Works Applications Co., Ltd. (Headquarters: Minato-ku, Tokyo; Executive Director and Chief Executive Officer: Masayuki Makino; hereinafter "WAP"), announced today that "COMPANY Real Estate Management" (hereinafter "CRE"), WAP’s real estate management system for large companies, is now upgraded with new functions for properties with multiple owners.
Handling Increasingly Complex Large-Scale Real Estate Property Management
Complexity of building management continues to increase as the trend of separating "ownership" and "management" proceeds together with diversification of tenant needs and evolving building functions. In particular, urban redevelopment projects involving properties with multiple owners have been intensitying inTokyo, with a total of 55 projects having a total construction area of 190 ha being newly planned. Property management work (hereafter, "PM work") for such large-scale redevelopment involving multiple-owner properties requires complex operations such as submission of monthly reports to each owner in accordance with PM contracts and proportional settlements with each owner. Since there was no software package that was able to comply with such complexity of PM work, the industry often faced challenges such as taking more than a week to manually generate monthly reports, frequent occurrence of human errors when manually calculating owner settlements, and additional system customization every time there was a new property to be managed.
Reforming Large-Scale Real Estate PM Work
The new CRE functions provide the following four benefits by enabling standarad package management of different PM agreement contents for each owner.
- The First Standard Package for Property Management Industry
PM work conventionally required additional system customizations can now be handled by standard functions within CRE. Since adding properties with new management forms can be handled by just modifying system configurations without additional cost, system cost is drastically reduced and long-term system use can be achieved.
- Automatic Creation of Monthly Reports for Complex Property Management
Since CRE automatically creates monthly reports based on system configurations, it eliminates overreliance on specific employees for report creation work who possess unique knowledge of PM contracts with each owner, therefore improving report creation efficiency and reducing human errors.
- Improved Efficiency and Accuracy for Group Company Property Management
Double processing of property manager data and owner data can be simplified as owner's accounting and transaction information can be managed by CRE if the property manager and owner are in the same group company. This in turn reduces redundancy and dramatically improves efficiency of PM work. In addition, since all kinds of property-related information can be shared between the owner and property manager, the owner can retroactively perform income/expenditure analysis using the various accounting and transaction data. CRE strongly supports maximization of property earnings for owners by making maximum utilization of business data.
- Automatic Accounting Processing for Complex Property Ownership
Accounting processing according to specific PM contracts for each section can be automated since accounting information can be linked to section information that has not been standardized, which is often the case for multiple-owner properties. In addition, when there are multiple owners linked to a single section or in cases such as the repair of exterior walls that no one owns, processing according to equity interest can be performed. With CRE, all aspects from management of the content of contracts with each owner to billing and payment processing can be seamlessly integrated and centrally managed.
The real estate industry in Japan is thriving with the upcoming 2020 Tokyo Olympics, Japan’s initiative to be the central operational and R&D headquarter for APAC region, and creation of national strategic zones called special zone for Asian headquarters to attract foreign capitals. With its robust and diverse CRE solution, WAP strives to continue to support improving the profitability and efficiency of the real estate industry.
■Example of Property Management Work
Operation example of a property manager agent for dedicated area 1
- Tenant handling for dedicated area 1 (collection of rent)
- Apportioning of rental income according to owner equity ratio
- Handling of small repairs through later reimbursement and of large-scale construction work through direct payment by owners
- Accounting of PM fees and monthly settlement of income and expenses with owner Reporting by monthly reports