Isn't It the Time and Technology for Centralized Leasing?

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:

Mike.radice46@gmail.com

…and I will be glad to arrange to introduce you to the model…

Mike

Is Personal Identity Theft In Multifamily Greater With Paper or Digtial Use?

There are very few businesses that request and require the level of detailed personal information that we as landlords do. As a result the need for secure practices at every level ‘physical and digital’ are critical to avoiding personal identity theft liability.

More than 50% of personal identity violations/thefts are the result of paper based thefts. When we think about it, this makes for an understandable finding. While we are always stunned when there is a major digital hack, in total, what actually materializes into an active theft of someone’s entire identity is a small number among those type of incidents. Sure, bogus financial transactions are prevalent but many are trapped out early and the costs are modest to individuals – in most instances. And, a hack of a Facebook account, while it may be concerning, these types of hacks usually translate into a nuisance or embarrassment.

But when someone is able to capture not just a credit card number or a password to one system but the entire, all-embracing metrics of a person’s entire personal identity – this is a situation now taken to a much higher level of exposure. If you can piece together a driver’s license, SSN and credit report data for an individual, now you have a true identity theft situation. The stakes for everyone involved have now escalated. So, hmmmm…if I was a criminal intent on surfacing opportunities to snatch such a complete record of such information where might I look? You got it…an apartment leasing office!

Not only is the opportunity there, the apartment leasing office can be a fairly well trafficked, somewhat ‘public’ space with visitors. Or, as John Dillinger, the notorious bank robber once said of his criminal activities, in answer to the question: “John, why do you rob banks?” “Well,” he responded, “that’s where the money is!”

I have seen the reality of this condition, personally. Resident files left on the desk, perhaps even overnight for the cleaning staff’s casual reading or copying with the click of a smartphone’s camera. Rental applications and credit reports sitting in unattended print output trays. Driver’s license paper copies dropped in trash cans because the original attempt at a copy came out a little too dark. Do you do frequent security checks to see what’s in your trash? Do you have a secure disposal container? Do you have a shredder? While these security procedures can be good for paper that is to be disposed of but what about your active paperwork and live files? Laws regarding a business’s liability which are designed to ensure that adequate protections and management oversights are in place continue to get ever more expansive and draconian.

But alas, this is a blog about multifamily technology. Driven by security standards such as HIPPA, PCI, and the increasingly energetic Consumer Financial Protection Board (CFPB) to cite a few, new print management technologies are coming to market that can significantly reduce paper based breaches resulting from the active in office use of paper.

As a starter, you can now get all the ‘paper’ digitized and avoid storing paper files on site.

I also have recently tested one excellent example of this new print management technology. It makes unattended printing a mistake of the past and a risk you can now easily avoid and for FREE. It also helps reduce print costs since print jobs can be managed ever better before they go to print. Ever go to the printer to find your financial report has been printed on sticky address labels?

I can send you a link for a FREE access used to install a print security system and if it fits your print systems profile it’s yours to have.

So, if you have an interest in this technology and want to reduce risk and exposure to paper based personal identity theft liability, send me an e-mail at mike.radice46@gmail.com I’d be happy to send you the link. Yes, it is FREE.

 

Mike

The Consumer Driven Technology Model Will Now Overtake Multifamily Leasing

For some time now I have been predicting that the multifamily leasing world would be turned upside down. What was previously driven by landlords will now be driven by consumers. 

Multifamily had been orienting itself around a leasing model that is now about to begin to crater. The conventional model has been one whereby a potential renter must present themselves (read expose themselves to a sales pitch) either in person or engage via a property web site conducting ‘one to one’ negotiations. Potential renters were held, understandably so, captive to having to make an on-site visit, completing a guest card and ‘getting the pitch’ one property at a time. An effort they find increasingly exhausting in the digital age.

Today’s tech savvy consumers demand control over their time and effort. They want speed – driven electronically. They want open options. They want leverage. They don’t want to make physical visits, have meetings, schedule appointments, wait in line or negotiate terms. We all have seen the power of these consumer driven drivers in industries like insurance, hotel bookings, taxis or car rentals for example. We are now seeing this same consumer driven model gaining traction in apartment rentals.

The consumer driven leasing business model is simple. Consumer goes on-line, completes an application, specifies the credit bureau to be used to get a credit report so as to protect their personal information and sends the application to the leasing property for acceptance. Over to the leasing agent – accept or decline the application?

The ‘Priceline style web sites’ for generating competing ‘bids’ from multiple property options regarding a rental are also starting to appear. On the surface the business model is also simple. A potential renter (consumer) spies an acceptable property and launches an ‘active competitive open bidding process’ against other properties which are also acceptable choices. Game turn is now over to the ‘electronic leasing sales agent’ to bid, compete and the game plays on.

The issues in front of multifamily business leaders and technologists in this new era are significant. 

First will be the necessity for determining IF and how to participate. Major policy decisions will be required. Skill and systems development surrounding the ‘leasing agent’ interactions with such gaming/bid systems will be paramount. How will open disclosures of terms and concessions effect local and industry rent yield ‘pricing’? How much will you pay to play in this new game?

The issues in front of the technology leaders will be the ‘integration’ of what will become a super hyper-active, real time data stream of inventory, active bids and pricing surging at you from multiple consumer bidding sources.

The above examples are only a very few of the emerging strategic elements to be considered.

The fundamental drivers are threefold:

First, we all must recognize that this is the age of seeming unlimited access to the information we need to make choices and decisions. Physical is replaced by virtual. Virtual visits are already replacing the need for on-site persuasive sales pitches. The quality of the information being made available by the ‘property web site’, by ‘social media’, by Google Satellite views, etc. and soon by ‘bidding engines’ will carry the day.

Secondly, as I have also stated previously this is the age where for multifamily, ‘going digital at the core’ is an inexorable force (I have a white paper available by request on this very subject) one that will need to be met by multifamily. Only the ‘digital’ will prosper.

Thirdly, consumer desires always win the business model design contest.

We will see a significant ramp up of these new leasing models – you can bet on their popularity, and success.

As always, if I can help further in grappling with these issues just send me an e-mail at Mike.radice46@gmail.com. I’d be happy to help.

Mike

Why Your New Multifamily System Will Fail

I was recently asked –another question:

Why is it that new system initiatives using technology that actually works well, often fails to be adopted?

Anyone with any level of experience in systems and technology deployments has also most likely experienced some level of failure when deploying a new system. Far too often, however, that failure was not driven by the choice of the technology or the underlying system concept itself.

Failure ‘to adopt’ was most likely driven by the following:

1.       Too much change. As fast as technology advances, it seems that every week we should be adopting something new and better. Organizations are complex ecologies of people and processes. People and processes have an embedded DNA code against change. It’s called survival. Radical restructuring driven by new systems and technology ignites the survival ‘fight or flee’ instinct. Driven by the fear of ‘what if I can’t do my job using the new ‘thing’? Every obstacle real or imagined will be thrown back on the innovator.

Solution: Plan incremental adoptive steps. Find ‘adaptive internal leaders’. Make staged changes to processes. Be sure the new process is a complete process.

2.       Giving Senior executives a free pass. “Well, it will be good for the staff but not for me. I have been storing my paper files in boxes for 42 years- and that’s where they are staying.” Or – “OK, let the properties use it, but for me I will just give the task to Frank, as I always have.” Frank, is better that any touch screen I have seen.” When total organizational use and commitment is lacking, the smell of ‘the kill’ starts to show up. The organization senses a ‘kill’ and knows full well that non using senior execs will facilitate an eventual ‘thumbs down’ vote.

Solution: If the senior execs won’t learn and use the very same systems – bag it.

3.       It was not ‘of the world’ I work in. Sure most technology performs well when the world you’re working in is a blest place. For many the world of ‘reality’ is often plagued with – well, reality. “So let me understand this - I need a laptop with Windows 6 (but I am already using Windows 7) and I need to revert to IE 9 or download Chrome and I need to always be near a WiFi connection (hell, I can’t get a connection in the break room at this place) and the router needs to be plugged in (you are kidding – someone is always unplugging from the one electrical outlet we have for the copy machine, the telephone system, the fire alarm system, the time clock and the coffee machine. The coffee machine always wins! The point is that environmental and working conditions in and where the technology is to be used needs to be treated as a crucial consideration in successful deployment planning.

Solution: Know the real world nuances of where the technology is planned to be used.

4.       Don’t train users –formally. Just tell them to sign in. They can click on the “?” in the upper right of the page and search the FAQ section. They’ll eventually get it figured out. It turns out, pre-release training NOT post release training sessions are your best friend for success. Everyone learns and benefits. The buy-in is stronger and employees feel respected, engaged and take a pride of ownership.

Solution: Do pre-release training sessions. It is that simple.

5.       Avoided having to spend a week on site actually using it yourself. I mean, after all, with live web sessions, videos, tele-conferences and the ability to link to a live desktop why leave my ‘chair’? Doing so would mean I would actually be able to hear the end user breathe and see their faces fill with fear. Besides they are too busy to pay attention. This is the exact point. Life in the real world is a cacophony of unplanned moments and unintended consequences. Without on-site actual, real time, usage amid the chaos of a ‘day in the life’ experience of the end user by the ‘inventor’ of this new thing, success is like a deer in the headlights.

Solution: Go into the field and perform as an end user and experience the actual usage yourself.

6.       Don’t schedule end user follow up de-briefs soon or too frequently. Let’s face it having to hear of all the trials and tribulations of sustained attempted use can be painful. History teaches that ‘rev 2’ is usually better and ‘rev 3’ finally gets us where we want to be. Understanding and uncovering these enhancement stages need to be part of the long term stated plan. A technology plan that makes no room or allowance for follow on support or development is doomed. Planning to roll it out and forget it because we are too busy now on the next thing is all too often what happens.

Solution: Plan early on for gathering staged enhancements driven by actual user experience. Live it and learn it.

7.       Do not track and analyze ‘trouble tickets’ received by the help desk. Who wants this evidence lying around? (This is of course means that you have a centralized support help desk ready and working.) Documenting use case failures is essential. Being able to analyze the frequency and density of ‘hot spots’ is required for a road map to improvement and successful adoption.

Solution: Document and analyze all end user difficulties. Period.

8.       Avoid having an experienced ‘system adoption success expert’ help. Why spend the money and create all the extra work they would suggest? I can do this myself.

Solution: Two rules: At a minimum find a system provider to work with that is EXPERIENCED IN MULTIFAMIY and if your effort is a major project consider using a consultant with a track record of experience in the deployment of systems for multifamily operations to help you plan for successful system adoption.

New systems and technology success in any industry is tough enough, but as I stated at the outset success it isn’t always just about the technology. It is about taking a deep and honest look at the people, process and environmental underpinnings that will craft a system’s launch and orbit.

As always, if I can be of help based on my experience with successful systems deployments or if you want a recommendation on a multifamily experienced ‘system success’ consultant send me an e-mail at mike.radice46@gmail.com I would be happy to help or introduce you.

Mike

Here Come the Avatars and the VPAs to Multifamilty

I have seen the future at work today. In our industry! Already working. Really.

Two technologies that are at work transforming what is happening at property offices are: “Avatars” and “VPAs”.

What is an “Avatar”? This is best described as a software ‘robot’ – that sits on your computer screen desktop (it is about 2 inch square) and does:

·         Instant ‘Drag and Drop’ document capture

·         All your document filing

·         Document search and retrieval

·         Document ‘tagging’

·         ‘Links’ to your back office systems like your “GL accounting system” to instantly find and present the related document such as an invoice for instance for instant viewing just by clicking on the G/L entry

No need to ‘log-in’ to a document management system. The “Avatar” sits there, always ‘hot and ready’ to go to work! The document storage system runs, transparently, in the background.

Since a significant amount of office time is spent handling paper (average 30+% of staff time), having a software “Avatar” do the paper handling is a huge staff time gain. And, of course, an “Avatar” does immediate and accurate filing and takes no time off.

Virtual Property Assistants. Most property offices invest in what are called MFPs (multifunction printers). A smart company I know has built a ‘tablet screen’ driven MFP that is customized to the multifamily industry’s use case. This means that the MFP is now customizable to your multifamily business processes. One touch buttons clearly designate document ‘types’ and the business process to be followed for capturing documents and getting them to the right file folder or person or place to take action or approve. This ‘virtual property assistant’ operates at a level above what just sending or e-mailing does and it can invoke automatic work flows. Just touch the right button for the right multifamily document type and the rest automatically happens. It even has controls for direct and accurate filing into the correct file folder.

Very cool!

The point is that with such a device the time and expense of scanning is reduced or eliminated, copying costs are reduced and the costs of shipping document packages are eliminated. The virtual property assistant does all the work. At the speed of light. Why ever buy a conventional MFP?

Using a virtual property assistant rather than a conventional MFP, reduces costs, increases business efficiency and frees staff time at the property.

Using just these two technologies would be like adding more than a day a week to staff time availability. The world of property management automation is happening – say hello to “Avatars’ and “VPAs” – your future staff.

They are here and working.

As always, if you would like to know more about or see these technologies just send me an e-mail at mike.radice46@gmail.com and I will arrange it for you.

Mike

 

 

5 Reasons Why Best of Breed Digital Document Management Will Win Out In Multifamily

For many years I have been watching multifamily industry users wrestle with its legacy systems construct while seeking a digital document management strategy and solution. “Going paperless’ has become an unassailable goal. Why? Not because of the possible solutions to do so, but due to the fixation on integration.

Virtually every conversation or encounter starts with: “We love what that system can do, but does it interface with “PMS XYZ”?

What does ‘integration’ mean, anyway? If the PMS could store a ‘hyperlink’ which many cannot, a simple click would get you to a document. Context Sensitive Integration (CSI) is available. It means that you can capture the ‘meta tags’ automatically and do a better job of the accurate filing documents than by manual meta-tagging. How about using a simple ‘print driver’ that auto stores documents to a digital repository with one click…I’d call each of those points of integration.

I wonder why users love scanning documents so much when it can be eliminated in a number of ways. Do users enjoy taking 8 clicks to store a document? How about the joy of entering those manual ‘meta tags’? Are they fun or what? What I really think is being said is that unless my PMS provider ‘sanctions’ a solution I can’t use it. Well, that’s a cool constraint.

Time is now fast arriving when strategies around digital document management will be driven to change.

The 5 quick reasons why ‘best of breed’ will win out over ‘sole sourced’ solutions in digital document management:

1.       Innovation. In the age of eDocs, eForms, ‘drag and drop’ interfaces, tablet and smartphone mobile document APPS, electronic signatures, line of business integration advancements and e-document data extract and handwriting capture capabilities, ‘big data’ analytics, document versioning, document use and retention policy management, privacy regulations - it is no longer a viable solution to just capture and store ‘dumb/static’ images’. The eDoc world and the knowledge workers in your businesses are aware of and demanding significantly more capabilities. And that demand will not lessen. “Best of Breed” use is rapidly expanding in other industries and for a reason. The reason: digital document management has become a foundational digital strategy that now can run as a transparent background platform to meet enterprise needs.

2.       Portfolio wide/enterprise wide access to a common document repository. What happens when I am forced into using more than one property management software system? Do I really want non-operational or leasing staff in my PMS system to get to the documents they need? Do I really intend to raise expense and to disenfranchise other corporate departments who have document access needs like Legal and ‘collections’?

3.       Leakage through ‘rogue’ file stores being used by staff is growing. As testimony to the need for an enterprise-wide, non- application dependent document management system look no further than the use of ‘rogue’ or ‘freemium’ cloud storage services. Risk of document loss and or misuse is very real, yet end user demand for the ease of use and mobility offered by these services is also very real. It will only get more risky.

4.       Electronic workflows and anytime, anywhere access via mobile platforms are inexorable drivers. Being constrained by lack of access to documents when business decisions and actions need to be taken or when document based decisions or approvals are needed is becoming ever more frustrating to decision makers and managers who are ‘on the move’. As one portfolio executive comments to me: “I want access to what I need, when and where I need it, I can’t be scrambling around multiple systems like some scavenger hunt.” Having access and electronic workflows to move documents through business processes is at the heart of becoming ‘digital at the core’ of your business. And, digitally driven businesses are more profitable.

 

5.       Dispositions. How many different systems do I have to look to in order to gather all the documents needed to support a property sale? What is that cost per disposition?

 

Requirements are fast eclipsing the ability and capacity for many PMS software suppliers to keep up with the level of innovation and investment being made by ‘best of breed’ providers in the digital document world. Sadly, many providers are ignoring the multifamily industry just because of the ‘integration’ demands. When have you seen Microsoft, IBM, SAP, Oracle, or Google at an industry technology tradeshow?

These examples while only a few, they alone make for a strong case to reconsider policy.

Your multifamily business runs on documents and it deserves a ‘best-of-breed’ solution.

Best-of-Breed will win out…it always does.

As I always offer, send me an e-mail if you would like to discuss your options. I'd be happy to help.

Mike

 

 

Which of These 8 Multifamily IT Security Issues Are Yours?

I was asked: “Mike, based on your 40+ years of experience in technologies, as a business manager, what are the common technology security issues that I should be concerned about.” Well, I am not going to dive into the architecture of data centers, computing platform data leakage, network ‘sniffing’, DOS or DDOS attacks and perimeter defense strategies, but as a business manager I suggested the following security risks that are all too commonly found (and exploited):

1.       No policy on password resets.

If you allow passwords to remain unchanged for more than 90 days you are setting yourself up for a breach. Sure it is pain for your company, internally and may seem even more of pain for your customers who need passwords to access the services you provide. But those very customers are the easiest source of a breach. Would you rather explain ‘security’ or the fact that every lease and background check report has been downloaded? Having robust password structures and prohibiting re use are good starting points. Do the math. A password of less than 12 characters begs for cracking. Using ‘remember me’ means just that - except the computer really doesn’t know who you are so, in one quick unattended minute the thief is in. Look around the leasing office and see how many passwords you can find written down – start with the post it notes they are a dead giveaway.

2.       Unsanctioned file shares.

If you allow staff to use ‘rogue’ or ‘freemium’ file shares you have lost control. Letting staff store company or resident related documents on a file storage services of their choosing is just crazy. Once a document is sent off site under THEIR control you set your company up for problems and risks. No ability to audit access, no control over access, it’s their password not yours, no control of re-distribution of documents, when they leave they take the documents with them.

3.       Bring Your Own Device (BYOD) permitted.

Nightmare city. The wild, wild west. Managing the access and use of personal devices may seem enlightened but the risks are truly great. What gets put on that personal device? What access codes are stored on it? Who else in the family can play with it? Oops, where is it? Wow, look at all those e-mails and e-mail addresses! If allowed it must be formally understood, managed, monitored and controlled…not just permitted. An interesting sidelight is the issue of engaging hourly staff ‘after hours’ because their device ‘buzzes and pings’ with your business matters. Be ready to pay for that intrusion. The labor laws are on the side of the employee.

4.       Unmanaged ‘wifi’ access.

It is too much of a nuisance to have a password protected ‘wifi’.  We have lots of guests and it makes it hard for them to get on line. Remember you don’t have to be in the room to get a wifi signal. Every signal is a beacon for a drive-by hacker. Why make it easy to ‘come on in’?

5.       Unsecure printing and storage of paper files.

Allowing multiple users to print to a shared printer when they are not present to collect their print output. Unattended output is left in print trays, in full view and can be easily picked up by the wrong user. Personal identity theft is a significant theat. The cost of that breach is severe. Look around the leasing office and just see how much personal resident information is left unattended. Now, where is that application form? Are resident paper files really locked down? Do the cleaning staff have unsupervised access to paper file storage rooms?

6.       Lost or stolen smartphones and laptops.

Need I say more about this drama and trauma? If you don’t have a ‘red event’ team and policy to shut lost devices down or immediately restrict access, stop reading and get one started. Maybe, just maybe it is all backed up? For two reasons: (1) the employee can continue to work and (2) you can audit what was lost or stolen.

7.       Social Media APPS on corporate systems.

A treasure trove for ‘phishing’ and re-directs. “Tell me more, oh tell me more”. “I just love being ‘connected’ and sharing. It is sooo cool…social media publishing is so friendly and helpful”. …really?

8.       Malware everywhere and viruses from hell.

“All I did was click on that message, it said I had to”. “Oh, that web site - seemed like it was going to be helpful”. “Here, use this jump drive storage stick, I have others”. Unless you ensure and enforce the maximum use of ‘firewalls’ and device resident security software you have no chance at even a semblance of protection.

In the end, a rigorous security awareness program such as frequent mandatory end user security training sessions and frequent bulletins and newsletters that make security awareness part of your culture will go a long way to reducing your risk.

One last piece of advice…make someone available to help end users when they have a security question. Encourage them to call before they do something. Everyone will benefit from the ‘ounce of prevention that avoids a ton of grief’.

True, security is a living ‘eight-ball’ that we will seemingly always be behind. Those are my ‘8 balls’. How did you do?

As I always offer, if I can help or you want some advice or counsel just send me an e-mail. I’d be happy to share what experience has taught. I am at the moment on the warpath about the use of unsanctioned file shares. There are cost effective solutions that can mitigate that risk and make your end users happy.