Why outsource investor onboarding for REIT?

Category: Business

The Real Estate Investment Trust industry is experiencing phenomenal growth. According to a recent report by Nareit (National Association of Real Estate Investment Trusts), the complete equity value of U.S. equity REITs surpassed $1.5 trillion in the first quarter of 2024, a significant increase of 12% year-over-year. This surge in investor interest presents a unique challenge for REITs: streamlining the onboarding process for a growing and increasingly global investor base. In the past, getting new investors involved with REITs was a slow and tedious process that was done entirely by hand within the company. This way of doing things often needs to catch up as the number of investors quickly grows. Additionally, for REITs that deal with investors worldwide, figuring out the many complicated rules of different countries and ensuring they are followed can be a significant obstacle. More and more REITs recognize the value of outsourcing their investor onboarding process to REIT Management Services. This intelligent choice frees up REITs to concentrate on their primary business activities, all while guaranteeing a hassle-free and efficient experience for their investors. The Challenges of In-House Investor Onboarding for REITs REITs face several significant challenges when managing investor onboarding in-house: Time-Consuming Processes: The traditional process of bringing on new investors can be a real-time suck. It often involves manually entering data and checking documents one by one, which takes forever. This means valuable time, and people get stuck doing this instead of focusing on important things like buying new properties and managing the ones they already own. Regulatory Labyrinth: For REITs that operate worldwide, there are a whole mess of rules they need to follow depending on where they are. These rules can be confusing and complicated, even for the REIT's team. If they don't have the right experts or enough people to deal with them, the REIT could accidentally break the rules and get in trouble. Scalability Challenges: As a REIT attracts more investors, the team that brings them on board must also grow. However, finding and training new people can be expensive and take a long time. This can make it hard for the REIT to adjust to changes in the market, which could hurt its business. These challenges can significantly impact a REIT's operational efficiency and ability to attract new investors. The Advantages of Outsourcing Investor Onboarding for REITs Partnering with a specialized REIT Management Services provider offers several compelling advantages: Enhanced Efficiency and Cost-Effectiveness: Companies that handle onboarding for other businesses (outsourcing providers) can do it cheaper and faster because they have a lot of experience (economies of scale) and special computer programs (technology platforms). This saves Real Estate Investment Trusts (REITs) a lot of money and gets new employees working quicker. Regulatory Expertise: REIT management companies have staff who are experts in investment rules around the world. This means your REIT will follow all the essential laws, helping you avoid any problems. Scalability and Flexibility: When you hire outsourcing partners, they have the equipment and know-how to grow their services as your REIT business proliferates. This frees you up to focus on essential plans for the future of your business instead of getting stuck with hiring and training new people. Improved Investor Experience: Making the new hire process smooth and fast (streamlined and efficient onboarding process) leads to happy investors (fosters a positive experience for your investors) who trust you more and want to keep investing (boosting investor confidence and loyalty). REITs can benefit in several ways by hiring a company to handle new investor sign-ups (onboarding). This can help them run their business better (improve operations), save money (reduce costs), and make investors happier (enhance investor satisfaction). How REIT Management Services Streamline Onboarding REIT Management Services providers offer comprehensive solutions to optimize the investor onboarding process. These solutions typically include: Doc Management: Safe systems to collect, store, and check investor documents electronically. Regulatory Compliance: We understand complex investment rules worldwide and ensure you follow them all. Technology Integration: Works smoothly with your existing REIT systems to quickly move data and speed up onboarding. Reporting and Analytics: Get reports and data analysis immediately to see how onboarding is going and find ways to improve it. Suma Soft helps real estate investment trusts (REITs) bring on new investors (onboarding) faster and easier. They have a history of success, such as with one of their essential global REIT clients. This client was able to onboard investors 40% faster and have almost perfect (99%) compliance by using Suma Soft's outsourced onboarding service. In this fast-changing market, REITs must run smoothly and keep investors happy to grow. Using a qualified REIT management service to handle new investor onboarding can be an intelligent way to solve these problems. By working with an outsourcing partner, REITs can benefit from their experience and technology to simplify onboarding, follow all the rules, and make themselves a more appealing investment option for investors worldwide.