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Property Management Systems (PMS) and property management software have suddenly become a necessity, the heart of the business ecosystem of many families. Every property owner, from small to hotels, companies to multinationals, will eventually face this dilemma: to build or buy their work platform, at least once in their career. While it is true that some large real estate organizations and property management companies have developed their own proprietary PMS or in-house property management software, it is certainly the exception, not the rule. Here are the things you should consider before deciding to build your own inventory management platform or workflow software.
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Software development is a specialized skill. Do you have these development skills in-house? Most property management companies do not. If you’re among the few who have in-house developers, ask your engineers for feedback on their experience with the problem and how they’ve solved it in the past. Find out what tools they’ve used or what creative ways they’ve solved a problem—then consider their expertise closely when making your decision.
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Since PMS or a full service platform is nothing but basic technology, the question is: what is your difference? If you answered anything other than “software development”, consider purchasing or partnering with a related professional.
The time and effort required to maintain a home-built solution is often greatly underestimated. Not only do you have to build and maintain the code, but you also have to manage the infrastructure needed to service that code. What looks like a single engineering job can easily turn into three or four engineers with different skill sets needed to work on the stack.
It is easy to find that the project takes more time and money than expected. Even for experienced software developers, it can take many false starts before reaching a successful solution or feature. You need to budget for at least two years to reach a working solution.
It’s easy to forget about this part of software development because building is the easy part, believe it or not. Once the software is ready, it’s time to test it, install it, train your users on it, and support it as new enhancements are needed to support your goals. An important consideration here is the IT infrastructure that your software will be integrated with
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The downside of a proprietary PMS or service platform is that the work is never done, because your team will focus on constant development to keep up with feature improvements and bug fixes. As an example, if Amazon Web Services goes down and you rely on this technology to back up your data, your internal support team will need to develop pricing, development and service level agreements or support policies to ensure consistent performance in your portfolio. It is not uncommon for integrations and APIs to break when existing systems are updated or upgraded.
The “Great Recession” affected almost every sector of the American economy. Mechanical engineers and technical professionals have more opportunities than ever, and require a different management style than maintenance technicians and property management workers. Make sure you ask yourself: Is your culture set up to attract, nurture and retain these talented employees?
Adding a new project to your IT team that not only needs to be maintained, but building from the ground up with detailed information can be detrimental if you don’t have the right team. When key team members finally leave the company, you can lose important corporate memory, making it costly and time-consuming to make changes along the way. Your schedule can be set in weeks or months.
Gina vs. buy was a debate for every group to get. Every situation is different and there is no single answer that works best for everyone. Organizations must do their own research. However, if buying a solution is simple, has no real obstacles and solves the problem properly, then it is usually a good choice.
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Opportunity to Build or Buy? Top things to consider before taking your inventory management system in-house and more helpful insight from Co.’s resource library.
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