we can now view BIM models on smartphones, iPads and laptops. Reduced costs and the hammer of forced isolation has made necessity the mother of invention and now we have to turn to BIM to understand the progress of both new construction and rehabilitation projects virtually as we no longer have the luxury of physically going to the site.
• CAD:  It is unlikely that the readers of this article are not using this tool for rendering as-built floor plans, and can be produced from a BIM representation.
• GIS (Geographic Information Systems):  These systems which most universities have implemented for campus maps, are perfect for understanding site conditions, transportation patterns and now, Coronavirus outbreaks and deaths/city, and treatment centers as depicted on a map.
• 3D and 4D Printing: These are being used today for everything from equipment to building parts to entire structures which could be useful if there is any problem with the supply chain delivering products due to interruptions in service because of the pandemic.
• VR/AR (Virtual Reality/Augmented Reality):  While the advantage of utilizing these technologies have been known for years as they allow a more visual understanding of a design concept or construction project, the cost is rapidly declining which should make including these tools more affordable to facility management professionals.
• Project Management:  As projects will increase in the next phase, this is the time to experiment with project management tools. This tool allows for the user to capture the critical data for every phase of the project for reduced risk, better scheduling and more informed decision making.
• IOT (Internet of Things):  Sensors can be applied throughout the workplace for inventory management, utilization tracking, waste reduction, remote monitoring; or workforce badges can be utilized for tracking and monitoring collaboration (if permitted by law/and/or the individual.
• AI/ML (Artificial Learning and Machine Learning): These technologies can be utilized for advanced planning, water management, building maintenance, lease abstracting, fault detection and parking assistance.
• Drones: These flying ‘creatures’ can be utilized for hard to reach facility condition assessment, inspections of remote site locations, monitoring construction projects, delivery of supplies or equipment and aerial views of projects at any stage of construction, as well as security.
• Robots: currently serve as security guards, delivery assistants, janitors, as well as security guards.
• Facial/voice Recognition: By using biometrics (a person’s unique biomorphic trait like face, eyes) instead of physical items for access which could replace cards or physically touching a surface during this time of virus transmission. Also consider voice activation tools.
• Infrared Fever Screening System: this was developed by the Singapore government during the SARS epidemic at the turn of the century and recommended by Gensler in a recent webinar which was recorded on the IFMA website (#5), www.ifma.org.
• Large TV-like Screens: Since Social Distancing will most likely not encourage “drop bys” to see what other people are working on, large screens could be placed in a central location which project images of projects that teams or individuals are working on.  These were used in a NYC media firm’s work environment very successfully.

The next article in this series will focus on the ‘Recover’ stage. If you have an immediate need to address the unique workplace planning and management challenges COVID-19 has created, please contact the MRI Manhattan team for a demo or more information.

The post Respond: The dance steps required today before we return to the workplace appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/covid-19-commercial-rent-collections-data-from-april/ Thu, 07 May 2020 21:50:39 +0000 https://www.mrisoftware.com/?p=27351

When it comes to rent payments, how is the commercial sector faring in comparison to the residential sector? My colleagues and I have been busy gathering this data, and the differences are striking. According to the NMHC Rent Payment Tracker, which includes statistics from MRI, 91.5 percent of professionally managed apartment households in the U.S. … Continued

The post COVID-19 and commercial rent collections: A look at the data from April appeared first on MRI Software.

]]>

When it comes to rent payments, how is the commercial sector faring in comparison to the residential sector? My colleagues and I have been busy gathering this data, and the differences are striking. According to the NMHC Rent Payment Tracker, which includes statistics from MRI, 91.5 percent of professionally managed apartment households in the U.S. made full or partial rent payments (as of April 26th). Contrast this with the data we compiled from 900 commercial and retail users of our property management software, most of whom are based in the U.S. Our data showed that within this pool, only 73 percent of commercial tenants paid their April base rent.

Below are more details on our commercial findings:

• Retail is the biggest pressure point – only 56% of retail tenants paid their base rent during April. That’s an improvement over the mid-month figure of 48%, but a long way from the March total of approximately 91%. If we needed any more evidence that retail is suffering, we have it.
• 81% of office and other commercial tenants paid their base rent in April, which is significantly higher than the retail percentage and a decent jump from the mid-month percentage of 70%, but significantly lower than the March percentage for office/other commercial, which was approximately 92%.

Response from landlords

Yes, the findings are disheartening. But the situation has inspired a new level of cooperation and communication between landlords and tenants. Property managers across all sectors are evaluating alternative methods to address the gaps in payments. We’re seeing creativity and accommodations across the board.

For example, my colleague Abe Somani, who oversees MRI’s AI-powered Lease Intelligence solution, notes that landlords and tenants are negotiating a range of rent relief agreements. Among the U.S. landlords who use MRI Lease Intelligence, examples include:

1. Allowing non-payment for 3-4 months and spreading out the accumulated balance over the remaining life of the lease.
2. Allowing non-payment for 3-4 months and adding the accumulated balance as a bullet payment at the end of the lease (last month of occupancy).
3. Allowing non-payment for 3-4 months and extending the lease by another 12 to 60 months at a rate that is higher than the usual rent.
4. Allowing a 50 percent reduction in rent for 6 months and spreading out the remaining 50 percent across future payments after the 6 months and attaching it to last month of occupancy.

What’s next

At MRI, we anticipate increased communication and negotiation between landlords and tenants. This is why we added new features to our commercial property management solution to enable deferred payment agreements in which balances due are spread over future periods. Flexible proptech solutions give organizations the ability to adapt more quickly and operate with more agility as we face the continued uncertainty of COVID-19.

The data on May payments will be telling. If businesses receive funding through the Paycheck Protection Program or other emergency loans, they should be better equipped to pay rent. And as states allow retailers to reopen, revenue-generation can restart.

Whatever happens in the short-term, there’s no doubt that the traditional office and retail models will shift in the long-term. Companies are already hinting at moving away from high-density offices and crowded co-working facilities. They will likely allow more teleworking, which would – in turn – reduce their space requirements. Customers are likely to continue relying on e-commerce rather than in-store visits, at least for the immediate future. Landlords may be more inclined to consider pop-ups in their retail spaces.

In the short-term, my team will continue to track the data on commercial rent payments, starting with a mid-May update and another end-of-month wrap-up in early June. And the NMHC partnership is going to issue new data on residential payments on May 8th and periodically over the upcoming weeks. Future developments in both the commercial and residential sectors may come down to basic considerations of wants versus needs. People need shelter. Many businesses don’t necessarily need office space. But another segment of commercial is retail, and retailers that can’t support sales with e-commerce need an in-store presence. Therefore, we expect rent to remain a priority for residential tenants and bricks & mortar retailers – if they can afford to pay. It’s hard to predict exactly what will take place, but the forthcoming comparisons of data on sectors and sub-sectors should be enlightening.

In the interim, I invite you to check out MRI Software’s COVID-19 resources, where you can find more information and insights from us and from our partners. We have faith in the future of commercial real estate, and we will continue to provide tools to make that future a bright one.

The post COVID-19 and commercial rent collections: A look at the data from April appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/multifamily-pl-under-pressure-what-to-consider-2020-reforecasts/ Tue, 05 May 2020 20:35:01 +0000 https://www.mrisoftware.com/?p=27340

As we enter May 2020, the multifamily industry has largely adapted to new operating conditions and is running properties under some semblance of normal. With operational adjustments in place, it is time to focus on running the business, dig into the potential fiscal impacts of the pandemic, and assess how to adjust 2020 operating plans. … Continued

The post Multifamily P&L under pressure: What to consider for 2020 reforecasts appeared first on MRI Software.

]]>

As we enter May 2020, the multifamily industry has largely adapted to new operating conditions and is running properties under some semblance of normal. With operational adjustments in place, it is time to focus on running the business, dig into the potential fiscal impacts of the pandemic, and assess how to adjust 2020 operating plans.

Budgets are typically set in the fall and, at the time, 2020 looked to be a continuation of the 10-year expansion which brought steady job growth and an increased demand for housing that fueled steady rent growth. As we settle into the current reality, the budgets set in the fall of 2019 are under pressure due to the impacts of COVID-19. Revenue plans will be a challenge to achieve and expenses are sure to increase in certain categories, requiring a complete reforecast to set realistic expectations for the remainder of 2020.

Multifamily owners, operators and managers should consider the following potential impacts as they formulate revised 2020 forecasts.

Revenue Impacts

In December of 2019, the NAA published their 2020 Apartment Housing Outlook, which forecasted 2020 occupancy between 93.6% and 95.5% with rent growth between 2.3% and 2.7%. 2021 was predicted to be similar, albeit slightly reduced, for both occupancy and revenue growth. Occupancy is achievable but revenue growth will feel pressure on many fronts.

There are several forces working against 2020 planned revenue numbers, and these elements are amplified due to the proximity of macro-economic challenges to the start of the traditional leasing busy season.

• Market pricing, lease terms and lease concessions – As leasing traffic is slowing, prices will likely soften and concessions will become more widely utilized, adding to downward pressure on revenue. If new lease terms lengthen, lower pricing today will also yield lower revenue into 2021.
• Corporate and short-term rentals – With business and leisure travel at a halt, the demand for housing from these channels has ceased, creating additional availability contrary to plan. A combination of shorter lease terms with furnishings, as typical for these units, makes revenue variances greater than standard market rate units.
• Increased renewal rates – As more residents accept renewals to reduce personal uncertainty, the opportunity to lease units at typically higher market rates drops. Longer renewal terms will further delay opportunities to achieve market rates. Concessions given as part of renewals are also likely to increase. An overall increase in renewals goes against the typical assumption of market rate v. renewal mix in revenue projections, leaving a shortfall to plan.
• Waived fees – Typically, fees are collected for several reasons each month. Late fees, settlement fees, lease break fees, and credit card fees, largely being waived in the current moment, will drive an unplanned variance to what was previously budgeted.
• Amenity revenue – With common areas and amenity spaces closed, regular or usage-based fees associated with those spaces are evaporating, adding to downward revenue pressures.
• Guest revenue – Revenue driven by non-resident usage of community features, like gyms and parking, will drop greatly due to closures and shelter-in-place orders.
• Rent collection – While NMHC data through April shows strong rental payment volumes, off only a few percentage points from normal times, May is expected to provide more headwinds given increased unemployment rates and pace of governmental assistance. Payment agreements are deferring collections into future periods where residents are being proactive and eviction moratoriums are preventing action on residents that are not fulfilling their obligations.

One potential upside for revenue may be found in storage unit demand as residents find the need to declutter and free up space as a result of sheltering in place.

Operational Expense Impacts

In September of 2018, the NAA did a survey of operational expenses, and we will use that framework for a look at expenses areas.

We can expect a number of expense categories to increase simply because a higher population of residents are at home full-time. This will drive increased usage patterns that will cascade through multiple operating expense areas.

• Repairs and Maintenance: Wear and tear of appliances (e.g. dishwashers), fixtures (e.g. toilets), flooring, and heating and cooling systems will increase, accelerating mean time to failure. Cooling usage compounds with the coming summer season. Depending on individual accounting practices, some of these items may be accounted for as capital expense as opposed to operational expense. Light bulb, filter and other replacements will also increase with higher usage. Costs for cleaning and disinfecting common areas will rise due to increased frequency and tighter standards. Turn costs will decrease, as turn volume decreases, providing some offset to increased wear and tear costs.
• Utilities: While sub-metered properties are well positioned, those using RUBS or including utilities in rents are at risk for resident complaints (RUBS) or increased costs.
• Insurance: While not an immediate impact, policy premiums are at risk for increases as more residents are on site nearly full time, increasing the opportunities for claim volumes beyond standard levels.

Marketing

Social distancing and shelter-in-place orders are the norm, and as such, potential residents have had to leverage digital channels more than ever. Further, self-guided tours, much the talk of recent industry events, has really found a place in a leasing process changed by social distancing. Similarly, video tours, using a number of platforms, have also become a go-to option for showing a unit to a prospect. Better understanding lead source performance should allow for the redistribution of marketing funds across channels.

Adoption of additional technology will likely add to marketing budgets, and additional focus on the digital channel may increase costs for images, videos, 3D tours and drone flyovers. Additional expenders may also be experienced in the production of self-service maintenance videos for simple fixes residents can do on their own.

Administrative

With eviction processes delayed and more residents affected by the economic impacts of the pandemic, bad debt may grow, leading to higher than normal collections costs later in the year.

Technology costs may also increase if bandwidth improvements are needed and if new technologies are deployed to better enable socially distant business practices. In many cases, technology may provide efficiencies that alleviate costs elsewhere, or it might allow for a different deployment of staff.

Salaries and Personnel

Maintenance staff will likely see a change in the mix of their activity, with time previously spent on turn activity now focused on additional maintenance and cleaning. If leasing volume drops, adjustments can be expected in leasing staff or in commissions paid, providing some relief in the second largest area of expense. Alternatively, commission costs could increase to create additional incentives for leasing staff in an effort to drive higher occupancy.

Organizations that successfully manage their properties with smaller or less available staff, by leveraging technology to assist in daily operations, may choose to invest in more technology to transform their business. A less decentralized model, specifically as it relates to resident support, will lead to a net reduction in staffing.

Taxes

Property tax burden does not adjust quickly. Municipal and city tax incomes are sure to be under pressure as revenue from commerce, hospitality, dining, entertainment and even parking have greatly slowed. This will eventually cause cities and municipalities to look for additional revenue.

In addition to the expected changes in operational expenses, capital expenditures will also be impacted.

Capital Expenditures

We can expect that many discretionary capital projects, like renovations and upgrades, will be put on hold, helping organizations conserve cash. At the same time, some new projects may emerge:

• Investing in a contactless move-in capability, including digital locks and building access systems. Modernizing building access and extending it to include new residents will further ease the leasing process and move-in logistics.
• Retrofitting for package delivery at a property or unit level, including provisions for cold and hot storage for food. While package lockers, rooms and delivery services have gained traction, changing resident behaviors will drive further adoption with some properties requiring direct resident deliveries.
• Conversion of amenity spaces, in light of behavioral changes, driving demands for different space utilization.

All these elements, and plus others not mentioned, will lead to clear pressures on revenue achievements and likely increases in expenses, resulting in material variances against the plan of record for 2020. Multifamily owners, managers and operators should quickly assess these impacts and provide a reforecast of 2020 to their stakeholders in order to reset expectations. Reforecasting, a corporate muscle not exercised since 2009, should continue until clarity is achieved on the macro-economic condition and the downstream impact on each property.

The post Multifamily P&L under pressure: What to consider for 2020 reforecasts appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/commercial-rent-payments-decision-time-landlords-tenants/ Mon, 04 May 2020 20:49:21 +0000 https://www.mrisoftware.com/?p=27336

The month of May 2020 finds many commercial landlords and tenants stuck between a rock and a hard place. The need to mitigate business risk resulting from COVID-19 is front and center, and decisions regarding expenses, cashflow, and operating costs can no longer be delayed. During April, many landlords and tenants were looking forward to … Continued

The post Commercial rent payments: Decision time for landlords and tenants appeared first on MRI Software.

]]>

The month of May 2020 finds many commercial landlords and tenants stuck between a rock and a hard place. The need to mitigate business risk resulting from COVID-19 is front and center, and decisions regarding expenses, cashflow, and operating costs can no longer be delayed.

During April, many landlords and tenants were looking forward to receiving capital from government programs such as Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL), and they kept an eye on their respective state’s plans to reopen. Tenants behaved in a variety of ways during the month – some paid the rent, others asked for deferment, abatement, other agreed-upon options, or remained silent.

The month of May will bring tougher challenges and complexities. Many businesses will get their PPP/EIDL or figure out alternatives to ensure their own business continuity. They may still ask for forgiveness in May, but if their state has officially re-opened, their legal claim to abatement may be nonexistent, especially if they have received government funds. Will May 10th be a day of reckoning, as most rents will be due at the end of a 10-day grace period?

Leverage the lease to determine negotiation options

In terms of payments, the month of May represents a turning point where conversations between landlords and tenants begin in earnest. Landlords deal with delinquent tenants and decide whether to forgive, or send them packing. Tenants explore the types of protections they can receive based on their lease – if their state still allows them to utilize the space.

Landlords – If your tenants have not paid, you may need more insight on your lease terms to understand what rights you have during a negotiation.

Tenants – If you plan on asking for continued forgiveness or deferment, ensure that you’re in compliance with your lease. Understand your risk of getting kicked out, especially if your state has re-opened.

While both parties have different motivations and challenges, they have one thing in common: the lease is the governing document that forms the basis of negotiations and legal assertions.

Identify lease liabilities and exposure

Landlords and tenants need to review the lease thoroughly to determine liabilities and exposure. Before any legal work begins, important items in the lease need to be identified. These include, but are not limited to: condemnation, force majeure or act of god, SNDA, casualty, damage and destruction, co-tenancy and go-dark provisions, deprivation of services, late fees, notice of default & right to cure, beyond landlord’s control, constructive eviction, breach of covenant of quiet enjoyment, right to injunctive & equitable relief, and many more.

Uncover lease insights with smart OCR

Since time is of the essence, commercial landlords and tenants need to focus on evaluating their options and making decisions, instead of spending days reading through complex lease documents to find relevant clauses. Traditional lease abstraction involves manual search of key clauses across leases and other contracts, which takes up valuable time and has a high risk of error. MRI’s Lease Insights solution leverages smart optical character recognition (OCR) to quickly and accurately uncover lease data, identify key clauses, and save significant time.

At MRI, several of our clients are using Lease Insights to determine the best way forward for their business. Here are some negotiation options being offered by US landlords that use the solution:

1) Pay no rent for three to four months, and spread the accumulated balance out over the remaining life of the lease

2) Pay no rent for three to four months, and the accumulated balance is added on as a bullet payment at the end of the lease (last month)

3) No payment for three to four months, but the lease is extended by another 12 to 60 months at a rate that is higher than the usual rent

4) Pay a 50 percent reduction in rent for six months, with the remaining 50 percent spread out or tagged to back end

5) Enforcement of lease terms, drawing on security deposit or line of credit, and then terminating the lease

Ready to start using MRI’s smart Optical Character Recognition (OCR) technology to search key clauses across your portfolio of leases and other contracts? See how you can get started today.

The post Commercial rent payments: Decision time for landlords and tenants appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/will-offices-be-same-after-covid-19/ Fri, 01 May 2020 07:00:19 +0000 https://www.mrisoftware.com/?p=27321

Earlier this week, Barclays boss Jes Staley admitted that the banking giant will be looking closely at how it uses its global office space, given the recent widespread shift to remote working. Perhaps his most telling quote: “The notion of putting 7,000 people in the building may be a thing of the past.” In a … Continued

The post Will offices ever be the same after COVID-19? appeared first on MRI Software.

]]>

Earlier this week, Barclays boss Jes Staley admitted that the banking giant will be looking closely at how it uses its global office space, given the recent widespread shift to remote working. Perhaps his most telling quote: “The notion of putting 7,000 people in the building may be a thing of the past.”

In a previous blog, we discussed some of the immediate impacts of the coronavirus pandemic on office workspace, and also considered some of the longer-term trends that might emerge. It’ll be no surprise that we suggested a potential rethink when it comes to the future use of central, large-scale corporate offices – but such a statement from the leader of a major, international organisation hints at that potential becoming a reality sooner rather than later. But, while it seems certain there’ll be change, what does that actually mean and what will be the wider impact?

Space as the new frontier

Across all types of real estate, particularly for businesses occupying large office portfolios, there’s going to be a huge focus on space management and the utilisation of space. This will come to the fore in two main areas – how occupancy can be optimised to better control and even reduce costs, and the best possible allocation of space for health and safety purposes. But, let’s be clear, we’re talking about the possibility of more than just a few tweaks around the edges. There could be some seriously significant shifts here, driven by open, innovative and out-of-the-box thinking as to how office space is occupied – or redeployed entirely. In the last couple of months, we’ve seen that it’s possible for various organisations – even large multinationals like Barclays – to run at something close to usual capacity and output despite their teams being at home. Now that method has been somewhat ‘proved’, and given that COVID-19 will continue to impact all of our lives for some time to come, having teams spread across various locations (whether smaller offices or even their homes) with remote-working capabilities may well become a new normal.

A geographic rebalance

For the purposes of this blog, let’s accept the premise and say that there is going to be a wholesale move by companies away from huge office complexes with thousands of employees in one place, to a setup that is much more dispersed. That would have deep social and cultural implications, fundamentally altering the makeup of our communities – particularly in large cities. Struggles in the retail sector have drastically altered the landscape of those urban centres in recent times anyway; if offices also move out of those areas then the effects could be seismic.

But, it’s by no means all doom and gloom, because where there’s change, there’s opportunity. Here at MRI, our own research has demonstrated a widely held view in the industry that empty retail space could be transitioned to residential – could it be the same case for offices? And what of large office campuses on the outskirts? Were organisations to move away from these locations, could they be turned into facilities for last-mile services and logistics, perhaps? There’s also an impact on the residential sector to consider – because if more people are going to work from home more often it will undoubtedly affect where they want to live and will almost certainly change their priorities in terms of what they want from their homes and the amenities nearby. In smaller pockets these are not completely new trends, but we haven’t yet seen them emerge industry wide. If we take Barclay’s thinking as a barometer, then we could be on that precipice.

Collaboration (and technology!) will be key

Another question – and an important one – what will landlords do? If the way businesses occupy office space changes then those that own, operate and invest in it will need to consider their approach. This is where ‘opportunity’ is the optimum word. Landlords that are flexible, those that are willing to listen to the needs of their tenants and work with them to provide space that meets their needs, will have the best chance of maximising occupancy – and therefore revenue. Those that don’t, won’t. Not a ground-breaking realisation, but one that will definitely be heightened in the changing and challenging environment. Where today’s organisations have an advantage that previous generations didn’t when navigating such deep-seated change is in their use of technology. Digital innovations for space planning, online forms of communication and the power of software to process and interrogate huge swathes of data should, if harnessed correctly, make for better-informed and smarter decision-making than has ever been possible before. To achieve a truly collaborative approach, and to effectively manage the sorts of strategic decisions that both landlords and tenants may choose to make or be forced into, then technology will be a non-negotiable option.

For more insights, opinions and resources related to the COVID-19 pandemic, visit one of MRI’s regional content hubs: North America, EMEA, APAC.

The post Will offices ever be the same after COVID-19? appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/best-features-mymri-client-portal-youre-not-using/ Thu, 30 Apr 2020 12:00:14 +0000 https://www.mrisoftware.com/?p=8951

Clients of MRI Software are equipped with powerful tools that may not always get the attention they deserve. We’ve decided to break down the details of some of our most useful tools in the myMRI Client Portal. Make sure to visit the myMRI Client Portal today to experience our newly released, streamlined interface! The myMRI Client … Continued

The post The Best Features of myMRI Client Portal You’re Not Using appeared first on MRI Software.

]]>

Clients of MRI Software are equipped with powerful tools that may not always get the attention they deserve. We’ve decided to break down the details of some of our most useful tools in the myMRI Client Portal. Make sure to visit the myMRI Client Portal today to experience our newly released, streamlined interface!

The myMRI Client Portal includes features such as:

• Reporting and Dashboards – View your case activity at a glance on the home page with our real-time Support dashboards.
• Our Chatbot Leo – Looking for the answer to a quick setup questions or maybe you have received an error when running a report? You can interact with Leo to search through our existing self-service library of resources or if you cannot find what you are looking for you will may be prompted to open a support case with our team.
• Knowledge Articles – If you have any questions regarding the functions of the software or how to perform a task, there are over 2,500 knowledge articles to help you through your questions. You can sort and filter these articles by product family, generate PDFs, and share with your colleagues.
• MRIFLIX Support Videos – View our library of client support videos designed to help you find the answers to frequently asked questions. The support team at MRI Software analyzes all of the data from our support cases selects the most common support requests. We have 220+ videos available for clients to get the support they need, without having to call their support team. These voice videos are paired with screen captures, making it simple for you to answer your questions and get on with your day.
• Support Cases – Through the portal, clients are able to submit support cases, view the status of cases, and see the history of previous cases. This is also a great place to interact with your support team.
• Product Documentation – Find user manuals, release notes, system requirements, and more.
• Incident Reports (IRs) – The IR section allows users to view IRs submitted by themselves, or by MRI. Users now have the ability to view the status of IRs in real with estimated fix times.
• Product Ideas – Help make our software better by sharing your ideas with our product management team. Users can submit their own enhancement requests or vote on other ideas submitted by the community.

MRI’s client portal aims to provide clients with the support they need to leverage their MRI solutions in a way that best suits their business. If any client has questions, they’re also free to contact the support team for additional assistance.

The post The Best Features of myMRI Client Portal You’re Not Using appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/three-rs-commercial-tenant-communication-property-managers/ Wed, 29 Apr 2020 20:04:25 +0000 https://www.mrisoftware.com/?p=27226

March 2020 was a month none of us are likely to forget. As the COVID-19 outbreak continued to spread around the world, all of us were confronted with a flood of information on a daily basis. In many cases, these communications focused on travel restrictions, closures, and other precautions that we should take against the … Continued

The post The three Rs of commercial tenant communication for property managers appeared first on MRI Software.

]]>

March 2020 was a month none of us are likely to forget. As the COVID-19 outbreak continued to spread around the world, all of us were confronted with a flood of information on a daily basis. In many cases, these communications focused on travel restrictions, closures, and other precautions that we should take against the virus. When information is communicated efficiently, it has the power to change the behavior of billions of individuals across the world.

At the same time, communication within our smaller, local communities remains extremely important as information changes and evolves daily, if not hourly. The ability to quickly and easily reach large groups of people with a specific message has never been more of a requirement. And, this is certainly the case as we consider commercial real estate and the relationships we have with our tenants.

Commercial tenant communication

Traditionally, communications between landlords and tenants have fallen under the umbrella of ‘planned communications’. Property events, preventive or planned maintenance, billing or policy notices, or work order requests are common examples. Occasionally, more urgency is needed – power outages or water main breaks can have a significant impact and require a rapid response. While each touch point serves a different purpose, it’s clear that information delivered in a timely and transparent manner benefits both the landlord and tenant and helps solidify the ongoing relationship between the two.

So, if improved commercial tenant communication benefits both parties, how can today’s modern property owner or manager build and execute a productive communication program to drive tenant satisfaction? The most effective plans have common elements that can be distilled down to the three Rs: Reliable, Relevant and Rapid.

Reliable – Establishing relationships begins with open, honest and transparent communication that tenants can count on to make decisions about their own operations. These communications should continue through the entire course of the lease, not solely during the sales process or around renewal time. Messages should be delivered consistently across a variety of channels so that important information isn’t missed.

Relevant – Today’s tenants are constantly bombarded with messages – from customers, vendors and their landlords. To break through the noise, landlords should focus on delivering personalized messages that directly impact specific tenants and filter out others for whom the information doesn’t apply. Relevant messages are far less likely to be missed or ignored when not buried in a pile of general or unimportant messaging. You might even consider different channels for different notifications – text, email and voice messages can all play a role in reaching your tenants and extending that personal touch.

Rapid – Empowering commercial property managers with tools at their fingertips removes friction from the communication process. With a variety of channels to choose from, they are able to deliver the right message to the right recipients in a timely manner. This need is emphasized when information is time-sensitive and notifications must be distributed immediately.

Utilize tools to get the word out

As mentioned above, using multiple channels of communication to get the word out is critical, but this can put a great deal of stress on the property management or facilities teams. With a tool such as MRI Tenant Communications, your team can easily record voice messages and distribute them to select groups, while at the same time craft SMS and email messages to ensure delivery. But it isn’t simply the outgoing process that should be efficient – receiving feedback on the messaging is important, too. A productive communications tool should provide reporting features that help the property manager understand how a message was received so that future communications can be improved. Additionally, MRI Tenant Communications enables recipients to answer questions and provide status updates back to your team. In this way, the communication loop is closed and building management and tenants can send and receive important information as effectively as possible.

The fourth “R”: relationships

While the three Rs provide a framework for a communications plan, the ultimate goal is to achieve the fourth R. Establishing reliable, relevant and rapid communications creates an openness and trust that strengthens the relationship between landlord and tenant, opening the door to mutually beneficial business strategies that can last for years to come.

Watch the webinar to learn more about effective communication for commercial property managers.

The post The three Rs of commercial tenant communication for property managers appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/new-proptech-features-combat-uncertainty-created-by-covid-19/ Tue, 28 Apr 2020 11:59:32 +0000 https://www.mrisoftware.com/?p=27160

The COVID-19 pandemic has introduced tremendous uncertainty into the the economy. From determining how essential and non-essential business will operate and take steps to re-open, there isn’t a clear path to navigate. As the impact continues to expand throughout the multifamily and commercial real estate sector, thoughtful and responsible action will be required to support … Continued

The post New proptech features to combat the uncertainty created by COVID-19 appeared first on MRI Software.

]]>

The COVID-19 pandemic has introduced tremendous uncertainty into the the economy. From determining how essential and non-essential business will operate and take steps to re-open, there isn’t a clear path to navigate. As the impact continues to expand throughout the multifamily and commercial real estate sector, thoughtful and responsible action will be required to support landlords, residents, tenants and clients.

As our MRI Software team looked at market conditions, spoke with clients and evaluated our solutions, we were able to identify some specific ways we could help. The team focused on how to surface relevant information to support decision making, track significant changes in tenant payment agreements, and even enhance communication with tenants as conditions and directions change rapidly.

One of the most significant challenges that both Residential and Commercial property owners face is balancing the occupancy of their spaces with their residents’ and tenants’ abilities to pay. As individual business conditions changed, these owners and managers are often negotiating alternative payment options with those tenants and residents. And, given how variable these agreements can be across a portfolio, they needed a way to track and process these new terms.

Deferred payment agreements

The deferred payment agreement feature in MRI allows the user to select the amount of rent and/or other charges to be paid by the resident or tenant at a future date based on the number of payments and frequency agreed upon between the management company and resident. Users can also choose the relevant deferment charge code to allow for transparent reporting between the accounting suites in the Commercial, Residential and General Ledger solution. Joining forces, team members from our UK and US offices worked together to develop a payment agreement feature that could be localized within the MRI Property Management solution.

New analytics dashboards

Information that is sourced from key metrics like Accounts Receivable volume or tenant retail sales numbers can provide a great deal of insight into the risk faced by an organization and their tenant base. Armed with this data, more informed decisions can be made and accounting, leasing and management teams can react more efficiently. To deliver this visibility, our Analytix team created the Advanced Retail Insights dashboard and the Accounts Receivable Insights dashboard to provide a view into this data. Since conditions vary across markets, the information can roll up to the portfolio level or drilled down to the property level. These dashboards can be implemented quickly and leveraged to support the business.

Effective communications tools

As this crisis evolves, there has been a growing need for communication from properties to residents and tenants. For timely messages regarding new procedures or updates to building or community operations, MRI has developed products and programs to ensure that the right automated communication tools are available during this time. Multifamily properties can quickly send messages to residents using our Callmax Automated Communications software. In addition, commercial property managers can leverage tenant communications tools to share information via text, voice or email.

With the focus of keeping employees and residents safe, we added capabilities for our clients to further define what constitutes an emergency service request and the ability to ask additional questions during the online service request submittal process. Additionally, to help limit the number of requests coming in, maintenance teams can create DIY videos to display in Resident Connect, the resident portal.

The business challenges that have come to light during this pandemic are far-reaching, so we have enlisted the experience of industry experts to offer recommendations and best practices. In our COVID-19 Resource Center, MRI clients can learn more about reforecasting budgets in a time of uncertainty, how to provide virtual tours, and send Callmax bulletin communications.

As we transition through different stages of this crisis, we anticipate that the only constant will be change. The MRI team is committed to enhancing and evolving our products to support the needs of our clients.

The post New proptech features to combat the uncertainty created by COVID-19 appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/calculate-fixed-asset-adjusted-depreciation-comply-with-federal-tax-changes/ Mon, 27 Apr 2020 17:23:04 +0000 https://www.mrisoftware.com/?p=27123

It can be a daunting task to keep up with the federal tax changes, especially when changes are made right at tax season. Yet in times like today, it becomes critical to take advantage of every opportunity to manage the value of the business’s assets and to maximize refund opportunities. In the TCJA of 2017, … Continued

The post Calculate fixed asset adjusted depreciation to comply with federal tax changes appeared first on MRI Software.

]]>

It can be a daunting task to keep up with the federal tax changes, especially when changes are made right at tax season. Yet in times like today, it becomes critical to take advantage of every opportunity to manage the value of the business’s assets and to maximize refund opportunities.

In the TCJA of 2017, an error was made when the legislation failed to designate “qualified improvement property” (QIP) as 15-year Modified Accelerated Cost Recovery Systems (MACRS) property. The CARES Act (March 2020), while primarily focused on COVID-19 relief measures, did take time to remove the error from TCJA 2017. The CARES Act now designates QIP as 15-year MACRS property, and assigns a 20-year life if an Alternative Depreciation System (ADS) is elected or required. Significantly, this amendment is made retroactive to 2018, as if originally included in TCJA 2017. As usual, there are some rules and tests that must be passed that will allow you to choose the correct path forward.

While many organizations would argue there’s never a “good time” for tax changes, it’s not hard to see how this particular economic situation would pose a unique challenge for companies looking to make these updates to their accounting processes. If there’s anything that we’ve learned from the ongoing COVID-19 crisis, it’s that governments and businesses alike need to be prepared to respond to whatever circumstances might arise, no matter how unprecedented they are. Organizations need flexibility in their software solutions and in their processes in order to quickly adapt to new changes, even those brought about in the 2020 CARES Act.

How MRI Fixed Asset Accounting software can help

Users of MRI’s Fixed Asset Accounting software are already equipped with the flexible tools they’ll need to accommodate these tax changes. It only takes a few clicks to set up the updated depreciation method (ADS), and with the much-awaited correction to TCJA 2017, now is a great time to do it. Whether elected or required, the application has the ability to change the useful life of the asset together with the option of applying the bonus depreciation to the newly Qualified Improvement Property (QIP).

Using existing depreciation calculations and selection criteria in the software through US Taxation Settings, assets can easily be updated to reflect the appropriate tax rule over the defined period of time.

From the point of view of a simple math calculation, MRI Fixed Asset Accounting is ready to do the work. The 100% Bonus Deprecation method is available for use during a defined date range and can recalculate the depreciation for the previous year.

Better yet is the ability to make changes to assets in mass. Using the Mass Set Bonus Depreciation feature. This feature is here to help reduce the time and effort it takes to manage a long list of assets.

Using your fixed asset accounting system to overcome the transition to new tax rules is easier when you’re using a flexible system designed to adapt to change. When used to its full potential, MRI Fixed Asset Accounting can be a key factor to helping your organization navigate through these uncertain times and prepare for whatever may come next.

The post Calculate fixed asset adjusted depreciation to comply with federal tax changes appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/helping-public-and-affordable-housing-weather-the-storm-of-covid-19/ Thu, 23 Apr 2020 20:00:16 +0000 https://www.mrisoftware.com/?p=27068

The COVID-19 public health crisis might be the greatest blow dealt to the American low-income housing industry in modern history. Our national housing ecosystem, serving populations with acute needs prior to the pandemic, is currently faced with obstacles that could take months or years to overcome. With the affordable and public housing industries across the … Continued

The post Helping public and affordable housing weather the storm of COVID-19 appeared first on MRI Software.

]]>

The COVID-19 public health crisis might be the greatest blow dealt to the American low-income housing industry in modern history. Our national housing ecosystem, serving populations with acute needs prior to the pandemic, is currently faced with obstacles that could take months or years to overcome. With the affordable and public housing industries across the country feeling the deep impacts of this crisis, we’re taking a look at how these sectors are struggling, what’s being done to help them, and what it will take to weather this storm together.

How COVID-19 affects public and affordable housing

As of right now, our low-income populations, many residing in the developments operated by MRI’s Affordable and Public Housing clients, are feeling the effects of the pandemic at a disproportionate rate. These struggles are not new for them – they’re just intensified by the pandemic. According to a report from the National Low Income Housing Coalition (NLIHC), almost 10 million low-income households were severely housing cost-burdened before the start of the pandemic, spending more than half of their income on rent.

The challenges facing affordable and public housing are even more pronounced when considering this article from Urban Institute, which points out that most low-income residents who have lost their jobs as a result of this crisis don’t have enough savings to cover rent for months to come. In 2018, nearly half (20 million) of all renters paid more than 30% of their income on housing costs and a quarter (11 million) paid more than half their income on housing. As of 2016, only one in five renters who qualified for and needed housing assistance received it.

What’s currently being done to help the industry

The unwavering commitment our industry requires during the pandemic is on full display at our affordable and public housing communities from coast to coast. Resource-constrained management and maintenance staff are working around the clock – helping residents practice social distancing, especially senior residents (the most vulnerable), maintaining constant communication with staff and residents, responding to emergency repairs, and endlessly disinfecting common areas – in addition to performing their normal operational tasks.

Stewards of Affordable Housing for the Future (SAHF), the nonprofit collaborative of thirteen multi-state nonprofit affordable housing providers, has launched a COVID-19 resource page to help resident services practitioners, and those directly working to meet resident needs, to access and share useful information, tools, and templates. The SAHF resource page was developed in large part to support property management staff and residents and to bring external resources to help practitioners operate during the health crisis. The list of SAHF COVID-19 resources include guidance for frontline staff and templates developed by SAHF members such as Mercy Housing and Volunteers of America, COVID-19 housing operations guides, and templates other operators can use for their communities.

At MRI’s Affordable and Public Housing group, we’re trying to do our part as well, helping our clients weather the storm by focusing on the products, services and resources they need the most to do their jobs. As many of our clients continue to work from home with the immense challenge of keeping their residents safe and healthy while continuing their normal operations, remote connectivity, electronic communication and automation are more important than ever. In response to these critical needs, we have shifted our focus to products that are of the greatest needs to the industry – SaaS migrations for hosting, Assistance Connect for resident and owner online communication, Callmax Automated Communications for emergency maintenance, package tracking and resident contacts.

What still needs to be done to protect affordable and public housing

We’re a technology and services provider in a network that relies upon a host of interdependent players – developers, builders, owners, property managers, investors, lenders, government agencies, lawyers, accountants, consultants and housing advocates, to name a few. No single part of the industry can possibly save the entire system, but each segment has an important role to play. As we help one another we can create a bright future for the low-income housing community.

How can we help to address these challenges? Some housing advocates are asking for additional commitment and coordination from all areas, including all levels of government. State and local government, for instance, can use the CARES Act’s funding flexibility to stabilize low-income renter households including offering rental assistance.

A long-term resolution to the issues plaguing the low-income housing industry (especially addressing the supply constraint), however, requires more. Although Congress may include policies in their next relief bill that would ensure renters can stay in their homes throughout this crisis, housing policy advocates are lobbying lawmakers to promote maximum housing stability by providing more funding for long-term rental assistance.

Affordable housing production also requires better support. The Affordable Housing Tax Credit Coalition and its partners in the ACTION Campaign are lobbying Congress to provide more short-term and long-term relief for the Low Income Housing Tax Credit program. The proposals include measures aimed at increasing the overall production of affordable units – one of the fundamental shortcomings of the industry pre-COVID-19 and likely to worsen if we don’t respond quickly and comprehensively.

As always, MRI’s Affordable and Public Housing group is proud to stand beside our clients and our industry, helping our housers any way that we can. To learn more, visit MRI Software’s COVID-19 Resources page.

“When I was a boy and I would see scary things in the news, my mother would say to me, “Look for the helpers. You will always find people who are helping.” – Fred Rogers

The post Helping public and affordable housing weather the storm of COVID-19 appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/finding-patterns-resident-communication-during-covid-19/ Wed, 22 Apr 2020 21:09:05 +0000 https://www.mrisoftware.com/?p=27014

In the multifamily industry, the third Thursday of any given month should be the definition of normal. Rents for the month have been collected and late payments have been handled, one way or another. Payments for the next month are still a week away. The weekend is coming, and with it, increased resident and prospect … Continued

The post Finding patterns in multifamily resident communication during COVID-19 appeared first on MRI Software.

]]>

In the multifamily industry, the third Thursday of any given month should be the definition of normal. Rents for the month have been collected and late payments have been handled, one way or another. Payments for the next month are still a week away. The weekend is coming, and with it, increased resident and prospect traffic. If any day should be able to represent the average day, it is the third Thursday of a given month.

With that in mind, we looked at key word analysis on broadcast messages sent from multifamily properties to residents and compared the third Thursdays of February, March and April 2020. These can also be thought of as before COVID-19, during the COVID-19 upheaval and after a period of adjustment to new policies and behaviors.

Before: February 20, 2020

Do you remember life before COVID-19? A quick headline search for this date reveals little out of the norm. The Democratic debates welcomed Michael Bloomberg to the stage, Sprint and T-Mobile revised their merger terms, the NBA returned from the all-star break and garlic prices were rising due to supply chain impacts from the coronavirus outbreak in China. All normal news, with only a tangential reference to the coronavirus. Given the normal state of the world at this moment, this date is a good example of typical communications between properties and residents. A word cloud depiction of text and email subject line content from that day is shown here.

As you can see, the tone, tenor and topics of February are mundane at best, as the word cloud is littered with words that evoke day-to-day operations – clearly depicting a typical day in the community.

During: March 19, 2020

The week of March 19, 2020 was a watershed moment as it relates to the COVID-19 pandemic in the United States. The impact of the virus was becoming quite clear: sports leagues had stopped, Saint Patrick’s Day parades had been cancelled, Spring break was scuttled and college students as well as K-12 children were sent home. Businesses began to determine essential from non-essential, and where possible, employ telecommuting. This was the week that the White House issued social distancing guidelines and property staff across the country quickly reacted, setting new policies and communicating with their residents. See the word cloud below:

As is visible from the above graphic, the most dominant key words were driven by COVID-19 and the impacts on property operations. Notifications of office closures, new hours and messages about changing package handling practices dominated the message volume and represent a clear view of an industry in transition in the midst of a pandemic.

After: April 16, 2020

April 16, 2020 yields insight into our current “normal” and the focus of property management on operations and resident care. This is not our new normal yet, as shelter-in-place orders remain and the economy is not fully “open.” We have, however, adjusted to the change from February to April, having settled into a new routine of property operations as evidenced in the following word cloud.

The word cloud from April 16 shows a substantial increase in messages regarding trash, a clear result of shelter-in-place residents creating more trash per day as compared to normal conditions. Messages about renewals and leasing also had drastic improvements, while package related messages saw a decrease. There were hardly any messages directly referencing COVID-19; in fact, it was overshadowed by messages about Bingo and other socially-distant social activities.

I must say that it is nice to see the word “please” appear in equal prominence across all three images. Thank you for that.

From the looks of it, things have settled for now, and apartment communities have regained a focus on traditional operations under new these new circumstances, the current normal. Change, unfortunately, is not over, as the economic impact on residents and the scope, scale and timing of an economic re-opening remains unknown.

Looking ahead

Regardless of what the future brings, communication between multifamily properties and residents is getting a lot more attention than usual. We’ve learned that the need to share information and provide guidance to communities can be a public health matter. In analyzing messages sent during this tumultuous time period, it’s clear that the industry responded quickly and continues to adjust as we search for the new normal.

The post Finding patterns in multifamily resident communication during COVID-19 appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/a-new-normal-uk-residential-sector/ Tue, 21 Apr 2020 07:00:04 +0000 https://www.mrisoftware.com/?p=26986

How does that saying go? The only certainty is uncertainty…? A sentiment we all associate with right now. ‘Business as usual’ is anything but – and we find ourselves in the strange situation of a ‘temporary normal’. But, while the light at the end of the tunnel may seem far off, enforced social distancing, mass … Continued

The post A new normal for the UK residential sector appeared first on MRI Software.

]]>

How does that saying go? The only certainty is uncertainty…? A sentiment we all associate with right now. ‘Business as usual’ is anything but – and we find ourselves in the strange situation of a ‘temporary normal’. But, while the light at the end of the tunnel may seem far off, enforced social distancing, mass remote working and the virtual shutdown of the UK housing market will eventually come to an end. Of course, the COVID-19 pandemic will have long-lasting effect – and rather than going ‘back to normal’, it’s becoming clear that we’ll all have to get used to a ‘new normal’. So, what might that near-term future look like for residential property managers and estate agents?

A digital-first strategy

It’s 2020. Tomorrow’s world is here today and technology is absolutely embedded in our everyday lives as consumers and professionals. Property managers have traditionally been seen as slow adopters of tech. I’d argue that’s changing, has maybe even changed already – but it won’t be a choice anymore. Businesses that haven’t adopted technology, those that see it as an inconvenient expense rather than a sound investment, will surely be left behind by forward-thinking operators utilising digital solutions to provide a better service and drive greater staff efficiency.

Customer relationship management

Going forward, it’s highly likely that we’ll see some limitations on face-to-face interactions, with encouragement to take appointments and meetings online where possible. There may be further periods of lockdown to prevent spikes in the virus that overwhelm our incredible NHS. And even without these measures, the current crisis will undoubtedly result in an initial natural reduction of in-person social interaction. Agents, operators and managers will have to find ways of attracting and retaining residents through online methods. Virtual viewings will surely become more popular, increased numbers of businesses will adopt digital tools for document storage and exchange, and prospects will expect to quickly and easily interact with companies online.

Self-service is THE service

Even if you can overcome the obstacles to bring new residents into your vacant properties, you’ve still got to find ways of maintaining the high levels of service they expect. The adoption of resident portals has grown significantly in recent years across the private rented sector, student housing, leasehold and the lettings industry. Portals can help maintain clear and consistent lines of communication with your communities, can help to build a sense of togetherness in your developments (the importance of which should not be underestimated right now) and, crucially, allow you to offer residents the option of raising maintenance requests or issues from the comfort and safety of their own home. Enabling online rent payments has many obvious benefits for customers in the context of social distancing, and it means you can potentially maintain a cashflow that might otherwise be restricted. With the right property management solution in place, you can also maintain full visibility and control of your operations if payments are being deferred.

These aren’t trends that have just emerged overnight. The demands and expectations of a tech-savvy generation of renters has been driving this gradual change in residential property management for half a decade or more. It’s now reached a critical mass.

We explored these topics in our recent webinar – Prioritising resident safety: What agents, operators and landlords need to consider in respect of COVID-19. The recorded version is free to download and available here.

A reminder also to existing MRI clients that the products you use can be leveraged for the requirements outlined here. We are here to offer our help, support and guidance as much as we can, so if you have questions or queries then our teams are ready and waiting to help.

MRI Sales & Lettings – a fully featured CRM solution for sales and lettings, with integrated property management and accounting.

MRI Engage – a web-based resident portal with self-service features such as maintenance requests and online payments.

MRI Qube PM – a widely adopted and adaptable property management software, with deep capabilities in block management, PRS and other residential sub sectors.

MRI Property Management X – an enterprise-grade residential suite that provides an end-to-end offer for the evolving UK Build-to-Rent market.

And all of our resources related to COVID-19 are available on our resources hub.

The post A new normal for the UK residential sector appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/navigating-uncertainty-real-estate-investment-management-software/ Thu, 16 Apr 2020 17:48:26 +0000 https://www.mrisoftware.com/?p=26967

The COVID-19 pandemic continues to create volatility in the market and impact the performance of real estate portfolios for investors, analysts, asset managers and fund managers. During uncertain times, Investment Management software and services can help MRI clients keep their finger on the pulse of change, stay in contact with investors and external stakeholders, and … Continued

The post Navigating uncertainty with real estate Investment Management software appeared first on MRI Software.

]]>

The COVID-19 pandemic continues to create volatility in the market and impact the performance of real estate portfolios for investors, analysts, asset managers and fund managers. During uncertain times, Investment Management software and services can help MRI clients keep their finger on the pulse of change, stay in contact with investors and external stakeholders, and make adjustments to new processes and needs. Below are some Investment Management software solutions that can help.

Deferred Loan Payments: Debt Management

As debt service becomes increasingly challenging amidst the economic impacts of COVID-19 and we continue to see dips in operating income across multiple asset classes, borrowers and lenders alike may consider deferring loan payments. For users of MRI Debt Management, adjusting or deferring scheduled payments becomes a simple administrative task – the ‘Adjustments’ tab in the Loan Details allows you to adjust or override any calculated principal and/or interest payments, as well as fees and escrow charges. It will also recalculate the new forward-looking amortization/payment schedule as soon as the adjustments are entered, so you can review your future commitments once operations return to normal.

Assessing Refinancing Opportunities

For years, users of MRI Asset Modeling and Fund Modeling have been able to leverage the refinancing tools in these solutions to identify ideal refinancing opportunities and assess the impact of refinancing on key performance metrics. However, you may not have realized that Debt Management can also be utilized to support these kinds of decisions, especially in the current climate of reduced interest rates. Loans can be copied on the Loan Contracts list page and then flagged as “Speculative” to indicate that they are not executed contracts. Such speculative loans can then be manipulated with different terms, interest rates, and other relevant parameters to allow you to assess the viability of a hypothetical refinance and how it might positively impact your cashflow, without impacting reporting over your in-place contracts.

Investment Accounting: AP and Corporate AR Integration

As offices are closed in response to public health guidelines, many of our clients are facing the predicament of not being able to print paper checks or do mailouts. Thankfully, users of MRI Investment Accounting can leverage its integration with the MRI Accounts Payable and Corporate Accounts Receivable modules to facilitate automated banking transactions for both the receipt of contributions and the payment of distributions.

Investor Communication: Investment Central and Investor Connect

While MRI Investment Central is best known for its Asset Management reports and workflows, it is important to remember in these challenging times that the system has robust CRM and communication tools to support the dissemination of information regarding changes in the key performance indicators of investor portfolios. The Investor Connect portal provides 24-hour access to investor-specific data, but email communications can also be automated with templates and workflow-driven triggers. This empowers Investment Managers to communicate portfolio performance to their investors and add insightful notes to aid in buy/sell/hold investment decision making.

Strategic planning tools

For real estate firms with larger portfolios consisting of assets in multiple classes, regions, and investment structures, reforecasting portfolio-level strategic plans and assessing sensitivity to a prolonged period of market volatility can be an extremely daunting task. Users of Asset Modeling and Fund Modeling can mitigate this challenge by copying their base case model and using portfolio level scenario wizards to flex assumptions like interest rates, market rents, capitalization rates, inflation rates, and more across the entire portfolio. Refinancing assumptions and acquisition/disposition/development scenarios can easily be layered on. Don’t forget that a scenario model can become the source for a subsequent scenario, so you may continue to build model upon model to stress your portfolio iteratively and push it beyond previous optimistic/pessimistic outlooks in light of these unprecedented times.

Learn more about MRI’s real estate Investment Management solution.

The post Navigating uncertainty with real estate Investment Management software appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/cinnaire-overcoming-adversity-covid-19/ Wed, 15 Apr 2020 19:20:32 +0000 https://www.mrisoftware.com/?p=26963

As the COVID-19 situation has unfolded over the past few months, businesses across the real estate industry have been faced with the need to swiftly respond to a rapidly evolving set of circumstances. Given the face-to-face nature of the industry, many organizations struggled to adopt work-from-home policies while still effectively serving their clients, constituents and … Continued

The post How Cinnaire is overcoming adversity in the face of COVID-19 appeared first on MRI Software.

]]>

As the COVID-19 situation has unfolded over the past few months, businesses across the real estate industry have been faced with the need to swiftly respond to a rapidly evolving set of circumstances. Given the face-to-face nature of the industry, many organizations struggled to adopt work-from-home policies while still effectively serving their clients, constituents and stakeholders.

Cinnaire is an MRI client that moved quickly to figure out what a “new normal” would look like amidst this crisis. The company planned its response long before much of the country went into lockdown, taking all necessary measures to protect its employees, clients and partners. Their response is an example of how communication, collaboration, and community can help an organization rise to the challenge that faces us all at this time.

An introduction to Cinnaire

Cinnaire is a full-service financial partner that supports affordable housing communities and economic development initiatives through creative loans, investments and best-in-class services. The company has an unwavering belief that all people deserve the opportunities provided by living in healthy communities, and as a part of their work, they match exceptional community investment opportunities with community-focused investors.

As a user of MRI Software’s Investment Central for more than 15 years, Cinnaire has been able to centralize their data and save significant time for fund managers. Boosting operational efficiency while maintaining data integrity has been crucial to Cinnaire’s ability to scale.

Business continuity in the face of change

When the pandemic first started affecting institutions and daily lives across the globe with shutdowns and closures, uncertainty spread fast. As many were trying to figure out what the next day would look like, the executive team at Cinnaire formed action plans to ensure business continuity and to stay focused on raising equity and closing deals. After reaching out to investors and assuring them that they’d be in constant communication, Cinnaire learned that investors were still looking for deals, despite the slowdown caused by the pandemic. The company has begun adjusting its financial expectations for the upcoming year but continues to stay the course.

Responding to adversity with the 3 Cs

In addition to external communications with investors and shareholders, Cinnaire has also taken steps to ensure the safety and continued productivity of their internal staff. Throughout the duration of this situation, Cinnaire has dealt with the challenges using a three-pronged approach.

1. Communication

During the week of March 9, identified by many as the tipping point of the pandemic’s effect on the US, the executive team of Cinnaire made the decision that all staff should prepare to work from home for the foreseeable future. Already equipped with the necessary technology and innovations that would allow their workforce to continue operating remotely, such as video conferencing built into their daily schedules, Cinnaire staff had several days to collect any remaining hardware to perform their duties at maximum capacity in their own homes.

The executive team also began taking the necessary steps to assure staff that even though they would no longer be in one centralized location, they would remain in constant contact about high-level decisions and other strategic communications. In short, Cinnaire made sure that their staff knew they’d be kept in the loop. In practice, these communications came in the form of a long-running and consistently updated Frequently Asked Questions document.

2. Collaboration

The Cinnaire executive team identified six high level questions critical to understanding the current industry environment and drafted a memo to keep staff updated. This was a fluid document that enabled leadership to address concerns surrounding the question, “How do these circumstances affect our goals?” and it was updated on a weekly basis. Instead of simply compiling this FAQ and sending it out to staff once, the executive team instructed each team leader to walk through the FAQ updates with their respective teams and report back with any results or issues.

Essentially, Cinnaire set up a clear chain of communication and feedback across the organization. The executive team would update the FAQ and team leaders would help the members of their teams understand the document and put it into practice in their week-to-week operations. If a team member had a concern or other valuable feedback, that feedback would travel back up the chain, from the team leader to the executive team. The feedback gleaned from the previous week’s updates would then be included in the next update of the FAQ. This clear workflow stream helped put staff at ease and has also helped them understand their place in the current situation.

3. Community

Lastly, Cinnaire has encouraged a sense of community and fellowship outside the confines of industry-related matters. Over the past several weeks, teams have been partaking in virtual happy hours in their own homes, encouraging only “non-work-related” conversation. They’ve also been using Yammer to establish a communal break room of sorts, where the marketing team creates regular challenges for the staff. These activities help keep staff engaged in a time when everyone largely finds themselves in a similar situation – stuck at home, but working to make the best of things.

These are uncertain times for organizations across the real estate industry. However, responding with continued work towards shared goals, communication between team members and leadership, and a resolve that we can get through this will help businesses across the industry overcome the challenges.

The post How Cinnaire is overcoming adversity in the face of COVID-19 appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/changes-in-multifamily-community-behavior-what-the-data-tells-us/ Tue, 14 Apr 2020 13:57:30 +0000 https://www.mrisoftware.com/?p=26951

The multifamily industry is closing in on the end of a month of change. Change driven by COVID-19 has touched everyone. Residents are staying home, in volume, unlike any time prior. Property offices have adjusted their interactions and processes to limit personal contact. To understand the degree of change that has taken place and its … Continued

The post Changes in multifamily community behavior: What the data tells us appeared first on MRI Software.

]]>

The multifamily industry is closing in on the end of a month of change. Change driven by COVID-19 has touched everyone. Residents are staying home, in volume, unlike any time prior. Property offices have adjusted their interactions and processes to limit personal contact.

To understand the degree of change that has taken place and its impact on residential leasing staff and property managers, let’s compare some data from March 30 – April 5, 2020 with the same dates in 2019.

Communication from Properties to Residents

Property staff are sending 28% more outbound broadcast messages, and the recipient pool has increased by 18%. This demonstrates more frequent communications to a broader audience.

This should not be a surprise as many onsite conditions have changed. Amenities have closed. Office hours have adjusted, and policies have changed. Staff is being proactive about rent collections and payment assistance plans and programs.

Given the current state of affairs, this is an indicator that property staff is doing a great job of increasing their communications to residents – a very appropriate response to the current crisis.

Inbound Call Volumes and Types

Inbound call volume to property offices is up by 39%, and the mix of calls is vastly different than normal. At a macro level, this increase is likely driven by residents replacing drop-in visits with phone calls.

The call mix has changed significantly, as shown in the table below:

Leasing Calls	↓24%
Maintenance Calls	↑208%
Emergency Maintenance Calls	↑17%
Courtesy Calls	↑524%
Emergency Courtesy Calls	↑8%
Other Calls & Messages	↑148%

Leasing Calls

The fact that leasing calls are down 24% is not a surprise, as a combination of economic uncertainty and stay-at-home orders both work to blunt demand in the current moment. This statistic is simply a realistic reflection of this point in time.

Maintenance Calls

Maintenance calls are up substantially (208%), and maintenance emergencies have also increased. With more residents at home full-time, it follows that routine maintenance volumes, as well as perceived emergencies, would increase. More people using things more frequently will lead to a decrease in the time between failure for wear items. Some residents may also simply be reporting things that could have been addressed sooner but are now of increased importance given changes in circumstances and space utilization.

This increase in maintenance volume comes at an inopportune time, as many properties have moved to emergency-only response in order to better protect employees and to promote social distancing. This policy change likely contributes to the increase in emergency requests as the caller makes the emergency designation.

Many property teams have adopted the idea of creating instructional videos that demonstrate simple fixes for common issues. These videos are posted to the resident portal so that residents can perform basic maintenance on their own.

Courtesy Calls

Courtesy Calls have seen a substantial jump, with a 524% increase. These call types are typically associated with lock-outs, visitors, packages and other items not explicitly related to leasing and maintenance. As stated earlier, with more residents at home for an extended period, it follows that there would be more non-specific requests for service, with some being of an urgent nature.

Adjustments in Process

Leasing offices are finding a new balance in activities while they adjust to new work patterns, strict schedules and social distancing. Based on the data, it is likely that some of the time once spent on leasing is now being spent on increased resident service. Honestly, given the circumstances, that is exactly what should be happening.

The data here is based on the activity of MRI clients using Callmax Automated Communications. This tool provides automated call management and helps staff engage with residents through multiple communication methods, including email, text, and phone. Resident engagement is always important, but crisis situations like the global pandemic provide insight into the true value of digital services to keep multifamily communities safe and running smoothly.

The post Changes in multifamily community behavior: What the data tells us appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/addressing-commercial-building-operations-concerns-workspeed/ Thu, 09 Apr 2020 15:18:54 +0000 https://www.mrisoftware.com/?p=26935

As the COVID-19 pandemic impacts different aspects of society at a rapidly changing rate, all businesses face the same crucial challenge: How to keep people up to date on the latest information. The commercial real estate industry has almost certainly felt the effects of this challenge. Retailers who have closed their doors and office tenants … Continued

The post Addressing commercial building operations concerns with Workspeed appeared first on MRI Software.

]]>

As the COVID-19 pandemic impacts different aspects of society at a rapidly changing rate, all businesses face the same crucial challenge: How to keep people up to date on the latest information.

The commercial real estate industry has almost certainly felt the effects of this challenge. Retailers who have closed their doors and office tenants running on skeleton crews are both in search of the most accurate information as to what you, the commercial building operator or property manager, are doing to keep their spaces and their employees safe.

Answering the constant stream of questions that may arise from both tenants and internal shareholders is not easy when no one is currently in a centralized location, but utilizing building operations solutions such as MRI’s Workspeed can help you communicate effectively with concerned staff and tenants. What follows are several types of questions that commercial building operators have been dealing with in this crisis and how best to respond to them.

External communications to and from tenants

On the whole, your tenants want to know how you’re going to help them protect their investments, from their assets to their lease agreements and their employees. This requires clear and thorough communication regarding the steps being taken to protect your commercial property.

What is being done to ensure that restrooms and other shared spaces are properly cleaned and disinfected?

Keeping tenants updated as to what measures are being taken to respond to the COVID-19 situation is as clear-cut as sending out a mass communication through Workspeed. In this message, you should make it clear that not only are you following CDC guidelines for sanitation and social distancing, but that you’ll also be monitoring those guidelines and responding accordingly when and if the CDC should update their protocols. You can even attach documents or handouts that can be distributed to your tenants or printed and posted in bathrooms or break rooms.

How will the building ensure that contractors and vendors are following appropriate social distancing measures?

Mass communications can be sent out to ensure that you and your service providers are on the same page, following the same set of guidelines. Tenants want to know that their own employees and assets are safe in your commercial property, which is why it’s critical to be monitoring who actually has access to the building. Workspeed’s Visitor Management tool allows you to keep track of who has access to the building, such as vendors, contractors, and other essential employees, and it lets you pre-register guests on a by-need basis. By keeping tenants informed on how you’re managing visitors, you can go one step further in assuring them that you have tight control over building security.

Internal communication with contractors and property staff

As commercial property managers can no longer communicate internally from a centralized location, keeping in touch is vital to ensuring that your organization remains consistent in its messaging and continues to run as efficiently as possible.

What steps are being taken to ensure that the property is still being managed effectively?

As mentioned earlier, you should be keeping your service providers in the loop as to what you expect from them as they continue operations in your commercial property. Commercial property management can also be effectively streamlined through Workspeed by submitting changes to building operations procedures, such as cleaning measures and preventative maintenance, through the recurring service request system. This system assigns tasks and tracks service the same way it tracks maintenance requests and then documents them to prove completion.

How will the property prepare for its eventual reopening?

While the circumstances are less than ideal to say the least, having a commercial property free of most occupants for the time being presents property managers with the opportunity to take on medium- or large-scale maintenance projects. You’ll have to balance worker safety and essential employee requirements, but if you have a handle on those, then big preventative maintenance projects, such as replacing air filters or upgrading capital equipment can be undertaken without intruding on your tenants business.

In these unprecedented times, it’s more important than ever for property managers and commercial building operators to be communicating with tenants and internal shareholders. By using Workspeed, you can keep your commercial property running and come out on the other side of this crisis in a better position to streamline efficiency. To learn more about how Workspeed can help you continue building operations in times of crisis, check out this webinar.

The post Addressing commercial building operations concerns with Workspeed appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/apartment-business-as-unusual/ Tue, 07 Apr 2020 19:22:42 +0000 https://www.mrisoftware.com/?p=26908

That happened fast. Business as usual got turned on its head and now we find ourselves in this new, yet hopefully temporary, normal that will surely yield a new normal. As of April 6, 2020, 45 of 50 states have total or partial Stay-at-Home orders in place (stay updated here) as part of the effort … Continued

The post Apartment business as (un)usual appeared first on MRI Software.

]]>

That happened fast. Business as usual got turned on its head and now we find ourselves in this new, yet hopefully temporary, normal that will surely yield a new normal.

As of April 6, 2020, 45 of 50 states have total or partial Stay-at-Home orders in place (stay updated here) as part of the effort to flatten the COVID-19 infection curve. This means that about 90% of the US population has been ordered to stay at home.

The depiction of the flattened curve, as shown above drives home the point that we can lessen the peak impact but, in doing so, we create an elongated tail, which will make getting back to business as usual an ongoing challenge.

In a recent post, I wrote that “The various applications of technology that we are suddenly using were not just invented. Instead, we have been slowly adopting them on our own terms, as our budgets would allow and where markets demanded. Now, suddenly, we are all in the deep end together, figuring it out and making it work, accelerating adoption.”

Accelerated adoption of digital services

Let’s dig in on the idea of accelerated adoption and highlight the technologies that, if you’re not already using them, should be explored to keep your operations digitally enabled. Evaluating and deploying these technologies as soon as possible will improve operational continuity in the short term while laying the foundation for a new normal down the road that will provide better service for prospects and residents and also drive greater staff efficiency.

Enabling socially distant business practices

Social distancing is the driver for process change, for accelerated technology adoption, and ultimately, more efficient properties. Let’s start with resident-centric processes and how technology can be used to simplify things for residents.

With social distancing, self-service is becoming the only service, and it is delivered via a resident portal. Resident portals have many features, which can be placed into two categories: features that provide self-service extensions of transactions and features that foster community and communication. With the current need for business continuity and technology adoption, let’s focus on two of the most prevalent self-service extensions: electronic payments and electronic service requests.

Collecting rent is a critical practice for ongoing operations. Many properties no longer accept cash. More and more are getting away from checks. Now is the time to convert your residents to electronic payments as the only payment method accepted, with options for ACH, debit card or credit card. Recurring payments can also be set up for ongoing resident convenience. Fully electronic payment processes provide a level of accuracy and security that will drive ongoing efficiency. They are also what more and more residents have come to expect.

Given current conditions, typical policies that only accept full payment and put constraints on credit card usage should be controllable by property management to better service their resident.

Service request submittal from a portal allows for collection of specific pieces of information (pending permission) and gets a request into the queue immediately, as opposed to it being noted by staff and entered at the end of the day. Residents will get a better response and staff will have less administrative work to do when service requests originate from the portal.

In addition to the frequent actions of payments and service requests, there should also be the ability to process renewals online. This allows residents to accept and execute a renewal offer without having to meet in person. This capability can extend though the digital execution of the paperwork, leveraging digital documents and signatures.

For MRI Software clients, we cover these needs with our Resident Connect, MRI Payments and Online Renewal products.

The lead to lease processes

The current environment for leasing has changed drastically. Leasing offices have quickly moved to appointment only or have closed. Virtual and self-guided tours continue to gain traction. Traffic patterns and volumes are changing, no clear patterns have emerged, and the duration of this crisis is unknown. As a result, the summer leasing season is sure to get off to a slow start. While technology will not solve the traffic volume problem, it can provide many useful tools for business continuity as you seek to attract and retain great residents.

In a time of reduced traffic, every lead matters. You must engage quickly, consistently and professionally, independent of how well your leasing function is operating. You should be using lead management software to ensure consistent tracking and full visibility of all leads. Keeping leads in a system of record will also allow for necessary reporting and analysis of traffic patterns, lead sources and agent performance so that operational practices can be tuned to the current situation.

With leasing offices having moved to an appointment-based model, providing prospects a method to self-schedule appointments is critical. Offering a self-service capability to schedule tours takes that work off the staff and allows the prospect to do it at their leisure. It will also place those appointments directly into the lead management system.

Leveraging a consistent set of content will allow you to inject new virtual tours and other digital media into the prospects’ leasing experience.

Once they are set to apply, online leasing tools become the next requirement for business continuity. Prospects should be able to fully complete their lease application online. They should be able to include roommates and guarantors as well as pets. They should be able to provide a form of payment for application processing. The process should be completed via the digital execution of the lease document and necessary addenda. Screening processes, behind the scenes from an applicant point of view, will continue to abide by scoring mechanisms as defined for the specific property.

For MRI Software clients, we cover these needs with our Prospect Connect, MRI Payments, Resident Screening and MRI Secure Sign products.

The current crisis has caused substantial change quickly. It has driven rapid adoption of technology and created opportunities to embrace it even more. In this moment, the multifamily industry can effect permanent change that will enhance customer service and make property operations strong and more efficient when things return to the new normal – what we will come to know as business as usual.

The post Apartment business as (un)usual appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/is-your-multifamily-property-accepting-flexible-payments/ Thu, 02 Apr 2020 19:18:58 +0000 https://www.mrisoftware.com/?p=26892

The following article was written by Jeff Jaussi, Vice President of Payments at MRI Software. With many of your residents staying in their apartments as a result of stay-at-home mandates or shelter-in-place orders, how will your multifamily property collect next month’s rent? Many communities have had to close leasing offices or not permit residents or … Continued

The post Is your multifamily property accepting flexible payments? appeared first on MRI Software.

]]>

The following article was written by Jeff Jaussi, Vice President of Payments at MRI Software.

With many of your residents staying in their apartments as a result of stay-at-home mandates or shelter-in-place orders, how will your multifamily property collect next month’s rent?

Many communities have had to close leasing offices or not permit residents or prospects to enter the premises in order to protect leasing office staff and follow the directives given by local officials. This abrupt change has altered the traditional interactions that leasing office staff have with residents and has created potential hurdles for accepting payments from residents and prospects.

Changes in resident payment behavior

While this recent and unforeseen challenge has changed how your leasing staff will collect payments, this isn’t an entirely new trend. Residents and consumers in general have slowly changed their buying patterns in favor of ecommerce transactions for many years now. Historically speaking, the only way to pay rent was to stop by the leasing office and write a check, or leave it in the drop box if it was after hours. However, this method of payment has been on the decline for years as more consumers embrace electronic payment channels. According to the 2019 Federal Reserve Payments Study, ACH transactions exceeded the number of check payments for the first time ever in 2018! Surely, this is a milestone that checks will never reclaim as more and more consumers embrace online payments. This is impressive, given that ACH payments only represented 5% of the check volume in 2000. There are many contributing factors that have influenced this change, including but not limited to the advancement and adoption of online payment options, demographic changes in our society and consumer demand.

Three payment options for multifamily properties

What options are available for residents to make payments beyond the traditional check and how can you encourage alternatives?

1. Online payments

Offering payments through your property’s website using a resident portal is the most convenient method to accept electronic payments. With an online presence, you’re able to accept ACH, debit and credit cards. Most residents prefer to pay their rent using their bank account, and this holds true even when residents move from a leasing office check payment to an online payment method. The next preferred option for residents is their debit card. It’s important to consider that while an ACH and debit card use the same account for funds, it’s the payment channels by which these payments are processed that differ, and thus the cost structure for each payment type is different. Lastly, don’t forget you will have some residents that opt to use a credit card to make their monthly rent payment. Why do some residents prefer to use a credit card? Some want to earn rewards points or airline miles; others are late payers that need to use the credit.

If you offer online payments to your residents, you do have the option to charge a convenience fee for this payment method. At first glance, this might sound enticing. However, it’s important to consider the trade-offs that come with convenience fees and how they impact online usage. Anytime a convenience fee is added to a transaction, cost-conscious residents will find a free option and more often than not, that means reverting back to the old checkbook. Most of you see the benefits of free online ACH and its more economical cost structure and offer this payment type at no cost to the resident. This is the preferred approach for most multifamily properties. Debit and credit are in another category given these payment types do carry a higher cost structure. Depending on your average rent, you might want to add a convenience fee for debit and credit cards to ensure you’re able to offset the cost of these more expensive payment types. The strategy you choose to implement will greatly impact the success you see with online payments.

2. Cash payments at retail locations

There is a segment of the resident population that are considered unbanked or underbanked. These two terms refer to people that don’t use traditional banks or credit unions to meet their banking needs. According to a Federal Reserve study from 2019, 6% of US adults fall into the unbanked category. If these adults are not using traditional banking services, how do they engage in financial transactions? They use money orders, check cashing services, payday loans and other options as an alternative to traditional financial services. The underbanked make up 16% of US adults and these individuals have a traditional bank account, but still use alternative financial services to meet their needs.

If you have a segment of residents that are unbanked or underbanked, how do you accept an electronic form of payment? These residents traditionally go to a retail location that can sell them a money order. The residents then need to return to the site office and have your leasing agents either scan this paper item or take it to the bank. However, there are electronic payment types available to these residents. Many of these same retail locations have partnerships with payments companies that can convert these cash payments to an electronic payment type. The good news is that many software vendors have relationships with these processors. This completely eliminates the need for residents to buy a money order and then take it to the leasing office for your leasing agents to process or take to the bank. While this payment method does require residents to visit a retail location, it does keep these payments out of the site office.

3. Lockbox solutions

For those of you with residents that can’t conform to online payments and prefer to use a traditional check, a lockbox solution can allow you to still accept paper checks and process them from a central location. Some software providers have an integration with a lockbox processor and can even post the amounts collected directly to your ledger. Generally, the reason some of you may opt to use a lockbox processor is due to the fact you don’t have a traditional leasing office, or you don’t allow leasing agents to process and post rent into your property management system. While this payment channel still requires someone to process a traditional paper check, it does eliminate the need for leasing agents to process the checks.

There are multiple avenues to collect rent from your residents outside of the traditional leasing office. How you implement one or all of the solutions outlined above will depend on the software vendor you’ve selected for your property management system. When choosing any potential vendor, it’s critical to focus on your desired goal. Your outcome should be a comprehensive solution that builds synergy with your systems and simplifies the experience for your leasing agents as well as your residents.

At MRI Software, we have a payments solution that was built specifically with our clients in mind. In fact, it was at the request of our clients that we offer a comprehensive payments solution that addresses their unique needs. Learn more about MRI Payments and how it can assist you in your property operations.

The post Is your multifamily property accepting flexible payments? appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/impact-covid-19-commercial-real-estate-future-office-workspace/ Thu, 26 Mar 2020 15:52:38 +0000 https://www.mrisoftware.com/?p=26839

The impact the COVID-19 virus is having on the commercial real estate sector is immense. We recently looked at how the pandemic is specifically affecting retail landlords and tenants, as they struggle in the face of self-isolation, social distancing and regional lockdowns. In this, the second installment in this two-part series, we look at how … Continued

The post The impact of COVID-19 on commercial real estate: Part 2 – the future for the office workspace appeared first on MRI Software.

]]>

The impact the COVID-19 virus is having on the commercial real estate sector is immense. We recently looked at how the pandemic is specifically affecting retail landlords and tenants, as they struggle in the face of self-isolation, social distancing and regional lockdowns.

In this, the second installment in this two-part series, we look at how the sudden change in work patterns is affecting the use of office space and the impact that will have on corporate property owners, operators and occupiers going forward. The blog examines what they need to understand to more effectively deal with the fallout from the worst global health crisis we have seen in the modern age.

New modes of working

Social distancing and remote working are being encouraged by businesses around the world, and for many it has become corporate policy. However, there are still a number of companies where remote working isn’t possible, for a variety of reasons, and the short-term action occupiers or landlords – whomever is responsible – need to take is making sure the regularity and intensity of office cleaning is increased and ensuring there are a number of sanitizing stations available to workers. Additionally, if any workers or visitors infected with coronavirus have been in the building then offices need to be closed down in order for a deep clean to take place.

For the companies where staff are working remotely, the current situation is likely already prompting them to rethink office space in the long run, questioning how they have previously utilized and occupied office space. Many modern offices are now open plan to help boost collaboration and encourage workers to socialize more, but it’s a double-edged sword because it means employees who are working closely together are more likely to transmit viruses between one another.

Assessing the new future for the workspace

As long as the COVID-19 crisis is having its current impact, the use of space and proximity of workers will have to be assessed and addressed in offices and other workplaces where people are still required to come in. Using data and technology to do this in the quickest, most accurate, effective way will be critical to organizations that need to move fast. On the facilities management side, having the technology to register and track which visitors are in a building when and for how long may also be critical to managing the number of people at a particular site at any one time and tracing any contact if that were to become necessary.

In the near term, landlords need to be prepared for tenants looking to break leases early, seek reduced rents or longer payments as the ongoing impact of coronavirus becomes clear. Many businesses are facing the possibility of having to reduce their workforces during the crisis, so landlords should look to work with these tenants to find alternative solutions that bridge the gap during the crisis.

Looking further forward, we are likely to see increased demand for things that will make open plan office environments healthier, like fans, filters, and dehumidifiers – and spaces that ensure people have enough social distance even in better times. We are also likely to see the trend toward working from home become a stronger consideration in workspace planning, as companies choose to provide more flexibility in this area on a longer-term basis. This may require greater flexibility within offices and other workspaces – and in the leases that occupiers seek moving forward.

Working together to ensure the future of commercial real estate

The COVID-19 pandemic is presenting the commercial real estate industry with unprecedented challenges and the best way to overcome them is to put in place plans for a worst-case scenario and hope it doesn’t come to that. Another key will be using the right technology to regularly create clear and consistent updates for investors, partners, employees and other stakeholders, which will help ensure their cooperation as businesses adapt to the rapidly changing conditions they are facing and prepare for a less turbulent future.

To come out on the other side of the coronavirus crisis as strong as or stronger than ever, landlords and property managers – whether dealing with retail properties or offices – need to work closely with tenants to find creative solutions; leveraging technology to understand your business situation in terms of leases and assets will be critical. The industry was already starting to recognize the importance of this type of collaboration, and the drive to survive the COVID-19 crisis might just push cooperation to a whole new level – and that can only be a good thing at the moment.

The post The impact of COVID-19 on commercial real estate: Part 2 – the future for the office workspace appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/impact-covid-19-commercial-real-estate-future-of-retail/ Thu, 26 Mar 2020 15:42:04 +0000 https://www.mrisoftware.com/?p=26838

COVID-19 is dominating the news agenda, and while the immediate effects are clear, the long-term impact is still very much an unknown – and that’s giving everyone in the commercial real estate industry reason to consider both the near- and long-term future. While under the current circumstance it’s difficult to predict what the commercial real … Continued

The post The impact of COVID-19 on commercial real estate: Part 1 – the future of retail appeared first on MRI Software.

]]>

COVID-19 is dominating the news agenda, and while the immediate effects are clear, the long-term impact is still very much an unknown – and that’s giving everyone in the commercial real estate industry reason to consider both the near- and long-term future.

While under the current circumstance it’s difficult to predict what the commercial real estate market will be like next week, never mind in six months’ time, there are steps investors, owners and corporate occupiers can take to prepare for likely eventualities. With the right planning and technology support they can help protect themselves and, just as vitally, their industry from some of the impact from this rapidly evolving health crisis.

In this, the first of two-part series looking at the impact of the coronavirus, we look at how the uncertainty caused by the pandemic is affecting a retail sector already in crisis – and what retail landlords and occupiers need to keep in mind as they navigate the accompanying business challenges.

The surge in home shopping

It’s no secret that retailers in shopping malls and main street alike have been facing intense pressure in recent years. Online only retailers, like Amazon, have leveraged the ease and convenience of technology to empower consumers to browse and purchase goods without having to leave their house. Already we are seeing ramping up to meet new home shopping demand spurred by the crisis, with the company hiring thousands in markets such as the UK and up to 100,000 in the US.

Coronavirus, which has spread across the world at unprecedented speed, is an additional challenge that retailers do not need. The need for “social distancing” and in some cases “self-isolation” is not only reinforcing shop-at-home habits but is spurring some people who’ve so far resisted online buying to try it – if only out of caution. What’s more, major brands such as Apple, Calvin Klein, Nike and Zara have closed stores worldwide temporarily.

The immediate impact of this is a significant loss of revenues, which in the longer term could lead to some staff being laid off and some physical stores being closed permanently, leaving more empty shop space. These are also popular brands that draw consumers to shopping malls and busy commercial centers in towns and cities, so those retailers that don’t close may suffer even more when popular neighbors close shop.

Taking action to reinforce retail on the ground

For now, retail occupiers will need to take stock of their situations – part of which will be assessing their leases to understand their options and restrictions. Are there clauses for breaks or rent holidays or tying rents to turnover they might need to be aware of and leverage? They may also need to take a deeper dive into their data to assess where they can manage with fewer staff, where they might close stores temporarily for now and where they might want to focus efforts when we eventually come out of the current crisis.

And for their part, what can landlords do? Those that want to keep their tenants in place will need to work with retailers to come up with creative solutions that will allow tenants to maintain operations and survive the current crisis. Landlord also have to understand their own property and lease portfolios and be aware of which clauses tenants might invoke and what they as owners and operators need to do to ensure they comply with all their obligations.

Flexibility on the landlord’s side may be crucial, as retailers will likely be looking for lower rents and longer payment periods to help offset the long-term effects of coronavirus. However, landlords could negotiate arrangements that allow them to recoup some lost rent when the economy rebounds — this can be through an agreement to peg rent to a percentage of revenue or a profit-based approach.

No matter what retail property owners, operators and occupiers do on their own, the situation is likely to require unprecedented cooperation between all parties to ensure a they recover to see a brighter future – as all sides want to see their sites survive and eventually thrive again. Working together to ensure this is really the only way forward at this point.

The post The impact of COVID-19 on commercial real estate: Part 1 – the future of retail appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/accelerated-adoption-technology-impacts-real-estate/ Wed, 25 Mar 2020 19:36:59 +0000 https://www.mrisoftware.com/?p=26831

Change comes slowly, almost imperceptibly, until it doesn’t. Now, in the midst of the COVID-19 pandemic, is a moment when substantial change has been thrust upon us, without much warning, without much preparation, and so broadly that it is not hyperbolic to say that it is happening on a global scale. The changes that many … Continued

The post Accelerated adoption of technology and potential impacts on real estate appeared first on MRI Software.

]]>

Change comes slowly, almost imperceptibly, until it doesn’t.

Now, in the midst of the COVID-19 pandemic, is a moment when substantial change has been thrust upon us, without much warning, without much preparation, and so broadly that it is not hyperbolic to say that it is happening on a global scale.

The changes that many of us are adapting to are driven by social distancing practices, stay-at-home decrees and shelter-in-place orders:

• Business: only essential business and employees are working in normal locations with others either working from home or out of work.
• Healthcare: hospitals are eliminating elective procedures and driving more routine visits to tele-medicine.
• Retail: essential brick-and-mortar retail remains, non-essential retail has closed, and online sales are skyrocketing.
• Dining: restaurants have shifted to delivery and take-out or have closed.
• Entertainment: movies whose theatrical runs were cut short were released for streaming while still “in theaters,” and all other live entertainment, including the lights on Broadway, are currently suspended. Some artists have live streamed events to fans.
• Sports: NASCAR held a virtual race driven by actual drivers while all other live events have been suspended, delayed or cancelled, including the 2020 Summer Olympics.
• Education: K-12 schools are closed, having moved online along with most colleges and universities.

Be thankful that it is 2020 and that we are able to move many things online so quickly.

The networking technology of the internet was invented in the early 1980s, the World Wide Web construct came in 1990, Netscape in 1994 and Internet Explorer in 1995. In the early 1990s, we were all using dial-up connections at speeds of 9.6 kbps. By 2000, broadband was emerging, at 244 kbps, a 25x increase in bandwidth. By 2010, we had 10 Mbps in bandwidth, a 40x improvement. And today, in 2020, broadband services are commonly available at speeds of 400Mbps (another 40x improvement) with Google Fiber delivering 1000Mbps (100x over 2010).

In 30 years, bandwidth has increased by at least 40,000x and, while noticeable, it was not an event – it was a gradual change over time. And because of this relatively slow change, we can now leverage greater bandwidth to enable the forced and rapid change in our collective behaviors.

The various applications of technology that we are suddenly using were not just invented. Instead, we have been slowly adopting them on our own terms, as our budgets would allow and where markets demanded. Now, suddenly, we are all in the deep end together, figuring it out and making it work, accelerating adoption.

As a result of this forced change, of the sudden movement of our collective cheese, we are getting over the fear of change. We’re having to adapt quickly, and as we do, some of the changes we now make under duress will stay with us and they will impact commercial real estate.

Business and Healthcare

A substantial part of the non-essential workforce has been working from home, full-time, for a week or more, including those in G&A functions, financial services, software and other knowledge worker parts of the economy. No doubt you’ve seen the screen captures of group meetings that look like a digital Brady Bunch reunion. If you think about it, it is quite amazing that so many people have been able to transition to telecommuting so quickly. Because it has gone well, it may have substantial impacts in the future. Considerations include:

• Will enterprises, bullish on newfound success with telecommuting, begin to reduce needed office space?
• Will apartment demand change, requiring more dedicated work-from-home spaces and better sound proofing?
• Will the urban migration of the millennials shift back to the suburbs so they can live with less expense and be closer to family? This would reshape supply and demand for apartments and also impact the broad array of retail, dining and other service establishments.
• Will enterprises further leverage digital collaboration in place of physical meetings and conferences, taking back travel time to be more productive? Clearly, the hospitality and travel sectors would feel continued impact.
• Will our healthcare “supply chain” be reworked, changing the location and focus of facilities and requiring re-working of facilities?

As an aside, a reduction in people commuting will have a direct and positive impact on the environment, will drive demand for oil lower, resulting in better quality of life by transitioning the daily commute into more home time.

Retail, Dining, Entertainment and Sports

Since Amazon was founded in 1994, there has been great upheaval in retail. Big box retailers have had to adapt or die. Stalwarts, like Sears and K-Mart, cling to life. As retailers have changed, so have the operators of retail centers and malls. There has been a concerted shift away from simply shops and a food court (the quintessential 80’s mall) to a mix of goods and services inclusive of entertainment and a wide array of dining venues.

The diversification of retail was the right move for owners and operators to evolve. Unfortunately, there are few sectors immune from the current state of things, and retail, dining and entertainment are greatly impacted.

Live entertainment and sporting events are a critical cultural component globally, and many retailers, especially restaurants and bars, are in close proximity to theaters, stadiums, arenas and other facilities.

What might their future hold:

• Will “stay at home” directives lead to more home cooking, and a reduction in overall dining out volume? Also, does this spell an end for Blue Apron and other meal prep services? Will apartments need more well-equipped kitchens to differentiate?
• Will drive through and carry out become a new habit? Will some restaurants move to take out or delivery only, limiting their space requirements to only kitchens and pick-up windows? Will landlords scramble to better enable drive through and pick-up for their tenants and customers?
• Will live streaming of events, potentially in a pay-per-view format, find a place in entertainment, leaving venues more vacant and decreasing event venue traffic?
• Will production companies increase simultaneous releases of feature films for streaming and in theaters? Will theaters have to do more than provide popcorn to differentiate?
• Will virtual physical fitness devices and classes accelerate their take of market share from traditional gyms and studios?

Education

Another amazingly fast transition has been the shift from classroom-based learning to online learning. The good news is that the generation of children of current school age have been born with a device in their hands. Notionally, they have been training for this their whole life. Plus, as we know, kids are resilient. Even with success, however, it is unlikely that kids don’t go back to school, as parents’ work schedules are reliant on the K-12 infrastructure as a form of childcare in addition to foundational educational advancement.

College students, also sent home to complete the semester, pose a different situation if they find success in remote learning, raising the following questions:

• Will colleges and universities increase their use of remote learning, especially for foundational classes, keeping control of the curriculum, and their brand, while increasing access at discounted rates?
• Will college students and parents, faced with increasing costs and mounting debt, seek higher quality/lower cost educational alternatives, shunning junior colleges, for remote programs from brand name institutions?
• What kind of impact will a change in delivery of higher education have on student housing operators as well as the other cottage industries that rely on the seasonal influx of population to college campuses?

Technology is the unheralded hero of the moment. We have quickly adapted to a rapid change in our day-to-day life and we are dependent on digital connectivity to maintain a sense of personal engagement and productivity. What is yet to be seen is the degree to which our new behaviors will remain after things return to a recognizably new normal, and how that new normal will drive change in real estate.

The post Accelerated adoption of technology and potential impacts on real estate appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/resident-communications-covid-19/ Fri, 20 Mar 2020 21:51:46 +0000 https://www.mrisoftware.com/?p=26808

Resident communications have been top of mind for most multifamily property organizations lately. As the COVID-19 crisis continues to evolve, communication between property management and residents is of the utmost importance. At MRI Software, our Callmax Automated Communications suite experienced a 30% increase in the volume of communications sent in the third week of March, … Continued

The post Resident communications in the age of COVID-19 appeared first on MRI Software.

]]>

Resident communications have been top of mind for most multifamily property organizations lately. As the COVID-19 crisis continues to evolve, communication between property management and residents is of the utmost importance. At MRI Software, our Callmax Automated Communications suite experienced a 30% increase in the volume of communications sent in the third week of March, as compared to a normal mid-month week.

Looking at March 19th in particular, nearly all of the communications were related in some way to COVID-19. A few common themes emerged as well, which I’ve outlined below along with best practice recommendations.

Office closures and impacts

As you might expect, leasing offices are closing as “social distancing” is being encouraged globally. Face-to-face interactions are stopping. For some properties, an office closure notice was frank and brief. For others, additional information was provided, including mandatory audio, digital and virtual communications, and making it clear when the office would be open virtually.

Many properties are encouraging the use of a resident portal as a communication channel to handle payments and service requests. One even reminded folks that it is okay to “slide a check or money order under the door.”

Best Practices: Over-communication is okay, especially as it relates to details about changing operational processes and services. Clearly state your hours. Clearly state how to get in touch with staff. Set expectations and be available (virtually) for your residents. Drive residents to online services and portals. Really encourage electronic payments to avoid check handling processes. Remind residents how to establish their portal accounts and setup online payments (one-time or recurring).

Package handling

As offices close, many are telling residents that they will no longer be accepting packages. In many cases, this practice represents a very impactful change to residents’ current and evolving expectations given the following:

• Residents will turn to online retail as a means of social distancing
• With more residents working from home, the option for office delivery is removed, driving additional volume to apartment communities
• Amazon is currently hiring 100,000 additional employees to deal with increased demand

Taken together, it is clear that properties are in for a substantial increase in package volume, even though some are starting to refuse packages and require carriers to deliver to doorsteps. Package lockers will remain available but will need regular cleaning. Some are closing package rooms, some are remaining open.

An increase in package volume, coupled with the need for carriers to go door to door, will create slower deliveries as drivers spend significantly more time at a property delivering packages that were once left at the office, putting more drag on the overall delivery supply chain.

Best Practices: Consider a scheduled pickup process where packages are received in the office and, based on an arrangement with the resident, placed in a specific location at a specific time to allow for pick up while still keeping social distance. Also, consider a door-to-door package delivery service to reduce traffic onsite. Regularly clean package rooms, lockers and package transit points per current guidelines.

Maintenance and inspections

Largely, maintenance activities are moving to emergency activities only. Preventive measures, like pest control, are being cancelled, as are inspections.

Best Practices: Clearly define what constitutes an emergency and what does not. Notes about how to manage social distancing in the event of an emergency (sick resident in the other room) and other expectations (maintenance staff will be wearing protective gear and will wipe all surfaces) are encouraged. Remind residents how they can control pests (glass cleaner kills ants).

Amenities and events

Amenity spaces are largely closing, especially non-essential indoor facilities. Laundry facilities remain open and will be cleaned per current guidelines. Business centers are closing. Resident events are cancelled. Outdoor space treatment varies as some are closing dog parks and other open space while others remain open with strong social distancing guidelines.

Best Practices: Keep open spaces open and encourage social distancing. Provide an abundance of pet litter bags and reminders to help keep the space clean. For events: Get creative. Think balcony bingo or patio happy hour, keeping the community together while respecting social distancing. All you need is a speaker, a megaphone, and some creativity.

Rents, renewals and other payments

Since we are in the middle of the month, there aren’t many communications regarding rent and late fees being sent, but some logistical messages may be required. On a more negative tone, you may have to send notices about rent not being accepted if there is a balance due. You might also need to update some residents regarding existing eviction processes. In general, however, properties should be prepared for “business as usual” approaches to be challenged in the short term as conditions evolve and policies change.

On a more positive note, recognizing changing conditions, some have chosen to contact residents on month-to-month terms, offering to formalize an extension. Similarly, residents who had given notice were offered the ability to retract it and renew at competitive rates.

Best Practices: Be prepared for residents who present with economic hardships. Revisit payment plans, break clauses and other options to help residents while they sort out their personal financial situation. Where possible, leverage online renewal technology to keep residents in place while also practicing social distancing.

Reminders, resources and recurring messages

Reminders may be necessary for residents who are acclimating to being onsite full time, such as those who are working from home. These messages should cover a broad array of topics including reminders on smoking policies, a refresh on trash pickup practices, or a note to electric car users to rotate their vehicle out of the charging stations so everyone can use them. All are useful reminders and good ways to maintain engagement.

Some property managers have gone so far as to offer resources for homeschooling, updates on how to get food and rental assistance, and even providing lunches for kids now at home instead of school.

Some standard notices, however, may not be appropriate for the time being. Specific examples would include a bubbly March birthday message or a renewal raffle for a new flat screen TV. These would likely need attention before the scheduled message was sent.

Best Practices: Review any recurring messages to ensure the content remains appropriate given current conditions. Look for opportunities to provide your residents with information and resources that they will find useful during this period of social distancing and economic unrest.

Leasing activity

As you might expect, there has not been much communication to prospects regarding the many changes described above. When addressing prospects, properties are making it clear that tours can be available by appointment only. There is also encouragement to utilize digital tools to virtually tour units.

Best Practices: Leverage digital tools for appointment scheduling, touring and online leasing to maintain social distance while working to continue the leasing process.

Looking at how fast things have changed in just one week shows how important communications are, and how property managers can utilize best practices for improved communications going forward as the impact of COVID-19 on multifamily organizations continues.

“The way we communicate with others and with ourselves ultimately determines the quality of our lives.” -Tony Robbins

The post Resident communications in the age of COVID-19 appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/covid-19-uk-residential-sector-social-distancing/ Fri, 20 Mar 2020 19:57:48 +0000 https://www.mrisoftware.com/?p=26801

The impact of the coronavirus pandemic is significant and varied across the real estate industry. For organisations operating in the residential space there are a number of challenges. Businesses need to consider the safety and well-being of their employees, of customers they interact with face-to-face, plus the residents, leaseholders, agents, landlords, property managers or other … Continued

The post COVID-19 and social distancing in the UK residential sector appeared first on MRI Software.

]]>

The impact of the coronavirus pandemic is significant and varied across the real estate industry. For organisations operating in the residential space there are a number of challenges. Businesses need to consider the safety and well-being of their employees, of customers they interact with face-to-face, plus the residents, leaseholders, agents, landlords, property managers or other stakeholders they serve in their day-to-day activities. And that’s not to mention efforts to ensure their business continues as close to normal as possible.

Given the current social distancing guidelines from the government, and with more and more companies putting work-from-home policies into action for their teams, those involved in managing residential property will naturally see an increase in their reliance on digital solutions, communication and interaction. Indeed, the residential sector has seen significant investment in technology in recent years, and organisations that have been driving innovation and putting proptech at the heart of their operations should now expect to rely on that software to help them reduce disruption and achieve a degree of business continuity.

Here are some areas to consider, and how your tech can help you as you try to navigate the obstacles and uncertainty the COVID-19 outbreak has introduced:

Customer service

In the midst of so much disruption, is it even possible to maintain expected levels of service without disruption for your customers? Thanks to the tech available today, the answer might actually be yes. It’s highly likely that you’re using digital platforms for mass email, SMS and other forms of direct message – and you’ll certainly be looking at how you can expand that to fill potential gaps. Going further, automation will be key. For example, you can put programmes in place to deliver initial replies to queries, either offering information or providing a first-response before a member of your team goes deeper. This sort of reassurance could prove invaluable in such an uncertain climate. Where software allows (and you should have various options here) you can also look to digitalise processes for your customers. Common options are payments, maintenance requests and document sharing/signing – all of which can be done, end-to-end, with no need for in-person or even telephone interaction.

Customer interaction

With additional focus placed on quickly and effectively responding to queries, it’s important you don’t forget the need to provide customers with a proactive, clear and consistent stream of messages, keeping them fully updated with the latest news and developments. Of course, key communications on the subject of COVID-19 will be front and centre, particularly for those in self-isolation – but so will be sharing information from the wider community and society of which your stakeholders are a part. Of course, this would be paramount were you to find yourself dealing with a case or cases of coronavirus directly. If you use a resident portal, push its capabilities and ensure your customers understand it’s the place to go for updates such as information on planned maintenance, new guidelines on use of common areas, measures being taken to protect residents in buildings, or even the impact of a local lockdown were it to reach that stage. Alternatively, or as well, use your software to push content out through other channels such as your website. Crucially, you should also utilise your solutions to record your broadcasts and interactions so you have complete records of conversations for audit and potential compliance purposes.

Remote working

SaaS is the standard option when it comes to modern software, and it’s not a new trend. The fact that companies and individuals are transitioning to work from home, and are able to do so in such great numbers so quickly, is testament to how far the industry has come in terms of cloud technology. This flexibility is essential, but it goes deeper. There has never been a more crucial time to be fully aware of the mobile capabilities within your solutions. Can everyone in your business log in remotely? Do you have portals you can utilise? Are there integrated apps you can lean on to make remote working even easier? Understanding your full digital offering, and ensuring staff are fully trained and capable to maximise it, may help keep you ahead of the game and achieve full business continuity as the next few months unfold.

Strategic decision-making

These are largely unprecedented times. Across all industries and sectors, businesses will be feeling the effects of the measures introduced to tackle coronavirus – and real estate is certainly going to be impacted. But, directors and managers can be somewhat reassured by the abundance of data and information available today, and with your tech you have the ways and means to undertake quick and accurate analysis to help ensure you remain agile. As you deem necessary, your software should allow you to monitor metrics in real-time or at whatever frequency suits your approach, giving you the opportunity to spot and address performance problems – whether operational, financial or both. This is always important, but certainly something you can leverage in the current climate to help you navigate the challenges ahead.

These are some general thoughts aimed at encouraging some deeper thinking around how software can be relied upon to help you maintain ‘business as usual’ in this wholly unusual period. The list is not exhaustive, and you should definitely consider and interrogate the full capabilities of your digital products in all areas of your company.

And, don’t forget, you can check back on our dedicated page for the latest updates on the MRI Software response to the pandemic.

The post COVID-19 and social distancing in the UK residential sector appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/covid-19-multifamily-potential-impacts/ Fri, 13 Mar 2020 16:14:31 +0000 https://www.mrisoftware.com/?p=26775

Clearly, COVID-19, aka the coronavirus, is top of mind these days. The World Health Organization has designated it as a pandemic, the number of infected individuals continues to grow, and decisions increase by the day. So, what might we expect for the multifamily real estate industry? Before diving in, it is important to note that … Continued

The post COVID-19 and multifamily: Potential impacts appeared first on MRI Software.

]]>

Clearly, COVID-19, aka the coronavirus, is top of mind these days. The World Health Organization has designated it as a pandemic, the number of infected individuals continues to grow, and decisions increase by the day. So, what might we expect for the multifamily real estate industry?

Before diving in, it is important to note that the degree of the impact will grow with the duration of the crisis. If things resolve in a matter of weeks, the impact will be much smaller, and we’ll likely avoid a prolonged dampening of economic activity.

Student and senior housing: Early impacts

As it stands, many colleges and universities have either cancelled classes or moved to a fully digital delivery method. Some are extending Spring Break. Some are cancelling the semester. It follows that if students are going home early, then the first segment of the market that will feel pressure is student and student-adjacent housing.

Impacts in the current period may arise from students or parents looking to break leases early as a result of unforeseen school closures. Leasing for future periods may also be impacted as students are no longer in close proximity, making traditional on-campus marketing programs less effective.

Student housing operators will need to be prepared for the eventual questions from current students as university schedules change, causing early move-outs. Digital marketing and leasing will become more important to connect with students for future semesters, driving all aspects of the lead-to-lease process into digital channels.

Senior housing has a different set of challenges to monitor and address, given that mortality rates of COVID-19 typically increase for people over 70. Expect to see changes in community programming and a focus on reducing gatherings of people, coupled with increased focus on cleanliness in common areas.

Conventional, market rate housing: Trickle-down impacts

For conventional, market rate apartments, we must look at likely impacts on current residents as well as potential impacts on future demand.

Risk aversion is greatly reducing large gatherings of people. Governmental guidelines, conference cancellations, sporting body reactions, political rally cancellations, and changing corporate travel policies will continue to drive negative impacts on local economies. Even a coronavirus conference was cancelled due to a local outbreak.

All major sports leagues in the US have suspended play. The NCAA’s flagship event, March Madness, is now cancelled. Broadway is closed. Sporting and event venues tend to be surrounded by a cottage industry of bars and restaurants that will surely feel a disproportionate impact. We can expect a number of business to close or to furlough staff as a result.

In addition to pre and post-game meals and entertainment, impacts will be felt across transit, parking, merchandise, and in-venue vendors. Immediate impacts in the hospitality and travel sector will yield a reduction of incomes, and possibly temporary or permanent loss of employment until we return to normal operations.

If we couple this impact with a survey conducted by the First National Bank of Omaha in 2019 that indicates that nearly half of Americans are living paycheck to paycheck and more than half do not have an emergency fund, it is likely that some residents will have a hard time making their rents. Landlords should be prepared to address these situations as they emerge and not be too quick to create vacancy.

Landlords who also manage retail spaces that are reliant on event-based traffic should be prepared to address tenancy issues on that front as well.

Multifamily housing: The impact of staying home

With commercial and educational organizations sending people home, the average number of people onsite at residential properties throughout the day is sure to increase. Much like senior housing impacts, we can expect a reduction in group events. We can also expect fewer users of common areas and amenities as people stay at home.

And that phrase, “stay at home,” may be a clue to resident attitudes as the summer leasing season approaches.

If the coronavirus crisis extends beyond April, we can expect lower demand for vacant units. We can expect more folks to stay in place as economic unrest will cause people to be cautious. Staying in place may be seen in the form of higher renewal rates, at prices capped by rent control measures in some markets, or more folks going month-to-month until they have clarity in their own personal situation.

As mentioned with student housing earlier, we can expect a greater focus on digital marketing to drive demand. Self-guided tours, the trendy topic at recent industry events, will become more pervasive as prospects seek to limit person-to-person engagement. We should also see an increase in 3-D tours, drone footage and other digital mediums to drive traffic. Operationally, online leasing and electronic payments, both widely available technologies, should see increased adoption.

If we do see a drop in demand and an increase in renewal rates, there will be an unmistakable impact on pricing. This change in market dynamics will put revenue management systems and processes to the test. Largely having gained wide adoption in the last decade of continued growth, there have not been many cases of dealing with sagging demand and the impact on pricing.

Development: Supply chain impacts

In August of 2019, the NAA published an article titled “Apartment Completions Set to Spike in 2020,” which shared that there are more than 500,000 units under construction, with nearly 360k of them scheduled to deliver in 2020. It has yet to be seen if global supply chain disruption, as a result of this virus, will impact these deliveries. Materials as simple as an electrical outlet, often produced in China, could become a barrier to delivery if supply lines are disrupted. Developers should assess impacts of potential material shortages and adjust accordingly.

A disruption in delivery plans will put pressure on financing as well as planned operational benefits, creating the potential for a myriad of fiscal issues for developers, owners and operators.

Actual v budget: Expect variances

Most multifamily organizations cast their budget in the fall of 2019 and looked at 2020 as more of the same: strong demand, strong occupancy, strong pricing and a need for more capacity. A straw poll of MRI conference attendees put a potential recession in 2021 or beyond. While we may or may not have a formal recession, the impacts of this virus, if experienced for a protracted amount of time, could create recession-like conditions, undermining the assumptions used to build 2020 budgets. Reforecasting conversations will need to happen. Expectations will need to be reset and the inevitable conversations about expense reductions will likely take place.

Business continuity

Beyond the economic and fiscal dimensions of this crisis, multifamily organizations should update their business continuity plans (BCP), seek new ways to leverage technology since the BCP plan was last updated, and revisit policies in accordance with governmental guidance for health and safety.

American writer Denis Waitley once said, “Expect the best, plan for the worst, and prepare to be surprised.” Sage advice, given the current state of affairs and the uncertainty inherent in not having a clear idea of what lies ahead. Multifamily organizations should already be taking steps to assess changing conditions and plan accordingly.

The post COVID-19 and multifamily: Potential impacts appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/ifrs-16-leases-public-sector/ Thu, 12 Mar 2020 13:37:03 +0000 https://www.mrisoftware.com/?p=26762

IFRS 16 Leases IFRS 16 leases represent the biggest change to lease accounting in decades and will have a significant impact on financial reporting in the Public sector from 1st April 2022. What lessons can we learn from the Private sector since their transition to IFRS 16 on 1st January 2019? In this blog, we … Continued

The post IFRS 16 Leases – 6 lessons learned from the Private Sector appeared first on MRI Software.

]]>

IFRS 16 Leases

IFRS 16 leases represent the biggest change to lease accounting in decades and will have a significant impact on financial reporting in the Public sector from 1st April 2022.

What lessons can we learn from the Private sector since their transition to IFRS 16 on 1st January 2019?

In this blog, we look at five areas of best practice to mitigate risky, costly and time consuming IFRS 16 lease projects.

Lesson 1: Invest in the right software

Many private sector companies have started trying to manage IFRS 16 leases via Excel or ‘IFRS 16 calculators’ only to run adrift. Challenges in terms of process, limited automation, security and double handling of spreadsheets and finance systems leads to data integrity problems and overall lack of control.

Investing in lease management and accounting technology ensures that the business-as-usual treatment of leases is managed effectively whilst automatically driving the asset and liability calculations and disclosure reporting for the finance team. If implemented correctly, the technology should meet and then exceed the return of investment over time.

Lesson 2: Have a robust data management strategy

The data required for managing IFRS 16 leases is usually housed in multiple sources and structures. Equally, leases will vary in complexity and these factors can exacerbate the challenge of building sustainable data integrity for meeting IFRS 16 lease accounting standards. Private sector customers who took advantage of AI lease abstraction tools and integrated these with their chosen lease accounting software saw a significant uptick in accuracy. By tasking these tools to manage changes to asset and liabilities on an ongoing basis, organisations avoided having to undertake follow-up data capture projects year on year, which is costly and time consuming.

Lesson 3: This is wider than just a finance issue

What started as a purely finance-based project in the private sector quickly became a wider remit involving process transformation for most core departments. Finance quickly recognised that they needed to actively involve other departments who have touch points during a contract’s lease lifecycle. Departments ranging from Real Estate, FM, IT, Procurement, Legal, and Finance may all play a role. Successful transitions understood the importance of end-to-end processes and controls required to efficiently manage the new IFRS 16 lease accounting standards on an ongoing basis.

Lesson 4: Build the right team for success

Successful transitions in the private sector treated this as they would approach any other business-critical project. They started by assigning a Project Manager who had all the tools and experience to deliver a successful outcome. There should be new policies, procedures and governance applied to support this process which needs to be documented and managed on an ongoing basis. Approaching this in the correct way mitigates risk and needless expense further down the line.

Lesson 5: Keep auditors updated and involved

The ramifications of failing a government audit can be wide-ranging, depending on the circumstances. Examples may extend beyond embarrassment for the individuals, their bosses and the office as jobs can be put at risk. Reputational damage may have long-term impacts, additional expense is likely to be incurred for remediating these failures, and closer scrutiny by the auditor for future audits is an expected consequence.

Many of our clients in the private sector would recommend keeping auditors updated on technology you plan to use in managing obligations for IFRS 16 leases, actively involving them during the procurement process. This allows their perspective on the suitability or indeed any perceived limitations of the technology and adds value to ensuring that entities make informed decisions in selecting the right solution to be IFRS 16 compliant now and for the future.

The government’s application of IFRS 16 is detailed in the government financial reporting manual (FReM) and local authorities under CIPFA.

If you would like to find out more about our Lease Management, Lease Accounting and AI Powered lease abstraction tools, please get in touch today.

The post IFRS 16 Leases – 6 lessons learned from the Private Sector appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/maximize-leases-for-your-commercial-property/ Thu, 05 Mar 2020 18:38:12 +0000 https://www.mrisoftware.com/?p=26734

Once your commercial property attracts the right kind of tenants, your next step is to move into one of the most important phases of the commercial lifecycle: abiding by the leases you signed. Property and asset managers are challenged to execute against the lease terms and understand the impact of the lease information on the … Continued

The post Maximize leases for your commercial property appeared first on MRI Software.

]]>

Once your commercial property attracts the right kind of tenants, your next step is to move into one of the most important phases of the commercial lifecycle: abiding by the leases you signed.

Property and asset managers are challenged to execute against the lease terms and understand the impact of the lease information on the broader portfolio, which makes accessing and managing lease data a vital aspect of your business. Maximizing your commercial property leases by getting the right data to the right people in an efficient manner can go a long way in bolstering your portfolio.

Structure the information in the lease digitally

To gain actionable insights from leases, the first step is to digitize the information. If property managers and other users have difficulty accessing lease information, or if the data contains errors, then how can they perform their jobs properly? The lease drives daily activities, and so the data from the lease must flow to the correct users. You need to be able to extract clauses and other data points from the lease, exposing the lease information to appropriate members of the organization. Lease abstraction can be performed in a variety of ways, from using in-house teams to choosing to outsource this activity. Recently, the application of artificial intelligence (AI) for lease abstraction has delivered greater efficiency and accuracy for this process, and it enables users to easily link directly to source documents.

If there are any updates on the lease along the way, the last thing you want to do is staple an addendum to the lease and file it away. Often, cumbersome, manual processes are how companies attempt to guarantee that the right people will be notified. Keeping your lease information updated digitally and making sure everyone in your organization is pulling from a centralized database will mitigate the risk of errors down the line.

Mine information in your enterprise data

Making sure that easy access to lease data is available across your organization is only the first step of the process. Only 20% of enterprise data can be found in structured data like leases and contracts. How can your users get their hands on the other 80% of enterprise data – unstructured data in the form of images, audio files, word processing documents, and emails – that help them do their job?

Missing critical information found in unstructured data can cause problems in future operations, but with MRI @Work, your organization can move unstructured data into a central hub that all relevant users can access. Making unstructured data accessible can help you get the right information from both the lease and extemporaneous sources to the members of your organization who need it.

When structuring deals, the right data can shed some light on which decisions will benefit your portfolio the most. For example: If you are giving a tenant two months free rent, how does that impact the deal? If there is a co-tenancy in place and the main retailer shuts down, what is the impact on the other lessees?

Never forget a key term or miss a critical date

MRI @Work provides you with data visualization tools to keep your business efforts organized and focused in the right direction. Along with configurable reporting capabilities, these tools deliver personalized information to the end user in a way that shows only the data they need. With detailed dashboards, users can view accurate, at-a-glance information or dig deep into the data to find all the points they’ll need to do their jobs effectively.

Additionally, the automation found in MRI @Work reduces the role that human error plays in lease abstraction and data management, making it easier for the end user to trust the information that ends up on their desks.

Getting your enterprise data where it needs to go only benefits your commercial property business if that data is visible and actionable – can your team actually keep up with key terms and critical dates based on all the resources you’ve pulled together? Missing key terms can have a negative financial impact on your portfolio as well. Some forward-thinking organizations have begun to utilize AI to audit their existing lease data and have discovered significant under-billings and missing recoveries charges because of inaccurate or inaccessible data.

MRI @Work enables property and asset managers to utilize the important data found in leases faster and with more accuracy. By maximizing the lease, the end user can make more informed business decisions and act upon the information that serves as the lifeblood of the business. Learn more about MRI @Work in this webinar.

The post Maximize leases for your commercial property appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/attract-commercial-tenants-mri-work/ Wed, 26 Feb 2020 17:29:51 +0000 https://www.mrisoftware.com/?p=26657

Finding the right commercial tenants to fill your property is a process that begins long before a lease is signed, and not every tenant you encounter will be a good fit for your portfolio. What kind of businesses are you trying to attract? What’s your strategy for the next five to ten years? What is … Continued

The post Attract commercial tenants with MRI @Work appeared first on MRI Software.

]]>

Finding the right commercial tenants to fill your property is a process that begins long before a lease is signed, and not every tenant you encounter will be a good fit for your portfolio. What kind of businesses are you trying to attract? What’s your strategy for the next five to ten years? What is the consequence of signing a delinquent tenant? All of these are questions that must be taken into consideration when choosing your commercial tenants, and as such, you’ll need technology to help you evaluate and make decisions along the way.

Curate your tenant mix to maximize performance

The properties your organization owns and operates can maximize success if you’re able to strategically determine the right tenant mix. Your commercial organization needs to sign tenants that will bring value to the overall profile of your property, and your portfolio requirements can change over time. For example, you might find yourself in need of local retailers to balance out your tenant mix one year, but then you might need more national, shared workspace tenants a year or two down the line.

Whether you manage office or retail space, MRI @Work provides the tools to collect, aggregate and report on data appropriately. This information can be used to evaluate prospects and negotiate the lease more effectively. Better data management can help you strategically choose the right tenants that fit with your portfolio strategy.

Make more informed decisions with visibility into your pipeline and prospects

As a leasing agent, you’re tasked with tracking applicants from lead to lease. The prospect to tenant conversion process is more complicated than simply filtering out applicants. Following tenants through each step of the lead to lease process means managing the necessary contacts and documents and making sure that the initial interactions you have with prospects encourage them to do business with you. These are the first and most crucial steps in establishing a solid landlord/tenant relationship.

MRI @Work enables you to streamline the prospect to tenant conversion process by giving you the tools to see clear through your prospect pipelines. Through comprehensive solutions that give you a firm grip over the data in your organization, you’ll be able to keep track of the deals and activities you’re undertaking, the leads and opportunities you’re pursuing, and the amount of space you have to match those opportunities.

Leverage comprehensive commercial management technology

MRI @Work provides you with a comprehensive set of tools that can transform the way you manage your commercial properties. With software that simplifies the prospect pipeline and improves data management, you’ll be able to understand the type of tenants that your property needs, manage the prospect to tenant conversion, and make better decisions that can boost your portfolio performance. Learn more about how MRI @Work can help you attract commercial tenants.

The post Attract commercial tenants with MRI @Work appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/celebrating-the-future-of-proptech-at-ascend-london-2020/ Thu, 20 Feb 2020 08:00:43 +0000 https://www.mrisoftware.com/?p=26611

Software learning, industry insight and business networking were the headline attractions at MRI Ascend London 2020 – our premier, two-day European user event. More than 550 delegates, Partners and industry professionals came together in central London to discuss the latest trends and topics affecting the property industry, as well as explore the newest developments and … Continued

The post Celebrating the future of PropTech at Ascend London 2020 appeared first on MRI Software.

]]>

Software learning, industry insight and business networking were the headline attractions at MRI Ascend London 2020 – our premier, two-day European user event. More than 550 delegates, Partners and industry professionals came together in central London to discuss the latest trends and topics affecting the property industry, as well as explore the newest developments and enhancements to MRI’s comprehensive suite of real estate software solutions.

To launch the event, attendees were introduced to MRI Living and MRI @Work – solution concepts that bring together and leverage the power of existing MRI applications and offer deeper capabilities and greater flexibility to clients.

MRI Living provides an end-to-end, integrated tech stack for all aspects of the residential market across estate agencies, block management, the private rented sector, Build-to-Rent and Housing Associations. It includes back-office property management and accounting systems to help streamline operations for landlords and owners, linked to front-end lettings and portal technology that connects resident communities and enhances customer service.

MRI @Work is a suite of solutions for the commercial sector, covering property management, financials, investment management and tenant relations. It features MRI Lease Intelligence, an AI-powered lease abstraction and analysis tool that enables clients to save time, improve data quality and gain unrivalled portfolio insight.

Some 60 breakout sessions also showcased the latest functionality updates across our product set, and offered in-depth hints, tips and best practices on how users can optimise their systems and achieve even greater efficiencies, additional cost-savings and regulatory compliance. In each of the product areas, regional leaders also showed how MRI’s innovative Platform X is driving technological development and introducing an ever-growing set of shared services and common components.

Celebrating client achievement

Not only does the Ascend users conference give us a chance to share the latest updates at MRI – but 2020 saw the launch of the MRI Innovation Awards in Europe to recognise clients and Partners for their successes. Award recipients were announced at an evening drinks reception to close Day One, and we want to say a huge well done and congratulations to those who were recognised – your honours are well deserved. Here are the winners:

Ambassador of the Year:
Cecilia Crump, South West Yorkshire Partnership NHS Trust
Nathan Spitzer, Alliance Managing Agents

Flexibility Award:
Legal & General Investment Management
Knight Frank

Community Award:
Grosvenor Estate

Project of the Year:
The Arch Co and Network Rail

Partner of the Year:
Fixflo

Reaching new heights today, and long into the future

MRI Ascend London 2020 came hot on the heels of MRI Ascend Anaheim, our hugely successful North American client event in California in October, which featured the launch of a number of new products and solutions including MRI Secure Sign, MRI Payments and MRI Lead Management. The APAC installment takes place in Sydney on 13-15 May, followed by Ascend in Johannesburg on 10 June. We’ll be back in London next year – so thanks to all that joined us and we’ll see you in 2021!

 

— Thanks to our Ascend London Partner sponsors —

 

Platinum

Gold

Silver

The post Celebrating the future of PropTech at Ascend London 2020 appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/bring-commercial-property-business-back-to-what-matters-with-mri-work/ Fri, 07 Feb 2020 22:45:42 +0000 https://www.mrisoftware.com/?p=26556

Commercial property owners, operators and investors each face their own set of day-to-day challenges and long-term obstacles. But no matter how wide-ranging their difficulties might be, they all share one crucial commonality: their ability to overcome their challenges is based entirely on how they develop and manage their leases. By seeking to balance occupancy and … Continued

The post Bring your commercial property business back to what matters with MRI @Work appeared first on MRI Software.

]]>

Commercial property owners, operators and investors each face their own set of day-to-day challenges and long-term obstacles. But no matter how wide-ranging their difficulties might be, they all share one crucial commonality: their ability to overcome their challenges is based entirely on how they develop and manage their leases.

By seeking to balance occupancy and revenue while minimizing risk, commercial owners are trying to maintain the landlord/tenant relationship whose terms and conditions are spelled out in the leases they both signed. Commercial operators need to be able to access data from leases quickly and effectively so that the right people can have all information they need to make decisions. Data must be made transparent, everyday tasks need to be completed in an efficient manner, and information should flow freely throughout the business. All of this comes back to the lease.

MRI @Work is the comprehensive and flexible suite of commercial and financial solutions that address the way businesses interact with the leases they hold. It enables owners, operators, and investors to boost occupancy, mitigate risk, and maximize performance through each stage of the commercial and investment lifecycles.

1) Attract great tenants

Having visibility into both your pipeline and your prospects is important when it comes to making the best decisions possible. Finding great tenants is about more than just filling spaces – you’ve also got to think about what mix of tenants would be best for your commercial property.

By using the tools found in MRI @Work, you can track and manage contacts, opportunities, and documents that help you find the most productive tenants for your property. With the ability to visualize your entire portfolio and perform the proper assessments, you can take a huge step in mitigating risk before you’ve even put pen to paper. And even when you’re finally ready to do just that, the prospect to tenant conversion will be streamlined in a way that maximizes both your occupancy and your profitability.

2) Maximize the lease

As mentioned earlier, the importance of the lease cannot be understated. As the foundation of the negotiation process, it’s designed to mitigate risk for all parties involved by establishing the roles and responsibilities. The lease clearly outlines the financial nature of the landlord/tenant relationship, making it far too important to overlook as time goes on.

MRI’s solutions help you take your leases off the page and into a database, giving you the means to pull actionable insights from the lease and to share the right data with the right people in your business. When your leases are entered into a digital database, your property managers and asset managers can more easily uncover essential lease terms and clauses, helping them make better business decisions.

3) Run smoothly

With the right technology in place, you’ll have the means to simplify day-to-day property operations and make sure your processes live up to the lease agreement. Facilitating tenant billing, effectively communicating with tenants and streamlining facilities management all become easier than ever with the right processes and automation in place.

MRI @Work offers full visibility into your property operations with a single platform, allowing commercial property managers to evaluate risk from bad debt, manage disputes and process billing and deposits with the confidence that the payment history is being logged. With the ability to automate revenue-generating and back-office tasks, you’ll have more time for high value activities. By tracking daily operations and finances to the larger budget, you can identify variations that could derail your projections. Finally, with proactive vendor management and preventative maintenance tools, you’ll ensure that your property is kept in top condition.

4) Know the score

MRI @Work helps you keep track of your business’s health so that you can be better positioned to reach your goals and maximize profitability. With integrated financial and accounting operations, you can streamline your procure-to-pay process, boost your debt management efficiencies, and manage fixed assets.

With an actionable dashboard that is tailored to your needs, you can get insights specific to your role to help you stay ahead of the curve and easily identify inefficiencies. By having the ability to capture operational and occupancy data for investment reporting, you can make data transparent from tenants to investors.

Commercial property management software shouldn’t just help you meet the challenges you face today; it should prepare you for the challenges you may face tomorrow or farther out into the future. MRI @Work is designed specifically to help you answer the question, “What’s next?” with greater accuracy, efficiency, and transparency. Learn more about how MRI @Work helps you own, operate, and occupy at every step of the commercial and investment lifecycles.

The post Bring your commercial property business back to what matters with MRI @Work appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/minimizing-risk-in-building-operations/ Thu, 30 Jan 2020 18:36:29 +0000 https://www.mrisoftware.com/?p=26488

This article was written by Daniel Millstone, VP of Engineering at Enterprise Risk Control, a partner of MRI Software. Building operators and property managers are on the front lines when it comes to mitigating a variety of risks. What many property managers have been slow to realize is that the impact of risk is far-reaching, … Continued

The post Minimizing risk in your building operations appeared first on MRI Software.

]]>

This article was written by Daniel Millstone, VP of Engineering at Enterprise Risk Control, a partner of MRI Software.

Building operators and property managers are on the front lines when it comes to mitigating a variety of risks. What many property managers have been slow to realize is that the impact of risk is far-reaching, and it can enter the business through each phase of the asset lifecycle, whether it be through equipment, assets, or vendors.

Your organization’s risk exposure

The risk of financial loss, damage to your property’s reputation, and regulatory problems aren’t just secluded to one area of the asset lifecycle. You can be exposed to risk in each phase of the lifecycle.

• Asset acquisition: When acquiring new assets, your company is taking on the risk associated with the asset. Because of the acquisition of risk, it’s important for you to conduct due diligence on the seller, including financial, reputation, and regulatory evaluation.
• Operation and maintenance: When it comes to your organization’s exposure to risk, preventative maintenance measures can minimize financial loss. Additionally, maintaining an accurate fixed assets register with current values can make information more reliable and readily available for all who need it.
• Decommissioning: Proper documentation, maintenance history, and other information can minimize the hand-off risk when assets or equipment are decommissioned.

Imagine for a moment a building operator named John. John has been using Vendor X for one of his properties for several years. Vendor X is easy to deal with, they work well within the set budget, and as far as John can tell, they get the job done. John collected all of Vendor X’s credentials and licensing during the initial vendor onboarding process, but he neglected the ongoing collection and verification of the vendor’s credentialing information as the relationship continued.

One day, John takes a closer look at Vendor X and the work they’ve been doing on the property. The closer he looks, the more he realizes that not only has Vendor X been cutting corners on equipment maintenance, they also allowed their trade license, insurance and other credential information to lapse. If John had monitored and updated vendor data and performance, he would’ve noticed how they were misusing the property, creating unnecessary costs, and not in compliance with regulations. But at this point, it’s far too late. John will pay a heavy cost to fix the damage that’s been done to the property.

Three major ways risk can impact your property

Building operators and property managers often have multiple properties to manage within their portfolio, and many times, things slip through the cracks without anyone noticing. As you may have guessed, this kind of lapse can lead to serious exposure to risk. When an incident occurs, your business is at risk of being impacted in three major ways:

• Financial: Since John hadn’t been keeping a watchful eye over Vendor X, he didn’t see just how far the property had fallen into disrepair. Preventative maintenance measures might have saved money, but John was too late for that. Purchasing new assets or equipment is always more expensive than making sure they’re being managed well.
• Reputational: Since Vendor X was doing sub-par work, the property had developed a reputation over time of being “run-down” and “dilapidated.” Had John done a better job of managing Vendor X, he might have prevented the risk to his company’s reputation.
• Compliance: Vendor X let their licensing and credentials expire, which means that John’s property was not in compliance with certain local laws and regulations. John might have been able to catch this had he been continually reviewing and managing the data he collected from Vendor X.

How automation can help reduce risk

While no method of risk mitigation lets you completely eliminate your exposure, automation can help you better manage the risk, no matter where it can be found in the asset lifecycle.

Most building operators collect vendor data upfront, but some tend to store it in a spreadsheet or binder and then never look at it again. Through automation, this data can be updated and continuously managed as time goes on so that important information, like an expired certificate of insurance, doesn’t go unnoticed.

Barcoding your assets and taking pictures of the equipment when maintenance occurs will help confirm the work was completed on the correct equipment. In addition to this, automating vendor data and workflow can help you establish a consistent process for managing vendors, assets, and equipment to reduce risk.

As a building operator or property manager, risk can be found everywhere, and its impacts can be devastating financially, reputationally, and in a regulatory sense. By automating your processes, however, you can lower your exposure and be better prepared for any problems that may arise. Learn more about how technology can improve your building operations and management.

The post Minimizing risk in your building operations appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/take-stress-out-affordable-housing-waitlist-openings/ Fri, 24 Jan 2020 19:40:13 +0000 https://www.mrisoftware.com/?p=26431

How much preparation and hard work go into the opening of your affordable housing waitlist? Maybe this question is already making you feel stressed as you think about the answer. For many public and affordable housing authorities, the process of opening a waitlist is weighty; it’s an “all hands on deck” nightmare scenario that requires … Continued

The post Take the stress out of affordable housing waitlist openings appeared first on MRI Software.

]]>

How much preparation and hard work go into the opening of your affordable housing waitlist? Maybe this question is already making you feel stressed as you think about the answer. For many public and affordable housing authorities, the process of opening a waitlist is weighty; it’s an “all hands on deck” nightmare scenario that requires the full attention of your organization. Notices need to go out to the public, staff has to prepare for lines that could be thousands of people long, and extra security personnel need to be on-site at all times.

The stress of opening an affordable housing waitlist

This was certainly the case for Housing and Community Development (HCD) in Orange County, Florida. When they opened their affordable housing waitlist in 2002, approximately 25,000 people lined up in order to try and get a spot on the waitlist – some of them had been camping out for days. Applicants had to fill out printed paper forms, and the local police were doing their best to manage the line.

The work didn’t stop after that day, however. The agency needed to manually upload all of the information from the paper forms into a database. A full ten years went by before HCD’s next waitlist opening, and in that time, numerous people were always placing calls to the receptionist’s desk, wanting to make sure they were still on the waitlist.

HCD needed a solution that could help them make opening an affordable housing waitlist easier. Demand for affordable housing has grown significantly, and as such, they needed to open up their waitlist more often, but the sheer amount of work required made that prospect seem too far away.

How to make waitlist openings easier and efficient

When HCD opened their waitlist in 2012, they took a new approach. Instead of trying to operate in the same way they had in 2002, they utilized WaitListCheck, an affordable housing application management software that took the entire process online. As Kim Boettner, Program Development Supervisor at HCD, says, “WaitListCheck unquestionably improved our ability to serve clients in a fair and efficient way.”

Taking the waitlist process online made almost everything easier for both the HCD staff and those wanting to make it onto the list. Applicants didn’t have to wait in a line that was thousands of people long. Instead, they simply had to click on a link, fill out the application in their language of choice, then receive an email confirmation. The whole process took place online, which meant that once applicants were added to the waitlist, they were able to check their status on the list instead of calling the receptionist’s desk. In addition to all of this, HCD used WaitListCheck in a way that would allow a lottery system to ultimately decide which applicants would get added to the list, making the process fairer.

Having the ability to carry out waitlist openings online served as a major boon to the HCD staff. Since first using it for their opening in 2012, HCD has been able to open the list more frequently and with a greater sense of preparedness. For their opening in 2018, they were able to spend approximately 30 days getting more notifications out to more people through flyers, webpage updates, and more. In addition to all this, Administrative Specialists did not have to manually enter data from paper forms after the close of the waitlist.

Want to learn more about WaitListCheck? Read more about HCD’s experience with the waitlist management software.

The post Take the stress out of affordable housing waitlist openings appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/we-are-mri-achieving-strategic-goals-winning-culture/ Fri, 17 Jan 2020 15:57:49 +0000 https://www.mrisoftware.com/?p=26405

Anyone who’s ever been employed at MRI Software knows that being a part of the MRI family isn’t just about finding a fulfilling profession, it’s about being an integral part of helping MRI achieve its goals. Over the years, we’ve been honored to receive several awards specifically dedicated to MRI’s unique culture, our outstanding workspaces, … Continued

The post We are MRI: Achieving strategic goals with a winning culture appeared first on MRI Software.

]]>

Anyone who’s ever been employed at MRI Software knows that being a part of the MRI family isn’t just about finding a fulfilling profession, it’s about being an integral part of helping MRI achieve its goals. Over the years, we’ve been honored to receive several awards specifically dedicated to MRI’s unique culture, our outstanding workspaces, and how the intersection of those two valuable assets has helped MRI grow into one of the best and biggest real estate software providers on the planet.

Attracting top talent

In 2019, MRI was thrilled to win a NorthCoast 99 Award for the 12th time, which recognizes the best Northeast Ohio workplaces for top talent. Winners of this award participated in a rigorous application process that asked for detailed information on how their organization addresses top-performer attraction, development, and retention. While this is not our first time winning, we are proud to have won this award for so many years.

Cultivating health and wellness

One of the ways that MRI Software attracts top talent is by creating a workplace that encourages a healthy lifestyle. Look no further for proof than our Gold awards for Healthy Workplace from the Healthy Business Council of Ohio, which we have won three times since 2016. MRI employees have access to in-office incentives and a rewards program that promote healthy lifestyles across each and every one of the MRI offices throughout the globe, and these opportunities are reflected in this win.

In the summer of 2019, MRI was also recognized by Aetna’s Workplace Well-being Awards. MRI won both a “Changing the World” Award for workplaces in the Mid-Atlantic region and the “Above and Beyond” Award for general well-being in the workplace across the country. We are proud to accept these awards, and we are committed to continuously treating our employees well to promote excellence in the workplace and to foster a community where kindness, honesty, tolerance, and inclusion are part of the culture.

Our strategy of the “MRI family”

MRI’s commitment to its employees runs even deeper than these few awards suggest. We pride ourselves on creating a culture that encourages employees to work hard and achieve the strategic objectives of this company, and we truly do treat them as extensions of our family. Throughout the past few years, we’ve provided increasingly more avenues for personal and professional growth within the organization. Employees don’t just have “upward mobility” at MRI – they have the opportunity to explore the organization in lateral ways that help them pursue career goals instead of simply climbing a ladder. For example, an employee who starts their career at MRI in Sales is not required to stay there – they have the chance to move into a different department should they choose to down the line.

Volunteering in communities around the globe

As you can probably see, MRI has no desire to chain employees to their desks and demand they work on the same things in their entire time here. Growth means exploring new opportunities, and one of the newest opportunities at MRI is our coordinated volunteer effort that takes place in each MRI location. These volunteer events aren’t just a great way to allow employees to make a difference outside the office, they’re an extension of MRI’s mission to transform the way communities live, work, and play.

Global growth and strategic achievements

The emphasis we place on growth for our employees is a core part of MRI’s cultural identity, and it’s absolutely critical in achieving MRI’s strategic goals of large-scale growth. Our employees are beyond talented, and at MRI, we strive to be not just a place where they can work, but a place where they can excel. As such, our company culture has enabled our employees to bring MRI Software into the places it needs to be to expand its market share.

MRI Software was recently honored with a Dealmakers Award from ACG Cleveland that highlights the exact ways in which MRI has been able to achieve its strategic objectives in the past few years. The expansion we’ve experience – 8,500 enterprise clients, tripling of the size of the business, strengthening our product offerings and capacity for future innovation – has brought MRI Software, the open and connected partner ecosystem we’ve cultivated, and the benefits we provide our employees to 30 locations worldwide and over 170 countries.

While the awards mentioned here have been directed towards our headquarters in Northeast Ohio, the MRI family has expanded well beyond the region. It’s made up of every single one of our employees, whether they be in North America, the United Kingdom, South Africa, Australia or beyond. Everyone has access to the same opportunities and benefits. We are MRI, and the best is yet to come.

The post We are MRI: Achieving strategic goals with a winning culture appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/important-require-multifamily-renters-insurance/ Fri, 10 Jan 2020 17:05:15 +0000 https://www.mrisoftware.com/?p=26330

For multifamily owners and operators, requiring renters insurance is one of the best ways to reduce your exposure to risk. In addition to attracting great residents and maximizing occupancy, multifamily property managers should always be looking for new ways to minimize risk as much as possible, and that includes having a plan in place to … Continued

The post Why it’s important to require multifamily renters insurance appeared first on MRI Software.

]]>

For multifamily owners and operators, requiring renters insurance is one of the best ways to reduce your exposure to risk. In addition to attracting great residents and maximizing occupancy, multifamily property managers should always be looking for new ways to minimize risk as much as possible, and that includes having a plan in place to protect your residents, your properties, and your multifamily business.

Protect residents

In the event of an apartment fire, weather disaster, or other accident, many residents assume that their landlord is responsible for covering any damage to their personal belongings, which is not correct. Requiring multifamily renters insurance as part of the leasing process not only ensures coverage for each individual unit – it also brings peace of mind to the entire community.

Reduce risk and responsibility for property management

Any personal injuries that occur in a resident’s apartment may result in claims being filed against the landlord, which could require a court appearance for the property management company. Should an apartment fire spread to other units, your residents will require relocation, which would be covered by a renter’s own insurance policy. By requiring a renters insurance policy from day one, then both parties – the property owner and the resident – are protected from incidents like these and can focus on repairing the damage with support from a reliable insurance company.

Close the insurance gap

Requiring renters insurance can prevent serious financial trouble for the business. In the event of a disaster, multifamily property owners still have to pay a deductible in order for their insurance company to cover building repair costs. For example, if a resident accidentally starts a fire in their apartment, the resident’s rental insurance policy will cover the deductible, which can save multifamily properties a significant amount of money per claim.

A selling point for your community

Requiring renters insurance can go a long way in attracting the right tenants. Prospects often want to live in a community where risk is proactively managed, and if they know that there’s a system in place to ensure that each resident is protected, that can make them feel as though your properties are a safe and secure place to live. In addition to this level of prospect reassurance, requiring multifamily renters insurance can help you determine whether or not a prospect is likely to remain current with their rent payments. Renters insurance plans are usually inexpensive, and prospective tenants who aren’t willing to pay the low monthly premium for insurance may not be the most reliable in paying their rent.

How to require multifamily renters insurance for your property

How can a multifamily owner or operator actually require that of their renters? MRI Software now offers an integrated renters insurance compliance program as part of the MRI Living suite of residential solutions. Offering renters insurance via online portals gives MRI clients more options for creating a fully automated system that addresses the preferences and habits of modern renters, and a tightly integrated and intuitive insurance compliance program is crucial for property owners and managers to know their buildings are protected from any risk. Learn more about MRI Multifamily Insurance.

The post Why it’s important to require multifamily renters insurance appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/the-benefits-of-cmms-for-cost-effective-property-management/ Fri, 10 Jan 2020 11:33:57 +0000 https://www.mrisoftware.com/?p=49418

The property management business is highly competitive. To survive, let alone thrive, a property management company must adapt to a growing property industry. This is the case on both the residential and commercial sides of the business. A growing property inventory is representative of a management company that is successful and keeping pace with the … Continued

The post The benefits of CMMS for cost effective property management appeared first on MRI Software.

]]>

The property management business is highly competitive. To survive, let alone thrive, a property management company must adapt to a growing property industry. This is the case on both the residential and commercial sides of the business.

A growing property inventory is representative of a management company that is successful and keeping pace with the competition. While that is all well and good, increasing property inventory also means that a management firm has more to deal with when it comes to maintenance issues. MRI NETfacilities and its property management CMMS provides the perfect resource for a firm with an increasing property inventory.

Enhanced Tenant Experience & Satisfaction

The stark reality of relations between tenants and a property management company is that they are fickle. A single maintenance issue has the ready potential of throwing everything off the rails. A real maintenance issue can prove to be highly frustrating for a tenant. The situation only becomes more aggravated when a property management company lacks the most efficient, effective system in place to appropriately respond to an issue.

For Property Management CMMS, managers and tenants alike can be assured that whenever a maintenance issue does arise, it will be addressed competently and in a timely manner. The software streamlines the entire process in a way that appeases both the tenant and management, from the moment a maintenance request is submitted until the work is completed.

Time and again, when a tenant is asked to rank the most important issues when leasing either residential or commercial property, prompt maintenance assistance is always near or at the top of the list. Understanding this reality, when a tenant’s maintenance issues are timely and properly addressed, that renter will be increasingly satisfied with his or her overall experience with the premises.

Efficient Use of Labor & Increased Productivity

A common problem that residential and commercial property management companies encounter is the inefficient use of workers or contractors on the maintenance team. There are two major negative consequences associated with the inefficient use of maintenance labor.

First, inefficiency costs money. In these uncertain economic times any type of business, including a property management company, must always be on the lookout for unnecessary costs. This includes looking for ways to increase efficiency and productivity regarding maintenance matters.

CMMS for property managers is the prime tool for making the maintenance department and maintenance tasks more efficient and productive. In addition, the comprehensive nature of a CMMS ensures that the maintenance team is best able to keep being productive on a consistent basis.

Second, increased efficiency and productivity via the use of a CMMS ensures that tenant needs are addressed in a timely and accurate manner. The maintenance team knows precisely what needs to be done, when it needs to be done, and which tools and supplies are needed to accomplish the task.

Reduced Maintenance Downtime

The use of property management CMMS directly contributes to a sharp reduction in maintenance-related downtime. This important reduction in downtime occurs on two fronts.

First, when a maintenance issues comes up at rental property, it is usually because something has become unusable on the premises. For example, when something goes amiss with the HVAC system, a tenant is likely to be unable to use the heating or cooling element of the system. Even minimal downtime can prove to be highly problematic and negatively affect tenant relations in many situations.

Second, the use of CMMS for property management reduces downtime associated with the maintenance team itself. For example, because CMMS proactively tracks supplies and inventory, maintenance team downtime can be reduced or even avoided altogether. No one is left waiting for supply fulfillment to begin work on a project; instead supplies are actively maintained on a regular basis.

User Friendly Interface and Intuitive Operations

One complaint that is often heard about some CMMS applications is that they are challenging to use. Another of the key benefits associated with MRI NETfacilities CMMS products is found in their extremely user-friendly interfaces. A property management company, and its team, can access and use the various solutions contained in MRI NETfacilities’ comprehensive CMMS application with ease.

The simple fact is that the more user friendly a CMMS application is, the more often it will be used. Indeed, if CMMS software is being introduced for the first time, it will gain quick, more immediate acceptance within a property management company if it is simple to use. The value of rapid acceptance of a new software solution due to the ease of implementation simply cannot be understated.

Task Tracking and Verification

A problem that is endemic to the property management business is the issuance of a maintenance assignment without suitable tracking, verification, and follow-up tools. In other words, a job assignment is made and company management has no way to track its status only to eventually lose track of it.

With CMMS software for property management, a maintenance job remains on the radar of all key personnel from the moment it is created until it has been properly completed. In simple terms, this type of end-to-end tracking makes life far easier for property management firms and tenants alike.

Thanks to the comprehensive nature of MRI NETfacilities’ property management CMMS, all aspects of maintenance tasks become smoother, easier, more cost-effective operations.

The post The benefits of CMMS for cost effective property management appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/property-accounting-take-control-general-ledger/ Mon, 23 Dec 2019 14:00:22 +0000 https://www.mrisoftware.com/?p=26277

Property accounting can sometimes seem like an uphill battle with lots of opportunities for mistakes. Managing multiple accounts, performing bank reconciliations, and even performing journal entries can leave room for potential errors in your property accounting, which begs the question, “How can one mitigate risk in such a complex process?” Closing your books with confidence … Continued

The post Property accounting: Take control of your general ledger appeared first on MRI Software.

]]>

Property accounting can sometimes seem like an uphill battle with lots of opportunities for mistakes. Managing multiple accounts, performing bank reconciliations, and even performing journal entries can leave room for potential errors in your property accounting, which begs the question, “How can one mitigate risk in such a complex process?”

Closing your books with confidence is not an impossibility. While many of the challenges faced by your accountants aren’t completely avoidable, you can limit the areas in your process where things are most likely to become broken by taking better control of your general ledger.

We’ve collaborated with our clients and users to ensure that MRI General Ledger software helps you take control of your financials with several key features.

Soft Close gives users greater reviewability

Once all submodules have been closed, the GL Soft Close process can be kicked off and financials can be reviewed prior to formally closing that period. While the Soft Close is in process, users are prevented from making entries. If additional or correcting entries are required, senior accountants can adjust the books themselves or give others the proper permissions to do so. The GL Soft Close can be initiated and reversed as many times as needed. The goal of GL Soft Close is to give property accountants the full amount of reviewability and flexibility needed to make the proper adjustments without causing internal headaches.

Entity Filtering presents necessary data

The Entity Filtering functionality allows users to go beyond simply filtering through different accounts based on different keywords, search terms, locations, etc. This simplifies the accounting process by removing irrelevant options and can prevent manual manipulation of control accounts. MRI clients can use one chart of accounts for entities of different uses, and filter the accounts that are appropriate for certain entities. For example, if you receive an invoice for snow removal services, Account Filtering can exclude snow removal vendors from the chart of accounts for properties located in Florida, which is generally not a place in need of snow removal.

Account Filtering keeps team members on track

This feature is designed to improve user accessibility and reduce the number of areas where mistakes can be made. Account Filtering lets users only see account information that is relevant to them, to reduce certain variables in property accounting and limit the possibility of errors and ensuring that job duties are separated appropriately.

GL Segmentation increases visibility

The GL Segmentation feature allows you to create a hierarchy within your chart of accounts, which helps keep it organized and reduce the opportunity for missteps. You can establish “parent” accounts for a category of expenses, and then group all relevant accounts underneath it, making everything more accessible and understandable. GL Segmentation also gives you the ability to segment expenses underneath the proper account. Reporting detail is significantly enhanced without the proliferation of accounts within your chart of accounts.

Enhanced Variance Notes mark your progress

When tracking budgeting or expenses, this feature gives the accountant the ability to add notes within the MRI solution about why a variance exists. With an intuitive, spreadsheet-like user interface, Enhanced Variance Notes allows users to do much more than simply add comments in the margins, however. It is now much easier to compare a variety of metrics and include the notes in standard reporting formats. The accountant also has the ability to make the variance notes repeatable if they span across months or even years of data to avoid tedious re-entry.

MRI General Ledger is the comprehensive software solution that can put your organization on the right track when it comes to property accounting. Through features that give users increased visibility, you’ll be able to see all the relevant information you actually need, making the review process for your general ledger easier than ever.

Want to learn more about how MRI General Ledger can improve your property accounting? Watch the webinar to learn exactly how you can mitigate risk and cut down on user error by taking control of your GL.

The post Property accounting: Take control of your general ledger appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/horizon-in-the-news-mri-solution-not-related-to-stories-about-uk-post-office/ Fri, 20 Dec 2019 10:03:01 +0000 https://www.mrisoftware.com/?p=26273

It’s possible you’ve spotted the name ‘Horizon’ in the press recently. We would like to confirm that MRI Horizon, our enterprise real estate management and investment software solution, IS NOT the system which has been the subject of recent news stories relating to the UK Post Office. Articles, such as this one on the Independent, … Continued

The post Horizon in the news: MRI solution NOT related to stories about UK Post Office appeared first on MRI Software.

]]>

It’s possible you’ve spotted the name ‘Horizon’ in the press recently.

We would like to confirm that MRI Horizon, our enterprise real estate management and investment software solution, IS NOT the system which has been the subject of recent news stories relating to the UK Post Office.

Articles, such as this one on the Independent, refer to a Horizon IT system. To reiterate, and to reassure our many existing clients and potential users, the Horizon in question is in no way connected to MRI Software.

Hopefully, this allays any concerns that may have arisen.

Thanks, and season’s greetings!

The post Horizon in the news: MRI solution NOT related to stories about UK Post Office appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/new-lease-accounting-standards-driving-compliance-collaboration/ Wed, 18 Dec 2019 21:12:22 +0000 https://www.mrisoftware.com/?p=26268

Takeaways: Private companies and non-profits shouldn’t procrastinate, even with the deadline extension to 2021. Collaboration across reporting lines within an organization can make the transition to compliance with the new lease accounting standards easier. Lease accounting and administration software can support collaboration, updated business processes and operational controls. Corporate occupiers with large portfolios can leverage … Continued

The post New lease accounting standards: Driving compliance through collaboration appeared first on MRI Software.

]]>

Takeaways:

• Private companies and non-profits shouldn’t procrastinate, even with the deadline extension to 2021.
• Collaboration across reporting lines within an organization can make the transition to compliance with the new lease accounting standards easier.
• Lease accounting and administration software can support collaboration, updated business processes and operational controls.
• Corporate occupiers with large portfolios can leverage software to gain strategic insight.

The new lease accounting standards (FASB ASC 842 and IFRS) have already become a reality for all public business entities that follow ASC 842 and all businesses that follow IFRS 16. Now it’s time for private companies to join the compliance soiree.

Even though the deadline for FASB private companies and most non-profits to bring leases onto the balance sheet is now for fiscal years beginning after December 15, 2020, it’s not an excuse to procrastinate. FASB extended the deadline an extra year for good reason, and it would be a huge mistake to think, “I have another year before I need to start worrying about this”. Please keep in mind, companies still have the option to adopt the standard early, prior to the new extended date.

Contrary to popular belief, the new lease accounting standards are not a black-and-white rule book with step-by-step instructions on how to achieve compliance for your organization. There’s a lot of gray area, and many items are subject to interpretation. That’s why accounting departments need to focus on more than just which numbers to include in the financial statements. It’s time to also think about collaboration, business processes, and operations to ensure a smooth transition to the new standards.

Driving collaboration through technology

Before the new standards came into being, real estate leases were often managed by a dedicated department within the organization, with finance having little responsibility for them. As a result, many real estate management teams today don’t have enough accounting expertise to correctly adapt to the new compliance rules by themselves. And even if they do, finance will need to consider the effects of lease accounting in the context of the business’ balance sheet.

The same holds true for equipment leases, which are also affected by the new standards, and will likewise require people who haven’t traditionally interacted much to collaborate with each other moving forward. Equipment leases may present an even greater compliance challenge, since in most cases they drastically outnumber real estate leases, making them more difficult to wrangle even though they represent a smaller value.

Compliance with the new lease accounting standards requires collaboration among many different functions within an organization, including: real estate, accounting, finance, operations, information systems, procurement, etc. For both equipment and real estate leases, software systems designed to enable compliance with the new lease accounting requirements can reinforce updated business processes and create easier routes for staff to get the necessary figures. Putting operational controls in place can reduce the risk of error and make it easier to manage processes and requirements across different lease types.

Comprehensive lease accounting software can provide a best-of-both-world solution – staff can enter the data one time to fulfil both the lease administration and lease accounting requirements from within the same system. Reporting functionality allows users to slice and dice the data from multiple perspectives, providing more insight into the operational performance of the portfolio. Lessees can more easily identify opportunities for cost savings, leverage better terms for landlords, and aggregate the data for a more holistic view.

Strategic benefits of lease accounting software

The impact of leases extends beyond the physical property that it covers. For corporate occupiers with a sizeable or high-value real estate portfolio, the way real estate and leases are managed can have a significant effect on business strategy.

As the landlord/tenant relationship evolves into a vendor/customer relationship, metrics regarding tenant satisfaction, appreciation, and turnover will be more important than ever. While the rules have not changed much for commercial landlords, they still need to understand the influence that the new regulations will have on their tenants and how it could affect deal structures and negotiations in the future.

For corporate occupiers, the FASB deadline extension is not a reason to wait. It’s a chance to take advantage of extra time and avoid potential headaches. By leveraging lease accounting technology, you can encourage collaboration across departments and strategically set your organization up for future success.

The post New lease accounting standards: Driving compliance through collaboration appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/ccpa-for-multifamily-properties-what-you-need-to-know/ Thu, 05 Dec 2019 16:31:53 +0000 https://www.mrisoftware.com/?p=26203

Alycia Workman, Esq., is Senior Associate General Counsel at MRI Software. The California Consumer Privacy Act (CCPA) is set to have a major impact on the multifamily real estate industry, beginning as early as January 2020. The new consumer privacy law gives California residents significant control over their personal data, including the right to know … Continued

The post CCPA for multifamily properties: What you need to know appeared first on MRI Software.

]]>

Alycia Workman, Esq., is Senior Associate General Counsel at MRI Software.

The California Consumer Privacy Act (CCPA) is set to have a major impact on the multifamily real estate industry, beginning as early as January 2020. The new consumer privacy law gives California residents significant control over their personal data, including the right to know who’s collecting it, what it’s being used for, whether it’s being sold or shared with others, and the right for it to be deleted.

The new regulation isn’t just aimed at big tech companies like Facebook and Google – it impacts a large number of private, for-profit organizations that do business with consumers in the state of California, including multifamily organizations.

What is the CCPA?

The CCPA will impose strict requirements on how multifamily owners and operators interact with a wide range of personal information of each California resident that they engage with, including prospects and former residents. It also covers business contacts, vendors, and employees. The CCPA gives consumers the right to restrict the sale of their data and to have their information deleted. The law will, in large part, go into effect January 1, 2020 with some exceptions extending to 2021. Fines for violations range from $2,500 to $7,500 per incident, which can add up to a significant financial impact.

Companies that need to comply with the CCPA are those that meet one of the following criteria:

1. The business has annual gross revenue in excess of $25 million.
2. The business buys, receives for commercial purposes, sells, or shares for commercial purposes (alone or in combination) the personal information of 50,000 or more consumers, households, or devices annually.
3. The business gains 50% or more in annual revenue from selling the data of California residents.

As such, this purview of the CCPA includes multifamily owners and operators that collect resident/tenant data as part of their everyday business. Even if your organization doesn’t currently meet any of these criteria, the CCPA outlines some twelve month lookback periods, particularly around disclosures for use of the data over the previous twelve months, which a business would need to meet if it becomes subject to the law in the future.

How can your multifamily organization prepare for the CCPA?

The first step is to understand what data your business is collecting and why, where and how it’s stored, and whether it’s being shared with any other organizations. If you don’t know the answer to that, then you need to undertake a data mapping exercise to identify and document the answers to those questions. It can be a painful process, but it’s necessary to look at each of your systems and figure out what information is being collected, why it’s there, and how it’s being managed.

From there, you will need to incorporate the data mapping information into your privacy policies and data consent document. The CCPA outlines some very specific steps for consumer consent, so we recommend that you consult privacy counsel to ensure you are in compliance with the legal requirements.

Next, you will want to establish processes for handling consumer requests. For example, what steps will your staff take when a consumer requests to access the personal information you hold on them; how will you erase the consumer’s information if they make a proper request for it; how will you pass that request to your service providers; how will you verify that the requests are coming from the consumer themselves; etc. Additionally, in general, consumers may opt out of the sale of their personal information to another party.

If you are feeling overwhelmed by these requirements, take solace in the fact that the opt-in requirements of data collection under the CCPA are less onerous than the opt-in requirements for our British and European colleagues under the General Data Protection Regulation (GDPR).

Are there any exceptions?

You may be wondering how your multifamily property can continue doing business with consumers who have exercised their rights under the CCPA, such as the right to have their information deleted. Here are a few exceptions that may help you breathe a bit easier:

1. You are not required to delete a resident’s personal information if it’s necessary to provide the services to the resident, i.e. a resident cannot use the right to delete as a way to avoid paying rents.
2. You are not required to delete a consumer’s personal data if it is being used solely internal uses that are reasonably aligned with the expectations of the consumer
3. You are not required to delete a consumer’s personal data if it’s required to for you to comply with another law, like FCRA for example.
4. The attorney general proposed regulations specify that de-identified information (which cannot be re-identified) is except from deletion and disclosure.

CCPA software for multifamily

In addition to putting processes in place to help your staff handle consumer requests for deletion, purpose-built property management and accounting software can enable your multifamily organization to maintain compliance. With version X.5.4 of MRI Software’s residential management solution, you have less to worry about regarding CCPA compliance. When a prospect applies to your multifamily property, the system tags each field that can be anonymized, so, should a resident ask to be forgotten, you can quickly comply with the request (subject to the allowed exceptions, of course).

What if I’m already GDPR-compliant?

Many businesses outside of the UK and Europe have already been impacted by GDPR, which took effect in May 2018. Multifamily organizations that are already in compliance with GDPR will have an easier time preparing for CCPA. While there is overlap between the two regulations, businesses may need to make additional modifications to ensure compliance across both laws.

While GDPR took more than a year to take effect, CCPA has taken shape much more quickly, giving businesses less time to prepare. As we await the final iteration of the attorney general regulations, multifamily owners and operators need to start planning today to make sure the right technology is in place. Learn more about how MRI Residential Management can make that easier.

The post CCPA for multifamily properties: What you need to know appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/survey-says-how-real-estate-tech-experts-feel-about-new-trends/ Mon, 02 Dec 2019 19:34:43 +0000 https://www.mrisoftware.com/?p=26170

At the NMHC OpTech annual conference earlier this month, I had the pleasure of moderating the “Ask the Tech Pros” panel. It was a great opportunity to hear from a few top Tech leaders in the industry, including CIOs, VPs, and Technology Directors as they collectively discussed security, operating in the cloud, and enablement through … Continued

The post Survey says: How real estate tech experts feel about new trends appeared first on MRI Software.

]]>

At the NMHC OpTech annual conference earlier this month, I had the pleasure of moderating the “Ask the Tech Pros” panel. It was a great opportunity to hear from a few top Tech leaders in the industry, including CIOs, VPs, and Technology Directors as they collectively discussed security, operating in the cloud, and enablement through software. During the session, we used live polling to get the audience’s opinion on nine buzzwords to find out how applicable they are in the real world. The respondents indicated whether they have already piloted or adopted the particular tech, if it’s slated for 2020 or by the end of 2022, and if they had no plan to adopt or consider it.

Below are the survey responses, and some quick thoughts on them, for nine tech topics with varying degrees of adoption across the real estate industry. The volume of responses ranges from 40 to 51 session attendees, which is a random sampling from the 2300 attendees at the event. So, for full disclosure, this is not a strictly scientific study, but it’s interesting data from a vertically focused audience.

Virtual Reality

Definition: The computer-generated simulation of a three-dimensional image or environment that can be interacted with in a seemingly real or physical way by a person using special electronic equipment, such as VR goggles, a helmet with a screen inside or gloves fitted with sensors.

Proptech Application: Virtual reality can be used to furnish and explore physical spaces in a digital realm. For example, one could “tour” the digital recreation of an apartment space, whether empty or fully furnished, without actually being onsite.

Results indicate limited adoption currently and through 2022 with a large majority not having plans or simply not considering. As this technology is still maturing, these results are not surprising. The piloting and limited adoption is likely tied to new construction where a foundational digital model (BIM) is an increasingly common tool that can provide a basis for virtual reality applications.

Augmented Reality

Definition: A technology that superimposes a computer-generated image on a user’s view of the real world, thus providing a composite view.

Proptech Application: With your smart device, and your future smart glasses, one could see leasing advertising, amenity information, potential furniture, or even a virtual tour guide superimposed on physical reality.

These results show that people feel similarly about virtual and augmented reality, with a large majority of respondents not having plans to adopt or simply not considering it. Both technologies are still maturing, but augmented reality will be driven by the likes of Google, creating the visualization layer that real estate operators will leverage.

Digital Twin

Definition: A digital twin is a digital representation of a physical object or system. The twin has the ability to receive input from sensors that gather data from the real world, allowing it to simulate the physical object in real time, in the process offering insights into performance and potential problems. The twin could also be designed based on a prototype of its physical counterpart, in which case the twin can provide feedback as the product is refined; a twin could even serve as a prototype itself before any physical version is built.

Proptech Application: With new construction, it is now standard to utilize a digital, three dimensional model (BIM) to address potential construction issues (collision detection) in the digital realm and not in the field where costs can quickly escalate depending on the magnitude of the issue found. The BIM model is largely a static model, meant to drive development and it can be leveraged for Virtual Reality applications as noted above. A digital twin would take that model forward and use it for a framework to display operational information in new real time. From binary measures like occupancy to real time measures of energy and water consumption, the digital twin will combine the sensors from the Internet of Things (IoT) with the digital representation of the asset.

Results indicate a vast majority of respondents not having plans or simply not considering. With investment required in both creating the digital twin as well as the instrumentation of the physical asset, it is not surprising that most firms do not yet have this on their agenda.

Smart Home/Unit

Definition: A smart apartment is a living space outfitted by smart devices such as smart lights and locks, as well as integrated services like home cleaning and package delivery. Smart apartment buildings are also wired from the inside-out to connect devices, building systems, residents, and management.

Proptech Application: This was one of the more popular topics at this year’s NMHC OpTech. Locks, lights, sensors, gates, and package lockers/rooms are all aspects that can make an apartment “smart” – the definition is quite broad. These technologies are making their way from the single family market to the multifamily market where complexities increase with the number of units and the relationship between landlord and resident. Smart apartments can drive increased rent as an amenity that will attract some residents. Smart technology can also impact risk management (by detecting unusual water usage), utility costs (by programming vacant units to adhere to HVAC and lighting schedules) and staff efficiency (by allowing access for turn activities through the use of digital keys or remote lock actuation).

Given the number of exhibitors and session on this topic, these results are what one would expect – substantial adoption of these technologies through 2022 with many respondents reporting current pilot and production usage. Device connectivity is the most frequent barrier and there are a number of ways to solve that problem as we approach 2020, with more (5G) on the way. The other frequent barrier is involved with ownership, access, and control over the devices. This grey area between the resident and the landlord must be carefully addressed to optimize the benefits for both parties.

Unaccompanied (or Self-Guided) Tours

Definition: This should be pretty straight-forward – it’s a tour where one either navigates a route by oneself or is directed in some way, shape, or form by mobile technology in place of a human guide.

Proptech Application: Imagine prospects touring apartments unsupervised, leveraging digital content as well as staged materials, to explore a model unit without the pressure of a leasing agent being present. Leveraging smart locks, digital keys and other tech, these tours are expanding the self-service possibilities on sites, freeing staff for additional activities.

The popularity of this topic at the conference is reflected in these survey results as well with nearly half of the respondents reporting adoption by the end of 2020. This technology is currently available and, more importantly, the attitude towards this has warmed from skeptical to receptive, as early results are continuing to show a positive impact on leasing.

Conversational AI

Definition: Conversational AI refers to the use of messaging apps, speech-based assistants and chatbots to automate communication and create personalized customer experiences at scale.

Proptech Application: This technology is starting to replace humans in initial interactions for phone calls, chat and text. Leveraging the AI of providers like Google, Amazon and Twillio will provide capability at scale to have natural language exchanges with prospects and residents. While it may start with simple interactions, the complexity and scope will continue to grow.

These results are also consistent with the popularity of this topic at the conference. Combining natural language and artificial intelligence will, in time, provide better customer experiences than generic call centers and can currently handle simple requests and exchange of information.

Robotic Process Automation

Definition: Robotic process automation (RPA) is the use of software with artificial intelligence (AI) and machine learning capabilities to handle high-volume, repeatable tasks that previously required humans to perform.

Proptech Application: Proptech forms need automation as much as any other enterprise. As a term, RPA is broad in scope and many things can fit the bill, including things you are likely already doing.

As panelists, we were all a bit shocked by this result as we expected more adoption. Consensus is that this outcome is part definitional (the term was new to this audience) and that, considering the large net that RPA casts, many firms are doing something that would qualify as RPA and they just were not aware of the connection. The other thing to consider here is that the customer audience might be looking for more industrial grade solutions from providers as opposed to building something on their own.

Blockchain

Definition: A blockchain is a time-stamped series of immutable data records managed by a cluster of computers but not owned by any single entity. Each of these blocks of data (i.e. block) are secured and bound to each other using cryptographic principles (i.e. chain).

Proptech Application: While the idea of separating data across several locations for security reasons may seem enticing to some, there are currently very few actual use cases for this technology. Potential applications for this technology as it pertains to the real estate industry today is abstract at best.

Blockchain, while promising, is still a hammer in search of a nail as it is a generic technology that has yet to find a compelling use case in multifamily proptech that has gained traction.

Venmo-like Payments

Definition: Venmo is a free-to-use mobile payment app that allows users to send and receive money. The app is owned by PayPal and connects with users’ and businesses’ bank accounts or credit cards to send and receive funds online. It is currently only available for users inside the U.S.

Proptech Application: Currently, roughly 50% of residents still pay rent with a check, either because they like checks or because their landlords do. The other half are using some form of traditional electronic payment (ACH, debit, credit). Venmo, as more of a peer to peer payment app, allows the transfer of funds between individuals with little more than an email address shared between the parties.

These results were what we expected. As digital natives continue to be the dominant demographic in our communities, checks will become less frequent and alternative mobile payment methods will continue to emerge. We did a quick show of hands in the room, asking if any residents had already inquired about paying rent with Venmo or a similar vehicle and a large number of attendees indicated that the topic has been raised. As electronic payment providers bring this feature to market as another payment choice in their offering, the adoption of these payment types should increase more quickly.

The results gathered from this informal study are quite clear when it comes to which technologies and trends are making gains in the industry. While adoption for AI-based solutions and smart device compatibility will continue to be strong into 2020 and beyond, technologies like virtual and augmented reality still need some time to mature before they can gain traction. More proven technologies will continue to be leveraged to drive efficiencies and improve customer experiences while a clear application for blockchain has yet to emerge.

Want to learn more about where real estate technology is going in 2020? Catch up on some of my predictions for the new year.

The post Survey says: How real estate tech experts feel about new trends appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/save-time-boost-portfolio-performance-asset-management/ Mon, 25 Nov 2019 15:15:58 +0000 https://www.mrisoftware.com/?p=26129

Asset managers have a lot of important things to do – things that can add considerable value to the portfolio. They need to be planning recapitalizations, optimizing portfolio cash flow, setting priorities for operating and capital initiatives, negotiating with regulators, lenders and partners, and providing constructive input on the next new deal. But too many … Continued

The post Save time and boost portfolio performance with asset management appeared first on MRI Software.

]]>

Asset managers have a lot of important things to do – things that can add considerable value to the portfolio. They need to be planning recapitalizations, optimizing portfolio cash flow, setting priorities for operating and capital initiatives, negotiating with regulators, lenders and partners, and providing constructive input on the next new deal. But too many asset managers find themselves mired in chasing data, tracking and reporting, and responding to today’s operational problems, without the time or data to focus on the issues that really move the needle for the organization.

What if you could free up 10-15 hours per month for your asset managers to work on value-add initiatives? MRI Software and TCAM asset management services can help return those hours to your staff and provide them with the information and analysis to focus on the big-ticket risks and opportunities.

Let’s look at two examples of clients who used TCAM asset management services to leverage their staff’s time and meet the challenges of growth.

Use Case 1: Strengthening portfolios from the top down

Business Challenge: A client with time management concerns in the higher levels of their business needed to focus more on development, acquisition and other priority portfolio issues. They had too many members of their staff, including senior management, devoting time to the oversight of their growing portfolio.

Solution: Asset management services provided consistent and reliable property direction and oversight.

Business Impact: As a result, the client was able to increase property cash flow, improve risk management at a lower cost, and better leverage senior management’s time. The fresh perspective and focused management reports provided by asset management services led the client to a better understanding of their portfolio’s issues and opportunities.

Use Case 2: Organizing data for better risk management

Business Challenge: An affordable housing owner was dealing with a situation in which their portfolio had grown, but they didn’t feel they had the right tools to accommodate that growth. The owner was still managing off spreadsheets and finding it difficult to attract and retain asset management staff with the requisite skills and experience.

Solution: Asset management services gave the owner the ability to track and monitor key information.

Business Impact: The owner’s portfolio data became more organized, complete, and usable, and their property performance opportunities could be identified on a timelier basis. An asset management service allowed the owner to utilize more effective and proactive risk management practices, shoring up the portfolio against unwanted surprises.

These are just a few ways that TCAM asset management services can help multifamily owners and operators reintroduce efficiency into their processes and free up their asset managers to take on more pressing and important issues. Learn more about TCAM asset management services in this webinar.

The post Save time and boost portfolio performance with asset management appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/how-to-prepare-affordable-housing-demand/ Fri, 22 Nov 2019 13:00:12 +0000 https://www.mrisoftware.com/?p=26130

If you’re not in the affordable housing space today, you might be soon. With rent control legislation gaining traction and rent increases still outpacing buying power, it’s time for all multifamily property owners to recognize the growing significance of affordable housing. Increased demand may soon reshape the real estate industry, based on these facts and … Continued

The post How to prepare for increased affordable housing demand appeared first on MRI Software.

]]>

If you’re not in the affordable housing space today, you might be soon.

With rent control legislation gaining traction and rent increases still outpacing buying power, it’s time for all multifamily property owners to recognize the growing significance of affordable housing. Increased demand may soon reshape the real estate industry, based on these facts and figures from 2010 to 2018:

• The US added nearly 7 million rental units (5.2% growth)⁽¹⁾, and considering that the US population grew from 309 million to 327 million people (5.8% growth)⁽²⁾, supply did not keep up with demand driven by general population trends. Further, we still have a shortage of 7 million affordable rental homes⁽³⁾.
• At the same time, rent has increased by as much as 37%⁽⁴⁾, but wages, and therefore buying power, have not⁽⁵⁾.
• There are 44 million renter households and more than 25% of those homes (around 11.2 million) are considered extremely low income. These households have only 7.4 million rental homes available to them, highlighting another 3.6 million home shortfall⁽³⁾ at the most economically challenging end of the market for renters and developers combined.

Given these statistics, it’s clear to see that in the next few years, the number of renters that need affordable housing will continue to rise. As such, any multifamily property manager that may currently assume affordable housing is out of their wheelhouse may want to consider adding it to their portfolio. With the right technology, expanding into new areas, including the affordable housing space, could be easier than you think.

Can these statistics be leveraged?

There are measures that both multifamily and affordable housing owners could be enacting now in order to prepare for the inevitable shift in the industry. At MRI Software, we’ve developed an affordable housing solution that covers property management and compliance for owners and operators of affordable and mixed portfolios.

With the participation of over 250 affordable and multifamily clients, MRI Software developed MRI Affordable Housing to help the affordable housing industry simplify the day-to-day processes by using technology. This includes a role-based dashboard that will help you prioritize your workday – everything you need to see on one screen.

For Compliance Managers, we leverage the best multi-layered funding capability, and we added a sleek new user interface that further simplifies compliance tracking and tasks. Multifamily property managers are always in need of additional time. Our integrated online portals provide your residents with self-service capabilities from application to payment and service request submissions, eliminating cumbersome administrative work and freeing up your time for more value-adding activities.

At MRI, we’re setting new standards for affordable housing, new standards for allowing clients choices and flexibility, and new standards for nurturing a community of partners. All of this is done to serve our ultimate goal of helping you run a better business.

Learn more about how your organization can benefit from MRI Affordable Housing.

Sources:
(1) Factfinder.census.gov – Cumulative Estimates of Housing Unit Change for the United States, and State Rankings: April 1, 2010 to July 1, 2018 – United States
(2) Factfinder.census.gov – Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2018
(3) National Low Income Housing Coalition – The Gap, A Shortage of Affordable Homes, March 2019
(4) Rental housing journal.com – Slowdown in Month-Over-Month Rent Increases Seen Across the U.S., August 2019
(5) Seekingalpha.com – June 2018 Median Household Income

The post How to prepare for increased affordable housing demand appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/8-real-estate-technology-trends-2020/ Thu, 21 Nov 2019 18:41:57 +0000 https://www.mrisoftware.com/?p=26123

Real estate technology in 2020 will present an opportunity for both residential and commercial firms to differentiate themselves through relationships. In the coming year, we predict that technology will be a catalyst that enables firms to drive tenant satisfaction, keep occupancy rates high, and build stronger relationships with everyone from residents to investors. We’ll see … Continued

The post 8 real estate technology trends for 2020 appeared first on MRI Software.

]]>

Real estate technology in 2020 will present an opportunity for both residential and commercial firms to differentiate themselves through relationships. In the coming year, we predict that technology will be a catalyst that enables firms to drive tenant satisfaction, keep occupancy rates high, and build stronger relationships with everyone from residents to investors. We’ll see continued technology adoption in the industry as more firms gain real value from their software.

1. The most anticipated downturn still won’t happen… or will it?

Spoiler alert – no one has a crystal ball that will predict when “the most anticipated downturn in history” will happen. The only thing we’re certain about is that speculation will continue regarding the timing of the downturn. But, based on a very unscientific survey that we conducted at the MRI Ascend Users Conference in Anaheim, a room full of industry leaders thinks that the downturn will take place in the second half of 2020 or early 2021.

Pro tip: Regardless of when the real estate cycle ends, firms that leverage technology to mitigate risk and drive efficiency will be better positioned to weather the storm.

2. AI gets (more) real

Building on the momentum of prior years, 2020 will bring more pragmatic applications of artificial intelligence (AI) to the real estate industry. All new technology goes through an initial hype cycle, and AI is no longer a shiny new object but has moved closer to actual implementation. As tech adoption gains strength, and more firms embrace the use of data and analytics, AI can optimize traditionally manual processes such as lease abstraction and also impact the business in more strategic ways – enabling faster decision making, increased visibility and transparency, and improved tenant satisfaction across the portfolio.

Pro tip: Exploring the use of AI to automate manual processes, make data more easily accessible, and empower your staff will help firms evaluate opportunities more quickly and grow the value of the portfolio faster. There will also be AI opportunities in customer-facing arenas where natural language processing is become more of the norm.

3. Big data becomes smart data

Deloitte’s 2020 Commercial Real Estate Outlook says “real estate is no longer about ‘location, location, location;’ it has evolved into a new mantra: ‘location, experience, analytics’.” Real estate firms have long been enamored with the idea of gaining insights from data, but the groundwork required to actually achieve ROI from it has historically been difficult to put in place. In the coming year, the real estate industry will be better equipped to leverage data with the help of proptech solutions that enable integration and standardization. In the past, firms have looked to data for short-term insights, but over the coming year, technology will provide ways for firms to analyze data as part of a longer-term strategy.

Pro tip: Data science and analytics will be a prominent feature in the future of the industry, and real estate professionals should educate themselves on basic data science as it will become an integral part of daily jobs at all levels in the organization.

4. New consumer privacy regulations will surprise many

Real estate firms, particularly multifamily owners and operators, will need to put processes in place to comply with new consumer privacy regulations. The California Consumer Privacy Act (CCPA) goes into effect in 2020, and it will have an impact far beyond just California. The recent General Data Protection Regulation (GDPR) enacted in Europe has had a global impact. Other than NMHC, there are few industry voices talking about GDPR or CCPA yet. The requirements of these new regulations and the fines for non-compliance will catch many off guard.

Pro tip: Multifamily owners and operators need to have a detailed understanding of how their organization manages data, so they will be better prepared to comply with potential changes to consumer privacy practices.

5. Proptech is more than a buzzword

The term “Proptech” is no longer just a hashtag – it’s an industry, and it refers to more than just the tech startups that are disrupting real estate. As we predicted last year, VCs are no longer throwing money at ideas — the companies that provide real value to clients have emerged as successful. But with a broader array of technology tools to choose from, real estate owner/operators will be challenged to sift through the noise and effectively evaluate the available options.

Pro tip: Real estate firms with tech-savvy leaders who can distinguish between disruption and innovation will be better equipped to evaluate the technology providers vying for their business.

6. Digital amenities for renters are table stakes

Multifamily property managers know that today’s renters expect digital services and amenities, from the time they start searching for a new apartment, to signing the lease, and moving out. Most renters are Millennials and Generation Z, and virtual tours, electronic lease signing, online rent payments and package management are table stakes now.

Pro tip: Multifamily properties that embrace the shift to a more resident-centric approach will be able to attract and retain residents more efficiently by providing digital services.

7. Increased focus on the customer experience

Most multifamily operators have already shifted from a lease-centric approach to a more wholistic resident-centric mindset to increase occupancy and resident satisfaction in their community. But commercial firms will soon experience a similar trend. The landlord/tenant relationship will become a vendor/customer relationship, making metrics around tenant satisfaction, appreciation, and turnover more important than ever, especially as commercial leasing continues to become more fluid.

Pro tip: At the property level, landlords will need to proactively invest in their properties and monitor them more closely to keep tenants happy.

8. Affordable Housing will still be a conundrum

As interest rates continue to go down, money will be cheap. This allows developers to get financing more easily, but they will likely continue to focus on high-dollar development opportunities instead of low income and affordable housing. For affordable property managers, efficiency and automation will be key to achieving results with limited resources.

Pro tip: Purpose-built software can help affordable property managers automate compliance, manage multiple funding types, and streamline operations so they can better serve the community.

We may not have a crystal ball, but as a pioneer of the real estate software industry with nearly 50 years of experience, we’ve seen many changes over the decades. 2020 will certainly bring some challenges and opportunities, but real estate firms that leverage technology to manage their relationships and their assets will come out ahead.

The post 8 real estate technology trends for 2020 appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/asset-management-software-101-taking-the-plunge/ Thu, 14 Nov 2019 16:57:27 +0000 https://www.mrisoftware.com/?p=26085

As a multifamily owner or operator, you know it’s a problem that all your property data exists in filing cabinets, desk drawers or spreadsheets – or worse, hidden in people’s emails or just in their heads! The information that forms the lifeblood of your business is far too important and complex to be sitting in … Continued

The post Asset Management Software 101: Taking the plunge appeared first on MRI Software.

]]>

As a multifamily owner or operator, you know it’s a problem that all your property data exists in filing cabinets, desk drawers or spreadsheets – or worse, hidden in people’s emails or just in their heads! The information that forms the lifeblood of your business is far too important and complex to be sitting in a binder, but the thought of changing to a new asset management system is daunting.

The answer is clear: you likely realize that you need to invest in asset management software – badly. But implementing and utilizing a solution is such a massive undertaking, and you’re not even sure exactly where to begin. What can asset management software do for your organization? What sort of information should you even be tracking? Will any of this actually be useful?

If these questions resonate with you, fear not. All of your concerns are valid, and there are answers to all of your questions.

Understanding how your organization uses asset data

Before taking on asset management software, it’s important to think about how your organization uses the asset data that it keeps. Are there metrics you’re currently tracking? Is your organization leveraging the data that it tracks to make better business decisions? If you’re still using basic, unwieldy spreadsheets to manage your asset data, the answer to that question is likely “no.” Establishing asset management software, however, allows you to track more data points, focus on the meaningful data, and access them more easily.

Even if you’re not entirely sure what kind of data your multifamily organization needs to be tracking, MRI Software has a solution that can help owners and operators who feel overwhelmed by the questions that would naturally accompany the introduction of a new asset management solution. Through TCAM advisory services, MRI can work with owners and operators to translate whatever unformed thoughts are in their head about what’s important to them and what’s been pushing them to consider implementing new software.

What data should you be tracking?

While this is a question you’ll need to know the answer to before moving forward with asset management software, it’s okay if you don’t know how to respond right away! An easy way to find out what data you want to track is to ask yourself about the needs of the end user. What can technology provide to the end user? What goals are they trying to accomplish, and how do you think inefficient processes are standing in the way of that?

You’ll also want to spend time thinking about what teams within your organization will benefit from a new system. A good way to assess this would be to gather one member from each team and get their feedback on some of the most difficult parts of their job and what kind of functionality would make it easier. Which aspects of the business would they like to know better? If this still feels overwhelming, TCAM has extensive experience working with owners and operators of multifamily housing to help really delineate where pain points are, what the actual drivers of value are, and what information would be most helpful to enable smarter decision-making.

The process is worth it

You might be thinking about how many questions you should be asking in order to switch over to new software. No matter how daunting the process may seem, asset management services can help you break down each step and stay focused on where you want to go. Get a better understanding of what your business needs, and see how an asset management solution can help each team across your organization make better decisions.

To learn more about asset management software, watch this webinar and see what a solution can do for you.

The post Asset Management Software 101: Taking the plunge appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/navigating-the-changing-face-of-britains-high-streets/ Mon, 11 Nov 2019 16:26:09 +0000 https://www.mrisoftware.com/?p=26033

The British high street is going through a period of incredibly dynamic change. But it need not be all doom and gloom, because diversification could lead to reinvigoration of our town and city centres – a shift in which proptech will play a pivotal role. For instance, an MRI Software survey of chief executives, directors … Continued

The post Navigating the changing face of Britain’s high streets appeared first on MRI Software.

]]>

The British high street is going through a period of incredibly dynamic change. But it need not be all doom and gloom, because diversification could lead to reinvigoration of our town and city centres – a shift in which proptech will play a pivotal role. For instance, an MRI Software survey of chief executives, directors and top managers in the property sector revealed 72% see the development of residential properties in former retail premises giving the British high street a new lease of life.

It is a change that’s badly needed. According to research by PwC and the Local Data company, the retail slump hit record levels in the first half of 2019 with a net decline of 1,234 chain stores – an average of 16 stores closed each day – on Britain’s top 500 high streets. With changing consumer habits, new technologies and the rising business costs continuing to hit retailers, a growing number of real estate investors and landlords are evolving their strategic outlook to look at how multiple asset types and mixed developments can deliver success.

At MRI we are seeing roughly three-quarters of major retail investors now looking at diversifying developments to feature residential and leisure space, as well as more traditional commercial components. This growing trend is demonstrated by major players such as Intu and Redevco announcing major moves in the residential sector within the last 18 months. The problems posed by retailer closures and a chronic lack of new housing are coming together to create a solution for both, with the MRI research showing that 82% of the senior property professionals surveyed see mixed use developments with a strong housing component as a lucrative opportunity – and it could ultimately lead to a healthier high street.

More residential property on the high street then opens opportunities for leisure, hospitality and other related projects such as health clubs, specialty cafes, entertainment venues and other non-retail businesses. We’ve seen recently, for instance, that gyms are one of the few types of business growing in city centres. Indeed, the future of high streets will be areas where people are able to live, work and play – changing the way companies that own, develop and rent out those spaces operate. In order to gain a competitive edge in this changing marketplace and identify suitable new opportunities quickly, they will need to adopt a data-driven approach supported by technologies that enable them to manage increasingly complex property portfolios.

The key will be to employ technology, the kind provided by MRI, that equips businesses to gain actionable insight into their holdings and operations, helping inform business strategies and activities. We can see the growing importance of property technology in guiding this transition from the results of the MRI survey, with half of the respondents seeing it as critical to growing their business, boosting productivity and tackling regulatory challenges. The research also revealed that the overall uptake of proptech in the UK is strong, with two thirds of the companies surveyed already adopting a solution.

As high streets evolve into more complex and rounded communities, owners, developers and property managers will need digital tools that allow them to engage with residents, commercial occupiers and stakeholders in a more complete, in-depth and consistent way than they ever have before. Taking this more customer-centric approach will require specialist technology such as self-service online portals for tenants of all types, and even maintenance teams and contractors. MRI’s own suite of portals enable access to data, the ability to share important information with residents and automated business processes – from managing payments and simple enquiries to handling amenity bookings and ensuring maintenance requests are fulfilled. The result is community collaboration that will suit these mixed developments.

Those who invest in the real estate at the heart of the UK’s towns and cities need to equip themselves to manage the shift to an altered mix of occupiers and new business models. Investing in technology to manage property assets, as well as changing customer relationships, is quickly becoming essential for businesses to leverage the data and insight they need to take full advantage of the growing opportunity to reshape Britain’s high streets.

Learn more about property trends and the overall state of the UK market in this MRI Software survey.

The post Navigating the changing face of Britain’s high streets appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/simplify-residential-lifecycle-mri-living/ Thu, 31 Oct 2019 17:58:28 +0000 https://www.mrisoftware.com/?p=26026

The expectations of today’s renters have changed, and multifamily property managers must be prepared to meet those expectations to stay competitive. Being able to maximize occupancy with the right residents, retain them with a high-end experience, and keep track of progress toward business goals are crucial to property management in the digital age. MRI understands … Continued

The post Simplify the residential lifecycle with MRI Living appeared first on MRI Software.

]]>

The expectations of today’s renters have changed, and multifamily property managers must be prepared to meet those expectations to stay competitive. Being able to maximize occupancy with the right residents, retain them with a high-end experience, and keep track of progress toward business goals are crucial to property management in the digital age.

MRI understands that multifamily property managers must excel across each of these areas. MRI Living represents our comprehensive suite of end-to-end residential software solutions designed to help multifamily property managers rise to the latest challenges facing the industry.

A day in the life of a multifamily property manager
Keeping residents happy isn’t just one of a dozen ways to protect your bottom line – it’s the lifeblood of your business. You don’t just manage units and buildings; you manage people’s homes, and the best way to build a good relationship with those people – your residents – is to offer them the best experience you possibly can.

The development and preservation of a landlord/resident relationship is the story that lies at the heart of the residential lifecycle, and the tools provided through MRI Living and our extensive partner ecosystem can help you develop that relationship and excel at every step of that lifecycle. Through MRI Living, you’ll be empowered to attract great residents, simplify living, run your properties effectively and efficiently, and utilize your data to plan for the future.

1. Attract great residents

Prospects are consumers by nature, and every consumer today starts the search for their desired purchase online. Did you know that 73% of renters in the United States are younger than 44 years old? On top of that, nearly 100% of them have a cell phone, and over 90% have a smartphone. This means that it’s more important than ever that your property and brand has online visibility so that prospects can find you.

After you get a prospective resident engaged with your property, you’ll want to get a lease signed in a way that makes things as easy as possible for both your prospect and your leasing staff.

Utilizing the proper software solution can help you get your organization out in front of the right prospects at the right time, and it can also help fast-track the leasing process in a convenient and effective manner.

2. Simplify living

Property Managers aren’t just in the business of real estate; they’re in the business of taking care of people. Astonishing residents with your services, amenities, and general “customer service” skills will increase the likelihood that they will renew their lease.

Considering that many of today’s residents are from younger generations, traditional amenities such as pool access and workout areas don’t hold as much clout as they used to. Today, providing convenient digital amenities, transparency, and tools that make life easier for you and your residents can go a long way.

At the same time, providing a satisfying and easy resident experience doesn’t rest entirely upon your shoulders. There’s a balance between the two extremes of overbearing communication with residents and forcing them to go searching for information. The proper tools can help you on your quest to find the best way to simplify living for both your residents and your property staff.

3. Run smoothly

So you’ve automated the lead-to-lease process and are providing self-service tools for your residents, but how well are you automating your back office processes?

If your property isn’t running smoothly, inefficiencies can reverberate across your organization and negatively impact the resident experience. Simplifying your day-to-day property management tasks with tools that maximize operational efficiency and minimize risk can help alleviate your worries.

At this stage in the residential lifecycle, you as a property manager can put your best foot forward with your new residents. Getting a new lease signed is one thing but providing a satisfying experience for an existing resident is another. Even if you feel that you’ve built a solid foundation of trust through the leasing process, residents often spend a greater amount of time adjusting to their new homes, and you have a critical role to play in ensuring that process is as smooth as it can be.

4. Know the score

As you’re working towards making your operations more resident-centric than lease-centric, it’s important that you keep track of your data and assess the health of your organization to see what’s working and what’s not.

The health of your business is a critical aspect of property management that you shouldn’t be neglecting. Knowing the score and keeping track of your progress can help you reach your goals and maximize profitability.

The more you provide for your residents, the more you’ll find that their retention will become predictable. This aspect of property management isn’t just good business; it’s a good way to stabilize your bottom line and prepare for the future by keeping your occupancy rate high.

Excel throughout the residential lifecycle
The lead-to-lease process is essential to your property operations, but it doesn’t represent the full scope of your responsibilities as a property manager. The road to success in today’s ever-changing industry starts by firing on all cylinders at every step of the residential lifecycle.

With the right tools at your disposal, you’ll be able to fully commit to your organization’s future. Utilizing residential property management solutions can enable you not only to carry out your daily operations, but to prepare yourself for whatever challenges may lie ahead.

Learn more about MRI Living and how you can excel in every step of the residential lifecycle.

The post Simplify the residential lifecycle with MRI Living appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/mri-ecosystem-celebrating-partners-ascend-2019/ Thu, 24 Oct 2019 20:35:01 +0000 https://www.mrisoftware.com/?p=25985

The MRI Ecosystem was on full display at MRI Ascend in Anaheim last week. Our users conferences – whether they’re in North America, Europe, Asia Pacific, or even South Africa – have always been about bringing together our clients and partners to showcase our comprehensive and flexible technology platform and the open and connected partner … Continued

The post The MRI Ecosystem: Celebrating our partners at Ascend 2019 appeared first on MRI Software.

]]>

The MRI Ecosystem was on full display at MRI Ascend in Anaheim last week. Our users conferences – whether they’re in North America, Europe, Asia Pacific, or even South Africa – have always been about bringing together our clients and partners to showcase our comprehensive and flexible technology platform and the open and connected partner ecosystem that supports it.

MRI’s Partner Connect program is at the heart of our approach to real estate software. The sea of exhibitors at MRI Ascend is living proof that openness is integral to our corporate vision and that the momentum of our partner program shows no sign of slowing down.

We’d like to say thank you to all the great partners that helped make MRI Ascend a success, especially our Diamond sponsor, AvidXchange, and Platinum sponsor, Nexus. The conference simply would not be the same without your support!

Partner of the Year: insightsoftware

We’re proud to recognize insightsoftware as the 2019 Partner of the Year. As an outstanding member of the Partner Connect program, insightsoftware has been a true advocate for flexibility and choice, and our mutual clients have benefitted greatly from the integration of Spreadsheet Server and MRI. Congratulations to insightsoftware!

Honoring our partners in the MRI Ecosystem

Our partners have many outstanding achievements, so we were thrilled to hand out even more awards for at the MRI Demo Theater Stage. We want to extend a special congratulations to these partners for your hard work!

Most Active in the myMRI Forums – AJB Consulting
Highest Number of Newley Adopted Mutual Clients YoY – Procore for Owners
Highest Number of Certified Individuals in Certification Program – FitechGelb
Highest Number of Enrolled Individuals in Certification Program – FitechGelb

Of course, this whole event would have been impossible without all of our wonderful sponsoring partners. Through their support, we were able to demonstrate that openness and flexibility are in high demand within the real estate industry, and the success of MRI clients is living proof that it works.

The post The MRI Ecosystem: Celebrating our partners at Ascend 2019 appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/reaching-new-heights-mri-ascend-anaheim-2019/ Mon, 21 Oct 2019 20:25:44 +0000 https://www.mrisoftware.com/?p=25971

MRI Ascend and the open and connected ecosystem took Anaheim, California by storm last week! More than 1400 real estate industry professionals and 60 partners gathered at the Anaheim Convention Center to network with each other and explore what’s new with MRI Software. We were thrilled to pull back the curtain on several innovative solutions … Continued

The post Reaching new heights at MRI Ascend 2019 in Anaheim appeared first on MRI Software.

]]>

MRI Ascend and the open and connected ecosystem took Anaheim, California by storm last week! More than 1400 real estate industry professionals and 60 partners gathered at the Anaheim Convention Center to network with each other and explore what’s new with MRI Software. We were thrilled to pull back the curtain on several innovative solutions that will help MRI clients do more than just stay ahead of the curve, but also rise above it.

MRI users conferences have always stood as the living embodiment of the open and connected ecosystem, where our clients can leverage flexibility and choice to create the solution that works best for their business. This year, we were excited to unveil a record number of new solutions designed to help real estate organizations in a variety of ways.

This way to comprehensive and flexible real estate software solutions!

At MRI Ascend, we proudly announced MRI Application Gateway, which provides a single point of entry to Platform X. Through an app-based launch screen, users can securely access their MRI and third-party applications, bringing all of the solutions you love and use regularly into one familiar interface.

We also unveiled MRI Secure Sign, which enables clients to efficiently create and send real estate documents for signature with purpose-built integrations from within the MRI platform.
As businesses continue to move operations online, it’s more important than ever to control and protect digital documents and signed contracts.

MRI Living
The MRI Living suite now includes two new innovations: MRI Payments and MRI Lead Management. MRI Payments allows multifamily properties to handle multiple payment types, including online and check payments, through an integrated solution that delivers a complete prospect and resident experience. MRI Lead Management brings leading-edge technology for tracking and engaging potential residents into the MRI Living suite of residential solutions to give owners and operators the ability to manage prospects from lead to lease. Today’s renters expect to be treated like people, not metrics, and the MRI Living suite enables residential property managers to take a customer-centric approach and improve the renter experience.

MRI @ Work
In the same way that MRI Living helps residential property managers meet the needs of their market, MRI @ Work houses all of the products that will help commercial property professionals rise above their industry challenges.

One of our newest products is made possible through the power of artificial intelligence. MRI Lease Intelligence brings AI-powered lease abstraction into the MRI @ Work suite of commercial solutions through the integration of Leverton and MRI. Acquired by MRI in July, Leverton enables commercial property owners, operators and occupiers to efficiently extract lease data and analyze it to gain insights. This solution ensures data accuracy by directly integrating MRI Lease Intelligence with MRI property management solutions.

Congratulations to the 2019 MRI Innovation Awards Winners!

At MRI, we think our partners and clients are pretty great, and we’re proud to be working together to drive transformation and openness in the real estate industry. Our Second Annual MRI Innovation Awards were announced on Tuesday during the general session, and we want to extend a very special congratulations to all who were recognized. Here are the winners:

Community Award: The CT Group
Flexibility Award: Harbor Group Management
Ambassador Award: Cecilia Li, Urban Edge Properties
Partner of the Year Award: insightsoftware

The future of real estate software is here

MRI Ascend is a living, breathing representation of the open and connected partner ecosystem that we strive to create for our clients. It’s an honor to do business with some of the most innovative and forward-thinking real estate organizations across the globe. While this year’s Ascend users conference was a huge success, we hope to see even more of our partners and clients in San Diego next year on October 25-28, 2020!

Don’t just stay ahead of the curve – rise above it!

The post Reaching new heights at MRI Ascend 2019 in Anaheim appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/two-ways-automate-your-lease-abstracts/ Thu, 10 Oct 2019 17:15:10 +0000 https://www.mrisoftware.com/?p=25918

This blog was written by Itzik Spitzen, co-founder and CTO of LeasePilot. LeasePilot, an MRI partner, is a context-aware lease automation platform. As the architect of the company’s software framework, Itzik takes a hands-on approach to managing the company’s technology strategy and software engineering teams. Itzik holds a Master’s Degree in Computer Science as well … Continued

The post Two ways to automate your lease abstracts (and when to use each) appeared first on MRI Software.

]]>

This blog was written by Itzik Spitzen, co-founder and CTO of LeasePilot. LeasePilot, an MRI partner, is a context-aware lease automation platform. As the architect of the company’s software framework, Itzik takes a hands-on approach to managing the company’s technology strategy and software engineering teams. Itzik holds a Master’s Degree in Computer Science as well as Practical Software Engineering diplomas from premier academic institutions in Israel.

Of all the things that need to be done during a leasing lifecycle, creating an abstract is far and away the most dreaded task. But because of the abstract’s centralized importance to the daily operations of every real estate business, it’s a necessity. And until recently, it has been a necessity with no shortcuts. But emerging technologies are finally providing viable alternatives to the traditional process.

At a conceptual level, there are only two possible ways that a lease abstract can be automated. But before I can talk about and compare each method, there’s some important background I need to cover first.

Making Breakfast with Structured Data

Computers and the software that runs on them — including the so-called “artificial intelligence” software — are dumb.

Coming from the CTO of a software company, that might sound like a provocative statement. But I don’t believe that it is. In fact, I think most of my peers would agree with me. If you’re skeptical, here’s an experiment you can try right now:

Step 1: Unlock your smartphone and open the Calculator app.
Step 2: Tap the following buttons: 2 + 2 =
Step 3: Observe the result

Hopefully your calculator produced an output of 4. Everything is working as it should. Go ahead and clear that result so we can continue. This time, let’s throw your calculator a proverbial curveball:

Step 4: Type the following sequence: + + =
Step 5: Observe the result

At this point, astute readers may have noticed that Step 4 is impossible. Even WolframAlpha, the most advanced AI-powered calculator available to the public, can’t make sense of the emoji math above. But you probably figured it out instantly. The answer to + + is, quite obviously, breakfast.

The reason why your Calculator app can’t handle EmojiMath is obvious enough: it wasn’t designed to understand emoji-based inputs. To enable a computer to understand EmojiMath, an engineer would need to add new rules to the calculator software specifying the meaning of each new emoji. The important takeaway here is that computers don’t have general intelligence in the same way that human beings do. Even so-called artificial ‘intelligence’ is task-specific; you can’t use a self-driving car’s AI to trade stock on the NYSE.

So what does all of this have to do with lease abstracts? Everything, actually. The purpose behind this exercise is to introduce the concept of structured data as the essential and fundamental prerequisite for software-based automation of any kind. Structured data describes information that is indexed and formatted in a way that a computer can understand. When you and I look at a lease, we see and understand the structure. But a computer does not. To a computer, there’s no structure to a lease beyond the string of words, punctuation, and line breaks that the document contains.

So when we’re talking about how a computer can automate a lease abstract, what we’re really talking about is how we can convert the raw, unstructured data in a commercial lease into structured data that a computer can understand. And there are only two ways that can be done:

1. Machine Learning Analysis
2. Context-aware ‘Snapshot’

The rest of this piece will discuss how each method works and when to use it. Note that these methods are complementary and have very different use cases. A cutting-edge leasing team will be able to use both in its workflow.

Method 1: Machine Learning Analysis

In a nutshell, the Machine Learning Analysis method uses advanced software to “read” a lease and convert it into structured data that a computer can understand. This process requires a lot of time and computing power, and as a result, a Machine Learning Analysis is typically only run after the final version of a lease is signed and executed. There are a handful of different technologies that a Machine Learning Analysis uses, but for the sake of brevity I’ll focus on the most crucial: Natural Language Processing.

Natural Language Processing (NLP) uses an algorithm to convert the unstructured human language in a commercial lease into a structured dataset that computers can work with. The algorithm works by comparing the unstructured language in the lease to a large sample dataset of pre-structured leasing language. Over time, the algorithm “understands” the meaning of the content in the new lease and builds a logical data structure around its findings.

Although these algorithms aren’t perfect—a human still needs to review the results and correct any mistakes—they “learn” more with each new lease and grow more accurate over time. With all of the grammatical oddities and complexities implicit in human language, this feat is nothing short of amazing.

Method 2: Context-aware ‘Snapshot’

Lease abstraction using the ‘Snapshot’ method is relatively new on the CRE scene. This method doesn’t require a complicated NLP algorithm, uses minimal processing power, and can produce an error-free abstract instantaneously (no human review required). Given all of these advantages over the Machine Learning Analysis method, you’re probably wondering why the Snapshot method isn’t common practice. Here’s the catch: a Realtime Database Snapshot can only produce an abstract from a lease that is drafted and revised using software built specifically for creating commercial lease documents.

Although specialized leasing software is relatively new, it operates on the same principles that every real estate lawyer and paralegal already knows reflexively: commercial leases have a logical structure with a predictable framework. For example, when an extension option is added to a base lease form, the lawyer drafting the lease automatically knows that s/he will need to update the term, rent tables, and assignment provisions accordingly. The lawyer knows the broader implications a single change can have because s/he is aware of the larger context.

Specialized leasing software operates on the same idea of contextual-awareness. It’s the equivalent of giving your computer a comprehensive ‘map’ of your base forms and option language before a lease is drafted. When it’s time to draft a new lease, the software uses the ‘map’ to build your lease with data that’s already structured. As default option language is added, removed, or manually modified during the negotiation process, the underlying data is continually updated in real time. With this approach to lease-drafting, creating an abstract is as simple as a ‘snapshot’.

Context-aware lease-drafting tools are relatively new to the industry, and as such the snapshot method isn’t as well known as Machine Learning Analysis. But as more and more landlords begin to take advantage of context-aware drafting tools, there’s no doubt that this type of software—and abstracts created with the Snapshot method—will be the industry standard in the next 5-7 years.

Use the Right Method

Now that you have a better understanding of both abstracting methods, the reasons why these methods are complementary are easier to understand. Let’s bring them into view more clearly.

When to use a Machine Learning Abstract

The primary advantage of Post-Lease Analysis is its flexibility. It can be used to create an abstract for almost any lease, which makes it particularly useful when landlords acquire new assets or wish to gather historical leasing data from their portfolio.

The downside of the Post-Lease Analysis method is accuracy and consistency. After the analysis is run, the abstract still requires human review and correction which limits the scalability of the method and eliminates the feasibility of abstracting each iteration of a lease draft during negotiation.

For these reasons, the general rule-of-thumb is that landlords should use the Post-Lease Analysis method for leases on tenant paper or legacy leases.

When to use a Data Snapshot Abstract

Producing an abstract using the Snapshot method is the future of leasing. Its advantages over Post-Lease Analysis are clear: It’s instant, it can be run with each draft to speed up negotiation, and it’s 100% accurate every time.

The obvious downside is that a Snapshot is only possible with leases that are created with specialized lease-drafting software on the landlord’s forms. But as context-aware lease-drafting software becomes the industry norm, this drawback is becoming less important every day.

The post Two ways to automate your lease abstracts (and when to use each) appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/improving-ai-lease-abstraction-process/ Fri, 27 Sep 2019 20:41:29 +0000 https://www.mrisoftware.com/?p=25883

One of the biggest challenges in the commercial real estate sector has always been the cumbersome nature of leases. Commercial leases are filled with large volumes of detailed information and finding one specific point can take hours. The process of extracting data and manually entering it into spreadsheets can take even longer and carries a … Continued

The post How AI is improving the lease abstraction process appeared first on MRI Software.

]]>

One of the biggest challenges in the commercial real estate sector has always been the cumbersome nature of leases. Commercial leases are filled with large volumes of detailed information and finding one specific point can take hours. The process of extracting data and manually entering it into spreadsheets can take even longer and carries a high risk of human error.

Using an AI-powered solution for Lease Abstraction, however, has proven to be one of the most effective leaps forward in time-saving innovations. Over the past several years, LEVERTON, an MRI Software company, has developed technology that uses artificial intelligence to improve the lease abstraction process.

The problem

If you’ve ever had to read through multiple commercial leases and compare terms, conditions and other information, you know that this process is tedious and time consuming. Manual tasks like moving data from several different contracts into one central location don’t just take up valuable time, they leave you more exposed to human error. Even if you’re able to identify those errors, going back and fixing them can take just as long.

Taken from LEVERTON’s own studies, skilled employees across the workforce have reported losing up to ten hours a week on the manual entry of data. Human error is the leading cause of accounting mistakes, and the average financial impact that poor data has on a business is estimated to be around $9.7 million per year.

With statistics like that, it’s very clear that businesses inside and outside the real estate industry are in dire need of a tool that speeds up the process and improves the accuracy of the data entered and extracted. Paper-based documentation, manual data extraction, and continuous data re-entry make for a more complicated, time-consuming process that leads to limited contract analysis, data inaccuracies, and no audit trail.

The solution

Quick and easy data extraction is possible through AI-powered solutions. Through optical character recognition (OCR) software and developing deep learning techniques, LEVERTON has harnessed technology that makes lease abstraction much easier. 73% of the respondents from LEVERTON’s survey said they have already received measurable value from big data and AI initiatives.

AI-powered solutions that have been developed in the past several years give you the ability to digitize documents, structure data in a centralized repository, automate real-time data updates, and utilize predictive analytics that save category information from previously uploaded leases. With LEVERTON’s AI solutions, pulling data from your leases can be automated. The process looks something like this:

1) Organization – OCR technology will convert your selected document into texts that are machine readable.

2) Extract – AI will pull key data from the documents and link each point to source information. This functionality means that the AI is learning from every lease that comes across the platform. It understands the terms, and it increases accuracy over time.

3) Analyze – Once steps one and two are complete, you’ll be able to access the platform and explore the data from different angles. You’ll be able to search for important parameters. You’ll also have any important dates pulled from the lease added onto a calendar feature, or you can opt to create your own custom calendar.

4) Integrate – Exporting the data will allow users to consume it with the desired target system.

Lease abstraction, if done manually, can be a grueling process. But with Lease Intelligence from LEVERTON, you can cut down on the time it takes to manage your leases and regain confidence in your data.

Learn more about how AI can help you achieve your lease abstraction goals in this webinar.

The post How AI is improving the lease abstraction process appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/3-keys-comprehensive-pre-employment-screening/ Wed, 18 Sep 2019 20:43:34 +0000 https://www.mrisoftware.com/?p=25853

The people you hire to operate, manage, and work for your multifamily property business are equally as important as those you choose as residents for your properties. Having the right pre-employment screening process means utilizing a service that enables you to hire as quickly as possible, validate all licenses or degrees, and adapt the criteria … Continued

The post 3 keys to comprehensive pre-employment screening appeared first on MRI Software.

]]>

The people you hire to operate, manage, and work for your multifamily property business are equally as important as those you choose as residents for your properties. Having the right pre-employment screening process means utilizing a service that enables you to hire as quickly as possible, validate all licenses or degrees, and adapt the criteria for different roles.

In order to get the most out of your pre-employment screening service, you’ve got to make sure that you choose a provider that meets the needs of your multifamily business, offers a quality screening service, and complies with state and federal regulations.

1) Choosing the right employment screening provider

When you choose a pre-employment screening vendor, you’re not just buying a product; you’re choosing to trust someone with one of the most foundational aspects of your business.

Many aspects of the new hire process rely on communication, and as a multifamily property manager, there will be times when you need to fast-track the hiring process. Maybe you’ll need to fill an unexpected vacant position, or perhaps you need to get someone hired before a seasonal influx of move-ins/move-outs. For these reasons, it’s important to have several different lines of communication between you and your employment screening provider.

Of course, none of the many channels of communication will do any good if your screening provider doesn’t offer timely or thorough responses to your inquiries. When the speed of your new hire process relies on a third party, you’ve got to be sure your provider responds quickly, and that they set aside ample to answer any questions you may have.

Depending on the position you’re looking to hire, you will likely need access to different sets of criteria for different job roles. For example, perhaps you’re looking for applicants that will be working with your organization’s financials, and you need to see which candidates have the proper training and certifications. When you’re choosing a screening tool, you should ask questions like, “Do they offer all of the different background checks we need?” and “Can we screen for the right standards on a case-by-case basis?”

2) Using a thorough screening service

The reason employment screening is so foundational to your organization is because it lays the groundwork for good business interactions, both internally and externally. Using the proper screening service enables you to improve the quality of your hires, protect your company’s reputation, and reduce the risk of legal or criminal exposure. In short, your employment screening service should be serving the same ultimate purpose of minimizing risk that your resident screening does.

Any discussion around a pre-employment screening service would be incomplete without of course mentioning the primary goal of said screening: improving the quality of new hires. One new employee can act as a morale boost among your current employees, especially if this hire has the skills and abilities to do the job well. A bad hire can have an impact on company culture and the overall reputation of your organization.

Making the right hire also helps to protect the reputation of your multifamily property. In the same way that flaws in your resident screening can be felt throughout the organization’s back office, flaws in your employment screening can cause problems that reverberate into the resident experience. The right hire can help keep your operations moving at an efficient pace.

Finally, utilizing the best employment screening service means running the proper criminal background checks. This aspect might seem fairly straightforward to the untrained eye, but as property managers know from their resident screening experiences, background checks can be a legal minefield. The same applies for your pre-employment screening service. Running new hires through the right background checks doesn’t mean rejecting applicants with a criminal history – you’ve got to remain in compliance with local and federal laws.

3) Complying with state and federal laws

The screening service you choose needs to be in compliance with the Fair Credit Reporting Act (FCRA). Enacted in 1970, the FCRA was aimed at protecting the rights of applicants and new hires. This law determines what personal information can be considered in a background check, and it allows applicants to review that information and contest any details they feel are inaccurate.

When it comes to background checks, there are steps that you as the property manager can take in order to remain compliant. By using all of the proper forms, keeping your applicants adequately updated, and allowing applicants to review their own data, you can ensure that your organization keeps up with the background check process in a fair and legal manner.

Like your resident screening, your pre-employment screening can have a vast impact on every part of your business, so it’s important to use a service and provider that works for you. MRI Software offers both resident screening and pre-employment screening, making the onboarding process as easy as your lead-to-lease operations. Learn more about our pre-employment screening service in this webinar.

The post 3 keys to comprehensive pre-employment screening appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/separating-facts-from-fake-news-open-tech-platforms-for-uk-sales-and-lettings/ Fri, 13 Sep 2019 15:29:10 +0000 https://www.mrisoftware.com/?p=25816

From 24-hour TV news to the endless stream of information available online, it’s becoming increasingly difficult in the modern world to cut through the noise and get to the facts. The property sector, particularly the residential agency space, is no different – but when we hear providers talking about their pioneering efforts to deliver open … Continued

The post Separating facts from fake news: Open tech platforms for UK sales and lettings appeared first on MRI Software.

]]>

From 24-hour TV news to the endless stream of information available online, it’s becoming increasingly difficult in the modern world to cut through the noise and get to the facts. The property sector, particularly the residential agency space, is no different – but when we hear providers talking about their pioneering efforts to deliver open and connected solutions to the market, we feel the need to speak up.

Last year, MRI Software’s Chief Marketing Officer, Mandira Mehra, addressed this in a post, politely pointing out our annoyance that others in the real estate technology industry seem all too happy to jump on the bandwagon of our open and connected ethos. Fair enough – it’s an approach that’s won us much praise. You can’t blame others for looking on with interest. But when we see others claim to be groundbreaking or unique in their efforts, we draw a line.

When we revealed a new brand identity in 2017, it reflected our commitment to offer clients freedom, choice and flexibility in every market and region we serve. It was a bold new strategy in our industry, and it’s one we’ve embedded at the heart of our organisation, and have continued to develop and enhance in the two years since.

UK residential sales and lettings is an area of our business where it is particularly active. Interoperability is crucial within the market and we have led the way in offering two-way integrations between our products, complementary point solutions and recognised platforms that are widely used in the industry. Across our suite of agency solutions, there are more than 50 such examples, both with members of our Partner network and a wider ecosystem of proptech providers and innovators. From referencing and marketing through to utilities management and communications, we have led the way in enabling leading operators to create a flexible and connected tech stack, built on our comprehensive platform, that works how they need for their business.

The importance of openness is demonstrated by the amount of chatter there’s been on the topic in recent months. Such is the appeal, there are players willing to ‘hype up’ their message. Of course, we’d be hypocrites if we just expect you to accept our own credentials as gospel. But, that’s the point. Challenge our claims. Ask us to prove them. We’re confident that you’ll find we don’t just talk the talk.

Indeed, we encourage you to ask questions wherever and whenever you see or hear tech organisations singing their own praises on this topic. To help, we’ve provided some guidance on what you should be looking for in these two articles: 10 qualities of providers that embrace open technologies and 10 ways to tell if your enterprise software provider is truly open. Only by putting providers to the test will you be able to sift through the empty statements – and it seems there are plenty out there.

The post Separating facts from fake news: Open tech platforms for UK sales and lettings appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/8-risk-management-tips-for-hiring/ Mon, 09 Sep 2019 17:53:53 +0000 https://www.mrisoftware.com/?p=25776

No employer wants to make a bad hiring decision or deal with the fallout from one. The consequences of bad hiring decisions can range from lower morale and lost productivity, to theft or property damage, to violence towards colleagues or the public. There’s also the risk of negligent hiring lawsuits that might follow. Any one … Continued

The post 8 risk management tips for hiring appeared first on MRI Software.

]]>

No employer wants to make a bad hiring decision or deal with the fallout from one. The consequences of bad hiring decisions can range from lower morale and lost productivity, to theft or property damage, to violence towards colleagues or the public. There’s also the risk of negligent hiring lawsuits that might follow. Any one of these outcomes can cost an employer hundreds of thousands to millions of dollars.

The sums resulting from even a single lawsuit or occurrence can be enough to bring a company to its knees. So what’s an employer to do? The short answer: take steps to mitigate your risks. Fair enough, but how is an employer supposed to do that? While there is no magic formula that guarantees a perfect – or even a good – hire every time, there are some things you can do that should help you minimize your risks considerably. Here are eight tips to get you started:

1. Mandate a company-wide policy

Mandate a company-wide commitment from the top down to mitigating risk and promote a safe workplace, and develop policies to put that commitment into practice. Workplace violence appears to be a growing threat. We hear more and more stories on the news of shootings or other incidents that came as a surprise, only to learn that many such occurrences may have been preventable. You cannot prevent violent occurrences without a commitment from top management to creating and maintaining a safe workplace. The policies you create are your first real demonstration of that commitment. Of course, you must also make sure that you apply and enforce them consistently.

2. Criminal background is a must

Include in your policies a pre-employment screening policy that, in turn, includes criminal background checks. Unfortunately, many employers learn after an occurrence of theft, violence or other misconduct that an employee had a criminal history that, if checked, would have indicated a risk of the very conduct that has caused injury, significant financial losses, or worse. A criminal background check does cost money, but not nearly as much as a lawsuit, or the amount involved in employee theft. Even the risk of one negligent hire lawsuit can result in a multi-million-dollar verdict or settlement, and that’s without mentioning the legal fees incurred to defend the lawsuit.

3. Know the Fair Credit Reporting Act (FCRA)

Follow all FCRA requirements when running a criminal background check or credit report. There are plenty of resources for learning the specifics on the FCRA requirements, but in general, if you use a third party to get someone’s criminal or credit history, you must provide written disclosure to job applicants and get their written consent before you run the background check. You must also provide certain notices, and an opportunity to explain or dispute negative entries before you reject an applicant. For many employers, the FCRA’s provisions are simply a procedural formality. If you decide to ignore the FCRA requirements, you may find yourself facing a lawsuit here as well. Remember, even if a lawsuit is dismissed, and even when the judgment or settlement amount is relatively low, you will still also incur significant fees for your legal defense.

4. Find the right partner

Exercise proper care in selecting a vendor for background checks and credit reports, both of which can contain inaccurate information. When a screening company isn’t as careful about entering in the right personal information or making sure that the report matches the person being checked, the risk of an employer making a hiring decision based on wrong information multiplies. If that’s not enough, many employers are taken in by online background screening companies promising fast results, low fees and no need to get the applicant’s consent beforehand. Any company making even one of these promises probably does not comply with the FCRA. If you hire this type of company to run your criminal background and credit checks, you could find yourself facing a complaint from the Federal Trade Commission (FTC), or even a lawsuit. Penalties, fines and damages increase, often to staggering amounts, with the number of FCRA violations. Beware of Non-FCRA background screening companies.

5. Customize your screens by position

When feasible, conduct a position-specific search using multiple screening tools. Each position carries different job functions, and with that, varying levels of risk. A mail room clerk may require one level of due diligence, whereas a Staff Accountant or Chief Financial Officer might be someone you should not only check more thoroughly, but also check for specific types of criminal offenses, in addition to requesting a credit report. On the other hand, you may want to make sure that none of your employees have a criminal history that involves violence. In other words, some of your screening processes may apply to all of your employees, whereas you may only use other aspects for certain types of positions. The type of screening and tools you use will vary accordingly.

6. Create disqualification criteria before a search

Decide in advance the type of information that will disqualify a candidate for the job in question. The EEOC and a number of state laws limit how and when you can reject a candidate based on criminal history. Generally, criminal convictions have to be relevant to job functions or safety and well-being of other workers or the public. A blanket exclusion of any candidate with any criminal history will likely violate EEOC guidelines and a number of applicable state and local laws. Assuming the state(s) in which you employ people do not set specific time limits, you should also decide how far back into someone’s criminal history you want to search. (Please note that rejecting a candidate based on an arrest alone is often illegal.) For example, if you are looking for an accountant or accounting clerk, rejecting a candidate with an embezzlement conviction from four years ago is unlikely to cause you problems regarding EEOC guidelines or state or local laws.

7. Always include authorizations & disclosures

Consider including authorization and disclosure forms in a hiring package. Many state and local laws now prohibit asking about criminal history on a job application. Some may even prohibit background or credit checks before you have either interviewed or extended a conditional job offer to the candidate. In most cases the best practice will be to include an authorization and disclosure in a hiring package when you have extended a job offer. You can condition the offer on a satisfactory criminal background and/or credit check. Please remember that the authorization and disclosure forms must be separate documents. Do not make them part of a job application, Employee Handbook or any other form, and do not include any other language (such as release of liability in these forms), or you risk being found in violation of the FCRA.

8. Monitor compliance with pre-screening policies

Policies and procedures can be invaluable in managing hiring risks and minimizing legal liability—if you and your employees actually follow them. Make sure you properly communicate these policies and procedures to all employees. You might even want to conduct periodic training—and then, monitor those employees’ compliance with those policies. Even the best-written policies will be of no help to you if you do not make sure that your employees are following them.

In addition to the above, some employers also periodically require background checks for current employees. Personal history, including criminal backgrounds, can change after the hire date.

While the above is not an exhaustive list, and cannot cover every conceivable issue, it should go a long way toward ensuring a good hiring decision and minimizing the risks of a problematic hire. Learn more about how you can improve your pre-employment screening processes in this webinar.

The post 8 risk management tips for hiring appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/budgeting-forecasting-short-term-vs-long-term-strategy/ Fri, 06 Sep 2019 19:58:37 +0000 https://www.mrisoftware.com/?p=25766

Budgeting and forecasting can be a long, painful process that hinges on an organization’s ability to make accurate assumptions in order to balance the long term planning and short term management of the business. It’s possible to simplify this process, but like all good things, it will take some work! When dealing with such a … Continued

The post Budgeting & Forecasting: Short term management vs. long term strategy appeared first on MRI Software.

]]>

Budgeting and forecasting can be a long, painful process that hinges on an organization’s ability to make accurate assumptions in order to balance the long term planning and short term management of the business.

It’s possible to simplify this process, but like all good things, it will take some work! When dealing with such a complex process, it’s not enough to simply try to do everything faster. You’ve got to break down each level of your budgeting and forecasting and look at how to improve each moving piece, which will then affect the larger whole. Increasing efficiency and accuracy starts by evaluating how you make assumptions and continues by balancing your short term management vs. your long term strategy.

The need for assumptions

The first step of improving your budgeting and forecasting is asking yourself how you can start with better assumptions and end at more accurate budgets, forecasts or strategic models.

In many ways, the old adage about assumptions still rings true. After all, making assumptions revolves around guessing, and guessing is often risky. There are always going to be some gaps in your data, whether you’re simply trying to estimate future events and performance or if you’re simply not able to find certain concrete data.

Making more accurate assumptions

Improving your assumptions is all about testing to see what works and what doesn’t work. Before you get to short term and long term planning, you start only with what you know and what you don’t know. By grouping together what you know and what you don’t know, you can pull different levers and see how one outcome can affect the other.

For example, you can creating speculative leases. By assigning probabilities and adjusting lease terms, you can see how making adjustments to the things you don’t know might impact the things you do. What does your projected rent look like when adjusted against market rent? What kind of effect will tenant exposure have on tenant mix? By tooling around with these different metrics, you can get a better sense of what might work for your budget.

Short term management vs long term strategy

Management consultant and author, John Hagel, advocates an approach for tech companies called the zoom out, zoom in strategy. If you “zoom out” on your industry and think about the next 10 to 20 years, what do you see? Where are market trends leading you? How do you think the industry is going to change in that time horizon, and how do you want to fit into it all?

Now zoom In. Plan out your next 12-24 months by building budgets and crafting forecasts. What do your short term metrics look like? Are they pulling you towards or away from your long term goals?

How to align the short term and long term

How you manage your organization in the short term will inevitably have an effect on the long term strategy. To properly align the activities in the Zoom In/Zoom Out approach, you’ve got to make sure that the teams who are producing these two outputs (long term and short term) are consuming the same, reliable data. Furthermore, you’ve got to be thinking about these key questions:

1) Does the short term annual budget support the long term strategic plan?
2) Are we using the assumptions from the long term plan in the budget?
3) Does performance against the budget suggest altering the long term plan?

The two teams must be agile enough to respond to volatility while at the same time drive the business forward against a long term strategy. Establishing a single source for all your data, making that information available across all teams, and delivering relevant and personalized reporting can go a long way in enabling the two teams to join together.

Budgeting and forecasting is a grueling process for every organization, and the best way to simplify it is to improve every individual step of the greater whole. By taking a critical standpoint and committing the proper time and resources, you can get the full potential out of your budgeting and forecasting.

Learn more about how best to reinforce your budgeting and forecasting operations from subject experts in this webinar.

The post Budgeting & Forecasting: Short term management vs. long term strategy appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/comply-new-rics-service-charge-rules-uk/ Thu, 05 Sep 2019 08:00:11 +0000 https://www.mrisoftware.com/?p=25675

On 1 April, 2019, a new RICS professional statement, Service Charges in Commercial Property, 1st edition, went into effect for members and regulated organisations in the UK. This sixth iteration of what is commonly referred to as the Service Charge Code sets out nine mandatory requirements, with a stated aim to: Improve general standards and … Continued

The post Helping you comply with new RICS service charge rules in the UK appeared first on MRI Software.

]]>

On 1 April, 2019, a new RICS professional statement, Service Charges in Commercial Property, 1st edition, went into effect for members and regulated organisations in the UK. This sixth iteration of what is commonly referred to as the Service Charge Code sets out nine mandatory requirements, with a stated aim to:

• Improve general standards and promote best practice, uniformity, fairness and transparency in the management and administration of services charges in commercial property
• Ensure timely issue of budgets and year-end certificates
• Reduce the causes of disputes and to provide guidance on resolution
• Provide guidance to solicitors, their clients (whether owners or occupiers) and managers of service charges in the negotiation, drafting, interpretation and operation of leases, in accordance with best practice

At MRI Software, functionality that helps our clients adhere to the rules, regulations and legislations in their respective market sectors is a fundamental element of our comprehensive range of real estate technology solutions. As such, we have significant and proven experience in the UK supporting service charge processes across block management, retail and mixed-use portfolios – and provide a platform that enables your compliance.

In parallel to the new statement, across our multiple solutions for managing service charges, our latest software releases will include updated functionality to help you meet new obligations. Indeed, in some instances these are already available.

More information on these features, and details on software upgrades, is being, and will be, communicated to users of each product as part of regular updates. But, in the meantime, if you have any questions or queries then please contact your Account Manager via the usual channels.

We’re pleased and proud to offer continued support for our current and future clients managing service charges, and remain fully committed to delivering the software you need to ensure your business grows and flourishes into the future.

Learn more about our service charge management functionality in the UK here.

The post Helping you comply with new RICS service charge rules in the UK appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/benchmarking-sustainability-drive-value-assets/ Fri, 30 Aug 2019 18:53:28 +0000 https://www.mrisoftware.com/?p=25733

“Green” building certifications are an important factor in asset valuation and Class A office space classification. Gone are the days when being a sustainable company served only as a marketing tool. Instead, guaranteeing the efficiency of your commercial properties through benchmarking sustainability is now a necessity to investors, governmental bodies, and consumers. What is sustainability? … Continued

The post Benchmarking sustainability to drive value to your assets appeared first on MRI Software.

]]>

“Green” building certifications are an important factor in asset valuation and Class A office space classification. Gone are the days when being a sustainable company served only as a marketing tool. Instead, guaranteeing the efficiency of your commercial properties through benchmarking sustainability is now a necessity to investors, governmental bodies, and consumers.

What is sustainability?

Sustainability is about far more than simply boasting of a “green” or “eco-friendly” property. In the past 20 years or so, property and company efficiency in environmental, social and governance (ESG) realms has become the new standard by which responsible investors evaluate new opportunities.

Whereas companies used to exercise voluntary adherence to “eco-friendly” policies, property managers are now expected to be in compliance with sustainability regulations. Plaques and certifications awarded to organizations for environment-friendly practices have been replaced by an actual, regulatory need for sustainability performance tracking.

Why sustainability?

Sustainability isn’t just something that looks good on a list of amenities – it’s actually valuable.

Investors are calling for a focus on ESG in the workplace because they are seeing money being left on the table when it comes to cost efficiency. Small things start to add up – when someone leaves a light on in the office overnight, or if a faucet is leaking, it costs money. ESG in the workplace saves investors money in the long term, which makes properties more valuable. In addition to this, properties with high sustainability scores such as the GRESB Score and the ENERGY STAR Score can boost the value of an investor’s portfolio.

Many government entities on both the federal and state levels have set new legal, investment and lending requirements and regulations for sustainable workplaces. On top of these regulations, some entities have incentive programs to reward companies that have made ESG an essential part of their business.

Energy efficient, sustainable workplaces have become important for millennials and young professionals looking for a workspace. By moving your business in that direction, you stand a better chance of attracting talent.

Why is sustainability benchmarking important?

It’s not enough just to say your business is sustainable – you’ve got to have the data to back up that claim. Through various certification programs, green initiatives, and sustainability scores, you can use sustainability benchmarking to drive value to your assets.

Benchmarking sustainability at your organization is a complex process that includes collecting data from multiple sources, identifying key metrics, generating accurate reports, and measuring against industry peers. But property managers that successfully leverage reliable data in sustainability processes and establish performance benchmarking are well positioned to stay competitive and understand how they measure up against others in the commercial real estate space.

To learn more about sustainability benchmarking and how you can use it to drive value to your assets, check out the webinar presentation we did with our partner, Measurabl.

The post Benchmarking sustainability to drive value to your assets appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/how-agencies-utilise-tech-combat-lettings-fee-ban/ Tue, 27 Aug 2019 13:43:07 +0000 https://www.mrisoftware.com/?p=25674

Earlier this year the UK government introduced the Tenant Fees Act, banning landlords from charging renters hundreds of pounds in administration fees for tenancies signed after 1 June, 2019. The move is the government’s attempt to make the rental market more affordable and fairer for tenants who’ve faced the prospect of having to scrape together … Continued

The post How agencies can utilise tech to combat the lettings fee ban appeared first on MRI Software.

]]>

Earlier this year the UK government introduced the Tenant Fees Act, banning landlords from charging renters hundreds of pounds in administration fees for tenancies signed after 1 June, 2019. The move is the government’s attempt to make the rental market more affordable and fairer for tenants who’ve faced the prospect of having to scrape together thousands of pounds to simply move home. While it’s unlikely you’d disagree with the aims, it doesn’t change the fact that agencies are now under pressure to find ways of reducing and absorbing these costs, while still remaining competitive. And it’s not the only obstacle they face.

The lettings fee ban is just the latest in a series of regulatory changes and industry challenges that have made life more complex for estate and letting agents over the last couple of years. Others include ‘Right to Rent’ document checks and the requirement to join ‘Client Money Protection’ schemes as of 1 April. Throw into the mix GDPR requirements, the need to ensure rental properties meet minimum energy efficiency standards, new regulations on five-year electrical safety checks and the need to make tax digital – along with all supporting records – and a pattern of continual change and adjustment for lettings agents emerges.

On top of these operational obstacles, letting agents are also trying to work out how their businesses will be impacted strategically by the tremendous growth in Build-to-Rent (BTR) market. There are going to be thousands of new, purpose-built rental properties in the coming years, in communities that include concierge services, gym facilities and other such attractive benefits. Letting agents are going to have to work with BTR investors, owners and managers to carve out new roles for themselves – and do so before their competitors get in there first.

All of the above shows that, while the Tenant Fees Act is a significant landmark, agents were already under pressure in a challenging and increasingly costly market. As a result, it is becoming more and more important for those agencies to look at ways they can reduce expenditure, without compromising (in fact, increasing) efficiency or the high level of service they offer their customers. Many of them are achieving this by employing estate agency software that helps them manage their portfolios, and we are seeing this growth first-hand. A recently published MRI Software survey of CEOs, directors and top managers in the property sector revealed that the overall uptake of property technology in the UK is strong, with two thirds (66%) of survey respondents already adopting a specialist solution.

By making use of technology to streamline processes and centralise all information such as notes, activities, leases and opportunities, agents can complete daily tasks more efficiently and better track key business activities and relationships. It is crucial to adopt a data-driven culture when managing consumers, clients and stakeholders today because it allows agencies to gain actionable insight into their operations to better inform business strategies and activities. We can see this growing importance from the results of the MRI survey where half of the respondents (49%) see specialist technology as critical to growing their business, boosting productivity and tackling regulatory challenges.

By employing such technology, agents will also radically modernise their systems, which in turn will help them meet the expectations of today’s tech savvy renters, landlords and employees who demand fast, efficient and top-quality services from businesses. These high expectations mean businesses who do not adopt modern practices will not be able to survive, let alone thrive, in this fast-changing UK rental sector. Without digital solutions, agencies can no longer keep up, and investing in technology is quickly becoming non-negotiable. This is not only so that they can deliver better value for their customers, but also to equip themselves with data and analytics that can help them seize commercial opportunities and can take their businesses to the next level.

The post How agencies can utilise tech to combat the lettings fee ban appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/mri-software-wins-12th-northcoast-99-award/ Fri, 23 Aug 2019 13:28:38 +0000 https://www.mrisoftware.com/?p=25693

MRI Software is proud to be recognized by ERC as one of the 99 great Northeast Ohio workplaces for top talent in 2019. This marks the 12th time we’ve received the award. Applicants are evaluated based on policies and practices related to the attraction and retention of top performers, as well as data collected from … Continued

The post MRI Software wins its 12th NorthCoast 99 Award appeared first on MRI Software.

]]>

MRI Software is proud to be recognized by ERC as one of the 99 great Northeast Ohio workplaces for top talent in 2019. This marks the 12th time we’ve received the award. Applicants are evaluated based on policies and practices related to the attraction and retention of top performers, as well as data collected from employee surveys.

NorthCoast 99 winners participated in a rigorous application process that asked for detailed information on how their organization addresses top-performer attraction, development, and retention in five distinct areas: organizational strategy, policies, and communication; recruitment, selecting, and onboarding; employee well-being; employee engagement and development; and total rewards.

In addition, NorthCoast 99 gathered data on how top performers in each company perceived their workplaces and what benefits were offered to employees. The results were massively encouraging:

• 88 of this year’s winners offer mentorship programs for new employees
• 94 of this year’s winners encourage employees to participate in charity work
• 88 of the winners have a written policy on equal pay for equal work
• 98 of this year’s winners provide flexibility in the work hours of employees
• 79 of the winners have policies that allow for working virtually

While MRI Software is a fun place to work, winning this award has affirmed that our company culture is about far more than themed “spirit weeks,” in-office culinary options, and engaging recreational spaces. Even after growing into a global real estate software company, we still hold on to the values that made us great when we first started back in 1971. Today, we continue to encourage each and every one of our employees to:

• Make the Pride proud through honesty and respect for each other
• Get it done by taking responsibility for the projects they champion
• Strive to amaze coworkers, clients, and partners by doing their best
• Be fearless by setting high goals and innovating without limits
• Enjoy the ride at all times

In turn, this core set of values and closely held beliefs are being reflected not just in the attitudes of those who walk the halls of MRI offices, but also in the work done for our clients located around the world.

MRI Software’s mission is to help real estate companies to elevate their businesses by providing them with the tools they need to succeed, and that only works when our employees in offices from Solon, Ohio to Sydney, Australia are also being provided with the tools they need to succeed. We are proud of our team for always pushing the business forward and for always advancing the quality of our workplace.

Interested in joining the award-winning team at MRI Software? Be sure to check out our careers page for the latest openings!

The post MRI Software wins its 12th NorthCoast 99 Award appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/mri-software-wins-stevie-award-second-year/ Thu, 15 Aug 2019 20:34:36 +0000 https://www.mrisoftware.com/?p=25628

MRI Software has won a silver Stevie® Award in the Large Computer Software Company of the Year category at the 16th Annual International Business Awards®! For the second year in a row, MRI Software is featured among a prestigious list of winners, and we could not be more thrilled to see our company name alongside … Continued

The post MRI Software wins Stevie® Award for second year in a row appeared first on MRI Software.

]]>

MRI Software has won a silver Stevie® Award in the Large Computer Software Company of the Year category at the 16th Annual International Business Awards®! For the second year in a row, MRI Software is featured among a prestigious list of winners, and we could not be more thrilled to see our company name alongside such great organizations.

We’re also thrilled that one of the newest members of the MRI family, LEVERTON, has won a silver Stevie® Award in the same category! Working with the team at LEVERTON as partners over the past few years has been a joy, and we’re excited to bring all our talented professionals together into one award-winning organization.

We’re thankful to the International Business Awards for recognizing MRI Software based on our achievements in 2018. Last year, our revenue grew by 56% compared to 2017, bookings were up by a record 71%, and the number of new clients grew by 44%. In addition to this growth, we created 75 new technology integrations with partners and recorded 192 million data exchanges between clients and partners. We built upon the success of the open and connected ecosystem with 21 additions to our Partner Connect network and solidified our offerings in the US Affordable and Public Housing markets through the acquisitions of Happy Software, IPM Software, and TCAM Asset Management.

We also pushed the boundaries of real estate software on a global level. After acquiring CML Software and Thesaurus Technology in the UK, we established our Agency Solutions business, boosting the sales and lettings solutions we gained in 2017 from our acquisition of Qube Global Software. MRI Software solidified our standing in South Africa with the acquisition of PropSys, bringing all of its offerings under the MRI umbrella.

In 2018, we made huge strides in our global growth strategy to support our mission of providing the most comprehensive, flexible, open and connected technology platform in the industry. But we’re not done — 2019 has already seen several new additions to the MRI family, and we can’t wait to see what else the future holds!

The post MRI Software wins Stevie® Award for second year in a row appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/3-reasons-real-estate-analytics-tool/ Mon, 12 Aug 2019 20:47:25 +0000 https://www.mrisoftware.com/?p=25603

When it comes to business intelligence tools for real estate, you can’t afford to bend over backwards dealing with a solution that doesn’t work for your specific needs, but you also can’t spend too much time or money dealing with a real estate analytics tool that’s over-customized and ineffective. You need something in the middle. … Continued

The post 3 reasons why you need a real estate specific analytics tool appeared first on MRI Software.

]]>

When it comes to business intelligence tools for real estate, you can’t afford to bend over backwards dealing with a solution that doesn’t work for your specific needs, but you also can’t spend too much time or money dealing with a real estate analytics tool that’s over-customized and ineffective. You need something in the middle.

Business intelligence projects often run into two major issues, both of which stem from the natural limitations of different types of BI tools.

• If you use an off-the-shelf BI tool, you may need to customize it for your specific purposes, often by spending an excessive amount of time and money to craft the queries and reports. Ultimately, your needs are not fully met or they need significant support.
• If you use a highly customized solution, the value of the tool won’t be realized unless requirements are fully developed and executed properly. You’ll spend too much time and money getting it to work for your specific objectives, and it could take months before you reap any value from the new system.

You don’t need to settle for a do-it-yourself solution or a “one size fits all” solution.

You need a centralized and flexible business intelligence and data visualization platform designed for real estate that enables you to effectively explore and understand your data. Implementing this type of solution can help you make better, more knowledgeable decisions and inform key stakeholders in actionable and impactful ways.

Here’s why.

Reason 1: You need easy integration with your current system

The perfect solution for your organization should include a plug-and-play portal that’s integrated with your MRI products and data. Luckily, MRI Analytix, a BI tool that’s already been built by MRI to fit the needs of real estate organizations, has been designed specifically for use with MRI tools, meaning you can be confident that the data and the output is aligned with the information you and your organization require.

Reason 2: You need a centralized data store

Real estate firms have different key metrics than other industries, and MRI Analytix meets this need by being a curated, centralized, fit-for-purpose data store that enables analysis of relevant real estate metrics. With the ability to extract the data, apply filters to narrow or expand results and populate visual representation of the data, MRI Analytix even eliminates the need for IT or technical support. Additionally, you shouldn’t have to add those real estate specific features yourself, which is why any customizations you need will be simple add-ons; not whole updates that might break in the implementation process.

Reason 3: You need to plan for the future

Your BI tool should be a flexible system with the ability to adapt and access the latest advancements to stay competitive. Through visual representation of large and complex data sets, MRI Analytix gives analysts and decision makers easy access to spot trends and identify areas for deeper discovery. MRI Analytix is built off of Tableau, one of the leading innovators in data science to leverage continuously evolving data science capabilities to move your organization into the future. We analyze each update and innovation from Tableau and apply the most relevant ones to MRI Analytix. By using the latest in BI tech tools, you also signal to incoming and prospective talent that your organization is at the forefront of data science and business intelligence.

You shouldn’t have to settle for a clunky, customizable tool or an off-the-shelf solution that doesn’t work for you. MRI Analytix allows to utilize your data without getting in the way of your operations. Learn more about how you can leverage MRI Analytix for the success of your real estate organization.

The post 3 reasons why you need a real estate specific analytics tool appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/mri-software-wins-aetna-award-for-workplace-well-being/ Tue, 23 Jul 2019 18:38:07 +0000 https://www.mrisoftware.com/?p=25457

As MRI Software employees will tell you, we like to call ourselves the “MRI family” because of how we take care of one another. No one person at our organization can do their job without the others, and so it is vitally important for us to look out for our employees across the company. This … Continued

The post MRI Software wins Aetna award for Workplace Well-Being appeared first on MRI Software.

]]>

As MRI Software employees will tell you, we like to call ourselves the “MRI family” because of how we take care of one another. No one person at our organization can do their job without the others, and so it is vitally important for us to look out for our employees across the company.

This past month, our commitment to our employees and our employees commitment to one another was recognized in Aetna’s Workplace Well-being Awards of 2019.

MRI Software won both a “Changing the World” Award for workplaces in the Mid-Atlantic region and the “Above and Beyond” Award for general well-being in the workplace across the country. We are proud to accept these awards, and we are committed to the continuous care of our employees to promote excellence in the workplace and to foster a community where kindness, honesty, tolerance, and inclusion are part of the culture.

Employees at the MRI Software headquarters in Northeast Ohio (and in other offices throughout the globe) have been experiencing the benefits of working at MRI, where we consider ourselves one family. In fact, our Ohio headquarters have just recently been renovated to be an even better workplace for our employees. The renovations include a refurbished gym, a new walking track throughout the office, and a ‘living wall’ for oxygenation so that our employees can get the most out of their in-office experience.

In addition to these renovations, all MRI employees have access to a rewards program that incentivizes healthy living, active lifestyles, and taking care of oneself at work and at home. Whether at MRI headquarters or at one of our many offices across the globe, the well-being of the MRI family is our top priority, and we are proud to be champions of one another.

Are you looking for new opportunities at an award-winning employer? Visit our careers page.

The post MRI Software wins Aetna award for Workplace Well-Being appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/5-ways-real-estate-firms-fail-at-business-intelligence/ Fri, 19 Jul 2019 17:32:07 +0000 https://www.mrisoftware.com/?p=25429

Real estate firms know that there’s an excessive amount of data out there that can be harnessed to their advantage. With this data comes the potential to yield insights that will guide the strategy of the business and increase competitive advantage. Anyone who has evaluated business intelligence (BI) solutions or has been through implementation of … Continued

The post 5 ways real estate firms fail at business intelligence appeared first on MRI Software.

]]>

Real estate firms know that there’s an excessive amount of data out there that can be harnessed to their advantage. With this data comes the potential to yield insights that will guide the strategy of the business and increase competitive advantage.

Anyone who has evaluated business intelligence (BI) solutions or has been through implementation of a BI project knows that there’s a high probability the system will not yield the results that they anticipated. So how can businesses avoid failure when it comes to BI? Let’s count down the five main reasons why BI for real estate firms fails to deliver on its promise.

5. Choosing the wrong solution – Simply put, many firms select a BI solution that is not a fit for their business. Before making a selection, it’s important to understand your goals for the new system and what problem you expect it to solve. Does the solution truly meet the requirements of your business case? How will it work with your existing processes? New technology won’t fix broken processes, but it can automate the right ones.

4. Cumbersome data integration – From lease information to contracts, assets, and other financial documents, gathering insights from data across your organization can be a challenge if the data can’t easily be integrated with a BI solution. The process of extracting data in an accurate manner can be extremely frustrating if the analytics solution does not offer clean integration capabilities with your system of record.

3. Technological burden – In order to meet the full extent of your business needs, it might seem as if the best BI solution for you would be a fully customizable one. However, developing and adding unique customizations could require an extensive time commitment from your IT department. Even if IT is able to find the time to properly tailor the solution, fully customizing a BI solution can be extremely expensive – even more so if external consultants are required to do the work.

2. Inflexible software – Since customization has its own challenges, you might be tempted to lean towards implementing an out-of-the-box analytics solution. After all, how likely is it that a standard solution that supposedly works well for most won’t work for your company? Real estate firms are well aware that they have different requirements than other types of businesses, and out-of-the-box solutions typically lack the flexibility needed to address their needs. Whereas customization overwhelms your business with the time and financial commitment, out-of-the-box software is likely going to be too rigid to provide any meaningful business intelligence insights.

1. Underestimating time to value (TTV) – Investing in a solution is one thing, but implementing it is an entirely different process to tackle. Off-the-shelf software might not be specific or narrow enough to extract the data that your company requires, and customizable software makes for a long and expensive development process. Looking eight to ten months down the line, your solution still might not be functional enough to yield any notable return. Don’t underestimate the importance of getting up and running quickly to justify your investment.

Ultimately, user adoption is one of the key measurements of success or failure of a tool, and if these are issues you face in taking on a new BI solution, there’s undoubtedly going to be a significant lack of user adoption. Whereas both customizable and off-the-shelf solutions might bring your business significant challenges, MRI Software offers an alternative: a best-of-both-worlds option.

MRI’s business intelligence and analytics tool is already designed to fit the needs of the real estate industry, and that means you can get it right off the shelf without worrying about a long implementation process. Learn more about how you can tackle a BI project the right way with MRI’s business intelligence and analytics solution.

The post 5 ways real estate firms fail at business intelligence appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/to-public-housing-and-beyond/ Thu, 11 Jul 2019 15:56:22 +0000 https://www.mrisoftware.com/?p=25381

Nearly one year ago, MRI presented a vision for the future of public and affordable housing at our users conference in Atlanta. We vowed to create web-enabled software with a world-class user experience to meet the needs of the often-overlooked public and affordable housing sectors. With the help of a dedicated crew of clients and … Continued

The post To public housing and beyond… appeared first on MRI Software.

]]>

Nearly one year ago, MRI presented a vision for the future of public and affordable housing at our users conference in Atlanta. We vowed to create web-enabled software with a world-class user experience to meet the needs of the often-overlooked public and affordable housing sectors.

With the help of a dedicated crew of clients and testers, we have worked hard to make that vision a reality. We recently launched MRI Affordable Housing, a comprehensive property management and compliance solution for affordable owners and operators in the United States. This solution lays the groundwork for the next milestone: the release of MRI Public Housing later this year. We’re excited to bring features to manage a variety of funding programs for public housing authorities, including voucher management, MTW and RAD, that will help agencies work more efficiently. The vision of an open and connected ecosystem within the affordable and public housing industry will become a reality.

Industry expertise on display

As a market leader for public and affordable housing, MRI is proud of the expertise and knowledge that we have to offer. Our team will present multiple sessions at the 2019 NAHRO Summer Conference – here’s a sample of the industry topics that you can learn about at the event.

Systemizing the applicant process
Joe Panto, Director of Sales for Public Housing at MRI will discuss different strategies to simplify the applicant-to-resident process, from online applications to tenant screening. In his session at NAHRO, Joe will take a deep dive on topics such as knowing when to open the waiting list at your PHA, best practices for collecting applications, how to select the right tenant screening partner, and much more.

What does “asset management” mean after RAD conversion?
Elaine Magil and Martha Tai from TCAM will hold a session centered around the question, “What does asset management mean after a RAD conversion?” As PHAs enter into relationships with private investors to own and renovate PHA properties, the conditions of the properties are improving. By nature, however, a PHA’s relationship with its properties changes after a RAD conversion, and along with new responsibilities in oversight and compliance, there are new opportunities to create a better-than-expected outcome.

TCAM services for public and affordable housing

With the acquisition of TCAM, MRI now offers many services that benefit the public housing sector, including asset and portfolio management, transaction oversight, and consulting services. TCAM’s expertise and services allow PHAs to:

• Address new challenges and opportunities for managing RAD portfolios
• Manage risk and on-going reporting responsibilities cost-effectively
• Provide effective and responsive direction to property management
• Free up staff time to focus on recapitalization and community impact

MRI Software is also proud to welcome Allen Feliz, previously a Senior Director of TCAM, as MRI’s new Industry Principal of Public and Affordable Housing, Allen’s extensive knowledge and industry experience will ensure a bright future for MRI’s public and affordable housing solutions.

An open and connected approach to public housing

MRI believes that a comprehensive, flexible, open and connected technology platform is the future of software, and we are thrilled to bring this approach to the public housing industry. Our Partner Connect program now includes FileVision, a partner focused on
delivering paperless solutions, developed specifically for public housing and community development authorities, to streamline the collection, organization, review, storage and retention of documents. Scores of housing authorities have gone ‘paperless’ with FileVision’s Electronic Tenant Record (ETR) Solution, a full-featured document management system that handles your paper-based applicant and tenant processes. PHAs have been able to eliminate file cabinets, streamline workflow, support paperless audits, identify required – and missing – documents, ensure compliance and work from dynamic electronic checklists.

From our expert presentations at NAHRO to our new colleagues and partners, MRI is beyond excited to continue our public and affordable housing journey. We cannot wait for our vision to become reality in the months ahead.

Stay tuned, as more information on our public housing solution will be announced in Anaheim this October at MRI Ascend.

The post To public housing and beyond… appeared first on MRI Software.

]]> https://www.mrisoftware.com/blog/accolades-open-connected-ecosystem/ Wed, 10 Jul 2019 13:00:38 +0000 https://www.mrisoftware.com/?p=25361

Over the past few months, the leaders and clients of MRI Software have been recognized for multiple honors. At MRI Software, we love celebrating wins, especially when they represent success for real estate software as a whole. The following awards are more than just individual achievements among the MRI family; they’re indicators for the future … Continued

The post Accolades for the open and connected ecosystem appeared first on MRI Software.

]]>

Over the past few months, the leaders and clients of MRI Software have been recognized for multiple honors. At MRI Software, we love celebrating wins, especially when they represent success for real estate software as a whole.

The following awards are more than just individual achievements among the MRI family; they’re indicators for the future of the industry. We pride ourselves on being bold promoters of an open and connected ecosystem that works for everyone, and the recognition received by our leaders and clients affirms what we’ve known for a long time: the open ecosystem is the future of real estate tech.

Realcomm Digie Awards

For more than 20 years, the Realcomm Digie Awards have recognized companies and other real estate professionals that have excelled in their contributions to the industry through technology, automation and innovation. We’d like to extend special congratulations to MRI Software’s CEO, Patrick Ghilani for receiving the Julie Devine Digital Impact Award.

Patrick was presented with the Digital Impact Award at Realcomm 2019 for his many positive influences on the industry:

• Architecting and implementing a successful strategy to establish MRI as a market leader
• Aggressively building a partner ecosystem and continually acquiring synergistic companies to enhance MRI’s competitive position
• Being valued as a consistent thought leader and client-focused visionary dedicated to raising the bar on industry best practices

We’re also proud of Urban Edge Properties, an MRI client that won a Digie Award for Best Use of Automation in Property/Facility Management!

Owning 16 million square feet in 86 properties, Urban Edge Properties is a real estate investment trust (REIT) that acquires, develops, owns, manages and improves shopping centers in and on the edge of urban communities. Urban Edge was given a Digie for Best Use of Automation for:

• Effectively transforming digital processes and differentiating themselves in the industry as an innovator
• Pioneering the integration of budgeting and forecasting through MRI Investment Management with Spreadsheet Server
• Creating an innovative automated process for recoveries and accruals and integrating the lease process into their ERP

To learn more about Urban Edge Properties and how they leverage an open and connected ecosystem to improve efficiency, watch the on-demand webinar.

Entrepreneur of the Year Finalist

Ernst & Young’s Entrepreneur of the Year Award is a celebration of innovators who have done extraordinary things in their field and brought their respective companies to the forefront of technological advancement. We are thankful for Patrick’s inspiring leadership, and we are happy to see him included as a finalist for Entrepreneur of the Year in the East Central Region.

Learn more about Patrick in his Entrepreneur of the Year video.

Smart 50 Award Honoree

The Northeast Ohio Smart 50 Awards recognize the “top executives at the 50 smartest companies in the Northeast Ohio region,” and this year, we are thrilled to announce that Patrick Ghilani is featured on this list.

The secret of MRI Software’s success is not in our leaders or employees alone, but in the environment we foster, the clients we support, and in the open ecosystem we champion.

The post Accolades for the open and connected ecosystem appeared first on MRI Software.

]]>