It has become increasingly apparent that the multifamily industries march towards web based reporting is accelerating. Even the smaller less technology-orientated companies have begun to request the ability to access information & reports through the web. AIMCO, BRE, EPT, Avalon Bay and McKinley Associates are just some of the companies that chose to go with providers at least in part because they could provide web based reporting. A companion to this trend is the move towards standardization of software through the MITS initiative. Literally hundreds of companies have agreed to these standards, which allow far greater integration of information.

It has also become apparent that more and more companies expect RBCs to provide more than just a billing service. They routinely request services that traditionally would have been outside an RBCs scope of work but are becoming an expected part of the relationship.

These two trends have created some significant challenges that the RBC industry needs to address. Companies must modernize their systems or be left in the dust. The best salesman in the world cant sell a buggy to someone who wants a car. Unless companies move towards providing the services the customers want, they will miss out on many opportunities. Companies must develop the tools the customers want or they risk not only losing out on new business but also losing their current customers.

Already there appears to be a shake out going on in the industry with the companies that cannot provide all of the services the multihousing industry wants losing customers. For companies that only provide traditional RBC services, customer service and personal relationships may temporarily give an edge over the bells & whistles but it is only a matter of time before they are not enough and customers demand not only good customer service and personal attention but also web reporting and integrated services.

The trends mentioned above are still in the relatively early stages so companies still have a little time until they filter throughout the industry. The small independent property owners that continue to operate without modern technology will always be there but once the trends above become universal the larger companies will gravitate to companies that can deliver these services.

Paul Cronan is the President of PAC Consulting. The business provides business research for companies serving the multifamily community. His clients have included utility billing companies, meter manufacturers, software companies, property owners and managers along with companies interested in entering the industry through start up or acquisitions. The company develops business & marketing plans, sales programs, referral sources, subcontractor lists and web advertising programs. It conducts research on products and competition, seeks out acquisition candidates, and makes preliminary contact to determine the desirability to proceed.