Family real estate businesses aren’t owned by the faint of heart. Large or small, running a successful business often involves long hours, lots of paperwork, and all hands on deck. So when it’s time for generational wealth transfer to pass that legacy to you, there are several things you should consider to set the stage for ongoing (and even greater) success for your business.
Retire Old School Wealth Transfer Tactics
Overstuffed file cabinets. Paper records in manila folders. Contracts and lease renewals committed to memory rather than databases. These are some of the common pitfalls of the old ways of doing business. Information can get lost, and time is wasted tracking down critical data like cash flow, maintenance records, and inspection milestones. Today’s market (and tenants) expect more. As you look to the future of the business, you should therefore be able to deliver more.
Transitioning records to digital storage and management now can significantly help with succession planning and future efficiency. While this may seem like a daunting task, top companies can complete this transition in as little as 90 days. So, there’s really no reason to keep translating cryptic and outdated post-it notes.
Explore New Solutions for Succession Planning
Real estate succession planning can be an emotional time for all involved; it’s important to get the help you need now to put your own mark on the business. Your time is invaluable during such a large change. Business systems and processes need to continue to work smoothly even as ownership shifts. That’s why it’s so important to seek a solution that offers full-service onboarding. If the transition feels like a tax audit, find another provider.
Look for an online software solution designed specifically for owners and managers of commercial real estate. Simple digitization of your paper trail isn’t enough. Instead, seek out a full service management solution.
Many software solutions claim to help save time, increase profits, and reduce manual work during real estate succession planning. But here are five critical capabilities that separate the basic providers from the leaders:
1. Finance Management:
You’ll want a single view of your entire real estate portfolio on one comprehensive dashboard. Having everything in one place will give you the advantage of seeing things from a global level all the way to a single company or asset. The ability to drill down into payroll, operating and overhead expenses, rental income, debt management and more will help you spot trends and course-correct issues.
2. Operations Management:
Managing properties and multiple tenants across a real estate portfolio can be time-consuming and tedious. Look for a solution that not only brings together the most important operational functions, but also automates important activities. A standout solution like STRATAFOLIO can expedite common area maintenance (CAM) reconciliation in one click versus months of work digging through spreadsheets. It can also automate certificate of insurance (COI) processing, tracking expirations and alerting you when action is needed.
3. Asset Management
Pass over any options that claim to have share drives. Only a modern, centralized platform has the ability to unify every asset related to your real estate properties. It’s critical that any solution empowers you with accessible knowledge of what you own, property locations and values, pictures, global rents, and square footage. It’s even better if providers don’t charge or limit the total number of users.
4. Investor Management:
You’ll want a complete view of all your investor activities. This includes which investors invested in which legal entities (how much, when, cash-on-cash return, expenses). You should also have the option to give your investors login access to track these trends with you, or the ability to quickly share certain information and reports with them via email. Extra points for providers who can simplify and automate guarantor tracking to streamline loan processing.
Enjoy Your Peace of Mind in Generational Wealth Transfer
Real estate succession planning is a milestone event for your family business. And partnering with the right solutions can make a huge difference for your success. But with the right mindset and tools, you can ensure a smooth transition with profitable outcomes for everyone involved.
STRATAFOLIO is an online software solution designed specifically with commercial real estate owners and managers in mind. It integrates with QuickBooks Desktop and QuickBooks Online to assist you in tracking finances and managing your entire portfolio. To date, we manage over two billion in customer assets for industries like healthcare, hospitality, retail, industrial and more.
Every year, STRATAFOLIO uncovers approximately $100,000 in missed lease escalations for customers who operate primarily using paper filings. By organizing all your information in one place, STRATAFOLIO helps you understand and track crucial details, keeping you up-to-date and prepared for the transition of your family’s business. See how STRATAFOLIO and QuickBooks can help with your real estate succession planning. Schedule a demo now.
