Becoming More Efficient with Spend Management

One of the longest cycles in multifamily history may still be healthy, but a prevailing industry tone is the need to get fit and be ready when the tables turn. At NMHC’s 2020 OpTech Conference and Exposition in Dallas, top brass said now is the time to hone operations processes from A to Z. It’s a similar message offered at RealWorld 2019 in Orlando. Fine-tuning spend and vendor management processes can help operators and owners stay ahead of a slowdown. Essentially, that means controlling expenses by getting the best deals from vendors and eliminating unnecessary or “maverick” purchases. Jason Lindwall, Senior Vice President of Spend and Utility Management, said companies that don’t have a comprehensive spend management program should look at one while the time is still right.  “It’s really important to be working on that,” he said at RealWorld in July. “What we’ve seen in past cycles is that expense hasn’t been the focus. It’s been more about the deal, closing the deal, and finding the deal. “What we’re seeing in this cycle is that our customers are paying more attention to the expense side of things. You need to be thinking about how you’re spending your money and where you’re spending your money, and get a good understanding of that through a spend management program.” Getting a lasso on ‘maverick’ spends As a former property owner, Lindwall saw plenty of avoidable spending. Those are the kind of purchases that may seem small at the time but add up to serious money over the long run. It’s the maintenance and front office teams making impulse buys for products that may or may not be necessary, and send the budget into overdrive. He recalls one meeting where someone asked what could be done about a pile of screwdrivers that had accumulated in the maintenance building. “Every time our maintenance guys would go to Home Depot...