Gone are the days of putting your stock in the window front to win business. Now, today's real estate companies have to rely on various revenue streams to scale and grow, and it is technology that’s at the forefront of driving this shift in approach.
New apps. Agile software platforms. And the rise of the cloud. These are just a few things that aren’t going away at all, despite what traditionalists may hope for – in fact, the evolution of property technology (PropTech) is really gaining steam as we accelerate toward 2019, and the lack of investment in this space will be detrimental for late adopters.
Adopting technology and software solutions that automate administrative tasks is key to boost income per tenancy, as highlighted in the Macquarie Bank Building the business of tomorrow: 2018 Commercial Real Estate Benchmarking Report.
But there are a number of key best practice points commercial real estate professionals need to adopt to grow. We have outlined them below.
Testing and improving client experiences for landlords is critical for real estate professionals. Things such as striving for speedy response times, high service standards, employee output accountability and values are all integral to a successful property business machine.
Understanding the true expectations of clients will help real estate professionals deliver the best possible outcomes for their target market, while also boosting income from central revenue streams, such as management fees and income per tenancy.
Prepare for market changes
Commercial property executives need to think critically about how they’re going to disrupt their market to operate a proactive business. A clear focus on productivity, as outlined by Macquarie Bank, helps commercial property businesses handle key revenue-driving tasks at hand, while identifying potentially adjacent markets to enter.
Define the culture of the business
For staffing best practice, Macquarie Bank highlight the importance of talent retention, staff development and culture building. The clear communication between business executives and management staff is crucial to the flow of revenue-driving activity across the business, which further helps to define individual and teams roles in a business.
Leadership, recruitment, mission, values and a culture that promotes collaboration all have compounding effects on the end-to-end performance of property management businesses.
Monitor and reward standout performance
In addition to sound leadership, what comes next is a culture of rewarding successful employee output. In other words, property management businesses should recognise individual and team success to motivate staff to continue to excel in their roles.
Key performance indicator (KPI) setting and measuring is the most effective way to measure performance and determine achievements. But as Macquarie Bank outline in their report, property management business shouldn’t neglect the value in prioritising structured staff training and the support of professional development.