Data Accuracy For Property Management

The subject of data quality is a particular hot button issue for those in the private equity real estate game.  With critical information like tenant exposure analyses, occupancy reports and portfolio-wide lease expiration schedules that hold a huge quantity of personal details, and pin-point accuracy is absolutely necessary for an effective application.  Unfortunately these documents are difficult to get your hands on and are often generated manually.  So data accuracy for property management is vital.

A recent survey of 140 companies in the property management industry found that they lose an average of $8.2 million annually due to faulty data; a startling and unsettling discovery.

The survey found that much of this huge loss of funds is due to the time and energy consumed by employees who, after realizing their data is in accurate, are forced into finding the right adjustment for the inaccuracy and using workarounds just to get the job done, according to the survey.

Further, most property managers still prepare their information on an annual – or, at best, a quarterly – basis. But rapidly changing market conditions very quickly render these reports outdated and irrelevant, leaving the company in the dark for a significant portion of the year.

What’s more, a lot of the data is put together without the benefit of organizational guidelines that are in place to make sure there is consistency. Without this kind of structure, it is next to impossible for anyone with an interest to accurately consolidate the information, to slice and dice it for analysis purposes or to search across multiple reports.

The solution to this unsatisfying scene rests in the marriage of people and process, with technology the officiating enabler.

Companies that are looking to stay ahead of the competition should consider the following:

Getting on the Same Page

All too often companies get dialed in to an Excel culture that keeps workers busy with extracting data from internal systems and dumping them into a spreadsheet.  Then the problem compounds itself as each employee begins to work off of different calculations and analysis and none of it is shared.  This will inevitably produce several and often competing roadmaps.  That’s how different versions of the truth get created and cause problems that could have been avoided.

Creating Standards

In a perfect world, the data management initiative for a company should set the goal of creating a single version of the truth; but in most real-world cases, most organizations have not even come to the agreement on the definition of important things like revenue.

Landing on a single version of reality requires, at the least, cross-departmental consensus on how business terms (tenants, lease contracts, lease abstracts, service orders, approval processes, customers, products, KPIs, etc.) are defined. Start with published standards like annual reports and spread the word.

Appointing a Business Data Manager

Effective data management is all-important to a firm’s achievement of strategic and tactical goals. A cross-functional position requiring coordination with various company departments, the business data manager is responsible for the implementation and oversight of the company’s data-management goals, standards, practices, processes and technologies. Pick a soul with both the business experience to understand how data can be utilized within the company and the ability to communicate same with corporate executives and staff.

Investing in a Business Review

Every business process that’s broken, being handled by disparate systems, that’s being performed manually or maybe even not at all, is draining your company of cash.

A business review carried out by 360 Visibility will document your processes and facilitate your informed decision on the changes you need in order to get your data right.

Property managers must take a leadership role in this initiative. Only with their full engagement and commitment to cultural change will an investment in data management realize its full potential within their firms.

About 360 Visibility Inc

360 Visibility is a business solution company dedicated to enabling enterprise participants to make swift, well-informed, coordinated and above all profitable business decisions.  In short, we help you see clearly, and act faster.  Founded in 2003 and a Microsoft Gold Certified partner, 360 Visibility delivers mid-to-large scale businesses enterprise software such as Microsoft Dynamics NAV, Microsoft Dynamics GP, Microsoft Dynamics CRM, Microsoft Office 365, Microsoft Azure, and technology infrastructure that allows them to effectively pilot their business, capitalize on opportunities and avoid pitfalls.  We ensure our clients can compete and win in today’s challenging and dynamic business environment.  Industries we serve are: Ficnancial Services, Wholesale Distribution, Property Management, Media/Entertainment and Professional Services.  For more information contact 360 Visibility at: 1 905 907 3600, info@360visibility.com or our website: www.360visibility.com.

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