Real estate business is booming in the UAE. The high housing demand has attracted investors worldwide. New and old real estate companies are already competing to meet the increasing demand. Real estate market is fierce and brutal. Over 3000 are competing to control. It is usual to see fresh and even known real estate companies fall down. Real estate failure is an old problem; to avoid it today, you need novel solutions like a real estate ERP system.
What are the significant reasons for real estate failure? How can ERP systems help fix the problem? Let us find out together.
Lack of funds
Real estate business can generate significant revenue. However, they also have enormous expenses. Real estate companies have to pay for property maintenance, employees’ wages, advertisement, administrative costs, etc.
For new companies, the issue can be not having enough capital. For existing ones, funds issues can appear when the expenses are higher. High expenses can result from a variety of factors, like a decrease in closing rates and inefficiency at work.
Implementing an ERP system for your real estate company provides a solution for financial problems. ERP increases efficiency, allowing better utilization of your resources. A study of the effect of ERP implementation on the system showed a reduction of 22% in administrative costs and 23% in operational costs.
Few leads are generated
Real estate companies’ work involves selling, buying, and renting properties; sometimes, you can add property management. The company’s job is to find a house for clients interested in purchasing and buyers for property owners. They get paid for every purchase or sale they close. Therefore, they need to have more leads coming.
The old-fashioned mouth-to-mouth advertisement is still used, but it is less reliable than before. People have changed their ways of looking for properties. Thus, real estate companies must follow. Investing in marketing is a must for any real estate company. Marketing expands the market for the company and finds better leads constantly.
The next-level challenge is to have a better marketing strategy than the competitors’. ERP systems provide real estate companies with vital information and reports to analyze sales, identify trends, and hence create well-planned strategies. Furthermore, ERP accelerates the decision-making process. Hence, the marketing plan can be applied faster to harvest more leads first.
Poor customer relationship management
In the real estate industry, the business relies mainly on relationships with clients. Client satisfaction and trust are the elements they need to stay loyal to the company. Agents know they should follow up with customers constantly, yet, many reasons can prevent them from doing so, like not being able to find the phone number or forgetting about the client’s requests. Ignoring the client has an imperative result; they leave for other companies with better customer service.
ERP solution for real estate involves a good CRM system. CRM allows you to have all customer information gathered in a single platform. This involves contact information, deals and transaction details, and their requests. You can have access to all this information and respond faster while you talk to them, giving them a sense of being valued.
CRM tools allow sleek follow-up with clients even after the deal is closed. They provide new methods that save time, such as email campaigns or sending WhatsApp messages. CRM also provides straightforward means for the client to request services from the company.
Hiring the wrong people
Businesses such as real estate are built on trust and connection. Agents must work like a charm to give clients what they want and keep them happy. The secret here lies within the agents themselves; they have to know how to deal with clients in a way that they remain comfortable.
High salaries and good benefits of real estate jobs attract many people who know nothing about the ABCs of the real estate industry. HR departments usually have specific requirements for choosing employees, but when they choose the wrong people, the whole business feels the hit.
It is hard to find suitable candidates among tens or even hundreds. The process involves many stages and steps. ERP systems have the tools to organize and simplify them. You can be confident that you have the right team with you on your way.
Poor employee management
Passion is the fire that lights the way to success. Happy employees often perform better and score more. On the contrary, employees’ performance drops when they feel uncomfortable in their work environment.
Working on providing a pleasant work environment is an essential task for the HR department. Enhancing the workplace can be made easier with the right tools. ERP HR modules have different tools to evaluate performance, track and reward good results, and more. The environment will reflect itself on the results and increase the sense of loyalty to the company.
For more information about real estate ERP software and CRM, or if you have any questions. You can contact the Odoo team. We are always happy to help!