The Times they are a changing

new-changes-in-property-management

By Martin Conboy & Assoc

When Bob Dylan wrote the now famous anthem in 1963 he was really saying, “time to wake up, the world has moved on”.  It is a song about perception.  You don’t have to rise up and overthrow the evil empire, but rather just admit that the world has changed irrevocably.  So be careful – it might just pass you by, and you might just be left wondering where the old world went.

Come mothers and fathers
Throughout the land
And don’t criticize
What you can’t understand
Your sons and your daughters
Are beyond your command
Your old road is rapidly aging
Please get out of the new one if you can’t lend your hand
Cause the times they are a-changing”

The new competitive advantage for property managers is the level of customer service and the customer experience that they give their clients.  Traditional business models are being flipped on their head because of the easy access and availability of information.

Although there has been some inroads made by technology into the property management space, it’s still very early days, as most of the current processes inside property management firms are still very hands on and time consuming. The aim should be to relieve property managers of the more time consuming functions and free them up to spend more time on revenue generating activities with new type of property management system.

A Real Estate Virtual Support Enabler (or REVSE©) is a new disruptive innovation that is disrupting the real estate value network. This new type of business model is made possible by the combination and utilisation of cloud based software and services and remote knowledge workers. It changes a real estate company from an operational and administration centre into a marketing and sales organisation by freeing up the existing human resources to concentrate on revenue creation.

A disruptive innovation is an innovation that helps create a new market and value network, and eventually disrupts an existing market and value network (over a period of time), displacing earlier technology and operating methodologies.

A Real Estate Virtual Support Enabler (or REVSE©) is a brand new support business model that describes a business that provides services to real estate companies such as tenant screening and management, reference checking, property maintenance and management and inspection reports. The service is also about providing full administration support including accounting. The principal driver will be that it is not only more efficient, but more cost effective compared to the cost of the administration sourced locally.

Virtual Property managers do not have a relationship with property owners; instead, they provide infrastructure and services to enable real estate companies to offer property management services and the time to have a deeper relationship with their landlords. Virtual Property managers offer the ability for real estate companies to focus on their core strengths of brand, customer loyalty and marketing and leave back end lower level enablement and operational processes to outsourced property professionals.

The cost of not adopting this new operating model will leave non participating players at a considerable commercial disadvantage as their competition will be operating off a noticeably less expensive cost base.

Although a property management company’s preference may be to ignore this new operating model due to cost or preference reasons that cost maybe insignificant against the lost opportunity cost of losing customers who will gravitate to more progressive and customer service focused property management firms.

 

 

Martin Conboy

Martin is well recognised as one of the leading voices of the outsourcing industry and its role in facilitating outsourcing success throughout the Asia Pacific.  Martin was voted into the top five most influential and respected people in the global call centre outsourcing industry in November 2014.  Martin is an accomplished writer and public speaker and has delivered keynote addresses at BPO – ICT and Shared Services conferences in Australia, Bangladesh, China, Hong Kong, India, Korea, Malaysia, Mauritius, Middle East, The Philippines, Singapore, Thailand and USA.

Martin is a Director and shareholder of Virtual Property Manager a new and innovative business model for the Property Management space.

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