An online maintenance system from application service provider CorrigoNet promises efficiency and savings
In Corrigo’s vision of the future, the days of scribbled notes and noticeboards detailing jobs for the maintenance staff are long gone. The one-year-old California-based company gives orders to its property maintenance team via the latest in application service provider (ASP) technology, combined with wireless technology such as internet-enabled mobile phones.
Maintenance staff are notified of jobs through their phones and can access the website to get details of the jobs, such as the repair history of the complaint or the parts required.
But rather than just being a convenient way of ensuring that repairs are carried out, Corrigo argues that its system will allow landlords to improve asset management, and make savings in operating and capital expenditure as well as increased rental income.
The system, known as CorrigoNet,is software-based but, as with other ASPs, is hosted on the net. Companies do not have to hold the software on their server and the web hosting allows it to be accessed by internet users, including those with WAP-enabled phones or hand-held computers.
The first users of this system have been property companies with large residential portfolios. Real estate investment trust BRE Properties, which owns 19,000 apartments in eight US states, has hired Corrigo to run its maintenance service. Tenants can either phone into a call centre to register a maintenance problem or put in a request online for Corrigo’s staff to act on. Tenants can then use the website to track the work.
Corrigo is developing versions of CorrigoNet for the commercial property sector. Its takeover in September of invata international, a company which specialises in computerised maintenance management systems, will aid this.
Corrigo was launched in 1998 by former Motorola executives Richard Michaux, Vadim Zhuk and Greg Roufa, and has now survived two rounds of funding. Shareholders include venture capitalists CMGI@Ventures and AEW’s technology fund, and property firms BRE Properties and Marcus & Millichap.
Maya Babish, Corrigo’s vice-president, marketing, says that landlords will have to start thinking harder about customer care – and CorrigoNet will help them. “This system lets you manage the assets better.”
Babish says CorrigoNet also lets landlords pre-empt trouble. “Preventative maintenance is not being done as well as it could and this hits the value of the asset. Plus, if some of your property is performing well, you can look into why that is and use it as best practice,” she says.
Pricing is based on an annual fee of $30 per residential unit and 8 cents per sq ft for commercial space.
The company’s research shows that there are savings to be made. On a residential portfolio of 50,000 units, it estimates that capital expenditure will be reduced by 4%, operating expenses by 2.75% and that rental income will rise by just over 3% (see graph).
|
Net gains at homes |
|
Corrigo claims it cuts costs and raises income |
|
The % change calculations are based on a residential portfolio of 50,000 apartment units. Source: Corrigo |
