The real estate market is evolving.
Gone are the days of millions of distressed assets waiting to be serviced.
The new emerging real estate market with a heavy focus on technology and compliance versus cost.
Here are the 3 basic requirements for any real estate company.
1. Pick quality technology
Technology is the most important piece when choosing a vendor.
When reviewing a vendor’s property tax software system, make sure the system has the ability to provide customized reports and also has tools to monitor progress on your portfolio.
More than likely you won't want your staff to use multiple systems of record. So having the tax data seamlessly integrate with your loan servicing system is critical in maintaining accuracy and efficiency. The vendor should have the ability to integrate with your loan servicing system, loan operation or property management systems.
2. Make sure you choose a compliant vendor
Complying with regulatory bodies is critical in today's real estate market.
Look for vendors that have gone through a Soc 1 Audit or similar audit to ensure they are following their processes, procedures, and are in compliance with regulatory requirements. I would also recommend reviewing the vendors' Standard Operating Procedures, Business Continuity Plan, Disaster Recovery Plan, insurance coverage, and audited financials.
3. Consider property taxes
It is extremely important to do your due diligence in choosing a property tax vendor partner. I encourage you to ask/verify the vendor's references of current clients. Also ask for errors rates, timelines to complete tax research, and a rolling twelve months of any penalties and interest assessed due to misreported tax information by the vendor.
Following all of these recommendations will lead to a successful relationship between you and your property tax vendor partner.