It is increasingly critical to have a robust property management strategy. Property managers are tasked with staying within budget and reporting accurate numbers for crucial and expensive decisions. So transparency in your portfolio is vital to ensure that you are in control. Answer these six simple questions to find out whether you are truly in control of your property.Learn more
Real Estate Strategy
Property management software is mainly used within the following sectors: residential housing, hotel and hospitality industry, commercial real estate or corporate real estate. Property and real estate managers have unique needs when it comes to technology and software. This becomes even more challenging due to the different roles and responsibilities in property and real estate management. Landlords, investors, fund managers, occupiers, facility managers or real estate service providers, all have their own specific needs when it comes to software solutions and recognise the importance of property management software. There are many solutions on the market that meet these specific needs, either as a point solution or as integrated software. Of course this also means that average cost of property management software can vary considerably.
There are different uses of property management software. The property management function within an Integrated Workplace Management System (IWMS) typically focuses on corporate real estate processes (CRE) for both property owners and occupiers. In real estate management, an IWMS typically supports business processes such as lease management, portfolio management, transaction management and strategic property planning. Distinct from standalone tools, in an IWMS these property management functions integrate with adjacent real estate processes such as maintenance management, sustainability, facility management, space management and workplace optimisation. Therefore specific features of property management software can differ.
The huge financial impact that is involved in corporate real estate for large organisations and multinationals combined with the increasing need for portfolio transparency, compliance and business continuity, builds an immediate business case for the implementation of a property management software. Because markets and demographics change fast, organisations that exploit and operate many branches or locations have an urgent need for property management systems. Banks, retailers, the pharmaceutical, production or hospitality industries need fast acquisition and sale of properties, timely lease cancellation or renegotiation, and assets that represent their brand properly.
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Articles & White Papers | 14/02/2017
Assessment - Are you in control of your property management?
Articles & White Papers | 17/03/2017
White Paper - Corporate Real Estate: no benchmarking without the correct data
Reliable references and background An increasing number of organisations are looking for insights into their real estate portfolios. In many cases, this quest runs alongside a process of centralising real estate management into one department. But insight into property is not enough: without some context, it’s impossible to identify potential improvements in real estate, implement the focused actions and evaluate the results. Benchmarking against similar organisations using comparable standards is the solution for translating insights into reliable forecasts.Learn more
Lease management and lease accounting
The core functionality of any property management software is managing leases for landlords or tenants. Combining lease management for lessors and lessees in one software solution allows corporate real estate organisations to manage both their owned and rented real estate in the most efficient and effective way. In both situations all financial aspects of lease management such as lease payments, lease incomes, financial forecasting, price adjustments, price indexing and service costs calculations are managed and reported with a single integrated software solution. Individual lease contracts can often include complex arrangements and deviations, therefore property management software is a need for any organisation that has multiple lease and rent contracts. This allows organisations to timely assess rental options, renew and archive contracts, monitor the resulting financial and legal obligations by automated notifications for deadlines or cancelations, and proactively align their real estate supply with future business demand.
In lease accounting, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) announced changes in the way leases will be classified and the way lease costs are defined. These changes will not only impact the P&L and balance sheets of most organisations, but will also affect the lease administration practice of corporate real estate managers, accountants and controllers. The changes include the requirement for companies to capitalise operating leases and include them as assets and liabilities on the balance sheet. It also includes a change in the definition of a lease payment, which will include certain variable rents, contractual payments and renewal rents. The scope of the changes includes leases on many types of assets and includes real estate related leases for companies reporting under US-GAAP (FASB) and IFRS (IASB).
Property portfolio management and real estate planning - an introduction
What is property portfolio management? Successfully managing properties and real estate starts with data and transparency. As a part of the property management function, portfolio management software provides a clear and standardised overview of your real estate portfolio including information such as technical conditions, space and workplace utilisations, scenario planning, CAD visualisations and portfolio reporting. These systems ensure that the real estate strategy and portfolio is in line with your organisation’s objectives. Strategic real estate scenario planning also helps to analyse your actual portfolio’s performance against organisational goals and identify the gaps in your current strategy. Moreover it offers the tools to fill in these gaps with functionality for transaction management to acquire or dispose properties, or capital project management to plan, manage and control capital expenses.
Find out more in our white paper focusing on Capital Project Management or view Planon’s webinar on Real Estate Portfolio Strategy.
With portfolio management software, organisations can quickly and easily review the total cost of ownership for all real estate properties and make accurate financial decisions based on facts. By presenting a holistic view of your portfolio, these solutions provide you with the means to make strategic decisions based on the expected life cycle of your buildings. This allows executives to identify areas where significant cost savings can be realised and gives the information needed to accurately project future capital flows.
Property management software that includes portfolio management, in most cases labelled as IWMS, supports organisations in standardising both data and processes to ensure reliable and compliant reporting and allows internal or external benchmarking.
Property management software and IWMS
The benefits of property mananagement software are easy to see. By combining real estate and property management software in one IWMS, organisations can benefit from many advantages. All property data is registered only once in one single database and is used by many processes in real estate, maintenance, space, facility and sustainability management. This ensures high data quality and corresponding KPI reporting and portfolio analyses. By integrating these different processes, the strategic, tactical and operational handling of all building and property related activities are managed from within one integrated solution. This increases the opportunity to identify and implement improvements and reduces the Total Costs of Ownership (TCO) of your portfolio.
An IWMS includes state of the art systems integration capabilities with geographical information systems (GIS) for visualising portfolio mappings, Building Information Modeling (BIM) for maximising the reuse of design and as-built information during the property lifecycle, and enterprise systems like SAP to integrate with core financial processes.
In our Real Estate Management solution, a new KPI based Property Scorecard is available. This new KPI report gives you a complete and accurate 360 degrees view on your real estate performance. It allows you to analyse and identify potential improvements in your portfolio, and act on them.