Compared to other industries, tech adoption has been slow among those working in real estate. Despite this, the industry relies on technology for success and growth. Anyone in this industry who hasn’t adopted the latest in tech will find themselves at a disadvantage, and here’s why.
1. Tech reduces vacancies
Technology allows property management companies, like Green Residential, to rent homes faster for their investor clients. Most marketing takes place online, and listings can be syndicated to several different third-party sites at once.
Virtual 3D property tours make it easy to find renters faster. Although the Covid-19 pandemic is over, many people still prefer not to leave the house. Allowing prospective tenants to take a virtual tour of an available property increases the chance of finding a tenant quickly and reduces the costs associated with showing vacant units.
2. IoT technology makes homes more valuable
Although people like tech in general, smart homes are in high demand because IoT devices make life easier. This technology enhances security, increases energy efficiency, and creates convenience for daily living. For instance, smart thermostats reduce energy consumption and make bills predictable. Smart security systems allow occupants to see, hear, and communicate with anyone who comes to the door through an app, even if they aren’t home.
Other devices, like smart electric meters, communicate directly with utility companies and eliminate the need for meter reading and paper billing. Smart meters also provide energy companies with data regarding peak demand periods, which helps them balance the grid.
Homes equipped with IoT devices tend to sell for higher prices. For rental properties, tenants are often willing to pay a premium to have a connected home. Investors can charge higher rent for properties that come equipped with IoT tech.
3. Tech can automate repairs and maintenance
Many landlords use technology to automate the process of requesting repairs. Tenants can either use a website or an app to make a request and based on the input selections, the request gets tagged and routed to the proper person to be addressed. For landlords who utilize personal assistants or secretaries, this makes their life easier.
Depending on the system, some apps will even tell the landlord which contractor to call based on the information entered by the tenant. For example, if a tenant reports a leaky roof and marks it urgent, the landlord’s emergency contractor will be the suggested contact.
Landlords can also use an application to automate the maintenance process, including scheduled inspections that often lead to small repair jobs.
4. Technology streamlines operations
Whether an investor is working alone or with others, streamlining operations is essential. We just discussed automating the repair and maintenance processes, but tech has much more to offer. For example, rent collection and deposit can be automated by having tenants pay through an app online.
Automation can also handle lease renewal and generate official notices that need to be delivered to tenants on specific dates. Other important, yet time-consuming repetitive processes can be automated, like asset analysis.
Technology also has the power to automate workflows and make them more efficient. For individual investors, this might be as simple as automating repetitive tasks that don’t require human input. For teams, it might look like using AI to identify opportunities for improving efficiency and boosting ROI.
5. Property management teams need easy task management
Teams need task management software to stay on track, and in real estate, it’s no different. Property management teams have a lot on their plate. They need to keep track of repair requests to ensure they’re made on time, ensure rent is collected on time, manage bank deposits, oversee the marketing for vacancies, manage showings, stage empty homes, and more.
Manual task management just doesn’t cut it. Today, digital task management is essential. Property management teams use a variety of task management applications just like every other corporate team. Basecamp, Asana, and Monday are just three examples of popular choices.
6. Tech makes asset management easier
For investors who own multiple properties, it’s crucial for them to track information about each property. For example, the renter, lease term, history of repairs and renovations, income, and expenses, like property taxes. Having all of this information available in a digital database makes it easier for investors to stay profitable.
Tech will get bigger in the real estate sector
The positive impact of technology in real estate is undeniable. Whether it’s a smart home or an app that helps investors grow their business, IoT is changing how this industry operates. As more real estate professionals embrace technology, they will have a competitive edge in this lucrative market.