This post is the fourth in our six-part series on tech-enabled risk transformation for multifamily real estate firms. In the previous installments, we’ve explored:
Building on these insights, this post tackles a critical decision for multifamily firms: Should you buy an off-the-shelf risk transformation platform or develop a custom solution in-house?
This choice not only affects immediate costs and capabilities but also shapes your firm’s ability to adapt to future challenges. By considering factors like costs, scalability, innovation potential, and operational overhead, this post will help you determine which option aligns with your organization’s needs and goals.
Cost is a decisive factor in the buy vs. build equation. While building an in-house platform may seem appealing for control and potential long-term savings, it often involves hidden complexities and significant upfront investments.
Building a Custom Platform: High Initial Costs
Creating a platform from scratch demands substantial resources for infrastructure, talent, and ongoing maintenance.
Buying a SaaS Platform: Predictable, Subscription-Based Pricing
SaaS platforms provide a cost-effective alternative with lower upfront investments and predictable subscription fees.
This Buy vs. Build Decision Matrix compares the benefits of buying versus building a risk transformation platform, focusing on cost, scalability, innovation, and operational overhead. SOURCE: Assurified
Scalability is essential for multifamily firms managing large portfolios or planning for future growth. A platform’s ability to scale efficiently and without disruption is critical for maintaining operational effectiveness.
Building In-House: Scalability Challenges
Scaling a custom-built platform often requires significant time and resources.
SaaS Platforms: Seamless Scalability
SaaS solutions, often cloud-based, are designed to scale effortlessly with minimal input from the user.
Deciding whether to buy or build a risk transformation platform is one of the most significant choices multifamily firms will make. While custom-built platforms offer control, they often come with prohibitive costs, scalability challenges, and operational burdens.
For most multifamily firms, buying a SaaS platform delivers greater value: lower upfront costs, effortless scalability, continuous innovation, and reduced operational overhead.
This series continues in our next post, where we’ll evaluate how to measure the ROI of a risk transformation platform, providing practical strategies to assess its impact on your business.
Stay tuned for the next installment in our six-part series, where we’ll explore how to measure the ROI of a risk transformation platform for multifamily firms. Don’t miss out on Assurified’s actionable insights—Subscribe to Our Newsletter to stay updated!
Have questions or need more information? Contact us today at info@assurified.com to learn how we can help transform risk management for your multifamily business.