Compliance is a critical factor of entity management, and it’s important that your organization is aware of federal, state, and local regulations. Because filing and reporting due dates and requirements vary from state to state, managing the timelines for multiple entities can be challenging. And sometimes finding opportunities to efficiently manage compliance and avoid compliance risks can be difficult.
Why Is Compliance Important for CRE Teams?
Compliance plays a crucial role in the success and sustainability of commercial real estate teams. Firstly, compliance ensures adherence to laws, regulations, and industry standards that govern the commercial real estate sector. This includes compliance with building codes, zoning regulations, environmental regulations, leasing laws, tax requirements, and other legal and regulatory obligations. By maintaining compliance, real estate teams reduce the risk of legal penalties, lawsuits, fines, and reputational damage. Non-compliance can lead to costly litigation, project delays, disruptions in operations, and a tarnished brand image, ultimately impacting the profitability and long-term viability of the business.
Secondly, compliance fosters trust and confidence among stakeholders. Commercial real estate involves various parties, including investors, lenders, tenants, and regulatory bodies. Demonstrating a commitment to compliance instills confidence in these stakeholders that the team operates ethically, transparently, and with integrity. Compliance practices ensure fair and equitable treatment of tenants, protect the rights of investors, and promote responsible environmental stewardship. This trust and reputation for compliance can enhance the team’s ability to attract investors, secure financing, establish fruitful partnerships, and maintain positive relationships with regulatory agencies and local communities. Compliance thus becomes a competitive advantage that sets commercial real estate teams apart in a crowded marketplace.
5 Tips for Efficiently Managing Compliance
Make a Plan
In the midst of daily business functions and with varying regulations, it can be easy to overlook a deadline. That’s why it is important to plan ahead, account for all upcoming due dates, and document the process for consistency moving forward. When you have a steady compliance plan, you’re more likely to stay on top of things and avoid missing a step.
Establish Standardized Processes
Standardizing compliance processes across your organization can improve efficiency and ensure consistency. Develop a compliance manual or handbook that outlines standard operating procedures, compliance protocols, and reporting mechanisms. Clearly communicate these processes to your team members, ensuring everyone understands their responsibilities and how to adhere to compliance requirements effectively.
Leverage Data and Analytics
Data-driven insights can significantly improve compliance management efficiency. Implement systems that capture and analyze relevant compliance data, such as lease agreements, environmental assessments, and maintenance records. Utilize analytics tools to identify patterns, detect anomalies, and generate actionable insights. This proactive approach allows you to address compliance issues before they escalate and optimize your compliance strategies.
An entity management solution like EntityKeeper can eliminate error-prone, time-consuming manual tasks that prevent teams from focusing on other valuable, revenue-generating work. Entity management software gives you the tools to monitor and track important deadlines. Plus, automated alerts and email notifications notify you of upcoming due dates so you never miss a deadline.
Engage a Corporate Services Provider
EntityKeeper provides services including formation, incorporation, mergers, annual report, and registered agent. With a corporate service provider like EntityKeeper, you avoid costly and time-consuming manual tasks, like data entry. Plus, you ensure that your reports are accurately completed every time. Our corporate services streamline your reporting processes to ensure you never miss a deadline and remain compliant across all of your legal entities.