The multifamily industry has experienced significant changes with technology integration as professionals have become more adept at incorporating new tools into their workflow. However, one ongoing challenge remains – effectively leveraging these innovations in the critical task of conducting market surveys. Multifamily professionals have traditionally relied on outdated methods, such as collecting market data by calling comps and manually entering it into a complicated spreadsheet, despite having access to platforms that claim to provide data as a service.
This information raises the question, “Why are multifamily professionals manually collecting data if they have already partnered with data providers?” The answer to this question is simple; multifamily professionals crave the weekly real-time data that only a market survey could provide until Radix developed a straightforward solution.
The Disadvantages of Manual Market Surveys
As multifamily companies manage and grow their portfolios, they face the challenge of analyzing substantial amounts of data to make informed decisions. Using manual spreadsheets to collect and process market data poses a challenge due to the manual nature of data entry and manipulation in Excel or similar spreadsheets. By the time the data is collected and triangulated, it is often weeks or even months old. Using outdated data in an ever-moving/fluid market leads to inefficiencies and potential revenue loss.
In today’s fast-paced world, where accuracy and speed are of utmost importance, companies should avoid outdated and error-prone methods like manual spreadsheets. According to Forrester Consulting, 61% of decision-makers in any industry are overwhelmed by the amount of data they need to collect to make informed business decisions. In the multifamily industry, this is crucial for staying competitive.
Reliance on manual market surveys poses a significant risk due to the potential for errors. Sales associates who conduct weekly surveys are often overworked and face the added pressure of gathering critical insights for their properties via comp research and phone calls. Given the volume of data collected and evaluated, the risk of receiving or inputting inaccurate information into a spreadsheet is high.
A study by the University of Hawaii Professor Ray Panko found that 88% of Excel spreadsheets contain 1% or more errors within formulas.
He identified three primary categories of these spreadsheet errors:
Mechanical errors – mistyping characters or referencing the wrong cell.
Logic errors – inputting an incorrect formula.
Omission errors – omitting crucial information.
The fast-paced nature of the multifamily industry places significant pressure on accurately conducting market surveys, consequently increasing the likelihood of mistakes and putting properties at risk.
The Domino Effect
Errors in manual spreadsheets can be costly and cause a domino effect of negative consequences. A single mistake in a data entry or analysis can compromise the integrity of the information, leading to risks that can ultimately impact revenue. For example, JP Morgan Chase lost over $6 billion in the “London Whale” scandal in 2012 solely due to Excel spreadsheet errors. These errors allegedly included copying and pasting inaccurate information from several spreadsheets, causing their value-at-risk models to fail.
Manual handling of data-related tasks raises the risk of adverse outcomes across all industries. In multifamily, completing manual market surveys results in potential inefficiencies.
These inefficiencies can result in the following:
- Data extraction and consolidation that can be slow and labor-intensive.
- Insights that have the potential to be inaccurate, making it difficult to engage in proactive decision-making with real-time data.
- A lack of speed and accuracy and missed opportunities that threaten the credibility and trust of clients.
Market Surveys Made Easy: Radix’s Innovative Solution
Investing in technology that provides data accuracy and reliability is critical for the continued success of multifamily properties. The power of decision-making lies in the data that informs it, and leveraging Radix is an efficient alternative to manual market surveys. Radix offers a tool called SurveySwap™, which streamlines the exchange of information and data between properties and eliminates the need for time-consuming phone calls, web searches, or multiple email exchanges.
With SurveySwap™, users can:
Reclaim lost time by utilizing direct property-generated data to mitigate the risk of uncertain outcomes.
Have real-time visibility into the status and utilization of their assets, allowing for proactive decision-making.
Maintain data integrity, as the monitoring system within SurveySwap™ ensures accountability and accuracy.
Radix is committed to creating a cohesive shared data ecosystem that prioritizes accurate, reliable, and up-to-date information. To ensure data accuracy, Radix has implemented a cutting-edge monitoring system that identifies and corrects inaccuracies promptly. A dedicated team of specialists continuously monitors the platform and communicates with users for flagged entries needing additional validation. The transparency of the data entries and platform activities makes accountability seamless, while the commitment to consistency and standardization creates a reliable source of truth for market surveys. With the assurance of accurate data, users can confidently make informed decisions, knowing that their market data is reliable and trustworthy.
As more properties join the ecosystem and utilize SurveySwap™, the reliance on manual market surveys will become obsolete. By using SurveySwap™ in their processes, multifamily professionals can benefit from reduced risk of errors, increased data accuracy, and an added level of supervision on the information being entered and exchanged.
Schedule a demo to learn more about SurveySwap™
