Commercial real estate technology has transformed the way that the industry conducts business, develops strategies, and engages with clients. As the industry’s standards have shifted from technology being a “nice to have” to being a requirement, there has also been a change in investors’ expectations. Today, 80% of investors indicate that they would specifically choose firms that prioritize and leverage tech. This high percentage of investors demanding technology indicates that adapting to the industry’s technological disruption is critical for firms that desire to have repeat investors or to acquire new investors. With the help of an investor management software, like RealPage IMS, firms are better equipped to satisfy evolving investor expectations in a streamlined, more efficient manner – helping them to develop stronger relationships.
Establishing Trust and Transparency
Transparency with investors is the crux of the investor and sponsor relationship. Establishing trust and transparency enhances the client experience by providing the context and security that comes with information and insights. Investors are more aware now than ever before of the overwhelming amount of data, information, and insights that are available. This influx of data and the insights that can be extracted from it can greatly impact the investment decision-making process; thus, providing more transparency around data could increase the chances of obtaining and retaining investors.
The modern investor typically seeks frequent updates and reports with unfettered access to the details of their portfolio and how their investments are performing. These insights provide your investors with increased control over their investments, creating comfort and confidence amid the unpredictability and risk of investing. Ultimately, using an investment management software to provide on-demand data and insights enables firms to effortlessly meet shifting investor expectations while building stronger relationships.
Boosting Investor Retention
Building an investor base with low turnover and repeat investment is a marker of success and security for CRE firms. But in an increasingly competitive and volatile market, boosting investor retention can be challenging.
Technology is becoming an increasingly critical component of driving investor retention. The modern-day investor wants access to data (so that they can make informed, data-driven decisions) as well as on-demand insights into how their investments are performing. Leveraging an investor management software, like RealPage IMS, creates an open exchange of information by enabling investors to receive real-time, on-demand insights and frequent reports with portfolio updates. Providing this depth of openness, especially during times of uncertainty, gives firms the opportunity to showcase their concern for their investors’ success.
Providing Investors with On-Demand Access
On a daily basis, firms handle a large volume of documents, including K-1s, waterfall-audit files, and broker/property management docs. These documents are a core component of each transaction but can be difficult to properly store, running the risk of getting lost and not being readily accessible upon the request of an investor. A document management system helps firms deliver on investors’ expectation of consistent access to important information by granting them quick, easy, and convenient 24/7 access to all of their documents.
CRE is an increasingly global business in which investors need instant access to key information regardless of time zone and business hours. They want real-time updates and are increasingly using mobile platforms to track the performance of their investments. In fact, 60% of CRE investors now perform commercial property searches using a mobile device. Providing the data investors need, anytime and anywhere, displays a genuine concern for satisfying their needs and establishes trust.
Ultimately, an investor management solution is essential for forward-thinking firms who desire low turnover and repeat investments from their investor base. In today’s increasingly competitive market where investor expectations are higher than ever, utilizing technology to build stronger investor relationships is a key differentiator between firms who successfully attract and retain investors and those who do not.
You may also be interested in How Technology is Driving Transparency in Investor Relationships.