Tech Should be an Aid, Never a Substitute

Part 2 of 2

ATLANTA—In part one of this two-part Q&A, GlobeSt.com caught up with Chris Breeden, director of property management at Seven Oaks Co. in Atlanta to discuss more about technology today, tools in place, how technology is changing communication and about a unique model developed by the firm. In part two, we chat about important factors of tenant interaction and more.

GlobeSt.com: What are some of the holes landlords may have inadvertently created through the rise of property management technology? How has this impacted tenants?

Chris Breeden: Technology should be an aid, but never a substitute. The evolution and rapid advancement we’ve seen has created an environment where some property managers have become overly reliant on smart technology, while de-emphasizing the human aspect of their daily roles. This is detrimental for all parties. Owners and property managers still need to have direct relationships with tenants and ensure they can be reached quickly when needed.

The tools allow an expediency factor if they’re set up correctly, but remember that even with high-end technology, the human factor is still effective. Through relationships, the tenant base can find a back-up plan for relaying information when technology fails. A personal relationship also serves as a buffer that can help to de-escalate a difficult situation. Tensions can often escalate quickly on a digital thread that doesn’t convey the full context of the intended message through important signals, such as voice inflection and facial feedback. If the sender sees the recipient as just a faceless name, the fuse tends to be shorter. Property managers simply have to get out there and pound the pavement on a daily basis. They have to know what’s going on, they have to ask what’s going on, and they need to build rapport. There is simply no substitute for face-time with tenants. Not every issue needs a personal response, but they’re leaving themselves exposed to great risk if they’re only relying on technology.

At a previous firm, we acquired a prestigious building that was equipped with top-tier technology and a bevy of other resources for the existing property manager. While interviewing several tenants, it quickly became apparent that nobody had any idea who their property manager was and why they never showed up when things went wrong. The property manager was utilizing a lot of the digital tools at their disposal, but never left the office to add a personal touch for some of the more challenging situations. It left a significant void that we quickly addressed and were able to turn around by prioritizing consistent face-to-face time with the tenants. This made an immediate impact, and illustrates the importance of relationship building and interpersonal communication in our industry.

What do you consider important factors in tenant interaction?

Breeden: We’ve already touched on the importance of relationship building and regular in-person visits with the tenant base. Timing is key, as it is imperative to start communicating with a new tenant’s leadership group during the leasing phase to establish a proactive approach that eases the transition to a new building. The other foundational element for an effective property management strategy is establishing the property management firm as a problem-solver early with the tenant.

Part of the playbook we use at Seven Oaks Management is customizing and tailoring solutions for a specific workspace or asset, rather than trying to apply a uniform methodology that may not necessarily be the best fit for that particular situation. Taking a proactive approach to find a creative workaround is one of the primary reasons we’ve added more than 1 million square feet of new space to our property management portfolio over the last three years. Our tenants know that we will work with them to find a way to solve a problem, which often means generating three or four options before proceeding with the choice that works best for them. We’ve also found the more active and involved we are with our tenants in this arena, the easier the owner experience will be. There are fewer items hitting the owner’s plate, which allows them more time to focus on their core business. This builds trust in the owner-property manager relationship, and we’ve found that it provides an opportunity to expand work agreements to other assets down the road.

What are some best practices property management firms can implement that blends the in-person techniques with technology?

Breeden: On the front end, begin with the old-school approach of making a strong introduction. To be effective, they must be personable and create a consistent stream of rapport right out of the gate to build trust and show the tenant they are committed to their best interests. This includes showing the tenants how our technology works, and how it can benefit their organization. Property managers are also gathering valuable information during this stage that cannot be gleaned by technology. Being informed means being the person who understands the tenant experience; not focusing on the “what,” but rather the “why.”

Once a property manager establishes that foundation with the tenant, they can implement the high-tech tools to be predictive by analyzing the data they’re receiving from systems like Angus Anywhere, Buildium and Rentec Direct. These are powerful systems that generate valuable information almost instantaneously, but they still require the ability to chart the proper course based on what you’re seeing. If a tenant is having repeat work orders for ceiling leaks, translate the metrics and implement a preventative game plan to solve the issue. Being responsive is great, but it’s much better to be predictive.

Electronic surveys are also a useful, but often overlooked, tool. It’s important to keep a finger on the pulse of the tenant base, and sometimes information can be harvested from a survey that won’t necessarily show up on one of the PM software programs. A good example may be responses from a question that asks, “What would you like to see that is not currently offered at the building?” If a property management team can combine superior, prompt service with the ability to add new programs when possible, then they’ll be in prime position to retain tenants and keep current ownership happy.