Centralization is the latest buzzword in the property management world. While you may have a general idea of what it means, you may not know how it can benefit you and the way you manage your properties.
What is Centralization?
For the property management industry, centralization is typically defined as a management model that combines leasing and operations functions into one central location. For example, if you manage several properties, instead of having one office available to support functions at each property, you would have one centrally located office available to support functions for all your properties. Exactly what that support entails depends on your specific needs.
Another common type of centralization is centralizing labor to deploy readily should any property need assistance. For example, some companies centralize their leasing team so that leasing consultants float from property to property. These consultants become specialized in the sales process, as compared to standard leasing consultants who take a more general approach. This type of centralization model is being considered for maintenance positions as well.
Benefits of Centralization
The benefits of centralization are continuous and widespread—it’s an approach that can lead to:
Improved Efficiencies and Cost Savings
Centralization allows you to streamline your business processes and functions. The result is saving valuable time for you and your team and reducing costs across your entire company.
Centralized communication methods allow for consistent messaging to help staff become more knowledgeable about your business, specific work processes, and individual tasks—improving the overall effectiveness of your team. In addition, your residents receive clear, ongoing communication using channels they will respond to such as email, text, and broadcast messages.
Enhanced Resident Experience
As your business becomes more efficient through centralization, it frees up time for you to focus on important tasks like providing the best experience possible for your renters.
2023 Centralization Survey
Rent Manager recently sponsored a survey about centralization, conducted by Multifamily Insiders. The purpose of the poll was to examine how this model is being adopted in the multifamily industry. The centralization survey was distributed amongst several social media platforms aimed to reach multifamily housing professionals.
Highlights from the Centralization Survey Research Report
- 112 responses were submitted anonymously
- 66% of properties all/almost all have a dedicated on-site office
- Accounts payable, vendor credentialing, property marketing, collections, and resident payment processing are the top five functions that survey respondents are currently centralizing
- 65% of respondents have a physical centralized location; 59% have floating positions, such as maintenance or leasing; and 44% have remote, work-from-home positions
- For centralization plans, 44% of respondents do not anticipate a reduction in on-site staff; 28% see a reduction in leasing staff; 26% see a reduction in assistant property manager staff; 8% plan to close on-site offices; and 7% see a reduction in maintenance staff
For more insights from the survey, you can download the entire Centralization Survey Research Report.
Centralization Solutions within Rent Manager
Rent Manager’s customizable solutions can help you achieve centralization with a variety of operations activities. As mentioned in the survey highlights, accounts payable, vendor credentialing, property marketing, collections, and resident payment processing are functions that most respondents have centralized in their company. Here are a selection of Rent Manager features that help in those areas:
Managing your bills and payments is effortless with Rent Manager’s accounts payable (AP) features, which include the ability to create and pay bills, and write and print checks directly in the software. When you’re ready to take your AP process to the next level, AvidXchange offers No-Cost AvidPay. This built-in solution allows you and your team to be even more efficient, saving you time and money.
Rent Manager simplifies the vendor-credentialing process straightforward by enabling you to manage all your vendor information within the program. To further streamline these efforts, NetVendor can track, monitor, and manage your vendors to ensure their information is current, which saves you time, money, and reduces risk.
Let Rent Manager’s advanced marketing tools help you promote your properties to potential residents. When searching for a new place to live, most prospects start by looking on the Internet. So it’s more important than ever for your properties to have a professional online presence. Whether you’re looking to build an eye-catching website for your communities, or simply want to push your available units to the industry’s most popular ILS sites, Rent Manager has you covered.
Collections and Resident Payment Processing
Rent Manager also delivers advanced solutions that take the pain out of the collections process. Using the software, you can send payment notices to your tenants via email, text, or phone broadcast on a predetermined schedule. You can also receive, record, and deposit payments directly into Rent Manager. And through our built-in payment partner, Zego, residents can pay their rent online and you can collect payments via credit/debit cards, ACH, Cash Pay, check scanning, and Lockbox.
While there’s much more to learn about centralization’s impact on the property management industry, one thing is clear—this approach isn’t going anywhere. As you determine how to incorporate this latest management model into your daily operations, Rent Manager’s varied and customized features are also here to help you succeed.