Cracking the Code: How REDA Transformed Rent Renewal Automations In Canada
Navigate Renewals with Ease and Precision – REDA’s Innovative Rent Renewal Calculator Puts You in Control
+8,000
man hours saved on the Renewal Process through automation
*calculated as 8 hours per renewal for +1000 renewals/year.
$400,000+
cost savings per year
*calculated with an assumption standard HR cost rate of $50/hour.
+800% ROI
only for one REDA process automation (Renewals)
*calculated as Net Return on Investment/Cost of Investment*100
Demonstrating The ROI of REDA's Lease Renewal Automation
Savings & ROI Calculation:
On an average, a single resource spends 8-15 working hours per unit on the renewal process which includes rent calculations, approvals, communication, etc. - an exercise fraught with human errors and delays.
Time saved per unit renewal: 8 hours
*Assumed Payroll Cost per hour: $50
Savings per unit renewal: 8*50 = $400
Savings for 1000 units: 400*1000 = $400,000
*Assumed cost for REDA per year = $50,000 (for 30 users/employees)
ROI=(400,000/50,000)*100=800%
Along with the returns, REDA resulted in a positive impact on all internal and external stakeholders through a superior Digital Experience
800% ROI – Smart Solutions, Smart Returns!
Property Management
Canada
Any
Canada provides annual indexes for expenses and revenues which Property managers grapple with along with intricate rent control regulations and lease terms which may be fixed-term or month-to-month. Calculating annual rent increase becomes a time intensive and arduous process requiring teams to spend extensive hours
REDA stands by its motto of simplifying all real estate operational challenges with meaningful technological innovations. REDA not only provides a 100% automated process for calculating rent increase on renewals, it also ensures the rent renewal process adheres to government regulations and is compliant.
The Challenge
Calculating rent renewals in Canada posed a multifaceted challenge, requiring substantial time, man-hours, and effort. The process was marred by human errors, lacked transparency in tracking calculations, and demanded meticulous consideration of dynamic factors such as government regulations, lease agreement terms and fluctuating indexes, further complicating an already intricate task. Traditionally, the calculations were done on spreadsheets by compiling data such as government-provided indexes, vacancy and occupancy considerations, any building or unit level improvement costs, expenses and revenues from various different sources which required a number of hours and human resources and had a direct impact on cost of operations. The calculations needed to be done per unit and per building and there was a glaring need for a unified solution.
Enter REDA—an industry-transforming force in the real estate landscape. REDA stands tall as a cutting-edge, cloud-based, Salesforce-powered ERP solution, meticulously designed to bridge every operational gap - transforming complex operational problems such as rent increase calculations into simple solutions.
The Approach
REDA's proactive approach to automating rent renewal calculations in Canada began with comprehensive requirement and process understanding meetings with the respective process owners. These sessions laid down the roadmap, ensuring a thorough grasp of the intricacies involved.
The primary focus was on building an automated, scalable and auditable solution which could result in a single click solution to calculate annual rent increases at both unit and building level. In collaboration with process owners, REDA compiled a detailed list of critical factors routinely considered during rent renewal calculations and created a beta model to check the accuracy and efficiency of the calculations. The process was rigorously tested and fine tuned with our client in Quebec, Canada and made ready to be rolled out to all Canadian provinces.
The Solution
REDA's innovative solution for rent renewal calculations in Canada efficiently processes government-provided annual indexes and takes into meticulous account the intricate details of operating expenses, including maintenance costs, property taxes, and utilities, ensuring a holistic approach to rent renewal determinations.
Additionally, the solution considers capital expenses and revenues, lease terms, vacancy, occupancy and renovation or improvement costs, ensuring that every conceivable element influencing rent renewal is intelligently accounted for in REDA’s native accounting system.
What sets REDA apart is not only its meticulous approach to compliance management but also its integration of an intelligent approval process, a comprehensive Audit Trail, robust Customer Relationship Management (CRM), and a digital experience that elevates user engagement.
All calculations done are 100% auditable and the calculated value is then fed directly into REDA Property Management System to ensure a seamless user experience. Notably, the tool goes beyond standard calculations – it allows for additional discounts to be factored in, enhancing flexibility and customization. The renewal journey is 95% automated, managing the entire process from drafting an agreement to sending it for approval, adding discounts, and calculating the rent increase. Tenants receive the updated agreement promptly, with the option to opt in or out. Based on their choice, the journey is further automated: opting in triggers the sending of the renewed rent agreement, while opting out prompts communication of the move-out date. This end-to-end automation is entirely paperless, encompassing workflows and communication notifications. The solution is available in both English and French, catering to a diverse user base.
Voices of Confidence
Anne Roireau,
General Manager
Groupe Inspire
Quebec, Canada
Kunal Sharma
CEO & Chief Solution Architect
REDA One LLC
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