The real estate sector of India is expanding momentously, thanks to the affirmative economic reforms, increasing commercial and residential realty demand, quality supply and co-operative government policies. According to the India Brand Equity Foundation (IBEF), the real estate is expected to become the whopping $1 million industry by the year 2030. Moreover, between the years 2009 and 2018, the industry engrossed nearly $30 billion of institutional investments, which further affirms its progression. While the growing revenues blew away the cobwebs of the past cessation, the complexity of running the real estate business has also increased. The investment in advanced real estate technology, material management, addition of new employees, locations and databases, improved marketability etc. has left the real estate industry dishevelled in spite of the huge revenues.
Consequently, the core aspects of real estate management – site selection & acquisition, construction project management (tracking costs and the progress involved in multiple projects, scheduling resources etc.), inventory management, management of stores, lease payments, site profitability, and asset disposal – has grown cumbersome, making the entire real estate business ecosystem awfully challenging.
The matter of the fact is that if these aspects are not handled smartly and vigilantly, the entire business may tumble down. This is where real estate ERP systems come into the play. From reinforcing market visibility to promoting proficiencies within the organisation, customised ERP systems can greatly boost a real estate business by driving cost-efficient results.
What is real estate ERP software/system?
ERP or Enterprise Resource Planning system works by integrating the core processes that are critical to a real estate business into a single, easy-to-handle framework. A cloud-based ERP system for take leverage of newer technologies like artificial intelligence and machine learning to streamline and automize the project lifecycle in terms of planning, tendering and procurement, invoicing & finance, inventory management, vendor management, lead management, occupancy-vacancy metrics, rent and renewal management, tenancy checks, inventory procurement etc. In other words, if you are in a real estate business, then with the help of a customised ERP system, your business can enjoy the concurrent amalgamation of core segments like finance, human resource, construction, material and sales data at one place, aiding your real-time decision-making ability significantly which, in turn, will add further value to your revenue as well as productivity.
By employing a real estate ERP system, you will be able to concentrate more on data rather than operations. As a result, you can significantly reduce the costs and make every process that is central to your real estate business more efficient. The precise inter-departmental data that an ERP system will gather, manage and automate will help your organisation achieve goals and therefore, promise a thriving business.
The expediency of the ERP system is well understood. Now, the question that needs a hard-nosed answer is – how to select the right ERP system for your real estate business?
Below-mentioned is our comprehensive guide that will lead your way. Have a look:
Look for the ERP software that is specifically designed for the real estate industry: When you are looking forward to buying real estate software for your business, you must understand the fact that every industry has specific requirements. Real estate industry has its own tailbacks which need to be handled in a distinctive way. For instance, from cost planning to material management, there are tons of complex pre-construction and planning stages that need distinctive eye.
If you go forward with generic software for you real estate business, the critical stages of a real estate development cycle such as BOQs and rate analysis, tendering and vendor management, invoicing etc. will go unaddressed which, in turn, may prove to be detrimental to your business.
Map out your specific requirements : Once you have shortlisted the vendors offering you the real estate ERP software, you must list out your specific requirements next, be it effective construction cost management plan, detailed BOQs, comprehensive rate analysis, activity scheduling, resource planning, tendering and procurement or invoicing and daily progress reports.
The key here is being specific, so the real estate ERP vendors can provide you with an exhaustive proposal beforehand. Also, before proceeding, make sure that all the ‘assumptive’ requirements are also carefully dealt with. This can be made possible by getting in touch with the senior management as well as the end-users.
- Check for the availability of real time tracking: If a particular ERP system can easily accommodate most of the requirements you mapped out and also provide you with real time tracking option, you can definitely consider it. A good real estate ERP software gives you real-time information on a single cloud platform. Moreover, new material or equipment request can also be shared across smoothly which results in reduced costs and effectiveness.
- Go forward with an easy-to-use real estate ERP system: Now, comes the usability of the real estate ERP system you have employed. Make certain that the system is easy-to-use. From the top management to a C-level executive, everyone must be able to use it with the utmost ease. This is only possible if the system is platform-independent, offers distinctive dashboards for both projects and vendors, provides daily progress records and can be effectively used on a number of devices, be it desktop or mobile phone.
Technical compatibility and hidden costs: Whether you are a contractor or a property manager, you must be well aware of the technical aspects of the ERP system you are about to buy. Ask your vendor if the real estate ERP system can be installed on-premise models, cloud based models etc. Also, make sure that it gets you real-time APIs, credit checks and application processing.
Moreover, make certain that you are not presented with any hidden costs including the hardware upgrades, system maintenance costs, implementation costs etc.
The final call
ERP systems can greatly benefit your real estate business by reducing costs, increasing sales and revenues, promoting growth, and measuring outcomes. However, investing in an ERP system can become a wonderful aspect of your commercial growth only when you have credible solution providers such as BuildSupply to assist you. Hence, it becomes absolutely necessary to look beyond the veil of assumptions and practice your best sense while choosing an ERP software for your real estate business.