A cloud-based challenger in the small world of property management software hoped to reduce the headache of managing tenancies in commercial properties.
“Our goal is to be the best cloud-based property management software in the world,” said Tom Wallace, founder of Re-Leased, an add-on program for cloud accounting program Xero. Wallace was also development manager at Wallis Development, a large New Zealand private property company funding the program.
The app aimed to reduce the amount of time it took a property manager to reconcile rent and expenses. Wallace claimed reconciliation for a large holding of commercial tenancies would take a week using spreadsheets or one hour with Re-Leased.
The app targeted two types of customer; commercial building owners and property managers and had already attracted a healthy number of users. In six months the app has generated 11,000 invoices for over 100 clients worth $412 million.
Private clients was a large, underserved market. “A few accountants use it themselves as they manage the properties on behalf of their clients. We have users that manage $1 million to $500 million in property. One company might use it to take it up to $1 billion” worth of real estate, Wallace said.
Pricing was based per lease with the cheapest plan, for up to 15 leases, costing $89 per month in Australia and NZ$99 a month in New Zealand. The most expensive plan cost $329 per month for up to 400 leases which was highly competitive, Wallace claimed.
“It works out about a dollar a lease. When we go up against the legacy software it’s tens or hundreds of thousands of dollars,” Wallace said.
Scott Simenauer, an accountant with Queensland firm the Poole Group, has been using Re-leased for six months to manage 20 tenants in 20 properties. The firm provided a support service for clients who wanted to manage commercial property themselves.
The app made it much easier to perform a reconciliation on a property rather than update a spreadsheet at the end of the year tracking outgoings and expenses. Previously the Poole Group used to set up an Excel sheet for each tenant. “Re-leased tracks it all and tells you exactly how much they have to pay or refund to them,” Simenauer said.
The app also created weekly invoices to tenants through cloud accounting program Xero. An accountant could spend as little as two minutes a month for each property to send the invoices, Simenauer said. The Re-leased-Xero combination was a much faster method than looking up the amounts in a spreadsheet and manually creating the invoice in an accounting program.
“It definitely makes the job easy and promotes accuracy,” Simenauer said. The app provides reminders for rent reviews and maintenance. “You don’t have to remind yourself or use clunky calendar software,” Simenauer said.
While property management was not a large part of the Poole Group’s business, there was a lot of potential demand, Simenauer said. “A lot of owners out there who would like to do it themselves but don’t know how to do it,” he said.
Ramiz Gorgees, Re-Leased’s Australian head of sales and a former Xero account manager, has been tasked with building a partner channel among real estate agents and property managers. Several accounting firms pay the subscription themselves so they can provide service for high-net worth clients with high-rise properties.
“The accountants keep an eye on the rent and expenses and use Re-Leased to manage the buildings,” Gorgees said. “It could be an accountant managing an estate for a family.”
Re-leased has opened an office in Richmond, Melbourne in the same building as Xero add-on programs Vend and GeoOp and was adding sales staff in NSW and potentially Brisbane and Victoria.
Watch a video demonstrating the software below.