Teaching an Old Dog New Tricks- Innovation in Real Estate Management

June 17, 2004 -- The world of real estate may seem glamorous thanks to flashy characters such as Donald Trump, but behind the big deals and big egos lay some big piles of paperwork. The back-office burdens of managing properties have for decades been tolerated as a cost of doing business. Now, due to recent changes in banking regulations and electronic transaction costs, things are changing quickly.

The property management industry by nature both collects and disburses payments from many remote property locations. This geographical obstacle is often the cause of expensive and frustrating delays. Finally, costs have dropped enough to allow managers to electronically connect the property, the corporate management office, and the bank. The result is changing the face of property management.

Deposits can be sent directly to the bank, recorded automatically, and uploaded daily into the property manger's accounting system. All of this is done without human intervention. On the accounts payable side, invoices from vendors who serve the properties are scanned electronically into the system from the property. An approval process which used to take weeks, takes days and invoices in the pipeline are easier for managers to track.

It used to be that only the largest corporations could outsource check printing economically. Now, with reduced printing costs and a networked property management system, managers can pay vendors quickly without touching a mailing machine. Their checks are printed and mailed automatically.

So how does a property manager stay competitive in this changing environment? One option is to become an expert in the many areas of technology that make it all possible. For most managers, this is unrealistic. Fortunately, it is now possible to outsource property management accounting functions to companies such as Strongroom Solutions LLC of Houston, TX.

Strongroom Solutions offers turn-key solutions for even the most traditional property management companies. The company charges a flat fee per property to handle all receivables, payables, and the generation of the monthly operating report which is overseen by a CPA. Managers find outsourcing to companies such as Strongroom Solutions appealing because they see the benefits of a technologically advanced system without facing the hassle and risk of setting it up themselves.

The wheels of progress are turning now even in the notoriously traditional property management industry. Handling the transition to electronic business processes effectively will be a major differentiator between management firms in the coming years.

For information on recent bank legislation affecting property management please see:
http://www.aba.com/NR/rdonlyres/CBDC1A5C-43E3-43CC-B733-BE417C638618/35072/ResourceDocument.pdf

http://www.electronic-check.org/mail.htm

For information about check conversion products please see:

http://www.magtek.com/

http://www.telecheck.com

For information about Strongroom Solutions LLC please see:

www.strongroomsolutions.com




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