I know first reaction to this idea raises all kinds of subtleties
and nuances. So be it…but, let’s carry on.
It’s called innovation.
How much do you spend on the investment in systems,
equipment, training, and local staff time allocated to generating a final lease
package? Next, consider just how much ‘violation’ of law, policy, compliance
and regulation finds its way into localized lease package preparation. How many
of your lease packages are done correctly and are in compliance? The answers to
just these two questions should more than justify a re-consideration of how
things are being done now. After all, if it is all working so well, why the
need and expense for annual on-site lease audits? What and why for in this digital
age? Does it make sense to take a plane ride to a storage locker to open paper
files? Is every paper file reviewed or is statistical sampling used?
Electronically, legal can actually review every resident the entire lease package--
if they are stored centrally, and digital right from their office.
Imagine a centralized or regional leasing staff that
prepared all of your leases. In this day and age of digital interaction and
responsiveness this can surely be done. Fact is, I know of one company
designing just such a regional platform for just such use.
With ‘centralized/regional’ leasing, the gains in control
and compliance would be significant. The reductions in risk and legal exposures
would be legion. The discipline gains surrounding lease terms agreed to would
make any multifamily legal department have instant ‘happy feet’. Just the fact
that ONLY the most current version of a lease or addendum is being used, would
bring comfort to the heart of any multifamily legal department.
Second level benefits would be the removal of paper based
files from local property storage, reducing risks, and the capacity to expedite
the paper/document assembly required for eviction and collections processing.
In addition, the care and feeding of IT interfaces for capture and storage of a
finalized lease package being prepared at local properties becomes simpler.
With todays ‘capture and route’ capabilities using smart MFP devices final
filing upon signature is made simpler and ever more compliant. There are even technologies
that can ‘survey’ the documents upon attempted filing to see if they are
actually completed, initialed and signed properly. If not, filing is prohibited.
Think of the increase in service and responsiveness when
lease terms can be ‘adjusted’ and instantly, in real time, approved by a
‘centralized leasing staff supervisor’ working at the regional lease service
center. And, oh yes, since so much of the back and forth is with renters who are
remote from the property anyway – a centralized service center can work the
interaction and finalization 24/7. A very powerful service differentiator among
property choices.
“Hello, I am Robert, your personal lease associate at your
24 hour leasing service center…you can call us at any time or day with
questions or to obtain your final lease package for review.” It has a nice
cadence to it.
When tied into the advance of ‘consumer driven leasing’ as I
discussed last week, such a business model would position ‘the movers and
shakers’ in multifamily very well to secure and hold the high ground of the
future of leasing.
So let me see… more control, less staff time and training,
experts doing the work, increased service and responsiveness, no remote audit
time and expense, lower IT costs and strong future service positioning….sound
like pretty nice concept to be explored.
If indeed you would like to evaluate becoming a ‘prototype site’
for just such a platform and model send me an e-mail at:
…and I will be glad to arrange to introduce you to the model…
Mike
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