Risk management at your triple-net (NNN) properties is essential to healthy building operations. Maintaining a comprehensive understanding of all potential risks—from tenants’ financial health to unexpected maintenance issues—and implementing strategies to mitigate these risks are fundamental to protecting your industrial and retail properties. This blog explores ways proptech reduces risk in managing NNN properties, helping you save both time and money.
How proptech reduces risk in managing NNN properties
One of the most effective ways to reduce risk at your NNN properties is by leveraging the power of property technology (proptech). By streamlining operational processes, enhancing oversight, and fostering informed decision-making, proptech plays a crucial role in reducing risk and driving success in CRE investments.
Let’s explore three ways proptech can help safeguard your NNN properties.
1. COI tracking and insurance
Managing insurance for NNN properties is essential for risk management but can be complicated. Automated tracking is one of the effective ways proptech reduces risk in managing NNN properties. Here’s how automated Certificate of Insurance (COI) tracking software can help:
- Streamlined monitoring: Automated COI tracking simplifies the management of insurance documents for your properties, ensuring they meet all requirements.
- Prevent coverage lapses: Advanced AI tools like Jones send automatic reminders for COI renewals, helping prevent any lapses in coverage.
- Identify coverage gaps: These tools can detect gaps in insurance, avoiding issues of underinsurance or non-compliance.
- Easy document retrieval: Digitized tracking makes it easy to retrieve documents during audits or claims, bolstering your risk management.
- Focus on strategy: By reducing administrative tasks, automated COI tracking allows you to concentrate on strategic decisions, driving efficiency and minimizing risks.
In essence, adopting automated COI tracking can make your risk management processes more efficient and less burdensome.
2. Inspections and rounds
Regular inspections are crucial for proactive risk management at NNN properties. However, this essential process can be time-consuming and prone to errors. Mobile-enabled proptech offers a solution, streamlining tasks and ensuring accurate property evaluations.
The benefits of mobile-enabled inspection proptech include:
- Versatile assessments: Engineers can conduct inspections directly from their smartphones or tablets, even offline. This ensures no loss of valuable data due to network issues.
- Streamlined process: The technology simplifies the inspection procedure, removing the need for cumbersome paperwork.
- Faster and more accurate data collection: Mobile tools enhance the speed and accuracy of gathering information.
With this tech, tasks can be standardized across the portfolio, ensuring that all properties are evaluated using the same criteria. The advantages of standardization include:
- Clarity: Standardized tasks ensure all properties are evaluated using the same criteria.
- Avoids confusion: A uniform approach prevents misunderstandings.
- Consistent data: Standardized evaluations provide reliable and consistent information.
All these benefits lead to better comparative analysis and more informed strategic decisions.
3. Incident tracking
When managing risk, you must prepare for everyday operations and unforeseen incidents. These unexpected events can range from adverse weather causing property damage to safety incidents requiring immediate attention. Properly managing these situations is vital to minimize their impact.
Incident management software can help. Using this proptech leads to:
- Organized incident logging: Digital tools enable the systematic documentation of all relevant data tied to unforeseen events. This ensures real-time reporting and rapid response, reducing potential damage or business disruption.
- Onsite data collection: Teams can log crucial details directly at the incident site, such as photographs and detailed descriptions.
Over time, incident data builds into a comprehensive archive, providing insights into property vulnerabilities. Benefits of timely incident documentation include:
- Future reference: Creates a rich data archive for later use.
- Trend analysis: Helps identify patterns and vulnerabilities.
- Risk mitigation planning: Informs strategic upgrades and repairs.
Additionally, having detailed incident reports readily available aids in:
- Insurance claims: Streamlines the claims process.
- Regulatory compliance: Demonstrates adherence to legal requirements.
- Legal issues: Facilitates managing any legal disputes related to the incident.
By leveraging proptech for incident tracking, you equip your NNN properties with robust contingency plans. This not only improves crisis response but also enhances learning, risk forecasting, and strategic decision-making.
Reduce risk at your NNN properties
Adopting these proptech solutions is among the most effective ways proptech reduces risk in managing NNN properties, allowing you to protect your assets more effectively.
These technologies not only streamline processes and improve data accuracy but also provide valuable insights and ensure compliance. By integrating these advanced tools, you can protect your assets more effectively, minimize risks, and focus on strategic growth and decision-making.
Looking for more tips on how to best manage your NNN properties? Download the free guide, “How to reduce service provider costs at NNN properties.”
