For savvy investors, real estate investment trusts, or REITs, are an increasingly favorable method of wealth-building. This is due to the low cost of the initial investment required when compared to the outlay for any physical real estate investment.
In fact, the total market capitalization of U.S. REITs has grown to over $1 trillion in the past 10 years. However, this rate of growth also means challenges for those REITs that manage their own properties.
Today the Property Management arm of a REIT must offer high levels of transparency under a greater level of scrutiny. While the opportunities appear rosy for investors, it’s not always a walk in the park for their property managers.
With several types of REITs to invest in, multiple investors to answer to and government regulations, REIT management can lead to multiple issues for property managers. Left unaddressed, these issues can negatively impact the performance of the REIT.
Potential scenarios include:
- With a diversified portfolio and the use of several different platforms for core account and asset management, accurate financial reporting is difficult.
- Uncoordinated preparation of accounts increases the potential for making costly errors.
- Using spreadsheet-based software solutions, it becomes an uphill task to consolidate, interpret and act on crucial data.
- With no real-time insight, by the time the required information is obtained, the data is already obsolete.
Property managers have often relied on legacy software and even Excel spreadsheets to assist in the operational management of the properties, while the finance team utilizes QuickBooks or Excel also to manage the financials. In an enterprise environment these options are not sustainable and allow inefficiencies, inaccurate data, lost revenue and improper accounting practices to tank the business.
A more capable alternative is Soft4Real Estate, a powerful, all-in-one property management accounting software powered by Microsoft Dynamics.
Soft4RealEstate can help the REIT property managers and finance team by:
- Providing accurate information required to make effective decisions. Whether its revenue forecasts or p/l reports, it can provide access to the information needed to make informed decisions quickly.
- Reducing the time spent on property management contract administration. The robust reporting and accounting engine from Microsoft Dynamics helps to expedite property management projects. It also allows property managers to easily manage all aspects of lease creation with advanced billing and accounting functionality.
- For property management firms with widely dispersed operations/portfolio, the use of a software package like Soft4RealEstate consolidates all accounting and property management operations allowing them improve their reporting, analysis and asset management service capabilities.
- Accurate reporting is key to REIT management; the ability to collect data and generate consolidated reports with one click, provides granularity in reporting and improves transparency. This level of detail is important as it can help property managers keep a close eye on the company’s bottom line.
- Having a shallow learning curve which ensures greater employee adoption rates and overall increase in efficiency. Microsoft Dynamics software is easy to adopt, accounting data can be entered quickly, Excel information easily imported into the database etc.
- Providing Fixed Asset depreciation functionality inherently tied to the GL.
Soft4RealEstate allows users do more than just record keeping. As a robust commercial property management solution, it handles core accounting, asset and lease management, lease tracking, sales analysis and general CRM features, such as contact management, document management, reporting and more.
Don’t let your REIT be managed with inaccurate data. Let Soft4RealEstate powered By Microsoft Dynamics take the burden out of manual data monitoring and allow you find greater profitability. As a comprehensive business management solution, Soft4RealEstate is affordable and scalable for businesses of all sizes.