7Ps of Fadi Nwilati’s Leadership

Author: Aditya Rawat

Once said by Mahatma Gandhi – ‘Be the change you want to see in the world’.  The first thought which comes to my mind whenever I think of this quote is of Mr. Fadi Nwilati – CEO of Kaizen Asset Management Services.  Fadi truly exemplifies the Japanese term – ‘KAIZEN’ which means “continuous improvement.” His approach to continuously improving things has encouraged him to come up with the idea of laying the foundation of Kaizen Asset Management Services in the year 2006 to overcome the pressing challenges faced by the real estate sector in managing their properties at minimal cost by leveraging innovative technologies to maintain utmost residents’ delight. It is a matter of pride for me to say that Fadi’s brainchild – Kaizen AMS, is among the top 5 property management firms in Dubai today.

Fadi Nwilati has been instrumental in driving a vast list of transformational changes not only within Kaizen AMS but across the industry. This is one of the several reasons he has been recognized as one of the “Most Trusted Real Estate Professionals of Dubai” by Property Times. Fadi’s unparalleled leadership followed by the utmost dedication of ‘Kaizeners’ has earned Kaizen AMS almost every prestigious industry award.

This exhaustive list includes – 

Let’s find out the 7Ps of Fadi’s leadership which makes him a truly world-class leader and a well-known figure in the Dubai Property Management industry today –

1. Passion

People who know Fadi will agree with me that the statement he emphasizes the most is ‘Hiring passionate people and growing them’. It is just not a statement but his core ideology. Fadi always strives to drive performance by empowering employees and acting as a mentor. I firmly believe that no monetary incentive can be a substitute for passion. It only comes from within and the people around you. ‘People with great passion can make the impossible happen’. He encourages everyone to put their heart into their job role and give the best effort to drive results. In my opinion, the biggest secret behind the triumph of Kaizen AMS as the most successful property management firm today is Fadi’s approach to encouraging employees to be passionate and nurturing a culture of strategic thinking, innovation, and creativity. 

In this context – I remember a quote by famous American author, Business Coach, and CEO of SnuggwuggLisa Cash Hanson: Leadership is the ability to guide others without force into a direction or decision that leaves them feeling empowered and accomplished.”  

2. Purpose

As rightly said by Vince Lombardi, Success demands singleness of purpose’. One of the many reasons behind the ascendancy of Fadi is he does everything with a purpose attached to it. His core purpose is to serve, develop, and inspire people and perform his responsibilities to the best of his ability every day. 

Fadi always strives to consistently achieve greater results, to be able to stand strong for those who need him, to inspire young adults that they can achieve what they want by continuously advancing themselves and improving, all the while without forgetting to have fun, disconnect, and enjoy life. By continuously improving his life and the life of everyone who surrounds him, Fadi collectively elevates everyone to greater levels. His mission is to make the property management industry enjoyable and contribute to human sustainability. By fulfilling his purpose of life every day, Fadi takes Kaizen one step closer to its mission ‘To Create Memorable Experiences and Communities’.

3. Patience

We live in a world where the corporate head honchos expect faster results under rigid timelines which requires working under immense pressure. However, in this journey, corporate bosses forget that working under pressure not only limits the creativity of the employees but also puts their physical & mental health in jeopardy. I have been a part of a similar work environment which had always limited my creativity. Fortunately, that’s not the case with Kaizen AMS.  

‘Good things come to those who wait’. I can say this with utmost confidence that I am a very big admirer of Fadi Nwilati’s patience. He truly understands ‘Rome can’t be built in a day and gives sufficient time to every initiative to reap the results. Employees working with Kaizen AMS for a long say, Fadi has not always been like that. After receiving continuous feedback from the team members, he learned to grow and accept the virtue of performance. I feel the Greek Poet Solon has rightly said – ‘He who has learned how to obey will know how to command’. Fadi obeyed the feedback of his fellow Kaizeners which has made him more patient than he was before. His patience has led to several projects which started at a slow pace initially, gained significant momentum in a few months, and became a major success for the company in the later stages. The lesson I learned from Fadi is patience is indeed a cornerstone for being a successful entrepreneur.  

4. Priority

The first step to success is prioritising the priorities of your stakeholders.  I feel this is one of the many qualities of Fadi that he always ensure he lives up to the expectations of Kaizen’s stakeholders in terms of both quality and the timeline. He always continues to improve his efficiency and encourages Kaizeners to dedicate more time to understanding and analyzing the expectations of the stakeholders to stay one step ahead in the competition. Fadi leverages his decades of experience working on unconventional technologies and his passion for innovation to meet the dynamic expectations of the clients. His approach of leveraging the technology to make the company’s operations swift has empowered Kaizen in becoming ‘Your Technology-Enabled Property Management Company’.

5. Principles

Fadi’s persona is highly driven by the great value system he inherits. He encourages everyone to maintain strict compliance with the rules & regulations not only within Kaizen AMS premises and the communities we manage but in personal life as well. Fadi’s high ethics, treating every person with the utmost respect, and the attitude of keeping the promises and living up to the expectation of Kaizen AMS’ stakeholders and earning the trust vote of most notable real-estate clients in the UAE such as – Emirates REIT, Dubai South, Meydan, Meraas, Select Group, and Al Futtaim, to name a few. Once said by Raymond Thomas Dalio – “You don’t achieve happiness by getting rid of your problems – you achieve it by learning from them.” 

6. Personal Touch

One of the biggest hindrances to the success of any organization is when its leader fails to establish personal touch with his employees and customers. This discourages several employees from sharing any incredible ideas they have or speaking out their minds for the betterment of the organization. According to an article by Harvard Business Review titled – Can Your Employees Really Speak Freely? several employees fear conveying their distinctive ideas to the management because they fear the consequences of speaking their minds. Such a type of culture not only makes the employee feel demotivated but also results in the organization missing out on unique business opportunities. 

Like every great leader, Fadi understands it. Thus, he has fostered a culture of open-door policy by maintaining a close relationship with every employee which makes them comfortable to communicate any ideas or concerns they have in mind with him. Mr. Fadi Nwilati organizes brainstorming sessions on a bi-weekly basis to listen to the ideas of team members as well as his expert opinion on how to go about it.  This makes employees feel more inclusive and privileged that their opinion really matters and also establishes the personal touch which makes it easier for them to convey any distinctive idea they have in mind which could impact Kaizen AMS’ customers & employees.

Fadi’s philosophy of building personal touch not only with employees but with everyone he meets has encouraged him and Kaizen AMS to come up with the most innovative communication tool – the Whatsapp Chat platform to provide a personal touch to the residents of our managed communities by bringing personalization to our conversation instead of apps. Kaizen AMS’ WhatsApp platform provides 24×7 personalized support to over 30,000 residents in our 100+ managed communities. Once said by Elizabeth Mccormick – “take the time for the personal touch else how will you stand out from the crowd”.  Fadi understands the meaning of this quote and truly exemplifies it.

7. Persistence

Persistence is the seventh ‘P’ of Fadi’s incredible leadership. His ‘Never Give Up’ attitude and making efforts to thrive under critical situations is what make him a true leader in my eyes. Something I have learned in my professional career spanning over 13+ years is the quality that distinguishes great leaders is that ‘FAIL’ is not a word in their dictionary but it is an abbreviation which stands for ‘First Attempt in Learning’. Great leaders possess dogged perseverance, even in the face of overwhelming odds. Fadi is among those leaders. His persistence always motivates me and every Kaizener to strive until they achieve the best results in their job roles. Fadi never loses the sense of purpose or direction and creates a reliable compass setting for those around him. His personality sets strong examples for the employees to do something different from the previous day and drives them To Create Memorable Experiences and Communities’ (a vision statement of Kaizen AMS). 

Fadi’s persistence and continuous support drove me to come up with a list of unconventional initiatives which had a significant positive impact on the company’s stakeholders, business, and its most valuable asset – employees. And the ‘Employee Talks’ initiative (this blog is part of) is one of them. 

7 Ways Kaizen AMS Creates Memorable Experiences for Residents through Digital Apps.

As the competition in the UAE real estate industry is getting fierce, it has become pivotal for the developers to focus on building an unparalleled resident experience. Digital applications are a crucial factor in this success story.  The journey to create a wow’ resident experience starts with a first interaction between the resident and the property manager or between the resident and the property sales team. A great resident experience lays a strong foundation for resident satisfaction, retention, community value, higher occupancy rate, and building a truly unbeatable reputation.

 Modern residents are now prioritizing the digital experience they have with the developer or a property management firm while making a property purchase decision compared to the location of the property.

What Is Resident Experience?

Resident experience is not a process but a journey. It encompasses a wide gamut of aspects of the resident’s stay at a property right from the initial process of selecting a property for purchase or rent till they move in, reside, occupy and move out from the property. The real estate developers are investing in developing newfangled online portals and resident applications to provide comprehensive and faster access to information and offer a seamless experience to the residents.

The Role of Digital Applications in Boosting Resident Experience:

The dawn of a great digital experience starts with the first step residents take while shortlisting the property. Research by Birdeye(a leading international research firm) in 2021 titled –Why Resident Experience is Essential When Promoting Your Property’ reveals that 92% of residents read reviews before making a purchase decision. A blog by High-Level Marketing– (an international digital marketing agency) titled ‘Why Not Answering Your Phone is Killing Your Business?’ finds out that 75% of potential residents who don’t reach you on the first call won’t call back. If they can’t get in touch with anyone on your team in a timely manner, they know that the competition is just a Google search away. 

The advent of digital technologies has made the resident experience process much simpler. In today’s era of cut-throat competition, achieving the utmost resident experience has become a prerequisite for the real estate developers to drive investments, foster property sales, and boost occupancy rates. Resident experience and digital transformation have become a new business imperative. Real estate firms in the UAE are widely using mobile applications to boost resident engagement by optimizing real-time updates about facilities and by creating a sense of community. Real estate companies are also leveraging mobile applications to simplify their communication with the residents and pumping more investments in building advanced digital channels. Undoubtedly, focusing on creating an incredible resident experience is the best bet for real estate firms to thrive in the industry.

Digital Platforms – Simplifying Communication between the Residents and Property Management Firm: 

As they say, ‘Communication works for those who work at it’. Implementing digital applications in the process simplifies the communication between the residents and the property managers. This not only leads to the faster resolution of their issues but also prevents any potential conflict of interest between the residents and the property management firm for the greater good of the residential or commercial community.

One of the wisest things to do is to ensure swift communication between the residents and the property managers through digital means is by creating an online community where residents can raise their grievances and can get real-time or faster answers to their queries. I can compare this ‘online community’ to a Slack Channel where we can contact the desired person individually or contact a Group anytime just by dropping a message stating our problem. Creating an online community channel will also allow residents to get in touch with the right party without being passed from pillar to post to get the viable solution to their query.

How Does Kaizen AMS Leverage Digital Apps. to Create Memorable Experiences for the Residents?

Being the first technology-enabled property management company in the UAE, Kaizen AMS invests significantly in offering a unique digital experience to all the residents in its managed communities. This empowers Kaizen’s team in swiftly resolving the queries.

Here are the top 7 digital platforms the Kaizen team leverages to create a great resident experience –

1. Customer Communication Platforms

Kaizen AMS understands the value Live chat can bring to communication and in elevating the resident’s experience. Leveraging our advanced communication technology, Kaizen AMS offers 24/7 support services to the residents through calls, emails, and Whatsapp.  

Whatsapp Chat feature allows Kaizen maintenance and service team to transfer 70% of over 28,000+ queries received every month related to statements of accounts, proof of payments, service charge receipts, service charge collection, maintenance requests and providing them with faster response to their query within 3 minutes of getting the request.  This also significantly minimizes the resolution time for the remaining 30% of the queries and elevates the overall resident’s experience.

To learn more about the impact created by our Whatsapp Chat option for the residents at Kaizen AMS managed properties,  please go through our recent case study5 Ways to Achieve Resident Satisfaction with Personalization through Technology.

2. SNAG Report

Kaizen AMS leverages state-of-art snagging software called ‘Snag Report’ to identify and list every snag in a unit that has recently been completed. These snags are then assigned digitally to the various contractors, pushed to their phone app., allowing access to live data on the progress of snags. Kaizen AMS tracks all snags and ensures that the property is snag-free while handing it over to the homeowner or the tenant.

Sharing the inspection reports digitally with the residents or homeowners is also a great way to nurture good resident relations. Furthermore, it brings more transparency to the process and makes the residents aware of the actual condition of their property before they move in.  Sharing snag report digitally is also an environment-friendly practice.

3. Transactions & Requests

Transactions & Requests feature plays a crucial role in simplifying the resident journey – right from the time residents move into a Kaizen-managed property till they move out. Transactions & Requests allow the residents in getting a faster solution to all their requests in a few clicks – just by filling a form on their laptop or mobile phone for all the requests pertaining to – move-in/move-out forms, work permit forms, access card requests, barrier remote request, viewing the property, and in booking the amenities in the property such as: Tennis CourtsTransactions & Requests is also a simple way to minimize the number of emails back & forth as residents can upload their documents and can track the progress of requests or queries. 

Transactions & Requests offer residents a truly digital & seamless experience and a timely resolution to their issues without compromising the comfort of their home. This results in a significant increase in the overall resident’s satisfaction.

4. Dashboard to Control Energy Usage

Kaizen AMS lays special emphasis on minimizing the energy usage in our managed communities to reduce the overall operational cost as this has a profound impact on reducing the services charges & other maintenance costs for the residents.  To meet this objective, our specialized team of energy experts has developed advanced dashboards. The Kaizen team also monitors the energy usage of a building and designs effective plans to control it when it increases a certain specified limit. Kaizen AMS works with specialists to deploy advanced energy modeling software to predict the energy usage of the building based on the climate, location, construction, size, and construction material. When the usage exceeds the specified standard, the software alarms the team to take the necessary steps. The software also predicts the energy usage of the building accurately and assists the building managers in adopting the design that improves energy efficiency to maximize the overall return on investment (ROI). An online dashboard for monitoring and managing multiple building projects provides residents with access to see and manage their data. 

To learn more about how Kaizen AMS reduces energy costs at its managed communities, please read our article – How Does Kaizen Curtail the Energy Cost at its Managed Properties?

5. ‘Talk To Business Development’ Option’

Digitization is an integral aspect of Kaizen AMS’ business operations and being driven by technology is among our core values. Leveraging all types of digital channels, we strive to make it simple for our clients to reach us. Our potential clients can directly get in touch with our Business Development team by clicking on the ‘Talk To Business Development’ tab under theContact uspage on our website.

At Kaizen AMS, we make a positive difference to the lives of our clients & customers by offering unparalleled customer services to create those long-lasting experiences.

6. Video Call with your Experience Manager

Taking the standards of the resident’s service to an all-new level, Kaizen AMS offers a ‘Video Call with your Experience Manager’ service to the residents to provide them a real-time response to their concerns. ‘Video Call with your Experience Manager’ service also provides assurance to the residents that there is someone to take ownership of their issues and provide them the correct and timely response whenever they are in need.

Since the launch of this service, Kaizen AMS has witnessed a substantial rise in its resident’s satisfaction scores and the occupancy rate at its managed communities.

7. Surveys and Resident Feedback

Kaizen AMS conducts frequent surveys & organizes feedback sessions to capture the response of the residents about their experience of living at Kaizen-managed communities and quantify the responses on Net-promoter score (NPS). 

The insights gathered from the surveys assist our Experience Managers and the top management in analyzing the impact of our initiatives towards creating a great experience for the residents. Furthermore, surveys also allow our Experience Managers in identifying any areas of concern and taking immediate action to fix them. Surveys and feedback sessions have been an invaluable tool for our Experience Managers in elevating its standards of resident excellence and attracting new residents to its managed communities to boost its occupancy rate, revenues, and brand image.

Summary

Resident experience has always been the talk in the UAE real estate sector. With the advent of technology and the rise in competition, the term resident experience has gained momentum and has become an integral factor. It has become a win-win situation as it makes the property more attractive which is indeed good news for the developers and assists residents in getting a unique experience and faster solution to their concerns.

Leveraging digital applications in the process of serving residents often leads to an incredible experience for them. Digital means can provide a faster solution to the residents for all their issues, questions, and concerns which have a profound impact on resident satisfaction score, retention rate, community value, occupancy rate, and on developer’s reputation.

Being a technology-enabled property management company in the UAE, Kaizen AMS invests significantly in building innovative platforms and technology mediums to provide unparalleled and distinctive digital experiences to all the residents in its managed communities. 

Some of these digital tools include –

  • Customer Communication Platforms
  • SNAG Report
  • Transactions & Requests
  • Dashboard and Meters to control energy usage
  • ‘Talk To Business Development’ Option
  • Resident Directory
  • Video Call with your Experience Manager
  • Surveys and Resident Feedback
  • Visitor Management and Pre-Registration

The Role of PropTech in KAIZEN AMS’ Success Story

Property Technology or “PropTech” is a buzzword in the global residential or commercial real estate world. It has been instrumental in revolutionizing its operations and empowering the real estate sector to conduct its operations smoothly during the Covid-19. In simple terms, PropTech refers to the implementation of information and disruptive technologies in simplifying the management & performance of real estate projects. 

Property Technology is playing a vital role in every function of the real estate sector. It is making its presence felt everywhere – right from processing the financial transactions through blockchain to managing lead pipelines on CRM software. 

PropTech is facilitating the real estate developers in – 

  • Using more energy-saving and environment-friendly materials during the construction process to optimize the operational cost of the building
  • Simplifying their bulky organizational work
  • Bringing more transparency to the financial transactions
  • Better marketing & promotion of the properties

Until the benefits of PropTech were explored, the real estate sector was practicing the traditional methods of interacting with sellers, buyers, and lending institutions. However, with the advent of emerging real estate technologies, the sector is changing the way it is used to conduct business.  Investors are keen to invest in those technological platforms which allow them to manage multiple activities from the comfort of their homes. Certainly, this is the biggest reason for the dawn of Property Technology or PropTech. 

PropTech – An Integral Part of KAIZEN AMS’ Operations  

Being a tech-enabled property management firm in the UAE, Kaizen AMS  invests significantly in exploring and implementing unconventional technologies into its operations to stay ahead of the competition. Since its inception in 2006, Kaizen AMS has innovated a vast range of distinctive Proptech applications using Virtual Reality (VR) and Augmented Reality (AR). These applications have gained even more prominence since 2020 due to Covid-19 and have empowered Kaizen AMS in exercising social distancing norms in its managed communities as per the government directive.

The implementation of Property Technology has worked wonders for Kaizen AMS in streamlining its vast operations and has touched every aspect of our business.  Right from lead generation to funnel optimization, property inspection, brand awareness, tenant satisfaction to advertising & promotion of the property, communication, and sales assistance – PropTech has always been an integral part of Kaizen AMS’ success story.

PropTech has empowered ‘Kaizeners’ – (a term used for our most valuable asset – Our Employees)  in launching a list of unwonted mobile applications to serve the residents living at Kaizen-managed properties in their day-to-day activities and in Creating Memorable Experiences & Communities – which is our vision.

Role of Technology in Making Kaizen AMS a Top Choice for the Developers

Kaizen AMS’ innovative tech. applications play a key role in the management of our communities in the most efficient manner. Effective management has a pivotal impact in reducing the cost of operations and improving the resident’s experience which results in better occupancy rate, revenues, and reputation for the real estate developers. 

To know more about how Kaizen AMS reduces cost and boost occupancy at its managed communities, go through our case studyCurtailing Costs & Boosting Occupancy for Commercial Buildings’.

Here are the highlights of how Kaizen AMS delivers first-rate property management services using its unconventional PropTech applications –

1. Snag Report

Snag Report is a comprehensive site monitoring tool to identify the snags in a unit. Once the snag is identified, they are assigned digitally to the various contractors through a phone application. Snag report provides live updates to all the relevant parties on the progress of snags and ensures that Kaizen AMS teams hand over a flawless property to the homeowner or tenant. The delivery of snag-free property makes the property attractive among potential homeowners or tenants. This not only improves the homeowners’ experience but is also a big boost to the reputation and brand image of the developer. 

2. Building Management Softwares’ (BMS)

Kaizen AMS deploys advanced Building Management Softwares’ (BMS) to reduce the operational cost of the building. Reduced operational cost maximizes the net profits margins of the developers and minimizes the need for a substantial increase in rents and service charges. Minimal increases in rent & service charges also have a profound impact on resident satisfaction and boost the occupancy rate of the community – a win-win situation for residents, developers, and Kaizen AMS.

Kaizen AMS’ Building Management Softwares facilitates our property managers in keeping a birds-eye control on the total energy consumption of the building in a specific time period and in comparing it with the same month’s usage of the previous year to identify the difference and take corrective actions on time. Our idiosyncratic building management software is crucial in reducing the overall operational and maintenance cost of the building and in designing an effective and predictable maintenance plan. Furthermore, Building automation systems allow our property managers to remotely control the air quality, cooling, heating, and ventilation of the building through timely notifications and alerts which further reduces the operational cost of the building.

Kaizen’s technology team plays a pivotal role in this journey by: –

  • Improving property performance through operational and financial insights
  • Minimizing the cost per unit by automating most of the repeated operational tasks
  • Reducing the efforts of the developers and residents through automation of requests and by offering curated services. 
  • Analyzing the property data based on algorithms designed on the principle of minimizing operating costs and maximizing the revenue of properties.

3. Comprehensive Dashboards to Provide 360-degree Visibility

Kaizen AMS deploys revolutionary dashboards to provide 360-degree visibility to the developers as well as to our Property Managers on the status of our managed communities. This assists them in making informed decisions pertaining to the operational cost, building’s performance, resident retention, site monitoring, and effective budgeting & financial management.

The Implementation of Technology at Kaizen AMS Office

Being a Technology-Enabled Property Management Company, Kaizen AMS makes the best use of technology in every operation to stay ahead of the competition. Each team at Kaizen uses highly-advanced and ingenious technological applications to serve our stakeholders in the most efficient, effective, and professional manner.

Let’s take a look at how each team at Kaizen AMS leverages advanced technological tools developed inhouse to stay a forerunner in the industry –

Marketing Team

Technology is widely used by Kaizen’s marketing team in publishing the listings for leasing of managed units online, simplifying the communication process, offering 3D virtual tours, and conducting online inspections. With the implementation of technology, every team & department at Kaizen AMS stay connected with each other as well as with their current or prospective client. Technology has also facilitated Kaizen AMS’ Marketing team in arranging quick property tours for the potential tenants through virtual and augmented reality.

Client Experience Team

Technology has allowed Kaizen’s client-experience team to resolve queries received from tenants, developers, investors, etc. at a much faster pace through Chatbots. It has also improved the communication among the developers, tenants, and property managers at Kaizen-managed properties.

Business Development Team

Advanced cloud-based software and applications empower our Business Development team in keeping the track of the status of projects and in onboarding new clients and sending them relevant content to keep them updated on the key industry updates. Technology also facilitates Kaizen AMS’ top leadership in better strategic planning, revenue forecast, and financial management.

Client Relationship Team

Technology has enabled our Client Relationship Team in offering unparalleled and outstanding services to the stakeholders through instant gratification. The role of technology has been instrumental in keeping Kaizen AMS in touch with both existing & potential clients and keeping the track of emails.

Property Management Team

Technology assists our Property Managers in swiftly communicating useful & desired information with the landlords, tenants, owners, and all our stakeholders. It also assists the Property Management team in providing faster responses to the resident’s queries & requests.

In the last few years, Kaizen AMS has come up with some of the most advanced applications. This includes the WhatsApp Chat feature, Online forms, Chatbots, to name a few to assist our Property managers in managing a wide range of functions while maintaining utmost resident satisfaction through personalization and human touch.

To know more about how Kaizen AMS leverages PropTech to provide a truly world-class experience to the residents at its managed properties, read our case study – “5 Ways to Achieve Resident Satisfaction with Personalization through Technology”.

Conclusion

Property Technology or PropTech is taking the real estate sector to an all-new level and making it more technologically advanced and equipped to serve its stakeholders. PropTech has become a necessity for the sector in the Covid-19 era in conducting its operations while maintaining social distancing for the safety of its employees. 

PropTech has touched every aspect of the real estate sector and has made its operations faster, transparent, systematic, and above all environment-friendly. PropTech has allowed the real estate and property management sector to conduct digital inspections of the properties. It has facilitated builders in project development, support sales agents in researching & analyzing the prospective leads, and property managers in better management and control of assets. PropTech is beneficial for the residents in paying their rent and in registering their visitor details.  It also assists real estate consultancy firms in preparing industry reports on future market trends and real-estate leaders or top management in making informed decisions. Proptech application allows real estate agents and executives in storing their documents on external servers & accesses the data from anywhere, leading to more transparent operations and cost savings.

Technology – in all forms has always been a key factor in the success of Kaizen AMS. It has simplified every aspect of our business and has empowered our employees to serve residents at our managed properties in the most efficient manner. 

Technology has acted as a blessing for our:

  • Kaizen AMS’ Marketing team in easily marketing & promoting our managed properties through 3D virtual tours and in conducting online inspections to boost its charm and occupancy rate. 
  • Client Experience Team in providing faster responses to the queries of our stakeholders using Chatbots and Whatsapp Chat features. 
  • Business Development team in tracking the progress of the projects and in analyzing bulky data to provide better insights to our stakeholders. 
  • Client Relationship Team in providing great services to the stakeholders through instant gratification, staying in touch with the potential clients, and keeping a track of emails. 
  • Property Managers in communicating with the landlords, tenants, owners, and all our stakeholders and in providing faster responses to their queries & requests.
  • Technology team to develop a newfangled Whatsapp Chat feature, Online forms,  that empowers our Property managers in managing diverse functions across Kaizen AMS’ managed properties. 

Hope you liked the article. For more informative articles related to UAE real estate industry, please visit https://www.kaizenams.com/blogs/. Follow Kaizen AMS  on LinkedIn, Facebook, Twitter, and Instagram.

How Banks Managing their own Properties are hurting their ROI?

If you are a bank or financial corporation, it makes less sense for you to manage your properties as it is a very time-consuming task and costly affair too. Furthermore, if the leadership of the bank is not an expert in managing properties, it can have a serious impact on the bank’s Net Operating Income (NOI). NOI is a calculation done to analyze the profitability of income-generating real estate investments. It equals all revenue from the property, minus all reasonably necessary operating expenses.

The secret behind the success of several top international banks is that they hire experienced property management firms to manage their properties and allocate their entire workforce with the task of maximizing profits and expanding the asset portfolio. This way these banks achieve optimum utilization of resources and boost their portfolio.

Let’s find out how hiring a property management firm can act as a catholicon for the UAE Banking sector –

1. Managing the Properties Occupied by Banks Due to Loan Defaults

Banks & financial institutions keep assets or homes as collateral security while issuing a home loan. When a borrower is unable to pay the loan, banks take over the property as a measure for recovery or reconstruction to reduce their non-performing assets (NPAs). However, considering banks neither have the expertise nor experience resources to manage these properties, they end up losing their value as time passes. And it’s no surprise when banks sell it to the third party to recover the loan amount they don’t get the value equal to the loan amount. This results in massive losses for the banks.

It is of utmost importance for the banks to hire a property management firm to manage these properties to ensure they stay in better shape and their condition doesn’t deteriorate. Property management firms perform timely maintenance, repairs, upgrades, renovation and leverage their unconventional expertise and technologies like (PropTech) to ensure property always looks news and its value doesn’t decline.

2. Overcoming the Knowledge Gap

Along with time & resources, managing a property also requires extensive knowledge to ensure not a single aspect is left out. The process of managing a property is almost a journey that involves a vast range of activities. If a bank manages the property itself, it will be a very costly affair for them. Furthermore, even a tiny error committed by them due to lack of expertise can take a toll on their NOI as well as their valuable brand image, and customer confidence. 

3. Countering the Legal Risks 

If a bank fails to manage the property in the desired manner, might be due to lack of expertise or time constraints, it can invite several legal challenges for them. Hiring the right property management firm can play a great role in ensuring that high levels of compliance are met and property remains up-to-date through timely repairs. Property management firms also provide a dedicated technical inspector to analyze and fix any potential defects well in advance.

4. Economies of Scale

Another great advantage of recruiting a property management firm is they have access to a vast number of bonded, insured, and licensed contractors who can offer substantial discounts for consistent workloads. This will not only save money for the banks on repairs & damages but will also result in an increase in the value of the property.

5.  Effective Management of Finances

Property management ensures that all the payments of the banks related to the building such as – rent, service charge, utility bill, etc. are made on time which not only assists banks in effectively managing their finances. Property management firms also ensure that banks follow all the terms stated in the lease agreement pertaining to payment guidelines and late fees or any other important thing to avoid financial penalties. In this way, property management firms allow banks to boost their NOI.

6.  Wide Reach with High Returns

It is no secret when the banks manage their real estate investment; they restrict themselves just to investing in the nearby locations. This way banks miss out on numerous profitable opportunities which can benefit them and also elevate their NOI figures.  Hiring a property management firm can work wonders for the banks in easily managing their real estate investments. Furthermore, the high reach of property management firms also facilitates banks in setting up their branches in any part of Dubai or the UAE. More number of branches prominently at profitable locations has a favorable impact on the net operating income of the bank as well as in boosting its cash flows. It is always difficult for banks to manage their properties from long distances, creating an urge to hire a property management firm. For example – if a bank has one office in the Dubai South area and another branch in Hatta and the third one is Deira, it will be ‘nigh on impossible for the bank to manage all its branches. 

Thus, it makes sense to hire a property management firm as they have a wider reach and workforce to manage each property based in any part of the emirates. It will cost banks a fortune if they try to manage all the properties themselves in terms of operational cost, time, and manpower. It can also result in high customer turnover due to poor management of the property as well as the services.

7. Making Your Investments More Profitable

A right and an experienced property management firm can take care of most of the aspects currently managed by the banks which will allow them to focus more on making more profitable investments and growing their investment portfolio. This has a profound impact on the bank’s NOI.

Property management also manages all the responsibilities related to the bank’s premises in a more professional & timely manner to enhance its condition as well as boost the profitability of the bank’s income generated through real estate investments. 

Summary

Property management firms can play a vital role in boosting the net operating income or NOI of a bank. They assist the banks in overcoming the knowledge gap by leveraging their wealth of experience in making the properties real ‘cash cows’ for all the associated stakeholders. Furthermore, property management firms also enable & empower banks in countering the complex legal & final challenges which can result in hefty lawsuits and loss of revenues. Property management firms also ensure that all the business payments or bills are paid on time which provides a transparent and real picture to the banks on their financial position. They also make sure that banks always abide by the terms stated in the lease agreement pertaining to payment guidelines and avoid any unforeseen situation which can adversely impact the NOI of the building.

The top reason for the banks to choose a property management firm to improve their NOI is their wider reach as they have offices or property managers in every part of Dubai. Thus, they can manage a large number of branches of the banks in a more professional and cost-friendly manner which will have a profound impact on its net operating income and make their investment more valuable. As they say,  ‘ a penny saved is a penny earned’  – a property management firm will not only allow banks in saving the money but will open a reservoir of sources for them to expand their investment portfolio, maximize the revenues, and enhance the NOI.

For a more informative article like this, please visit – https://www.kaizenams.com/blogs/. Follow Kaizen AMS on Social media – LinkedIn, Twitter, Facebook & Instagram

Kaizen AMS Reinforces its position as the ‘Most Customer-Centric Company’ in the Industry

We are delighted to share, Kaizen Asset Management Services (Kaizen AMS), has been recognized across various categories at the prestigious International Real Estate Community Management Summit (IRECMS) Awards held on the 8-9th December 2021. The winners were announced at JW Marriott Marquis Hotel Dubai where the Awards Ceremony took place. 

IRECMS Awards is an initiative to recognize UAE-based companies that are delivering outstanding results in the field of Community Management, Facilities Management, Property Management, and Real Estate in general. IRECMS Dubai Awards is an authentic platform that will recognize meritorious efforts, regardless of the company size and scale. It comprised 15+ categories which were vetted by a Jury and Advisory Council comprising global leaders within Community Management.

Kaizen AMS was awarded as the winner in the category Most Customer-Centric Company of the Year, for its continuous investment in innovative technologies to improve the overall customer happiness by simplifying our communication process with the residents through new and existing communication technology. Kaizen overcame all odds and bottlenecks by deploying its eccentric technology to maintain the utmost resident satisfaction. This comes as another feather in Kaizen’s cap, after winning the Customer Happiness Award at the SBEF Awards only a few months earlier, further reinforcing Kaizen’s Customer-Driven approach of keeping the customer at the heart of its existence.

On the occasion, Fadi Nwilati – the CEO of Kaizen AMS said, “I am receiving this award on behalf of 100 Kaizeners who are dedicated to innovate and deliver excellence to our customers. On behalf of Kaizen, I wish to thank the organizers and the judges for recognizing the leaders in this industry and I would like to dedicate this award to our 23,000 and growing customers without who’s feedback, positive and negative, regular interactions, trust, and support – we would not be able to point out, what it takes for us to make the experience best for them.”

Additionally, Kaizen AMS was awarded the Runners-up position in the categories of Best Crisis Management Initiative of the Year for the initiatives in restricting the spread of the Covid-19 pandemic across its 100+ managed communities, and the residents remain uncompromised; and Best Property Management Company of the Year for facilitating swift and hassle-free communication between the residents at its managed communities and Property Managers by implementing its revolutionary Whatsapp Chat feature, maintaining higher occupancy rate and resident satisfaction, and adopting greener technologies to protect the environment and minimize energy consumption. 

Kaizen as an organization was recognized for showing agility in adapting to newer, innovative ways to continue serving their customer needs, especially in the constrained times of pandemic while expressing empathy to the unique needs of the customers.

Other categories where Kaizen was nominated as a finalist included Best CM Company of the Year and Best Implementation of Technology.

5 Ways Your Property Manager is Decreasing the Value of Your Property

Successfully managing a property is indeed not a ‘walk in a park’ or an easy task. It requires a specialized set of skills proven with years of experience to do that.  Several developers consider hiring a property management firm as an additional cost. There is a common notion among many developers that if they manage their own property, it will result in more savings and a reduction in the operational cost of the building, thus maintaining its property value. However, that’s miles away from reality

Several developers don’t have the necessary experience as well as complete know-how on various landlord-tenant laws and other laws regulating the real estate sector. This often costs the developers and landlords dearly in terms of legal penalties. Furthermore, many developers fail in the adoption and implementation of building management technologies or PropTech which costs developers a fortune in terms of poor maintenance of the building, high operational cost, surge in service charges for the residents, decline in tenant retention rate, and lower occupancy. These factors also have a profound impact on their Return on Investment (ROI) for the developer. Thus, in all fairness, it makes sense for the developers to hire a professional property management firm as they can assist developers in making wise decisions and taking care of their tenants while they focus on the ‘greater good of their business.

It is also crucial to hire an experienced property management firm to manage your assets as an inexperienced property manager can cause equal damage to the property value. Several developers prioritize the service fee while shortlisting the property management firm, however, that’s not a wise practice. A saving of AED 30,000 in service fee can cost developers 10-20 times more if the property manager fails to address tenant grievances, satisfaction rate, service charges, operating cost, occupancy rate, sales & marketing of the units, and timely maintenance and upgrades of the building due to poor management. Thus, it is always important for the developers to prioritize the experience, and expertise of the property management firm or property managers over the service charges. 

How Can an Inexperienced Property Manager Devalue Your Property?

Here are the common mistakes committed by the many property managers which can adversely impact the value of their property:

1. Lack of Maintenance & Upgrades:

Timely maintenance and upgrades can ameliorate the condition of the property and ensure its value stays stable. However, developing a viable plan to ensure timely maintenance is still trivia for global property managers as well as developers. 

Due to the lack of effective management or negligence of your property managers in conducting timely maintenance & upgrades, the property can fall victim to wall crack, ceiling, peeling paint, dampness, timber decay, fungi, sagging or deformation, erosion of mortar joint, insect or termite attack, roof defect, etc. Lack of timely maintenance & upgrades is to blame. This will result in a substantial decline in the condition and the value of the building. 

As an experienced property management firm, Kaizen AMS addresses the following issues through effective planning. Our highly experienced property experts do a well-thought analysis of the costs involved in performing the maintenance & upgrades and design a well-analyzed budget to manage future expenses. Kaizen AMS’ experts always make sure that they come up with a plan that is in the best interest of the building’s performance as well as the pockets of the developers.

2. Higher Time to Market:

Marketing the property has become quite challenging in the last decade. Earlier, developers used to rely on the traditional methods of promoting the property, either through networking or newspaper advertisement. However, the advent of technology has completely disrupted the real estate industry. Unsurprisingly, many developers are still struggling to comprehend technological changes. Today, most of the properties are sold online in their initial construction phase and on social media in their initial construction phase. Developers are losing big for missing out on attracting buyers to their properties by not embracing the technology and by working with an inexperienced property manager. This is resulting in properties being sold at lower prices which are negatively impacting the property value.

Furthermore, several traditional developers & their property management firms neither have technology nor systems in place to document the details of property and buyers nor have the knowledge of the right platforms to market their property. This is resulting in higher time to market (TTM) which has a drastic impact on the cash flows & the overall revenues of the developers. 

3. Lack of Proper Tenant Screening & Document Management:

Tenant screening is another ‘boil the ocean’ task for several traditional & small developers and landlords. They don’t have a viable process to conduct tenant screening which is an integral responsibility of a developer. This is maximizing their potential liabilities and possibilities of handing over their properties to the wrong tenant. Furthermore, lack of tenant screening is also an invitation to rent payment defaults & delays which can impact the revenues and brand image of the developer and ultimately results in the decline of the property value.

Several developers & landlords with a lack of technology usage in their business operations also face challenges in managing the documents submitted by the tenants for screening purposes. This often leads to missing out on or losing important tenant information which can create a problem for the developer in the long run. Lack of document management process can also lead to an inaccurate accounting of rental income and poor planning and strategic decision making.

It is also crucial to screen retail tenants in accordance with the retail strategy/tenant mix plan. A viable and well-thought tenant mix plan can play an important role for the retail sector in designing a strategy to attract tenants. If a property manager identifies an anchor tenant prior to the completion of a commercial property or a new mall or series of shops it can attract several new tenants. The property manager must also brainstorm on the concepts that will complement other concepts to multiply the tenants and increase the occupancy rate of the property.

4. Lower Tenant Satisfaction & Retention Rate:

For decades, several traditional developers and landlords have managed their properties themselves. This was easier back then as there was not much competition. Moreover, due to the limited number of developers in the market, tenants also didn’t have much choice. However, with the passage of time, the industry has become much more competitive with the entry of several world-class developers in the UAE. Thus, it has become pivotal to adopt newfangled technologies to offer higher value to the tenant within limited rent & service charges. This will uplift the level of tenant satisfaction score and retention rate and allow the developer to gain a competitive edge over rivals.

All this might look simple on paper but accomplishing it has been a ‘hard nut to crack’ for several property managers globally, creating an urge to choose Kaizen AMS’.

5. Invitation to Legal Problems’

With the advent of technology, it has become much easier to access information in a few clicks. This has empowered the tenants & residents more on their rights. 

Although it is good practice to know more about your rights in many cases, it has also given an invitation to several legal challenges for the developers. 

A minor error of the property manager has resulted in tenants filing hefty lawsuits against the developers, resulting in a serious loss of revenue and reputation. Thus, it makes sense to hire a property manager who possesses a thorough knowledge of local laws & regulations to comprehend these situations.

The Kaizen Difference:

Without a shadow of a doubt, hiring an experienced property management firm can assist the developers in overcoming all the pressing challenges discussed above, to keep increasing the value of a property:

Here are some ways through which Kaizen AMS’ Property Managers Enhance the value of the property:

1. Ensuring a Robust & Compliant Building Design:

Hiring the right property management firm during the construction & design phase can assist the developers in constructing robust building infrastructure which stands tall on compliance. During pre-occupancy, property managers assist developers in procuring all necessary operating contracts.

Kaizen AMS’ Property managers are well-equipped with advanced property management technology to overcome many issues that arise during the design & construction phase. We continuously invest in developing as well as in investing in PropTech software to curtail any possibility of defects as Kaizen AMS understands that such errors can seriously damage the reputation of a developer, and can adversely impact the value of the property. Furthermore, our property managers always keep an ‘eagle’s eye control’ on the budgets allocated by the developers to ensure the construction of the building is completed within the assigned budget by developing a well-thought budgeting plan.

To know more about the crucial role property management firms can play during the design and construction phase of a building, kindly go through an insightful article titled –Why are developers not consulting Property Managers during design and construction?” by Mr. George Malakos – Business Development Director at Kaizen AMS.

2. Timely Renovation & Maintenance:

 ‘Old is gold’ – unfortunately this phrase doesn’t stand right in the case of property. Irrespective of how better the property looks today, as time passes the building gets exposed to wear & tear which is very much noticeable by the buyers and has a detrimental impact on the value of the property. Building infrastructure, plumbing, and electrical arrangements & setups get obsolete which reduces its charm among the potential buyers & tenants. 

With the passage of time, buyers have now become more aware and conscious and they closely inspect for defaults and patchwork done on the property. They also thoroughly check for ventilation and sunlight. These factors have a deep impact on the value of the property. Conducting timely up-gradation and home renovations are the ‘cherry on the top’ as they transform the condition of the property and prevents it from going outdated. 

The significance of timely renovations can be understood from that statement that a two-decade-old property can attract more buyers and price compared to newly furnished if it is well-maintained. An experienced property manager can play a major role in keeping the property up-to-date and as per the dynamic requirements of the buyers & the industry. Furthermore, property managers can work around renovating and upgrading all available amenities such as – swimming pools, community centres, gyms, children’s parks, etc. to galvanize the value of the property and keep it as per the dynamic requirements of modern buyers.

Kaizen AMS’ property managers ensure timely renovations of the building to maintain its elegant interior & exterior. In this journey, our property managers also tie up with the building maintenance specialists such as – contractors, plumbers, technicians, and electricians and also leverages the power of advanced Building Automation System (BAS) to get timely updates on the current condition of the building and perform renovations accordingly. 

Kaizen AMS’ Property managers also conduct manual inspections to identify any snagging issues in the building. They often prioritize those parts of the building for renovation which are either out of date as per the building’s current code requirements or have the biggest impact on the value of the property with minimal investment. 

3. Minimizing Rent Defaults through Effective Screening & Documentation:

Kaizen AMS conducts an in-depth screening and background verification of the tenants and asks for both electronic & hard copies of all relevant documents before the final handover of the property. This significantly minimizes the possibility of rent defaults or delays. Furthermore, Kaizen’s property managers work around framing viable policies & frameworks to curb any practice that can adversely impact the revenues of the developers as well as the value of the property. We professionally address the cases of payment arrears, forms of breaches, and dishonored cheques and also make recommendations to the developers on the best ways to collect arrears from the tenants. 

In some cases, some of the property management firms also engage with collection agencies to assist with legal actions taken by the client against tenants. They also communicate & arbitrate all settlement arrangements with tenants.

4. Working on Reducing the Service Charges to Boost Tenant Satisfaction:

Higher service charges have been the biggest culprit in deteriorating the tenant’s satisfaction with the residence and his length of duration at the property. To ensure minimal service charges at its managed communities, Kaizen AMS’ property managers continuously invest in Property Technology or PropTech to minimize the operational cost of the building which results in lower service charges and energy bills for the tenants and homeowners.

Tenant satisfaction also has a direct impact on the property value as well as the brand image of the developer. It also positively impacts the ability of the developer to attract more tenants to their properties, resulting in more revenues for the developers.

5. Making Properties ‘Smarter’

Kaizen AMS’ property managers lay special emphasis on making the properties smarter. They liaise up with building automation firms to perform advanced technology upgrades to increase the value of the property. 

Some of these upgrades include – voice control, remote access over a home, a wirelessly controlled network of devices, installing advanced security features like home surveillance systems to send intelligent notifications, lighting control, and automated window treatments. Our managed communities are under the surveillance of CCTV and monitoring devices 24×7 to ensure the utmost security and convenience of the residents. 

Smart properties have a positive impact on tenant satisfaction, occupancy rate, revenues of the developer/landlords, and above all the value of the property.

6. Marketing of the Property:

Kaizen AMS’ property management team starts marketing the property even before its construction is completed or ideally when it is 50-60% completed. This practice ensures targeting the buyers in the initial stage before they make their mind to go with the other developer. It also ensures property doesn’t stay vacant for long and the developer doesn’t incur a loss. Kaizen’s Property managers try to create a buzz about the property to attract more buyers and ensure the property is sold at its highest value and fetch rents that are at par with the industry’s average. 

Some of the ways a Kaizen AMS’ Property Manager does marketing of the property are as follows:

  1. Posting an advertisement on the prominent property websites to capture most of the buyers during the initial stages of construction
  2. Working on the Search Engine Optimization (SEO) rankings of the property advertisements to get it more attention on the internet
  3. Spreading a positive ‘word of mouth’ about the property to build a favorable brand image of the developer and attract more buyers through referrals
  4. Marketing the property in  the local real estate portals and newspapers to target buyers from every segment
  5. Promoting the property on signage as well as through local bulletin boards
  6. Tie-up with developers or media companies to advertise the property in weekly & monthly news publications 

7. Prevent Legal Challenges: 

Undoubtedly, hiring a professional & experienced property management firm like Kaizen AMS can protect the developers from several legal issues which can prove extortionate for them. Kaizen AMS’ property managers are very much familiar with State and Local tenant-landlord laws and safety codes. Furthermore, we also have a large team of lawyers or legal experts who have decades of industry experience. They guide our property managers on the next steps in case the developer faces any legal issues. 

Summary:

The top ways in which your property managers are decreasing the value of your property are –

  1. Not performing timely maintenance & upgrades
  2. Lack of technology adoption leading to higher time to market 
  3. Lack of effective tenant screening & document management which is leading to frequent defaults and delays in the rent payment. This is adversely impacting the revenues and brand image of the developer and the value of the property
  4. Ineffective management of tenant grievances leading to lower tenant satisfaction & Retention Rate with lower occupancy
  5. Inviting legal issues & hefty lawsuits by not managing the property in a professional manner

The Need for you to Choose Kaizen AMS – (a top 3 Property management firm in Dubai)

Kaizen AMS property managers:

  1. Assists developers in procuring all necessary operating contracts during pre-occupancy and provides their valuable advice during the design and construction phase
  2. Performs renovation & maintenance of the property on a timely basis
  3. Conducts an in-depth screening and background verification of the tenants and also asks for both electronic & hard copies of all relevant documents before the final handover of the property. 
  4. Continuously invest in Property Technology or PropTech to minimize the operational cost of the building which results in lower service charges
  5. Liaise up with building automation firms to perform advanced technology upgrades to increase the value of the property. 
  6. Market the property even before its construction is completed or ideally when it is 50-60% completed to ensure the majority of units are sold by the time building is completed.
  7. Backed by a large team of lawyers & legal experts protect the developers from complex legal challenges.

Dubai’s Real Estate Market is Thriving in 2021 – What’s the impact?

Dubai’s real estate sector is going through an interesting phase of transformation. Effective planning has enabled the city to navigate through the global economic slowdown and strengthen its property sector reforms. 

Dubai’s real estate market set a new benchmark, the highest in the last four year by value of real estate sales transactions. The 15th edition of Mo’asher, Dubai’s official sales price index, by Dubai Land Department (DLD), shows that May 2021 had the highest total sales transaction values since March 2017 in excess of Dh11.11 billion, with a growth 1.4 % compared to last April. The number of real estate transactions in May 2021 reached 4,429, bringing the year total, to date, to 20,989 transactions worth Dh47.19 billion.

While the global property real estate sector was battling for its survival in 2020, Dubai’s real estate market was thriving like never before. This was very evident from the number of sales transactions recorded by the Dubai Land Department (DLD). The sector recorded 51,414 transactions worth over Dh 175 billion in 2020 as per the annual transaction report issued by the Dubai Land Department (DLD). 

The first quarter of 2021 has come up with more reasons to cherish for the real estate headhonchos. Due to decline in property prices & rental rates, the sector witnessed the highest number of transactions in the last two years. 

Let’s take a look at Q1 2021 performance:

Dubai Real Estate Sector: Q1 2021 Performance

The recent bulletin issued by Dubai Land Department (DLD) titled ‘Real Estate Updates Q1 2021’ highlights the sector’s continued positive results in Q1 2021. Real estate transactions reached their highest mark since 2017, registering 6,590 deals valued around AED 22.9 billion, growth in number by 43% and in value by 40% year-on-year. 

The real estate transactions in Q1 2021 achieved a phenomenal growth of 27% and 47% compared to Q1 2020 and Q1 2019, respectively. The value of real estate brokerage commissions achieved by active real estate brokers in the real estate market reached AED 392 million in Q1 2021, while 143,374 Ejari contracts were recorded in Q1 2021, 57% of which were new contracts and 43% were renewed contracts.

Dubai’s Skyscrapers are Standing Tall on the Expectations of New Investors:  

Despite all market uncertainties, the Dubai real estate sector has not lost its charm. According to the DLD bulletin for Q1, 2021, the sector attracted 5,683 new investors, which was 64% of the  total number of investors. The Dubai property market has been highly successful in winning the trust of both local & international investors. 

The areas that remained ‘an apple of an eye’ of investors to buy villas in Q1 2021 include – Hadaeq Sheikh Mohammed bin Rashid, Wadi Al Safa 5, Wadi Al Safa 7, Nad Al Sheba 1, and Al Thanyah Fourth, as per the bulletin.

The areas that remained the top choice for apartment sales are –Dubai Marina, Palm Jumeirah, Business Bay, Burj Khalifa, and Al Merkadh were the top choice for apartment sales. 2021 will prove to be more positive for the industry as the demand-supply ratio is heading towards stability and expected to remain relatively resilient to the effects of 2020.

Growth Drivers:

Rising cases of covid-19, strict travel restrictions, lengthy lockdown phase, economic slowdown, and massive business losses due to lack of demand & job losses, were the top reasons for the global investors especially from Europe, India & North America to invest in Dubai real estate market. There has been an enormous rise in the number of affluent investors from Britain, Italy, France, and Germany buying villas and holiday homes in Dubai due to rising cases of coronavirus in their respective nations. Even in the middle of the pandemic in 2020, the Dubai real estate market got a big boost from foreign investors. According to the data posted by Gulf News, in 2020, Dubai’s real estate market attracted 19,757 foreign investors, who concluded 24,666 investments worth over Dh35.6 billion.

The triumph of the UAE real estate sector is also attributed to its visionary national leadership for coming up with business-friendly measures like FDI laws, restoration of relations with Qatar, fastest and well-executed Covid vaccination drive, digitization, reduction of interest rates, Expo 2020, increase in LTV ratios for the first time buyers of the property, long-term residency visas, and launch of golden visa to offer quick pathway to citizenship. 

In 2020, Kaizen AMS witnessed many of its prestigious real estate clients coming up with new units as demand for the property increased exponentially. This has positively impacted our business last year. Banking on the favorable business climate, government measures, real estate spending, and rising foreign investments, Kaizen AMS is all set to thrive and expand its client portfolio several folds in 2021.

Key Factors to Consider When Choosing Property Management Firm

Property is indeed one’s most valuable possession. It requires professional and proactive management to nurture it. To ensure that a property always remains in better shape and its value doesn’t deteriorate, it is of paramount importance to choose an experienced, transparent, licensed, and responsive property management firm.

Selecting the right property management (PM) firm can be an overwhelming task, especially for the first time. There can be multiple questions coming to the mind such as – what should be their experience level, regulatory requirements, fees, client’s list & testimonials, reviews, etc. This article will clear all your doubts once in for all.

Here are some tips on choosing a great property management firm: 

Property Management Experience:

Experience always speaks louder than words. The number of years of relevant industry experience property management (PM) firms possess always holds an upper edge and is an ideal way to evaluate its potential. It is vital to go through its list of clients served available on the website or in the company’s publication. This will provide an idea on whether the property management firm only possesses experience in serving clients with similar requirements or is also well-versed in catering to the dynamic and inimitable requirements of real estate clients from diverse backgrounds.

Technology:

Technology has played a vital role in facilitating easy accessibility and keeping the property management firms closer to the tenants. There is no need for the tenants to visit the office as they can communicate with property management firms through phone, WhatsAPP, email, and electronic communication means. 

Leveraging its state-of-the-art customer communication platforms, Kaizen AMS provides 24/7 Support via calls, emails & WhatsApp. We offer real-time reporting & solutions for all maintenance-related issues to elevate the standards of customer experience. Kaizen AMS simplifies the move-in & move-out process for the tenants through automation by building a seamless process for all other requests via. its innovative online platform. All of our internal & external business stakeholders can connect with us via. phone, Whatsapp, email, or by scheduling a video call with the Experience Manager.

Research:

Spending time & money on research might sound like an extra cost; however, it is indeed an undeniable fact that this exercise can avoid choosing a wrong property management firm. 

Prioritize a PM firm which has more experienced Community Managers. Visit LinkedIn and select the name of the property management firm. Then click on the employees’ profiles to find out the details on their work experience in serving various communities and whether it matches your requirements. Selecting a property management firm with an experienced staff is some sort of assurance of receiving quality service with minimal complaints from your tenants.

It is also crucial to research the staff turnover. A high staff turnover reflects that experienced staff rarely stays with the company. This dilutes the experience of overall staff, which can take a toll on the level of services offered. It also makes sense to do a cost-benefit analysis of the fee charged by the property management (PM) firm and the level of services offered.

Devoting time to investigate these facts will reflect on the delivery of the service and can save you from making costly mistakes.

Compliance:

While selecting a property management firm, it is recommended to check whether the firm complies with the guidelines set by RERA – Dubai Land Department

To stay tall in terms of compliance, a property management firm must possess all necessary certificates such as – tax compliance, business registration, insurance certificate, and other local authority requirements. Any extra professional affiliations and certifications such as International Standard Organization (ISO) will be a plus. 

Reporting:

Reporting is a key requirement for business engagement. The property management firms which release business reports on a timely basis have better chances of securing more business from bigger & compliant real-estate firms. The primary objective of these reports is to make all relevant stakeholders aware of its current situation with a strategy to improve the numbers in the near future. 

Some of these business reports include – 

  1. Tenancy reports: these reports offer regular updates on occupancy, turnover rate, and pending notices
  2. Financial reports: these reports provide information regarding the business margins, a summary of rent collected, agency fees, other service fees, and managing expenses
  3. Ad-hoc reports: these reports offer insights on industry trends and the factors which can act as disruptions. Thus, it facilitates in making quick decisions.

Go through Internet Reviews & Testimonials:

Based on internet reviews, real estate firms evaluate which property management firm matches their requirements even before initiating the conversation. It is important to check Google reviews and Yelp reviews of the clients they are working with or have worked with along with comments across social media platforms. They both work best as a valuable  resource while comparing multiple companies at a time.

The information on the quality of work delivered by the property management firm can also be collected through personal or professional references or relationships. This is one of the most viable & reliable ways to analyze the capabilities of the property management firm.

Thoroughly Review the PM Agreement:

Property management agreement clearly outlines the business relationships between a client & property manager. The document offers briefs on the services offered by the property management firm, the owner’s responsibilities, contract duration, and termination clauses.

The property management agreement must clearly explain the insurance protection policy – including to what extent the firm is insured. Whether the PM firm has just appropriate general liability insurance, or it possesses property-casualty insurance, errors, and omissions (E&O) policies, etc. Property management agreement must be read carefully and required changes must be made before signing off. It must be made sure that the document has no disagreeable clauses.

Property Management Fees:

Property management fees must be reasonable to offer quality services with better margins. It is important to decide which payment model should be followed as some property management firms charge a fixed fee, while others charge a percentage of rent collected, or a blanket fee based on the business needs. Some companies also charge a commission-based rate combined with other incentives paid for excellent services offered to the tenants. 

Financials:

Financials of a property management firm play a critical role in its selection. Selecting a financially sound PM firm ensures that there won’t be challenges in employees receiving their salaries on time and are better taken care of. This will boost their morale and will also result in the client receiving improved services. 

On the contrary, selecting a property management firm with poor financials reflects that its employees are or might be in near future face challenges in receiving salaries which will lead to low morale, poor service, unexplained delays, and other bad traits. It is also an invitation to fraud and other unwanted events which will ultimately have an adverse impact on the brand image. 

While selecting a property management firm, it is important to review its balance sheet, cash flow statements, P&L statement, liquidity ratio, acid test ratio, and audited books of accounts.

Reasons to Choose Kaizen AMS as Your Property Management Firm:

Here are the top reasons to Choose Kaizen AMS as your preferred property management firm:

  • 13000+ units managed across the UAE
  • Developed list of ERP, CRM, and Maintenance platforms inhouse which easily gets integrated with client’s systems
  • Proud corporate member of the U.S. Green Building Council
  • ISO 9001:2015 certified company
  • Some of the highest occupancy rates in its managed properties across U.A.E
  • Proud winner of a list of prestigious industry accolades such as – Superbrands, multiple awards including Gulf Real Estate Awards for ‘Best Employer in Real Estate’ and ‘Best Consultancy in Real Estate’ –2018, ‘Best Owners Association Management Initiative’ & ‘Best Media and Communications’ -2019. Additionally, the most recent include being featured on the Influential Companies of 2020 list by CM Today publication.

7 Reasons for Rising Allocation of Family Offices in Real-Estate

Family offices play a crucial role in the investment and management of funds to sustain long-term wealth. Post the global financial crisis in 2008, the stock market has consistently hit its peak levels with global wealth rising like never before. Family offices have always facilitated the elite in taking control of their financial fortunes through single or multiple-family offices. As per the research conducted by Dominic Samuelson, CEO of Campden Wealth, family offices currently hold assets over USD 4 trillion globally. The credit goes to the colossal increase in the number of billionaires across the globe.

The world we live in is unpopular for its unequal distribution of wealth, which is one of the biggest reasons for the swift rise of family office culture. According to the Global Wealth Report -2019 from Credit Suisse, 44% of global wealth belongs to 46.8 million millionaires. Advent in technology and easy access to information has allowed the elites to leverage investment management solutions that were exclusive to investment banks earlier.

Family Office: What does it mean?

A family office is a comprehensive financial shop for opulent people. It serves as wealth management and financial advisor for high net worth (HNW) clients with a special focus on the “ultra-high net worth’ segment.  The “ultra-high net worth’ category is usually defined as anyone with $30 million or more to invest.

There are two main models of family office:

The Single Family Office: Single Family Office is a financial advisor that serves only one client and manages their massive fortune. This concept originated in Europe.

The Multi-family Office: Due to the emergence and implementation of innovative technologies, the efficiency of financial firms has expanded and they have started serving several clients at the same time. The multi-family Office firms serve more than one client although the client base of multi-family Office firms remains the super-rich high net worth (HNW) individuals.

Services Offered by the Family Office:

The major services offered by the Family office includes – tax planning, investment management, budgeting, insurance, wealth transfer, managing the buying and selling of properties, guiding the firms on their charitable donations, advice, concierge, and other wide range of services.

Growth Drivers:

The prominent factors that attract the world’s elite towards the family office model include – cost-efficiency, increased customization, flexibility, and greater control.

Exponential Rise in Family Office Culture in the Middle East:

The importance of Family offices is rising every day for the real-estate markets in the Middle East. In the last decade, there has been a colossal rise in the transfer of wealth from corporations to individuals in the region. According to the research conducted by the Boston Consulting Group (BCG), the privately-owned assets in the Middle East will account for US$11.8 trillion by the end of the year 2020 (report post-COVID), with the UAE, Saudi Arabia, and Kuwait, accounting for over 22% of the total.

As per the report by Campden Research in July 2019, pre-COVID there was no sign of this trend abating, with key global research, quoting that there was estimated to be 7,300 single family offices worldwide, with collective estimated assets under management of US$ 5.9 trillion. Meanwhile, the wealth of the families behind them totals a vast US$ 9.4 trillion. With such a huge pace of wealth transitioning in the hands of private players, the family office culture has emerged as a key influencer in the private wealth sector in terms of fund investors and structuring trends.

There is huge outstanding liquidity on the wealth held in Gulf nations. Around 82% is held in investable assets as compared to the global average of 60%. As per PricewaterhouseCoopers (PwC) Private Equity Trend Report 2019, 73% of private equity firms consider family offices as the potential investors in their next round.

Factors Driving Allocations of Family Offices in the Real Estate:

In the last few years, there has been a rising trend of Family offices increasing their allocations to real estate. The top reasons behind this rapid increase include – asset class outperforming other asset classes, low-interest rates paid by the banks, and the potential of wealth that real estate can create for the future.

Here are the different motivations for family offices to invest in Real-estate –

Diversified Asset Allocation:

There has been a rising trend of diversified asset allocation as several families consider real-estate and hard assets as an indispensable component of a balanced investment portfolio. Since its inception in 1950, Modern Portfolio Theory (MPT) has had a major influence on institutional investor allocation strategy. Taking the idea from the MPT, the Yale Model was developed and imitated by several institutional investors. These investors witnessed numerous benefits of deploying capital away from traditional methods such as stocks and bonds, in favor of alternative investments including hedge funds, private equity, and real estate. It has become standard for institutional investors including family offices to consider diversification and alternative investments outside of purely stocks and bonds.

Boosts Cash Flow:

Family offices prize cash flows and revenue streams in their investments. A family-office can own property based on the structure of the real estate investment which provides it with cash flow. Family offices always allure the clients to owe properties by highlighting them the opportunity to earn income on top of asset appreciation. Family offices also target those families which are least interested in investing in the real estate market through other indirect ways of investment which has a positive impact on the cash flows of the real estate firms. These involve – limited partnership funds or agreements, Real Estate Investment Trusts (REITs), mortgage securities, royalty trusts, and other real estate-related vehicles. This has a positive impact on the cash flows of real estate firms.

Lower Interest Rates:

Global investors especially from the US and Europe are exploring inflation hedges due to very low-interest rates in these countries. A list of hard assets with basic value such as – gold, land, timber, foreign currency, etc. has become a standard component of many investors’ portfolios.  Several family offices perceive the real estate sector as a method to gain from an increase in asset prices and income benefit from rising asset prices to earn income from multifamily housing, commercial buildings, and hotels.

Longer Investment Period:

One of the most distinctive aspects of a Family Office is they have a scope for long-term investment. The single-family office is under no compulsion to distribute returns to investors like LP funds. Family offices are under less pressure for achieving their short-duration gains if there is an opportunity for greater benefit over a longer investing period. They guarantee better performance because of the long-term horizon. Family office might perform poorly compared to fund or could sell at any point in time, the long-term mindset offers extra flexibility with a broader mandate than other investors.  Family offices are the best and most preferred option for the real-estate sector as it follows a longer investing cycle than public equities or fund investments and serves the purpose of long-term investing.

Highly Stable:

The Volatility Index (VIX) is the most preferred indicator to compare volatility. According to VIX, real-estate is a much stable asset class and far less volatile compared to public equities, which have gone through a very long phase of volatility in the last two decades.

Offers Direct Control over the Investments:

There has been a major shift in the desire of the elite class to directly control the investments in the portfolio. This has been the biggest growth driver in the rise of a family office. Post the 2008 financial crisis, the world was seeking an option that offers transparency. Family office emerged as a preferred choice as it facilitates direct investments. Direct investments bring transparency by allowing the investors in exercising complete control over the investments and internally managing the deal processes. In the case of smaller deals, direct investing is the preferred option to purchase real estate properties, or in buying a stake in a firm.

Limited Downside:

Family offices have emerged as a blessing in disguise for the real estate sector in the case of any market correction. They can be swiftly allocated to the real estate sector as they have limited downside. Family offices minimize the possibility of complete loss of the investment value.

Final Words:

Family offices are the need for today’s dynamic world where markets change rapidly. Not only the real-estate but every industry must increase allocations into Family offices to ensure a better and safe future. Since the dawn of the 21st century, the global economy has been trembled by the failure of Lehman Brothers, and American International Group (AIG). The billion-dollar corporations have ended up filing for bailout packages. Hedge funds ended up losing a majority of their investor’s capital.  To counter these catalogs of volatilities, investors are showing interest in investments with intrinsic value and limited downside. Undoubtedly, there is no better option than family offices. Realizing the potential of Family offices and benefits it offers, real-estate firms are increasing allocations into it. Real-estate investments provide family offices with a degree of comfort in comparison to other asset classes that have not been successful in meeting the dynamic expectations of the investors.

As they say, if there is one thing certain that’s uncertainty, rest everything is uncertain. The world of real estate and real asset investments is full of uncertainties. To minimize the level of volatilities involved in the process, the investors will prioritize investments with intrinsic value and with limited downside. This will flourish the future of family office as other asset classes were not able to provide investors with downside protection and live up to their expectations.

Dubai Real Estate Transactions Reach its Highest Figures Since 2013

Dubai’s real estate sector sets a new record in 2020. The secondary market transactions of the property sector crossed an astonishing two thousand mark in November & December which was the highest figure since 2013. 

According to Data Finder, December witnessed 2,485 secondary transactions worth AED 6.12 billion, which was the highest figure in the last 7 years. December 2020 figures were 9.7% higher compared to November 2020 which reported 2,179 deals, which was at the second-highest number since 2013.

The secondary sales were the lowest in April & May 2020 due to the lockdown. However, since the easing of restrictions, the secondary residential real estate sales went on to break all past records.

Annual Transactions Crossed AED 72 Billion:

There were 35,434 transactions that took place in 2020 worth AED 72.49 billion. This comprised 14,749 off-plan properties worth AED 20.31 billion and 20,685 secondary/ready properties, worth AED 52.18 billion.

There were 12,978 transactions took place in 2020 for mortgage deals worth AED87.39 billion. All of them were for secondary/ready property.

Residents Prefer to Buy Property Over Renting : 

Dubai reported the highest sales transactions – both in terms of volume and value in the Q4, 2020. The total number of transactions that took place in Q4 was 11,065 valued at AED 22.07 billion. The prime reason for this surge in sales is most of the residents now prefer to buy the property over renting it.

Top Reasons for the Surge in Transactions:

For several years, immigrants have been hesitant to buy property in Dubai or the UAE as it does not offer long-term stay back options such as – permanent residency (PR) or citizenship programs like Canada, Australia, New Zealand, or the US. However, the launch of the Golden visa program (which offers long-term residence visas to live, work and study in the UAE without the need of a national sponsor with 100 % ownership of their business) has again made the region attractive for foreign investors and immigrants. These visas are issued for 5 or 10 years and get renewed automatically. 

The launch of the Golden Visa program has changed the global perception of Dubai as a stable and immigrant-friendly emirate to work & live just like many western countries. This has attracted more investors, buyers, developers, and talented immigrants to the UAE’s real-estate sector, resulting in a colossal increase in the volume and value of real estate deals.

Furthermore, the list of other government initiatives such as – the enactment of Cohabitation laws, resuming trade relations with Qatar, hosting EXPO 2020, and 100% Ownership of Businesses by Expats, Covid vaccination, and expansionary fiscal stances by the federal and local governments have led to this magical rise in real estate transactions.