Risk management is an essential aspect of the multifamily industry. With rental owners managing multiple units across various geographies, properties and tenant demographics, it is crucial to identify and mitigate potential risks.
The risk management process can be segmented into four categories – each of which RealSage offers solutions to give clients peace of mind regarding internal or external challenges they may be facing. The risk management process can be divided – into risk identification, risk assessment, risk response planning, and risk monitoring.
Historical data is often used to identify potential risks, elicit trends and anticipate areas of concern. However, the use of retrospective data paired with human oversight to make decisions can negatively impact the future of a company. To address this concern, RealSage’s dashboards paired with AI provides companies with real-time data regarding all business-related metrics and tie it with actionable, predictive insights.
With this feature, users can monitor every dollar moving within their company and track performance while understanding its effects on their bottom line. For instance, if a marketing channel is not performing as anticipated, the system proactively suggests reallocating funds to more promising platforms based on their performance. It tracks expenses and identifies patterns for cost improvements across all management-related functions.
Assessing Risk and the Effects
After identifying potential risks, the next step is to assess the likelihood of each risk occurring and the potential impact it could have on the organization. RealSage’s analytics software acts as a comprehensive risk assessment tool always on the lookout for the best interest of the business.
For example, if an unexpected increase in utility costs is identified on a particular property, RealSage’s software not only alerts property managers but also highlights aspects that warrant a deep dive.
Risk Response Planning
Using RealSage’s risk assessment tool, property managers can make decisions about allocating resources to ensure the long-term success of their properties. RealSage’s analytics software makes it easy to track the success of building portfolios by tracking conversion, occupancy, and renewal rates on units. Once the system has identified a method to cut costs or increase revenue, actionable insights that address issues like cost overruns, increasing NOI, improving the tenant acquisition process..etc, are given.
RealSage Analytics’ use of predictive AI, makes monitoring risk seamless. The software tracks and analyzes key performance metrics in real-time, identifying trends and potential issues before they become significant problems.
For example, if there is a sudden increase in tenant turnover, RealSage Analytics can help managers identify the root cause and develop a plan to address the issue. The software can also provide insights into potential risks, such as upcoming expirations of lease agreements or changes in local housing regulations.
RealSage Analytics assists property managers in taking proactive measures to address potential problems and guarantee the long-term prosperity of their properties. With RealSage Analytics’ predictive AI capabilities, it has become simpler than ever before to remain ahead of risks and make informed decisions based on data, ensuring the success of your multifamily properties.