"Industry-wide, more and more real estate data is managed using software, and the system that has been your pal for all those years can no longer handle all the new tracking, reporting, and transparency requirements that your business demands," Schindelbeck says.

"Your bottom line is starting to suffer for it. What's more, your competitors are already sizing up cutting-edge solutions. Many have upgraded. Sticking with your system would be like driving a go-cart in NASCAR, and that's too high a price to pay for loyalty."

The challenge is finding the right upgrade package that minimizes risk, maximizes the firm's competitive edge and meets the needs of both the company and its clients. "A new suite can help you maximize efficiencies and accuracy, streamline workflow, mitigate risk, create transparency for users and investors, improve communications among stakeholders, and deliver enterprise-wide solutions," Schindelbeck says.

To make the upgrade smooth, profitable and trauma-free, however, it's important to do some homework. Here are Schindelbeck's eight rules for assessing new software:

• Plan ahead. Because software systems are complex, it's important to create a viable roadmap with a clearly defined purpose and expected outcome. That involves defining and categorizing technical and functional requirements, and separating need-to-have features from options that are just nice to have.
• Evaluate potential suppliers. Find out which company has the best record of success and offers the best value for your money. Make sure it is well-established, financially stable and experienced in the real estate industry so it can act as your technology partner as your business needs expand.
• Make low risk the priority. Well-designed management systems diminish risk by increasing transparency and accuracy. Comprehensive system transparency gives managers a complete picture of investment activity across their portfolios. Likewise, automation of accounting processes eliminates errors common to outdated accounting practices.
• Seek versatility. Determine if the software can handle remote users, multiple real estate market segments, differing investment types, a diverse array of clients, different sets of accounting rules, multinational portfolios, and other complex requirements.
• Ask how deep it can drill. First-rate real estate software systems allow drill-down into financial data and review of accounting practices at the transaction level.
• Consider hosting options. Find out if your IT staff has the resources to handle the new software. If not, investigate suppliers that offer application hosting services.
• Consider the views of external stakeholders. Look for solutions that will help you provide the best reporting and services to your tenants, suppliers, and investors.
• Prepare your employees and brief your clients. Rolling out new enterprise-level software requires time and resources commensurate with the size and scope of your business. Educate users about the advantages of the new system and help them understand how it will improve business and enhance their daily routine.