Streamlining Multifamily Renovations with Data Apr 11, 2017 Multifamily property renovation tracking is likely one of your biggest headaches. You want to make sure you’re maintaining the property turnover velocity, while keeping costs in check and achieving the return you’ve promised to your investors, but it’s not always easy when the process is tracked manually and in silos. When construction managers, property managers and a variety of other constituents are inputting data into the system through a manual process, the possibility of error is large. Additionally, when you don’t have access to real-time data about the projects’ progress, course-correction is a challenge. Fortunately, a better way exists. Centralization of data and technology can come together to keep everyone on the same page. This can help you manage the most efficient, effective and profitable renovation projects. The Trouble with Manually Tracking Renovations When it comes to successfully managing a multifamily renovation project, it’s not enough to have a centralized plan at the owner or management level, and hope for the best. You also need to have a way to manage against that plan—which means collecting and sharing data with property managers, leasing agents, construction managers and asset managers, who all need to be involved with the tracking and management along the way. And when it’s all said and done, you need an easy way to run analysis, and understand the ultimate ROI of the renovation. The problem with doing all of this today is that the renovations management process is highly manual. And this is where delays and costs begin to build. Say, for example, you get a notice to vacate on a unit that’s up for renovation; that’s when this manual process begins. Someone has to email someone else to start getting materials ready. They also have to tell the leasing manager to upgrade the unit type in the property management system. Someone else has to put the amenity premium into the revenue management software. Next comes the assembling of the cost data, planning information and rental information. Then there’s the actual renovation data, such as when the unit’s renovation began and ended and how long it was vacant. You may be using spreadsheets or a construction management or invoicing solution to help you track aspects of this process, which ultimately get compiled into one. It can take some teams full days—or even weeks—to pull together enough data for a more holistic ROI analysis. And even then, there is a large chance that you run into missing or inaccurate data. If owners are putting $5,000 or more into the renovation of one unit, the cost of a 200-unit project is not insignificant. The stakes aren’t small, and if a renovation process isn’t boosting revenue as hoped, there are big impacts down the road when you’re looking to report that ultimate return. Centralize Workflow and Analytics for Successful Renovations For successful, profitable renovations, you need centralized workflows and analytics that organize information and keep everyone involved on the same page. With a properly centralized system, construction managers, asset managers, leasing agents, property managers and executives can all use one system to manage three critical aspects of renovations: planning, execution and analysis. Renovation planning details, and all the information related to the expectations, will be entered into the system. Everyone involved will understand the same set of expectations and see the same data. Renovation execution data, including when execution is expected to begin, will be entered into the system. With the various phases, completion and finally rental, the whole ongoing execution process will be tracked for performance.Right now, the various parties involved have their own systems and do things differently. Technology can centralize the process by getting everyone on the same page for greater efficiency and effectiveness. Renovation analysis will happen in real time when you bring the planning, performance, cost and rental data together lease over lease. It’s easier to segment the renovation analysis based on various factors associated with the renovation, and see how the renovation process impacts your ROI for holistic understanding.For example, you could look at your partial versus your complete renovations and how those perform differently. Imagine you only spend $5,000 on a unit to do countertops and carpets instead of a planned $10,000 for that along with lighting, paint, floors, etc., and alter rents accordingly.You could then track the resulting performances and ROIs against your original plan to ensure you’re hitting your original expectations. Driving more efficient, more profitable renovations is a goal of ours here at Rentlytics, as we know our customers need centralized workflow and data visibility to ensure that money is being spent in the best places and ways. The goal is strategic renovation planning, executing and analyzing not just once, but on a continuous basis. Stay tuned as we provide more information on this topic down the line. Go Recent Post Customer Spotlight: South Oxford Management Introduction to Rentlytics 11 Multifamily Industry Trends to Look Out for in 2018 Subscribe Tell us your email address and we'll add you to the list. Subscribe If you are human, leave this field blank.