T H I N K I N G . . .

Yes, Asset Managers can leverage technology to reduce necessary compliance costs.

Australian Asset Managers can reduce compliance costs using countless software applications

Reducing the cost of compliance for Asset Managers across Australia requires a strategic approach that broadly focuses upon efficiency, technology, proactive planning, and risk management.

To assist Asset Manager, I have collected several ways to reduce the ever-increasing cost of ‘compliance’;

Use technology to streamline processes

• Reduce the time spent on manual tracking and ensure tasks are completed on time.  Invest in Property Management Software like MRI Software or Yardi Voyager, that automates and tracks compliance-related tasks (e.g. compliance tracking and reporting, inspections, maintenance schedules and regulatory updates and financial management).

• Actually use Smart BMS platforms like Honeywell Building Management Solutions or Johnson Controls Metasys already installed within many Australian buildings to monitor energy usage, air quality, temperature, and other systems in real-time. These systems can help ensure compliance with energy efficiency and environmental regulations while reducing operational costs.

• Utilise Compliance Management Software like Sitrion or Compliance 360, that track deadlines for regulatory filings, inspections, and certifications.  These tools reduce the risk of missed deadlines, avoiding fines and potential legal issues.

Proactive maintenance and preventative strategies

• Routine inspections of key systems like HVAC, Fire and Electrical can identify early issues before they escalate into more expensive repairs or compliance violations.  Preventative Maintenance Programs like Hippo CMMS or Maintenance Connection can action preventative maintenance schedules, streamlined to comply with building codes, as well as provide tracking and tasks designed to avoid costly repairs and sudden compliance issues.

• Use real-time data analytics to predict and schedule maintenance before issues arise. Software like SpaceIQ and AiRISTA Flow can provide predictive analytics designed to anticipate when systems like HVAC need servicing or replacement, as well as reducing emergency repairs that may not meet regulatory standards.

Consolidate and share compliance tasks

• Develop integrated compliance checklists that cover multiple requirements in one process.  SafetyCulture’s iAuditor or UpKeep could be used to consolidate an annual inspection to cover multiple areas such as fire safety, emergency evacuations, building code compliance, as well as energy audits and efficiency.

• Introduce a Learning Management System like TalentLMS or Docebo to cross-train your current employees to handle various aspects of compliance (e.g. energy efficiency audits, safety checks, tenant rights), which reduces the reliance on external consultants or contractors.

Outsource and Leverage Expertise

• For tasks that are particularly complex or have high compliance costs, consider outsourcing to specialised third-party vendors like Procurement Express or Procore who can both simplify the procurement process and collaborate with external contractors, track progress as well as ensure compliance with building codes and standards.

• Engage with industry experts on a regular basis, but set up long-term agreements to secure lower rates or retainer fees by outsourcing to a trusted partner like CommProp Group or Clarity Software who can engage with consultants and industry experts, will streamline communication and ensure compliance often securing long-term savings.

Energy Efficiency and Sustainability

• From 1st January 2025, large businesses and financial institutions in Australia must report climate-related risks and opportunities in their annual reports, in line with the Australian Sustainability Reporting Standards (ASRS) and Treasury Laws Amendment (2024), covering Scope 1, 2, and 3 emissions, governance, and financial impacts.

• Use Smappee, or Energy Star Portfolio Manager, a free tool from the Australian government that helps measure and track energy and water consumption to ensure compliance with environmental regulations.  Conduct regular energy audits to ensure compliance with NABERS sustainability regulations.  Implement energy-saving measures such as LED lighting, insulation upgrades, and smart meters to reduce energy consumption. This will not only help with compliance but can reduce operating costs over time.

• Identify energy-efficient projects and unlock various rebates and incentives through the Green Building Council of Australia’s Green Star system.  Take advantage of Federal and State Government rebates or incentives for energy-efficient upgrades.  Various programs offer financial support for reducing the environmental impact of properties, helping offset the costs of compliance.  Or, use Envizi software, for energy management, carbon tracking, and compliance with green regulations, to take advantage of financial incentives that may be available.

Simplify and Automate Reporting

• Use Tableau or Microsoft’s Power BI to automate compliance reports related to energy consumption and efficiency, maintenance, and safety checks. Use these software tools to generate impactful reports for stakeholders and regulatory authorities, saving time on manual report creation and reducing errors.

• Use DocuSign or DocuWare digital platforms to store and organise all compliance-related documentation, making it easier to access and review when needed for inspections or audits. This process can reduce administrative costs and ensure timely submissions.

Stay Ahead of Regulatory Changes

• Use LexisNexis Regulatory Compliance or Compliance.ai to remain updated on any changes in local, state, and federal regulations that may impact compliance costs.  They identify changes to building codes, environmental laws, or tenant rights.  Subscription services or memberships in relevant industry Associations may also provide early notifications to regulatory changes.

• Rather than scrambling to meet new regulations, develop a long-term compliance plan using Veeva Vault QMS that includes budget forecasts and timelines for meeting evolving regulations. By planning ahead, Asset Managers can avoid rushed decisions that may be costly.

Maximise Bulk Purchasing

• For necessary compliance items such as safety equipment (e.g. fire extinguishers, first aid kits, etc.), energy-efficient lighting, or building materials, consider using Tradify or SAP Ariba supply chain solution to buy in bulk and take advantage of discounts therefore lowering overall costs while ensuring compliance.

• Consider joining forces with other property owners or Asset Managers within a similar portfolio. Use the CoWork platform to manage shared services and enable a collective procurement position, when bulk purchasing compliance materials or outsourcing compliance services, which reduces costs on a per-property basis.

Staff Training and Knowledge Building

• Regularly train your staff and even invite your contractors in for training on compliance requirements and best practices to minimise the risk of errors or missed deadlines. Well-informed personnel can proactively address compliance issues without needing external consultants.  Use e-learning platforms like ComplianceBridge or Skillsoft to ensure your people are up to date.

• Provide genuine incentives for staff to identify and address compliance issues early.  Your well-motivated team can help you reduce the likelihood of costly mistakes that may lead to fines or potential lawsuits.  Use BambooHR or Officevibe software to engage with your team and manage incentive programs to foster a culture of proactive compliance.

Insurance for Compliance-Related Risks

• Every Asset Manager must adopt comprehensive insurance policies to mitigate financial exposure to compliance-related risks.  This includes Public Liability insurance, Building insurance, and in some cases specific coverage for regulatory fines.  Use InsureEdge to provide a tailored solution and BizCover marketplace to source your business policies.  While insurance may add costs, it can help reduce the financial burden of potential non-compliance events.

These tools not only help streamline processes and reduce costs but also make it easier for Asset Managers to stay on top of compliance regulations, to improve their operational efficiency, and manage long-term risks effectively.