02.18.2009 by Don Wood.

Are you looking at purchasing software for your real estate organization? Not all purchases need go through a detailed process, but if you are considering a major investment such as a new property management or accounting software, a carefully planned selection project would behoove you and your firm.

As with any project, the first step is to plan. The basic steps I use in a software selection project are:

1. Initiating & Planning
2. Define List of Requirements
3. Develop Business Scenarios
4. Vendor List
   
5. Request for Proposal
6. Vendor Short List
7. Develop Decision Criteria
8. Vendor Demonstrations
9. Product Analysis (a.k.a. scorecard) and Reference Checks
10. Negotiations
11. Plan implementation

In my experience, the key to a successful selection project is a carefully defined list of requirements and detailed business scenarios. Gathering the requirements can be daunting but it is a critical step. Involve users at your company. This will get your better requirements and help you to garner buy-in from the users. The requirements should be detailed and sorted into logical groups (e.g. Accounts Payable). List the requirements and identify them by level of importance, such as critical, important, and nice to have.

Well drafted business scenarios are instrumental because they allow you to see the differences between products and show you how the software is going to execute and improve your business processes. I usually write a story board of a process like the purchasing process. I’ll explain how the company does it, what they would like to do differently and I give an example. The requirements should tie to the scenarios. If a critical requirements is to have an on-site manager enter a purchase order (PO) and that PO be approved by a VP based on a dollar amount then I would create a scenario with such an example and list that requirement.

Insist that the software vendors demonstrate to your scenarios and requirements. This ensures that you see how the software fulfills your list of requirements rather than watching demonstrations that only show you what the sales reps want to show you. For example, if you have a requirement for an accounting system to “process payments by EFT,” all of the accounting systems are going to respond with a “yes we do that.” But how they do it is what you want to know. For instance, the JD Edwards system utilizes transaction codes to denote the type of payment (e.g., check, wire, etc.), whereas Microsoft Dynamics - GP has a free form text field where the user can enter the type of transaction. Both methods work, but you may have a preference for one over the other.

And don’t let the software sales representative make or break the deal. I have nothing against software sales people but I have seen clients try to not pick a solution because they didn’t like the sales person. Don’t buy or not buy based on the sales person. Be objective and let the software selection process help you make the right decision.
Remember: plan and then execute the plan!

Don Wood is a PMP with over 25 years of experience in project management, business process improvement, and information technology for the real estate industry. Please visit www.dbrw.com for more information.

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02.18.2009 by Don Wood.

If you are on the RealPage OneSite property management system there is a great feature you that most users don’t leverage to their advantage. I’m referring to the Letters & Notices feature.

The Letters & Notices feature allows users to create custom letters and notices that can be generated from the system. Data in the database will be merged into the documents and a record will be maintained of the document you sent each resident. Some of the benefits of using this feature are:

• Less time required to generate resident documents
• More accurate documents as data from the system is merged into the document
• Adds to your green initiatives as the final documents are stored in the system rather than printed and stored in a file cabinet

The letters & Notices functionality include:

• on-line training
• preloaded standard documents
• Ability to create custom fields
• Access to hundreds of data fields

There are a wide variety of documents that can be created. For example:

• Lease Agreement
• Lease Addendum
• Renewal Letters
• Inspection Notice
• Late Notice
• Eviction Notice

How to Get Started

The best way to begin is to watch the on-line training videos RealPage offers. They can be found on the RealPage website under training and on-demand catalog. The videos will show you how to create new letters and merge data fields. If you don’t have a test site I highly recommend you get one. Using a test site will enable you to create documents and test them to make sure you are merging the correct data.

Other systems such as Yardi and Intuit RES (MRI) have similar features.

Don Wood has over 25 years of experience in project management, business process improvement, and information technology for the real estate industry. Please visit www.dbrw.com for more information.

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02.18.2009 by Don Wood.

A few years ago, Microsoft purchased the Great Plains accounting software company and rebranded it as Microsoft Dynamics - GP. This product is not about to take on the property management software leaders like Yardi and Intuit RES (MRI), however, it does offer a solution for a much needed niche: corporate accounting, consolidations, and non-real estate related business accounting.

There are excellent property management software products that manage resident traffic, rent, maintenance, etc. Where they often fall short is in handling the corporate office accounting. In the past JD Edwards has been the leader in solving this problem. However, MS Dynamics-GP is starting to gain momentum in this area. Several large multifamily companies use MS Dynamics - GP. A few months ago I helped CAS (Riverstone’s parent) select MS Dynamics-GP as their corporate accounting platform. I have since assisted Aztec Systems, a Microsoft Partner, better understand the Multifamily requirements.

Microsoft has placed GP in their Office division and that has enabled some powerful integration with MS Office. For example, a report can be run in GP and placed in an Outlook folder. Users can open the report and drill down to data from their Outlook and never log into GP. Therefore, they don’t need to purchase a license for GP. Microsoft has taken a best of breed approach and rather than developing their own software modules they promote tight integration. This can be very good for users. For example, project accounting, project management, and project controls can be crucial to many multifamily companies. Microsoft Dynamics-GP has partnered with WennSoft to bring a full featured product to the table. Microsoft also empowers and encourages their partners to develop add-on products. Binary Stream has created a feature that really enables GP to work in the multifamily space. GP on it’s own doesn’t handle multi-company consolidations as well as needed. But Binary Stream created the Multi-facility module that makes multiple entity consolidations a snap. In a nutshell, the module enables users to process centralized and decentralized AP/AR accounting transactions for multiple entities within a single company database. The same partner is also working on a real estate management module. It will be interesting to see how that develops.

I realize this post sounds like I’m a shill for MS Dynamics-GP. I’m not. I think JD Edwards is a fantastic product as well as some others. I’m independent and want people to know about their options.

Don Wood is a PMP with over 25 years of experience in project management, business process improvement, and information technology for the real estate industry. Please visit www.dbrw.com for more information.

Posted in Real Estate Accounting, Multifamily Software, Real Estate Software | Print | No Comments »

02.18.2009 by Don Wood.

Multifamily revenue management has been a hot topic of late. There are products on the market that will cost a fair amount and help you to optimize your pricing. Often these products have a proprietary calculation method that gives you the recommended rental price for a unit. If you have Yardi Voyager 6.0 you already have this feature available to you.

Revenue Management comes free with Yardi Voyager 6.0. Granted, it is not as feature rich as other products such as RealPage’s Yieldstar but it is included in your base application.

What can you do with Yardi Revenue Management?
The revenue Management functions include market surveys and pricing models.

• Market Surveys
  • Subject property
  • Comparison properties
  • Comparison groups
  • Collect market survey data
• Pricing Models
  • Create pricing models
  • Preview model rents
  • Calculate new market rents
  • Review and post new market rents

You already collect market surveys, right?
You are probably already collecting market survey data and entering the information on a spreadsheet or a paper form. With this tool you just enter that data into Voyager. The module will then maintain the information and allow you to use it for analysis and reporting. You can capture data such as property name, number of units, percent occupied, rents, unit types, amenities, etc.

The market survey reports list the data and includes graphs. The standard reports include market survey and rent comparables, effective rent trends, and comparable ratings. Imagine how impressed your boss will be when you present a report with graphs showing the valuable data you have gathered!

Flexible Pricing Models
Voyager allows the user to create pricing models. Instead of using a proprietary black box methodology, Yardi puts you in control. The pricing model is basically a set of rules and measurements that define how new market rents are calculated. There are pricing factors that you can weigh and rate according to your particular market.

Once you have run the pricing model, Voyager will provide a suggested market rent that you can accept or adjust before posting it to the system.

If you have Voyager 6, then you really should look at this functionality. It is easy to use and oft overlooked. I suspect that if more people use this feature and begin asking for enhancements, Yardi will make it even better.

Don Wood is a PMP with over 25 years of experience in project management, business process improvement, and information technology for the real estate industry. Please visit www.dbrw.com for more information.

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