By Anne Gieseke
I confess, I am a very organized person and an avid list-taker at heart. One of my greatest pleasures is marking items as complete (yes, even grocery lists!). As a Client Account Manager at RealtyCom Partners there is a lot to track and keep ahead of, and critical to that effort is a contract management database and project management tools that support us and client objectives. Contract management systems can come in many forms (Excel, Property Management software, 3rd party provider) but thinking about all the different pieces of information that help us drive value to our clients, I believe some of the most important aspects are:
1. Is it time to go out to bid for a new Service Provider proposal at a property? Often, Service Provider agreements can be negotiated ahead of the expiration of the current contract. Knowing exactly when you should begin those discussions is important to maximize per contract value. If you’re considering changing the level of service provided at a community, such as moving to Managed Bulk-Wi-Fi, planning should take place months in advance of an agreement expiration.
2. How do we get ahead of the due diligence on pending acquisitions? RealtyCom provides preliminary information to our clients about current Service Providers, infrastructure (which determines service levels and speeds they can deliver to your residents), and abstracts contract terms before an acquisition takes place. Typically, the acquisition team needs this type of information very quickly to drive contract cancellation decisions or evaluate the potential to increase revenue at the property. Post-acquisition there are many contractual requirements needed to formally transfer agreements and payments to the new owner so it’s important that your system drives this work.
3. Where are we in the agreement process? By facilitating the signing of a new Service Provider agreement from proposal and drafting, to fully executed agreement and introduction of the Property Management team and Service Provider Representative, there are many tasks that your database or project management system should prompt you to check on. This is especially important if you are bringing in a new Service Provider or replacing an existing one.
4. What will happen once an agreement expires? It is key to know if the agreement has a long-term automatic renewal upon initial term expiration, or if it continues month to month. Often there are notice requirements by the Service Provider that must be provided by the Owner for the agreement to not automatically renew. If a contract automatically renews that can prevent the Owner from changing course or getting a new provider onsite for additional time, or even delay the opportunity to de-bulk and remove a service or expense from their budget. We are often reviewing notice requirements more than 90 days in advance of these deadlines.
5. Am I receiving my revenue payments on-time? Equally as important to creating new revenue for your asset, is making sure existing payments are collected on-time and Service Providers are paying in accordance with those terms you agreed to. Service Providers have different payment timelines, quarterly or monthly and sometimes an annual payment to track, plus different payment terms for upfront payments that can hinge on network activation dates or even when the property receives their first Certificate of Occupancy. Having the system setup reminders for these deadlines is critical to ensure that the property is actually receiving the correct amount of revenue.
Fortunately, at RealtyCom, we have had the opportunity to customize our Salesforce database to such a degree that it is easy to track all activities and projects above, and more. Having all the critical datapoints at our fingertips allows RealtyCom to provide a well thought out plan for our clients and affords them with ample time to consider their options to maximize earnings, while keeping the process efficient.
If you currently are a RealtyCom client, we appreciate your partnership and thank you for making us feel like one of the team. If you are interested in finding out more about how RealtyCom can help you and your company, please contact us at email@example.com.