Technology trends for managing affordable properties

In 2000, federal and state government agencies began introducing Internet-based software initiatives to handle the increasing complexity of affordable housing management. In response, developers of affordable housing compliance software began moving beyond DOS-based software programs, which were standard at the time, to Windows and Internet-based programs. A decade later, driven by customer demand for increased operational efficiency and changing consumer patterns, software providers continue to develop new technologies that expand the Internet's ease and convenience to affordable housing management. Such technology, which has been widely embraced by the multifamily real estate industry, holds great promise for a range of new affordable housing best practices in areas including resident subsidy certification, rent payment processing, property marketing and online services, and compliance and financial reporting. Elements of web-based platforms that hold great promise for increasing efficiency and lowering costs for affordable housing management include: * Advanced software that can account for every operational dollar received through subsidy payments, show how payments were applied, and determine a property's cash position, in real time. It can also instantly produce reports - traffics, rent rolls, recertification lists - and automatically e-mail them to staff members, eliminating manual reports. * Reduced labor costs through automation of manual tasks. One example is integrated compliance software that provides single data entry of household compliance information, enabling faster completion of multiple subsidy certifications. * Portals that dynamically link the property manager's website with the property management database to provide real-time online marketing, availability and wait listing, as well as resident self-services such as online rent payments and online work requests. * Automation of transactions processing, for both rent payments on the accounts receivable side, as well as for electronic invoice processing on the accounts payable side. In a challenging economic environment, technology becomes even more compelling because it can be one of the primary means for an affordable housing manager to enhance efficiencies, cut costs, help improve the bottom line, and gain an advantage in a tough competitive landscape. Internet Changing Consumer Actions In common with multifamily housing providers, affordable providers are learning that prospects and residents are accustomed to online services in all aspects of their lives, including their rental searches and residential life; in fact, studies show that more than 70% of rental prospects with online access use the Internet to start their apartment searches. Few prospects cruise neighborhoods to find new living quarters; instead, they increasingly use the Internet to compare available apartments and initiate the application process. Residents expect to use the speed and convenience of the Internet to pay rent, submit service requests, and schedule lease renewals. Affordable housing managers, for their part, are seeking new efficiencies that will help increase operational efficiency, centralize and consolidate their business information, maximize their bottom lines, and keep them competitive in a challenging economy. Portal Integration Drives New Services One of the most innovative technologies now available to the property management industry is the website portal, which enables a website to be dynamically linked with a property management database. Within this framework, dynamic, integrated marketing and resident technologies will soon transform how affordable housing properties are marketed and managed, benefiting both managers and residents. Advanced capabilities available from portal technology include: * Integrated online marketing - When data stored in a property management system integrates with marketing websites, photographs, floor plans, and eBrochures updated in the property management system are automatically updated on the website. Because a portal includes a content management system, editing copy on a website is easy for managers, reducing dependence on external designers, consultants and webmasters. * Attracting residents - In today's search engine culture, an Internet Listing Service (ILS) that treats all listings the same does not replace an optimized marketing website. As proof, go to a search engine (Google, MSN, Yahoo!), type "affordable apartment for rent," and review all the online competition. The key is to be noticed first when prospects search online; websites displayed at the top of a search result list will get more visitors. A website can earn priority placement by implementing Search Engine Optimization (SEO). A good portal will include the framework for SEO; along with a good content management system, SEO can help affordable managers significantly optimize their websites. * Online wait listing and application status - Portals can provide Internet-accessible online wait lists. Affordable housing managers can use online guest cards to start the application process and make a site appointment. Applicants can track their status. The prospective tenant will enter personal data into websites that will flow into property management software automatically, eliminating data entry by staff members. * Resident portals - Residents can go online to check their rent statements, make service requests, and make appointments for lease renewals. * Online payments - More residents will pay rent online with funds transfers from checking accounts and credit cards. This is a paperless, convenient self-service option for residents that offers great efficiency to the property manager. The portal enables payments to be auto-applied to resident charges, allowing the payments to be posted to ledgers in real time and initiating an electronic bank deposit file, saving the property manager trips to the bank. * Outreach - Using the portal website, affordable housing managers could highlight local restaurants, retail stores and services. One potential best practice is listing emergency services for low-income residents. Community newsletters, events calendars, resident blogs, e-mail communication or instant messaging with the property office could become common amenities. Technology Waiting in the Wings In addition to portals, other new technologies that could potentially drive new efficiencies for affordable housing managers include: * Check scanning - Advances in check processing eliminate trips to the bank and reduce labor and errors. Resident checks are scanned and transformed into electronic transactions, concluding with funds transfers to the bank * Electronic invoice processing - Invoices are scanned, processed and paid electronically, reducing the costs and labor associated paper, copying, filing, storing and mailing. * Scanners - Scanners eliminate the expense of toner and fax paper, enable e-mailing of resident, unit or property information, attach floor plans into the property management system, and facilitate electronic invoicing. While this technology does not yet eliminate affordable property managers' requirement to maintain paper files for audits, it does make accessing archived information faster than retrieving stored boxes of files. * Document storage - Advanced software allows electronic documents to be stored, organized, searched, and securely broadcast online. Keeping electronic copies will help with compliance supervisors' reviews and aid preparation for regulatory audits. Most subsidy programs still require paper files, but electronic documentation will expand. * HUD interfaces - While relatively few states' HFAs have adopted electronic transmission of Tenant Income Certifications or annual Project Status Reports, more states are adopting standard Internet file formats. The future of compliance reporting to HFAs lies in secure, online connections, with data drawn directly from compliance software without staff members having to manually enter data on the HFA website. * ETL - Extract, transform and load (ETL) pulls data from disparate software systems into one centralized database. Instead of manually creating reports, compiled data can be utilized for automated reporting to investors, syndicators or anyone auditing asset performance. This tool will help reduce labor costs for both financial and operational reports. Affordable managers can use ETL to consolidate data without changing software. In a challenging economic environment, dynamic new technologies that promote efficiency and increase competitiveness are now available to the affordable housing industry. The time is right for managers to evaluate the competitive and operational factors driving their business, learn how newly developed capabilities of technology can help, and prepare to seize opportunities to operate more efficiently and profitably. Mark Livanec is vice president, affordable and public housing sales, for Yardi Systems, Santa Barbara, Calif.