How Technology Is Revolutionizing Property Management

In an era where technology touches every aspect of our lives, property management is no exception. Its adoption of digital tools means that most boards will have to also. “It offers all types of efficiencies,” says Alvin Wasserman, Senior Director of Asset Management at Fairfield Properties, “and it’s just part of the world we live in today. Either you grow with it or you go the way of dinosaurs.”

Information at Your Fingertips

Whether a board takes advantage of real-time information depends on need, size of the community and convenience. Gone are the days of waiting for monthly reports or sifting through paper files. This wealth of information empowers board directors to make more informed decisions and respond quickly to community needs. However, it also comes with the responsibility of managing and interpreting this data effectively. 

Digital Trail: Switching Management Companies

One of the most significant changes brought about by technology is how property records are stored and transferred. In the past, transitioning to a new management company meant physically transferring boxes of documents. That’s no longer true, Wasserman says. "All records in companies that use digital technology are online. There are no more paper files."

While the advantages are significant, what happens when a board transitions to a new management company who is using a different digital platform? There could be compatibility issues, says Wasserman, but “there’s always a workaround.” For example, he says, if we’re “transitioning and the new company doesn’t have our platform, we could provide paper copies of everything or we could send a disc to a printer who would provide this service. You’re not held prisoner to any particular technology.”

That said, Wasserman urges board directors to discuss data transfer protocols when considering a change in management companies.

Security 

It seems like security breaches are becoming an everyday occurrence, and it’s important for boards to understand the security measures a management company has in place.

“Look,” he says, “hackers have been motivated to get into the databases of large corporations and even the United States government. If a hacker was motivated enough to see if somebody paid their rent, they could hack into our systems.” Cyber security insurance protects against harm if that happens, he says. “But the real danger is if they hack into the bank accounts of our clients, or our bank accounts. The responsibility for that protection lies with the bank.” 

While using a digital platform makes accessing your building’s data that much easier, inquiring about a management company's controls is crucial. Wasserman’s company, like several in the property management business, has a large equity portfolio. “We’re protecting the life of our business,” he says, “and our protocol is to back up data daily. We have multi-factor authentication on everything and we work with a company that watches if somebody is trying to hack in.”

The Digital Cost

As with any advancement, there's a price tag attached to technological progress in property management. “We’ve had to increase staff due to technology, and as a result we have increased costs,” he notes. “But at the same time we have increased efficiencies. Overall,” he says, “it is costing us more than before.”

 Wasserman says that his company has absorbed the increased expense. However, he advises boards to understand what technology costs are included in your management fee and to evaluate the return on investment for various technological solutions.

Embracing the Future

Embracing technology is no longer optional – it's essential for effective property management, says Wasserman. "It's better for the boards, it's better for the members of the community, the residents, and it's better for the management company."

However, this embrace comes with responsibilities:

• Staying informed about new technological solutions in property management
• Evaluating the benefits and potential drawbacks of different platforms
• Ensuring that your community's data is secure and properly managed
• Understanding how technology impacts your relationship with your management company

Technology is a tool to enhance, not replace, good governance and community engagement. By leveraging these digital tools effectively, boards can create more efficient, transparent, and responsive communities.