Highlights:
- ERP systems integrate and automate numerous real estate business operations, thus reducing manual efforts and increasing efficiency.
- With an ERP on board, your real estate company gets unparalleled financial control and strategic insights for more informed decisions that lead to sustainable growth and cost-effectiveness.
- CRM functionality within ERP for real estate businesses helps improve the engagement of tenants and stakeholders, enhance customer experience, and strengthen relationships.
Complex project management needs, fluctuating market demands, constant pressure to cut operational costs, and legal complexities — that is not an exhaustive list of challenges the real estate sector faces today. They often result in fragmented systems and inefficient workflows, which, in turn, influence a company's growth and profitability.
Real estate ERP helps with planning, budgeting, predicting as well as reporting on the company's financial results. Basically, this solution allows for seamless integration of various business processes into a single unified system.
Mind Studios has years of experience in real estate software development, and we know firsthand how commercial real estate development software, and ERP in particular, can benefit real estate owners.
Mulki, for instance, is one of the successful real estate management apps our ERP developers created for one of our clients who operates in the MENA region. Started as a basic app for landlords, it has later transformed into a feature-rich app with a constantly growing number of users after its launch.
Here is what Oleksandr Stryzh, the Project Manager at Mind Studios who worked on this project, has to say about it:
“Mulki is the innovative real estate management app specifically developed for the MENA region. It addresses the critical gap and lack of high-quality mobile solutions in the local market. What sets this app apart is its sophisticated feature list, which includes automated data transfer from standardized contracts into the system, intelligent contract scanning capabilities, seamless conversion for the Hijri calendar, and more. Mulki fully caters to the unique operational needs of the real estate sector in the region and aims to increase the efficiency of property management.”
In this article, we will share with you our own experience and dive deep into the role of ERP in real estate, its benefits, trends, implementation cases, as well as problems our clients have faced and their solutions.
Just read on.
The role of ERP in real estate operations and why your business just need it
How can technologies, and an ERP system for real estate in particular, help overcome some of the most pressing real estate pain points?
ERP in real estate functions as a single platform that consolidates fundamental business operations. This includes sales activities, financial management, project administration, and client relations, leading to significant cost savings and operational efficiencies.
Here are just some of the real estate businesses that we think can see a difference after ERP implementation:
- Commercial real estate companies
- Residential property management companies
- Real Estate Investment Trusts (REITs)
- Corporate real estate managers
- Construction businesses
Keller Williams Realty is a global real estate and technology company whose revenue reached an impressive $381.4 in 2022. As a reply to the fourth industrial revolution, they created a robust technological ecosystem that works using artificial intelligence and big data. The system encompasses a suite of tools aimed to enhance agents’ efficiency as well as improve customer experience. Here is what Gary Keller, CEO at Keller Williams Realty, says about this system:
“The fourth industrial revolution driven by big data and artificial intelligence has created a turning point in the real estate industry. Right now, it’s agent-enabled tech versus tech-enabled agents, and platform versus bolt-on technology. Whoever has a tech-enabled platform for real estate agents will be in the battle for the most successful platform — one consumers want to use.”
Today, the company has fully transformed into a technology innovator with more than 170,000 agents and tech partners.
Based on our experience, we can say that implementing ERP solutions influences positively the following business operations:
| Access to data | Real estate companies have large silos of data, making it difficult to timely access the relevant information. ERP software for real estate aims to centralize all the data in a single structured storage system with seamless user-role access. |
| Automation | ERP helps automate mundane, error-prone, and time-consuming tasks such as report generation, data entry and retrieval, payment processing, bill generation, and more. |
| Portfolio management | An ERP app gives you a comprehensive (360-degree!) view of your real estate assets. This enables property managers to make well-informed decisions regarding the optimal management of their assets, buildings as well as financial operations. |
| Business process standardization | ERP helps implement industry-wide practices and workflows, which reduces human errors, ensures consistency, improves customer service, and saves time. |
| Communication | Implementation of ERP significantly improves all internal communication between different departments and facilities, as well as operations between property owners, service companies, tenants, and landlords. |
| Regulatory compliance | Such features of real estate ERP solutions as standardization, real-time data access as well as timely reporting help stay in compliance with different real estate requirements that depend on the region. |
Main benefits of ERP implementation
According to the report, there are three primary advantages of adopting ERP for business. This includes reduced processing time, enhanced teamwork, and the ability to operate under one single system. Moreover, implementing ERP for real estate can lead to substantial operational cost savings in numerous business areas.
Automation
For starters, the first way ERP for the real estate industry can save money for you is through the automation of multiple business processes.
This becomes possible due to its capability to integrate various apps (such as sales, inventory, finance, accounting, production, and more) into a single platform. In turn, this saves both money and time as people spend less time on some basic routine tasks, and the quality of work increases.
However, ERP for real estate is not only about automation for the sake of automation; it's about operational efficiency and cost-effectiveness as cornerstones of the company's success.
Mind Studios’ insight:
Speaking about automation, oftentimes, analytics modules greatly benefit from it as they get the data more promptly and can use it for more accurate reporting.
Real-time data and analytics
An ERP for a real estate company can also lead to significant savings by giving you real-time visibility into its operations. By granting real-time data on such things as customer behavior, inventory, or sales figures, ERP systems can help managers and decision-makers make more data-driven decisions.
Beyond offering real-time data, ERP software can equip you with in-depth analytics and reporting tools. This allows for better examination of vast data sets and gives more comprehensive reports. This way, you can easily identify areas for improvement and make changes that will save money in the long run.
Mind Studios’ insight:
To achieve the maximum effect from ERP implementation, it’s worth setting up end-to-end analytics. It will provide valuable insights into the actual efficiency of sales channels and marketing.
Finance
According to the survey, 89% of companies looking for ERP software indicated that accounting is the most critical feature for them.
With the ERP system, your finance department's spending can be cut by automating processes such as accounting, budgeting, and forecasting. All the departments' systems and apps can be unified into a single platform, reducing the need for manual entry and many time-consuming tasks.
ERP for real estate business also mitigates the risks of errors and inconsistencies in financial data that can become costly mistakes. Plus, such systems help a lot with financial compliance by providing necessary data and reports for adherence to various regulations and laws. This, in turn, will prevent you from getting compliance penalties or fines.
Here’s an example of a financial module our tech team created for Rentorr, a real estate management and maintenance platform. It helps to have all the financial data as well as analytics in one place.
Inventory and asset management
ERP software significantly streamlines business inventory and asset management capabilities. You can track the inventory levels in real-time, as well as reorder items if needed. As a result, the chances of stockouts or overstocking are much lower.
It also allows you to automatically generate purchase orders and reorder some items, thus ensuring you always have an optimal inventory level. Thanks to automating inventory management, receiving and counting inventory are also much easier.
Sales and client management
When dealing with a client’s project, real estate and construction companies must provide accurate budget estimates as well as the timeline needed to complete the project.
Cloud-based real estate ERP software can help you with this task, as it can predict the project's expenditures and timeline. This way, the actual project cost won’t fall behind the projected expenses, and you can effectively use the resources within the allocated budget and timeframe.
Besides, ERP software provides real-time data on customers and sales, including such aspects as customer behavior, purchase history, or various sales figures, thus increasing the chances of successful deals.
Mind Studios’ insight:
To further improve your ERP’s CRM capabilities, you can opt for more advanced communication tools such as chatbots and AI-driven customer service platforms. This will offer more personalized interactions with your customers and, thus, higher conversion rates.
Long-term financial benefits
While the short-term benefits of ERP are obvious, what about the long-term ones?
Speaking of long-term financial benefits, ERP real estate systems stand out, too. Apart from having a wealth of immediate operational cost savings, such software offers:
- Scalability. When your real estate business grows, your operations become more complex, too. A custom ERP solution can easily scale alongside your business, accommodating new features and functionality along the way.
- Strategic advantage. A comprehensive view of all business operations can improve custom relationships, decision-making, and faster adoption of market trends, which significantly impacts your competitiveness and financial success.
- Sustainability. You can start operating more sustainably by optimizing your resources and reducing waste. This, in turn, will lead to cost savings in energy and materials, as well as compliance with numerous environmental regulations.
- Risk management. When you get enhanced reporting and data accuracy, you can improve your risk management and compliance. So, the changes in costly legal and financial penalties will be much lower.
- Improved customer satisfaction. Simplifying your business operations will help you better meet your customers' needs and do it more consistently. Happy customers mean returning customers, which drives revenues and enhances your brand reputation.
Why choosing a custom ERP system is a smart choice for your business
Now that you know the benefits ERP system brings to your business, we want to discuss why opting for a custom ERP solution is better than buying a ready-made one.
After working on numerous projects, here are just some of the pros why we advocate for custom development in 9/10 cases:
- It is precisely tailored to fit your business processes and needs. This means that every feature and functionality is relevant and brings real value.
- As your business grows and evolves, so do your operation needs. A tailored ERP solution can adapt and change alongside your business without the need for frequent costly upgrades.
- Custom ERP systems are extremely flexible, allowing you to swiftly respond to any changes or challenges on your way.
If you need more proof or are looking for ways to improve your operational efficiency while saving money, contact us.
ERP implementation strategies
We at Mind Studios strongly believe that adopting ERP for property management requires a tactical strategy to guarantee smooth integration and optimal outcomes.
Here, we have outlined our implementation advice for a smooth integration of ERP solutions into your real estate business, aiming to reduce any disruptions in your everyday activities. This is a tried and tested approach we usually employ when working with clients at Mind Studios, and we recommend you using it, too.
1. Understanding your real estate needs
First, it is essential to understand your unique needs and requirements for ERP property management to meet them head-on.
For this, we recommend leveraging a business analysis stage. It is a crucial step where you should scrupulously analyze your current processes and identify all the pain points as well as bottlenecks together with reps from other IT departments. It is also a vital step in any ERP system development that will help you understand which features and functionalities your ideal ERP system should possess.
And, of course, if you need help, you can always contact Mind Studios. Our experts can assist you with defining your business goals and developing a strategy that will help you achieve them.
2. Designing your future ERP system
The next step is designing your future ERP system and deciding on which modules and processes should be implemented within it. Each module should cater to the specific operational needs, streamlining processes across different departments.
As you know, creating a custom ERP system is an ambitious and potentially costly project. That’s why effective planning is a must to manage risks and avoid common pitfalls.
However, changes happen and sometimes you have to revise your plans. That is why it is important to have a flexible and responsive development team like ours at Mind Studios. We are ready to manage any complexities without compromising the budget. Always.
3. Choosing the right development team
The success of your ERP system heavily depends on the team behind it. That is why, before choosing one, you need to conduct thorough research and evaluate all the options from the top real estate software development companies.
Overall, it is vital to choose the team with proven expertise and portfolio of successful projects relevant to yours.
For more insights, consider reading our article on How to outsource software development in 2024. There, you can find the pros of hiring an outsourcing company, best engagement models, and types of cooperation.
4. Configuring and personalization
To achieve the best outcome, you must collaborate closely with the ERP vendor to customize and personalize your system so that it better fits your operational needs. This process may involve stages such as creating a property portfolio, financial structures, reporting and analytics templates, and lease agreements.
With Mind Studios, you can fully adjust the ERP system to match your current business workflows, driving it to its maximum operational efficiency. Contact us for more details.
5. Training
The next step is training and instructing your employees to create a culture of adoption and ensure that all employees understand the value of this system.
To maximize the benefits of your new real estate ERP system, you have to educate your employees on its features, procedures, and best practices for real estate operations. To make this process even more effective, you can create user manuals, hands-on training sessions, or engage external experts to help you.
6. Monitoring and continuous enhancement
Your real estate business will continue to evolve, and so should your ERP properties management system. It is a continuous process that requires regular improvements for your ERP system to future business expansions and improvements while maintaining its relevance and utility.
It is important to oversee the software’s functionality and collect data to get insights into your real estate activities, pinpoint possibilities for enhancement, and refine processes to be able to fully exploit the capabilities of your ERP software.
Key features of ERP solutions for real estate
Modern ERP solutions are designed with features aimed at addressing the specific needs of the real estate industry. These include features to oversee all rental and leasing operations, streamline accounting, track development projects, and enhance tenant and stakeholder engagement.
We can divide all the features into several broad modules:
From our experience, the key to unlocking the full potential of your real estate ERP system is on its customization and achieving its maximum alignment with your business goals. Prioritizing such features as automated lease management, real-time analytics, and portfolio management can significantly improve your operational efficiency.
But if you feel at a loss with all these features and do not know which will be useful for your company, our experts are just a call away. Reach out to us, and we will help you select the most useful functionality for your app.
Common ERP trends in real estate
At Mind Studios, we advocate that staying ahead of trends ensures that your business stays flexible and can capitalize on new growth opportunities. Today, we can name several trends shaping the landscape of these solutions.
Here are some of the dominant ones, according to the experts at Mind Studios:
Mobile ERP solutions
As more and more people prefer smartphones and tablets over face-to-face interactions, mobile ERP applications are getting increasingly popular, too. With such apps, users can get access to vital business information, such as statuses of client transactions or deal details, on the go.
When we started working on Mulki, there were no competitors in the MENA market offering high-quality and comprehensive mobile apps. Knowing this and the main pain points of the target audience, we created a feature-rich app that soon became popular among local property owners for its functionality, stability, and ease of use.
Social and collaborative features
Another trend is that more and more ERP systems incorporate social and collaborative features, which allows better knowledge-sharing among employees as well as improves collaboration. Numerous ERP solutions for real estate, as well as other industries, currently incorporate features like document sharing, chats, forums, web portals, and others to enhance collaboration across the company.
Emphasis on user experience (UX)
Intuitive and user-friendly interfaces help enhance user adoption and engagement. Plus, it helps real estate employees leverage ERP systems effectively.
Simplicity is key. When our designers were working on Mulki, a mobile-only product on the market, they aimed to create a very simple UX yet efficient. So simple that our client literally asked us to limit the number of taps a user has to do to perform certain actions like property addition, contract creation, etc. And it worked out!
Smart technologies
Emerging technologies such as artificial intelligence, internet of things, machine learning, and advanced analytics are shaping the future of real estate operations. They offer opportunities to automate many complex processes within real estate, enhance decision-making, as well as improve the overall customer experience.
For example, IoT devices make real-time data collection easier, AI and ML help automate repetitive tasks within an ERP system, analyze huge datasets, and provide valuable insights. Blockchain adds transparency and security to these systems.
To wrap up
Undoubtedly, ERP for real estate offers an effective pathway toward financial health, sustainability, and operational excellence. From our experience, by unifying all business operations and applications into a single cohesive system, you can achieve unprecedented cost-effectiveness and efficiency.
Furthermore, with the ongoing transformation of the real estate sector, the use of ERP software will quickly become vital for maintaining a competitive edge in the market. Custom ERP solutions are a great option to achieve the best outcome by adjusting the software to meet your business goals and objectives.
At Mind Studios, we have years of experience creating real estate management systems. This knowledge helps us create robust custom ERP systems to streamline property management operations. Contact us if you need help turning your ideas into life.
