Condo Tech Tips

Cut Costs, Raise NOI

By Lee Ann Stiff on Apr 11, 2018 in Technology

It’s an exciting time for the condo industry in Canada. Facing tech disruption, new building, increasing regulation and competition, condo companies need to rethink — and even reinvent — the way they do business. To improve operational performance and increase NOI, condo managers need software platforms that deliver actionable analytics and integrated online services.

A Market on the Move 

As revealed in the PWC Emerging Trends in Real Estate 2018 report, the condo sector in Canada is seeing steady demand in most markets. In downtown core areas, condo units remain attractive to young professionals with a live/work/play lifestyle, along with retiring baby boomers who are downsizing from single family residences to enjoy urban amenities. The condo industry is also evolving in response to new needs and pressures. Whether there isn’t enough supply to meet demand or oversupply is finally being absorbed, condo managers need a profitable strategy that suits every scenario — including new projects such as popular multiuse communities that are driving density in city centers. These trendy new communities combine a mix of condo units with retail, a range of services and commercial space.

Beyond the concept of mixed use, these “developments-as-neighborhoods”  recognize the demand for a community infrastructure that includes schools, parks, shopping and medical services that consider needs of young professionals, young families and older residents, too. According the PWC report, “The age of the shrinking condo may be coming to an end: units are starting to get bigger, reflecting the needs of families and move-up buyers.” 

Tip #1: Go Paperless and Save 

To be more agile in a changing market and transform operations to be more profitable, you have to say goodbye to paper. By streamlining invoice processing and centralizing spend management with automated online approval workflows, you ensure vendors are paid on time while you eliminate the costs of shipping and storing paper invoices and cheques — not to mention saving your staff valuable time.

For Greenwin, one of Canada’s largest residential property management companies, automating invoice processing with Yardi PAYscan has been a game changer. According to Brian Turpin, vice president of information technology, “Greenwin reduced printing paper by 44% — that’s 800,000 fewer sheets of paper printed from 2015-2016. With Yardi PAYscan, the invoice process is entirely automated and includes real-time reports. Paper isn’t sitting on desks anymore, getting lost in the shuffle.” 

Tip #2: Enhance Vendor Management 

While paperless processing saves your organization money, it also promotes better relationships with your customers and vendors. Electronic and mobile-enabled vendor management with VENDORCafé reduces paper and email invoices which makes everybody happy while saving time and cutting costs. All product and service vendor information is centralized in a single system of record, with a complete view of all vendors. This means:

• Better data from vendors
• Vendor compliance
• Automated work order (WO) and purchase order (PO) processing
• Clear visibility into the status of all WOs and POs

Plus, vendors are able to view the profiles of all property management companies in one portal, which is a major development for the industry.

Tip #3: Automate Payment Processing

With electronic processing and deposits, there’s an easier and faster way to get those condo fees and payments. With Yardi Payment Processing, cheques can be scanned and digitized, and self-service online payments can be one-time or scheduled to recur from a checking account or credit card.

In addition, when payments across your organization are digitized and entered automatically into your property management system, the benefits are big. With its Yardi Voyager Condo, Co-op and HOA management platform, Southern Ontario condo management company Wilson, Blanchard has eliminated costly manual payment processing with automated workflows, electronic banking and online services. According to Paula Davis, CFO, “The automated tools in Voyager have significantly reduced the time we need for budget preparation and fee calculations. Processing pre-authorized payments and post-dated cheques happens faster, so our staff can be more efficient during crunch time at the beginning of every month.”

Start Now

The message of the market is clear: for a winning go-forward strategy, you must use technology that enables quick response to key trends and more efficient community management with enhanced services for owners, tenants and vendors. With paperless processing, online services and a single system of record that gives you total visibility into your business, you’ll be well on your way.

Learn more about Yardi’s single connected solution for condo management and services.