Property owners, managers and developers know they work in a risky business, and as the market expands and undergoes rapid change, the challenges in the new era of real estate continue to evolve. Advancements in technology, government regulations, environmental sustainability and health and safety are just a few of the growing pressures keeping property managers up at night. Here’s why:
Government regulations are increasing
Across borders, government regulations are cracking down on building operations and maintenance. Take Ontario’s Bill 109 for example, which requires property managers to repair broken elevators within two weeks. To the south, California’s newly enacted AB 646 requires property managers to disclose risks to tenants living in flood-hazard areas. With each new regulation comes several challenges related to managing records for maintenance and tenant communications.
Outsourcing and risk on the rise
As a property manager, you choose to outsource judiciously and let the experts handle tasks like elevator repairs, window cleaning, landscaping and so on. But each third-party contractor you bring aboard comes packaged with a new set of risks around occupational health, tenant safety and the well-being of your properties. Choosing the right contractors by prequalifying them for worksite requirements, such as insurance or certifications, is just the first step to managing vendor risk. Maintaining these records and updating them as new regulations are introduced can be a daunting task.
Technologies are saturated and siloed
Legacy systems and a complex (and vast) data environment can often leave critical information in silos. For example, managing contractor certifications separately from tenant insurance records becomes a redundant and complex task if several departments and systems are involved. Using various computer programs to record and manage your compliance and third-party data is an inefficient and outdated practice. Today, one centralized system can do it all.
Government regulations, contractor compliance and complex data management aren’t worth losing sleep over. Thankfully, technology is playing a significant role in rewriting risk and compliance processes in the property management sector. Scalable, easy-to-use compliance tools that enable flexible reporting and automated monitoring are alleviating stress and improving efficiencies so that property managers can rest assured and focus on their core business.
Not sure where to begin? The first step is to assess all aspects of a building’s risk profile, including environmental, operational and third-party risks. Get started by reading our white paper on digitizing third-party compliance and risk management.