As data becomes critical in real estate, portfolio managers need to understand the benefits of information and how it’s used. But many firms ignore data. Is your staff making these real estate portfolio management mistakes? See how your firm stacks up when it comes to data and operations.

1. Not Centralizing Data

Centralization is one of the most critical components of any data platform. By sourcing, linking and storing information in one platform, you can improve data integrity, minimize data inputs and enhance cross-departmental uses. Firms that fail to do this lack a strong data management process or quality control platform. This often results in overlapping data points, many input sources, data inaccuracies, and bloated costs.

2. Not Updating Data on a Regular Basis

Having an ad-hoc data entry and management process can be detrimental. Not only does a reactive approach to data management compromise data quality, but it means there are no processes to expand the use and applicability of information. For example, if a portfolio manager scrambles to compile a client report every quarter, they’ll focus on data completeness instead of deriving meaningful strategies.

3. Allowing Silos

Silos within an organization can wreak havoc on communications and business efficiencies. For real estate portfolio management, allowing many departments to manage their own data processes can detract from longer-term, singular portfolio strategies or business plans. As a result, information and data priorities become inconsistent. Like centralizing data, focus instead on unifying departmental needs with corporate and portfolio-level objectives.

4. Using Manual Processes

In today’s digital age, not automating processes can impact a firm’s efficiency and bottom line. According to an Altus Group study, many commercial real estate executives still use manual spreadsheets. Believing paper records and manual data entries are still efficient can erode profit margins. A quick fix is taking an audit of available, needed and recorded data and implementing a structured input process with supporting software.

5. Not Managing the Data Yourself

While it may seem efficient to allow third party vendors to manage data, firms need to recognize the limitations of this approach. These include limited data control, legal rights over data use as well as poor historical records and data reliability. The more strategic approach is implementing a customized software platform. For real estate portfolio management, data will be proprietary, flexible and relevant to company needs.

Effective Real Estate Portfolio Management

When firms treat data as a valuable asset, they’ll avoid costly and inefficient problems. Using a single software platform to manage up-to-date data for all departments will help resolve these real estate portfolio management issues.

Photos: Stocksnap.io, Benjamin Child, Alejandro Escamilla