How to Boost Your Bottom Line When Revenue is Booming
The apartment market is going strong. U.S. apartment occupancy is up to 96.2% and annual rent growth is averaging between 4% to 5%. Your property management company is probably doing well. In fact, very well. But if you could save $50 annually per unit on a 200-unit property, you could be doing even better—without adding to fixed costs.
With a comprehensive spend management program that takes the pain out of procurement by maximizing purchasing power, increasing efficiency and minimizing risk. Is your maintenance staff getting the best price on plumbing supplies?
Is your AP staff buried under unpaid paper invoices? Have your vendors been vetted to meet your compliance standards and protect your community?
An ideal program that can secure the right products from the right vendors at the right prices, automate the invoicing process and manage vendor compliance is nothing short of heroic.
Whether your portfolio includes a handful of properties or spans thousands of communities across the country, there are seven factors you should consider when it comes to assessing an effective spend management program:
1. Expert Advisors and Strategic Planning
You need more than a smart shopper. Look for individuals with deep, quantifiable experience in multifamily procurement who have a proven record of negotiating substantial discounts and who can detail step-by-step plans, that integrate with your property management software, for identifying opportunities and new cost savings.
2. Comprehensive Vendor Management
Vendor compliance doesn’t have to be complicated. An integrated vendor management service can handle all aspects of credentialing from owner and company background checks to enforcing compliance with your requirements.
3. Standardized Purchasing Processes & Pricing
Improving performance across your portfolio requires standardization. This is better accomplished with a platform that makes it easy and efficient for staff to use approved vendors and secure competitive pricing. When selecting a multifamily purchasing software, keep these characteristics in mind.
4. Inventory Management
Is your tracking lacking? Automating your inventory process with an affordable option helps operations run smoother, cuts loss and lets you know exactly when and how many flapper chains, seals and all your other supplies need to be replaced!
5. Maintenance Management & Inspections
If it’s not mobile, they may be moving. Improve resident satisfaction and loyalty with a maintenance and inspection app that has the capability to automate the service and make-ready process, improve communications and measure performance. Instant alerts regarding the status of projects and work orders go a long way with residents.
6. Metrics for Performance Optimization
You can’t change what you don’t know. Get benchmarking metrics that give you true insight into performance across properties in your portfolio AND your competitors. Look at integrated platforms that don’t just deluge you with data, but help you know where, when and how to take action to produce the most effective results.
7. Integrated Accounting & Reporting
Strengthen your numbers. Get the most robust integrated platform you can. Features like electronic signature and payment approvals, importing/exporting vendor data, contract processing and flexible reporting capabilities will accelerate productivity and increase accuracy.
Download the eBook, Free Your Inner Hero: How to Unleash Your Purchasing Power and Save Your Bottom Line, to evaluate your current program and learn more about multifamily spend management software solutions.