The problems and inefficiencies using manual office methods are quite obvious, and will be briefly discussed. Computerized systems offer solutions; however, it may not be all that obvious that medium to long term problems will become magnified if the specifications of a computerized system are not fully thought out from the outset. By David Levy, MBA
The problems and inefficiencies using manual office methods are quite obvious, and will be briefly discussed. Computerized systems offer solutions; however, it may not be all that obvious that medium to long term problems will become magnified if the specifications of a computerized system are not fully thought out from the outset.
Let us look a one sample representative multi-faceted problem dealing with last months rent and interest on the LMR. Using manual methods we must perform a calculation of LMR interest, update the LMR, and apply any credit to the tenant's rent account. The information is necessary for long-term record-keeping, and must be available for possible tribunal purposes. Assume several years later a tenant makes a tribunal complaint of improper LMR interest credit. The initial calculations and credits took a certain time to perform, additional time recording and applying the various accounts, and updating the new LMR. How much more time will it take to reproduce years of calculations for the tribunal? What if the ledger books are damaged or lost in a fire. And will the tribunal have the time or patience to review years of ledger books and be satisfied as to the accuracy? Spreadsheets are a better option yet still cumbersome. A modern computer system should seamlessly do all of this; with one click of the mouse all of the calculations and credits to all necessary accounts should be carried out for all of the tenants. The system should print an automated letter for each tenant yearly, detailing all the calculations for LMR interest and LMR adjustments. These letters are stored in the tenant file, and some landlords give them to the tenant yearly (they may be automatically individually addressed to the tenant). They give the tenant a detailed explanation of the calculations, and present a clear 'paper trail' for the tribunal if the need arises.
Every aspect of tenant management using manual or semi-manual (spreadsheet) methods involves such inefficiencies of time, accuracy, documentation, retrieval, and simple reproduction of the original data.
But computerized systems are no perfect solution unless well thought out for the medium and long term. Here is another example. Imagine that in a few years (it is actually available right now) you would want all work orders to be keyed in as they came in, on-site by the building's superintendent (who would have their access limited to only approved functions). The work order requests then go automatically to the management office where they are prioritized and printed in a cumulative report listing for each work order the date submitted, the priority, the start date, expected completion date, to whom the work is assigned etc. Full reports of active and completed work orders are easily obtained, and each work order also is seamlessly stored when entered in the unit and tenant file for easy future access. Sounds great, and it is, but there is an implied assumption one might not realize. To do all this one needs a low cost, (NO extra cost obviously preferred) internet friendly system which allows an unlimited number of users.. Does your system provide this? Even though it may provide the work order functions, do not assume it provides the ideal system environment to implement them.
Some older systems either do not allow this to be done efficiently, due to limitations of their platforms, or require expensive hardware and/or software add-ons at each remote location, plus the server. Thus, what can be easily carried out on one system, cannot be done on another. It is difficult for the end-user to have any concept of not only what computerized systems will be capable of doing in five years, but even more so, anticipating how the system being implemented today must be made to allow the ability to perform the wonderful new functions to come in the future. We hope to give you a better understanding of the issues involved, and thus be better prepared to make the appropriate decisions.
The next article will outline the computerized property management office in greater detail.
David Levy, MBA, is the VP Operations of Rent Magic Software, a Toronto-based software company that develops cost-effective property management solutions that are powerful, yet easy to use. Their website is http://www.rentmagic.ca.