Since 1971, Kiemle & Hagood Company has been providing value-added third-party property management services to its clients in eastern Washington State and neighboring regions. Even with such a broad territory, the company is looking to branch out into new areas while exploring diverse ventures within its present Spokane, Washington market. And it's using Intuit Real Estate Solutions (IRES) to help achieve those goals.

"In a city the size of Spokane, the biggest challenge is to find new opportunities outside this marketplace, or completely different opportunities within," says Larry Soehren, Vice President of Kiemle & Hagood. "We're sort of self-limiting in how far we can grow. You can only manage so many properties before you start tripping over yourself. That's why we're looking at new regions and business models that we can use to grow our enterprise."

With an office staff of 55, and 75 members in the field, Kiemle & Hagood oversees about 4 million square feet of commercial space and about 1,500 units of multifamily housing. Over the past two years, the management team has been turning their attention towards the fast-growing Tri Cities region in south central Washington. The firm has also branched out into a new business venture: public parking.

Portfolio growth triggers the need for a new solution

By opening a second office in the Tri Cities area, where the Columbia, Yakima, and Snake Rivers meet, Kiemle & Hagood was now facing the need to bring new technologies to their remote multi-family projects. They were also looking for a system that could help them manage their new public parking enterprise as well. With IRES, they got both.

"When we first started our review about 1-1/2 years ago, we thought we'd boil it down to three major players," Soehren states. "We had some 2nd tier providers come in and propose as well, but they never really met our criteria. Of the top three, one never responded—even after giving them a second chance. We also never had a good relationship with the second vendor over the past seven years, because their products could never sync with our needs. IRES, on the other hand, came in with a great proposal and functionality, and blew everyone else out of the water."

Soehren was drawn to IRES' functionality, support and price.

"When we went into this, we were looking at programming off the shelf," Larry explains. "We didn't want custom programming, because that means custom upgrades, and that takes time and support down the line. IRES is already there, ready to go."

Support was another key issue. "As the former chairman of BOMA, I built up a lot of contacts throughout the industry. I took my informal survey to my colleagues and asked them what they were using," said Soehren. "About 80% of the time, IRES was the choice-with the support team receiving very favorable marks."

Price was the third criteria for Kiemle & Hagood. "IRES was where we wanted to be," explains Larry, "with the modules and functionality we needed, and the flexibility we wanted. It's hard to beat."

Meticulous installation means smoother implementation

When Kiemle & Hagood was ready to install the the IRES solution, they assumed the process would take a month. When IRES representatives said it would take three or four months, the company's management was at first taken aback. But they soon realized that this extended time frame was to their advantage. It became evident that the IRES installation would be performed in a very orderly, meticulous manner, ensuring the client was comfortable throughout every stage.

A dedicated team, including specialists in apartments, multi-family dwellings, and commercial properties, implemented the system. Soehren and his group found it comforting to know that the implementation would be more orderly than they ever thought it could be.

Data presented in the format required to achieve greater ROI With the installation well underway, Kiemle & Hagood is looking forward to utilizing the tremendous flexibility and integration among the software's many modules. "We've been highly impressed with IRES," Soehren said. "Accounts payable has always been difficult with any package that we either owned or looked at. But when the first layout came in from IRES, it was immediately apparent that they understand the very basics of financial management: that you can't overdraw your checkbook. That's something no one else seems to understand."

The asset management module in IRES—ViewPoint—is Soehren's personal favorite. It's his job to make sure the company manages their properties as a portfolio. And with nine property managers, it can be pretty difficult to keep track of what they do across over 100 properties. With the ViewPoint module and its reporting capabilities, Larry has an easier way manage that information, while isolating issues sooner, and addressing them before they become costly.

Building value, providing better service

In addition to the analysis provided by ViewPoint, Soehern also utilizes the Facility Management module to build value in the company's property portfolio. With it, he is able to see in a few minutes, details that had previously taken hours or even days to compile and analyze. "If I want to find out the costs of operating elevator systems in high-rise buildings, for example, I used to have to do it all manually," Larry said. "With the Facilities Management module, I'm now able to zero in on what the cost-per-car or cost-per-floor basis is, and see if anything is out of line from where it should be. The system enables us to cull through the huge amounts of data we produce on a daily basis and uncover the information we can use to make decisions that build value for our assets."

Another valuable component of the Facilities Management module is its ability to automate tenant calls for service. According to Soehern, prior to implementing IRES, the firm's office center would take these calls. Somebody would write down the request in a notebook, then call a facilities engineer and give them the assignment. The biggest problem was, that the office often didn't get feedback that the issue was resolved. "With the Facilities Management Module," says Larry, "that's all handled on the PC. There are tracking options, scheduling and feedback. We can log all the service times and project details. It helps us provide better tenant service while keeping an eye on costs. We're going from the stone age to the space age."

Stepping ahead of the competition with customizable reporting

IRES has provided Kiemle & Hagood with the in-depth analysis and facilities management tools they need to increase the profitability of their properties. The system’s ReportDesign module enables the company to report their success to their clients with a range of highly customizable report formats. "We're just starting to use the reporting capabilities in IRES, and have already been told by our clients that what they get from us is far superior than anything they received from the big companies in the big cities,” Soehern indicates.”The ReportDesign module in IRES is giving us the ability to respond to the institutional investors pushing into Spokane who have very specific reporting requirements. With IRES, it will be very easy to change the chart of accounts to meet their formats.

Meeting government agency mandates—quickly and easily

IRES’ powerful reporting has also saved Kiemle and Hagood significant time and effort in working with the U.S. Department of Housing and Urban Development. Over 50% of the company’s residential housing units are subsidized by HUD. For Larry Soehern's staff, the Affordable Housing module provides efficient, consistent management of both subsidized and conventional housing. "Tons and tons of reporting," is how Larry sums it up. "You have to certify each (HUD) resident on their income and assets, and then set their rent based on a formula, so there's a lot of documentation that has to occur. With the IRES Affordable Housing module, however, HUD reporting has never been easier."

IRES provides Kiemle & Hagood with the tools they need to add value to the assets they manage. The system's powerful financial reporting and property management tools created an integrated solution that helps them better serve existing clients. It also enables them to, attract new clients, and branch off into different business opportunities—with a seamless, "big picture" view of where the firm is headed.

About Kiemle & Hagood

Kiemle & Hagood Company is recognized as the leader in full service office, industrial, retail, multi-family, and investment real estate. Their commitment to provide exceptional service has brought them to the pinnacle of the real estate industry. For more information, please visit their website at www.khco.com