Exploring benefits of data rooms for real estate
Physically exchanging business documents has always been risky. Businesses need not only to deliver the files but also to keep them safe so sensitive information doesn’t get stolen or mishandled.
Real estate due diligence used to be a much lengthier process. Fortunately, today we have access to a real game changer — the virtual data room (VDR).
A data room ensures secure data storage. It functions as a workspace, allowing companies to centralize and simplify their duties.
British companies close over 2,600 deals each year using virtual data rooms.
Although most companies use data rooms for mergers and acquisitions or due diligence, the real estate industry can reap huge benefits from this technological innovation.
A commercial real estate data room helps to store, share, and communicate data in-house and remotely while saving up to four person-hours daily. Check more ways this tech can improve real estate asset management.
Top 5 things a virtual data room for real estate makes easier
Virtual data room software lets you do these five things more efficiently.
1. Monitor user activity
A virtual data room is a security-first app. Once you invite concerned parties, you can monitor all data room user activity.
It’s feasible due to role-based access, document permissions, two-factor authentication, activity audits, and many other security features.
This feature helps VDRs outperform most less secure online cloud storage services, but data rooms offer many more benefits. So check out more ways you can improve your real estate business by using a data room.
2. Build and manage asset portfolios
A real estate investment data room is a game changer regarding portfolio management. It allows you to:
- Collect and store real estate portfolios in one secure place. Use unlimited storage to upload documents such as portfolio assets, regulatory documents, engineering plans, and supporting documentation.
- Identify investment risks faster and make better strategic decisions. Research markets, collect economic data, and analyze rental property without bulky third-party apps.
- Give your asset managers better control over real estate documents. Turn your data room into a workspace and let everyone do their job distraction-free.
3. Conduct real estate due diligence
Building, lending, buying, or selling property requires thorough due diligence. Since you can store large amounts of information in an online data room, you are always ready to conduct due diligence for your real estate deal. A data room makes the process very convenient, especially if you deal with any kind of litigation. With a virtual data room for real estate, you can:
- Submit and receive professional-looking due diligence checklists. Easily compile checklists and ensure they get into the right hands.
- Track multiple projects simultaneously. Allocate confidential documents to respected real estate projects, and configure roles and permissions for real estate specialists, partners, and institutional investors in each data room.
- Monitor due diligence progress. Share, review, and approve due diligence documents in one place. See how due diligence is progressing in detailed reports.
4. Improve real estate project management
Real estate firms use data rooms because the setup and the interaction are a breeze. Here is how you can optimize real estate project management:
- Drag and drop everything. To upload bulk files, you only need to drag and drop them.
- Rearrange content structure in a few clicks. You can create an efficient system of folders and subfolders to organize your information.
- Communicate using Q&A, video conferencing, and built-in messages. After organizing your files, invite employees, potential buyers, partners, investors, and others who need the confidential information to move the deal along to the data room.
5. Build trust and close more real estate deals
Virtual data room solutions come in handy if you want to add more transparency to your brand and improve investor communications. That is because you can:
- Invite partners to a branded workspace. Allow your data room to reflect your logo, brand name, and corporate style to establish more trust between colleagues and clients.
- Increase security and transparency with custom agreements. Increase your reputation as a trustworthy business by requiring interested parties to sign NDAs, NCCs, and other agreements.
- Incorporate visual assets to close commercial real estate transactions. You can share a video tour and a property plan with a potential buyer and visit the location if the client gets interested. It saves a lot of time for both parties.
How to use a real estate data room in the UK
Virtual data rooms gained the trust of many large, famous brands in the real estate industry. This technology simplifies your business processes. Also, it saves time and money for you and your clients, partners, and investors.
So, if your company isn’t using this software yet, you should definitely consider adopting this technology. Follow these steps to start using a data room:
- Decide on the features you need from a data room. These may include security, an unlimited number of users, app integrations, etc.
- Choose your data room provider based on your expectations. Analyze UK VDR brands by reviewing expert reviews, case studies, and price comparisons.
- Reach out to data room professionals. Discuss project details and start using your commercial real estate virtual data room.
How much does a real estate deal data room cost?
Depending on the project complexity and the VDR provider, you can expect to pay around $15 per user per month on average. However, data room providers can calculate a customized quote to suit your needs.