Properties can Add PEPP to their Step and Save through Spend Management

Spend Management Multifamily


How effective are your spend management practices?

Not many property managers or owners would turn down an opportunity to save $10,000, or they’d at least take a good look at how to do so. That’s what RealPage says is possible, when using the right spend management solutions.

Based on a 200-unit apartment, a comprehensive spend management solution could net a savings of up to $50 per unit just by streamlining purchases, according to the multifamily software solutions provider. But first, portfolios should get a little PEPP in their step to discover where efficiencies can be gained.

Compare Property Performance with a PEPP Test

Solid spend management practices aren’t always the norm. Rogue purchases – when the maintenance team goes to the big box store, without a purchase order, for a toilet flapper and comes back with several unbudgeted supplies – can contribute to dragging down the overall performance of a property. So can buying from multiple suppliers instead of negotiating the best deals with preferred vendors.

RealPage’s Purchasing Efficiency and Purchasing Power (PEPP) test measures purchasing strengths and weaknesses of a single property or portfolio against similar properties throughout the country. The test, which is geared for portfolios of any size, compares property performance against a massive database that includes transaction data from millions of multifamily units.

It’s likely that some of a portfolio’s properties are performing in the top 20 percent of the thousands of properties that RealPage benchmarks. Property managers, owners and operators have gotten pretty savvy in recent years of spending wisely.

Spend Management Portfolio

Benchmarking Performance

RealPage’s spend management solution benchmarks the spend performance of properties and helps property managers control expenses more efficiently.

The confidential PEPP test rates each property in a portfolio from 1-5; five stars signal top performers, and one star identifies properties that need the most improvement.

Automation Delivers Savings

Purchasing Efficiency is measured by the amount of time and money saved from completely automating a purchasing process. Purchasing Power examines the reach of a property’s spend against the multifamily industry’s largest vendor network and online catalog.

Together, they help strengthen negotiations and offer more control over spends with preferred vendors at favorable pricing. The insights gained by comparing good, average and poor performing properties can add thousands of dollars to your bottom line, the company says.

Start the analysis by taking the PEPP test

Today’s apartment operations require keeping a keen eye on spending. More emphasis is being put on a comprehensive program that enables property management companies (PMCs) to purchase the right products at the right prices from the right vendors day in and day out. The idea is to maximize savings potential in markets where renters expect more value and the importance of measuring up to the competition has increased.

The first step toward gaining control of spending is to take the PEPP test. The assessment can put properties and portfolios on their way to strengthening purchase negotiations, better controlling spending and reducing expenses.

Interested in evaluating your spend management practices? Learn more about the test here. Saving tens of thousands of dollars can put a lot of PEPP in a portfolio’s step.


Contributing Editor, Property Management Insider
President, Ballpark Impressions, LLC

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Tim Blackwell is a long-time publishing and printing executive in the Dallas/Fort Worth area who writes about the multifamily housing and transportation industries. He has contributed numerous articles to Property Management Insider, and worked as a newspaper reporter in the D/FW area. Blackwell is president of Ballpark Impressions, and publishes the Cowcatcher Magazine. He is a member of the Fort Worth Chapter/Society of Professional Journalists.

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