To maximise profit, estate surveyors and valuers have been told to prioritise bookkeeping as a vital part of real estate business.
The Co-administration Manager, Ubosi-Eleh & Co, a real estate firm, Mrs. Mojisola Ogunkoya, gave the charge at a webinar entitled: “Importance of Record Keeping in Real Estate Business,” organised by the firm in Lagos. She noted that many companies either underestimate the role of effective record-keeping or perceive it as a matter of convenience rather than an imperative necessity.
Ogunkoya explained that the essence of record-keeping extends beyond client meetings and deal closures but lies in meticulously following processes and maintaining an organised framework.
“Proper bookkeeping in real estate gives businesses important information about financial health, which helps them make better decisions, while meticulous records help uncover ways to save money and increase profits.
“It comprises tracking and organising financial transactions related to properties, investments and operations. Regrettably, in the bustling world of real estate, where transactions and client interactions dominate the day, business documentation often takes a back seat,” she said.
However, Ogunkoya emphasised the critical role of record-keeping in streamlining operations and ensuring client document accessibility.
She said: “If it is not documented, it doesn’t exist. Don’t rely solely on memory, as information retained in one’s mind is vulnerable to loss. There is the dangerous practice of some individuals who opt to forgo documentation, believing they can recall all pertinent details. In the real estate industry, such practices are dangerous.
“The law is blind without evidence. This assertion was particularly relevant when discussing property management. In cases where a real estate company is entrusted with apartment management, it is of paramount importance to document the apartment’s current condition, maintaining comprehensive tenant records, and diligently recording financial recordings. This comprehensive documentation serves as an invaluable safeguard against potential disputes between landlords and property managers down the line.”
She further encouraged adoption of cloud storage solutions to safeguard client records, adding that in a world where data is king, such digital platforms provide accessibility, security, and resilience, as well as ensure that vital real estate information remains intact and accessible.