The Ultimate Guide to Real Estate Task Management
Last Updated on June 22, 2023 by Morgan Beard
Commercial real estate task management is tedious. The number of tasks involved with managing a commercial lease portfolio can become overwhelming, and failing to do them right can significantly impact the bottom line.
Ensuring assets are well-maintained and generating maximum returns can be a round-the-clock job. You must actively monitor and enhance property value to safeguard investments and improve your organization’s financial status. Thankfully, there are effective ways to perform real estate task management.
The right project management software can play a significant part in powering your commercial real estate tasks lists and elevate your business processes, but many options are available. Before committing to a real estate task management platform, you should conduct research and find the solution that suits your business’s needs. To help you with all this, here is our guide to real estate task management and the many factors involved.
Why is Real Estate Task Management Important?
Every company needs a good project progress management strategy. But task management becomes critical if you’re in the business of managing real estate. Your organization’s entire transaction management process and real estate deal pipeline relies on internal processes for task management. And, your company’s profitability depends on getting it right.
It’s hard to imagine controlling costs without solid task management practices. Real estate management involves mitigating risks. All properties come with various risks, including legal liabilities, safety hazards, and market fluctuations. Effective management includes proactive risk assessment, compliance with regulations, and appropriate insurance coverage to minimize potential legal and financial consequences. Every Transaction Manager and Lease Administrator is responsible for a comprehensive daily task lists as it relates to their organization’s lease portfolio and deal pipeline.
Your Deal Pipeline Task Management Solution Checklist
- Define locations requirement (headcount, SF, neighborhood, budget, term)
- Tour shortlist buildings with stakeholders and architects
- Give feedback on the location site surveys
- Request and analyze lease proposals
- Submit counter proposals
- Submit letter of intent
- Negotiate lease terms
- Execute the lease upon final negotiations
- Send the Landlord your security deposit
- Prepare permits, bids, build-out logistics
- Coordinate move-in logistics, furniture, cabling, phones, etc.
Your Lease Administration Task Management Solution Checklist
- Abstract the newly executed lease document
- Upload the lease file to a digital document sharing folder
- Confirm all critical dates and important deadlines
- Set a meeting with c-suite on upcoming lease expirations
- Pulla a report of lease escalations in the next 6 months
- Collect monthly sales numbers from our retail locations
- Update financial forecast model based on the sales numbers
- Schedule time with our tenant-rep broker to research expansion markets
There are individual tasks and team tasks that internal real estate teams and their tenant-rep brokers have to collaborate on in order to close new deals and manage live leases. Implementing a task management solution that features automation capabilities, client relationships, or CRM functionalities, as well as email tracking and schedule management will set your teams up for success.
In addition to common lease management to-do’s, commercial real estate tenants also have various local, state, and federal regulations to comply with, from zoning laws and building codes to fair housing and environmental regulations. Real estate task management tools will automate routine work and assign tasks to the appropriate stakeholders, in order to help real estate projects run smoothly and efficiently.
Commercial Real Estate Workflows for Tenants
The commercial real estate lease life cycle includes so much more than task management. Real estate tasks are associated with many phases within the commercial leasing process. We will dive deeper into the commercial real estate sector and the project management workflows associated with each phase of the lease life cycle.
Lease Management
Lease management is the centerpiece of commercial leasing for tenants. It involves maintaining lease contracts, ensuring their accuracy, and storing them securely. Companies must closely follow leasing deadlines (e.g., rent payments, lease terminations, and renewal notifications) to avoid further problems and additional tasks.
Effective lease management also includes timely handling of lease renewals and negotiations with tenants. This ensures favorable terms and conditions that align with the business’s objectives.
Portfolio Management
Portfolio management is essential for businesses with multiple real estate properties. It encompasses tracking the locations and performance of each property within the portfolio. This involves monitoring occupancy rates, rental income, and property expenses.
Budgeting for real estate expenses, such as property taxes, insurance, maintenance, and utilities, is a crucial aspect of portfolio management. Strategic decisions regarding property acquisitions and disposals are also made based on portfolio performance, market trends, and the business’s overall strategy.
Facilities Management
Facilities management focuses on the physical upkeep and operations of real estate properties. Regular maintenance and repair of properties ensure their optimal condition and functionality.
Facilities management also involves implementing measures to meet building codes, fire safety regulations, and other applicable standards. Contracting service providers, such as janitorial services, security companies, or landscaping firms, fall under facilities management to ensure the proper and efficient management of the property.
Financial Management
As with any business, financial management plays a crucial role in the real estate management business.
Monitoring rent collection, ensuring timely tenant payments, and addressing any outstanding issues related to rent payments are all tasks that must be done regularly.
Implementing cost-saving measures is another aspect of financial management, aiming to reduce expenses and increase profitability. Financial managers also prepare and present financial reports detailing each property’s performance, including income, expenses, cash flow, and general financial health.
By effectively managing these tasks, businesses can ensure smooth lease operations, optimize their property portfolios, maintain well-functioning properties, and make informed financial decisions. These tasks contribute to the success and profitability of the real estate assets within the business’s portfolio.
Lease Accounting
Lease Accounting under ASC 842 poses a new challenge for commercial tenants. This standard implemented by the Financial Accounting Standards Board (FASB) aims to provide more transparency and accuracy in reporting lease obligations on financial statements.
Accounting and real estate have to be aligned on accuracy of. the data associated with their lease portfolio in order to comply with the ASC 842 standards. Lease accounting software helps to automate the repetitive tasks of calculating your lease amortization schedules and exporting your monthly journal entries.
Integrating Technology in Real Estate Management
As with many industries today, technology has revolutionized commercial release management. Powerful software allows companies to automate mundane tasks, including rent collection, lease management, and financial reporting. This automation reduces manual efforts, streamlines processes, and minimizes errors, saving you time and cost.
Technology improves communication and collaboration within the real estate management ecosystem. Cloud-based platforms like Occupier enable efficient communication between Landlords, tenants, brokers, attorneys and service providers.
A robust technology platform gives you instant sharing of information, documents, and updates, facilitating prompt issue resolution and transparent communication. Collaborative tools and project management software enable effective stakeholder teamwork and coordination, leading to smoother operations.
The result is enhanced decision-making in real estate management. Advanced analytics and data visualization tools provide valuable insights into property performance, market trends, and financial metrics.
Moreover, modern software tools enable businesses to make data-driven decisions regarding lease negotiations, property acquisitions or disposals, and portfolio optimization. By leveraging technology, companies can access accurate, real-time information, facilitating informed decision-making that aligns with their strategic goals.
Occupier offers comprehensive real estate management solutions. Our lease accounting software provides comprehensive document management features, including contracts and lease abstracts. Portfolio management has never been easier than it is with Occupier’s feature set and intuitive interface.
Task management tools ensure that all critical tasks are getting done on time. Occupier also ensures compliance with the latest accounting standards, which keeps your company out of regulatory trouble.
Other real estate management and lease accounting software packages offer some but not all of the tools on the Occupier platform. We also simplify integrating with your existing business applications like ERP software and accounting packages.
Best Practices for Effective Real Estate Management
Each business is unique, but there are some standard real estate management best practices that every company should follow.
Start by setting clear goals and objectives that align with the overall business strategy. This involves developing a real estate strategy that supports the organization’s objectives and identifying measurable and achievable goals. By establishing clear goals, businesses can guide their real estate management efforts and track progress toward desired outcomes.
Regularly monitoring and evaluating properties is critical for successful real estate management. Work toward defining key performance indicators (KPIs) that measure the performance and profitability of real estate assets. Periodic reviews and updates should be scheduled to assess performance, identify areas for improvement, and make necessary adjustments. Ongoing monitoring and evaluation enable businesses to stay proactive and responsive to changing market conditions and internal requirements.
Prioritizing tasks and responsibilities is a must for effective real estate management. Start by identifying critical tasks and allocating resources accordingly. This lets you focus on activities significantly impacting your real estate assets and business objectives. Proper resource allocation also helps ensure that the necessary human resources, finances, and time are allocated to address critical management tasks.
Effective communication and collaboration are also important. Always involve relevant stakeholders — property owners, tenants, property managers, and service providers — in important conversations. Regular and transparent communication facilitates a shared understanding of goals, expectations, and updates.
Real-time sharing of information and updates ensures that all stakeholders have access to accurate, up-to-date information, which makes informed decision-making possible. In addition, fostering a collaborative real estate management culture encourages teamwork, cooperation, and synergy among stakeholders, leading to better outcomes and improved efficiency.
Implementing these best practices goes a long way toward effective real estate management. They all contribute to maximizing the value and performance of real estate assets, optimizing resource utilization, and driving the success of your real estate portfolio.
Real Estate Task Management With Occupier
If you work in commercial real estate, you were already aware of the many management tasks involved before reading this article. Still, there is always more to learn. Real estate management is one of the more complicated processes in the world of business.
Technology is increasingly becoming the answer to keeping up with all these tasks. When you consider that your competitors are likely using tech to stay on top of things, you must also ask whether you want to remain competitive. The only question is which software platform to choose.
Occupier offers the most full-featured real estate transaction management and lease accounting software available today. Our modern, intuitive cloud platform immediately lets you get up and running with powerful real estate management. To find out for yourself, sign up for your Occupier demo today.
