Thanks to advancements in technology, the property management industry has undergone a significant transformation. With the growing demand for property management services, tech has played a vital role in streamlining various processes in the industry.
In turn, property managers have been forced to embrace technology, with a recent survey indicating that over 90% of property managers use technology to manage their portfolios.
One is the rise of virtual reality and augmented reality. VR and AR technologies are being utilized to offer 360-degree virtual tours of rental properties. Some companies have taken this a step further by creating paper brochures that transform into 3D objects on mobile screens by pointing the phone camera at the brochure, providing an
immersive experience for clients.
In addition to virtual tours, property managers can use VR and AR to stage apartments with virtual furniture, which helps renters to better visualize the space before actually moving in.
Tech has also enabled property managers to offer virtual property tours, reducing the need for physical visits. Virtual property tours allow prospective tenants to view properties remotely, improving the rental application process. According to a survey by Zillow, over 70% of renters would be willing to rent a property based solely on a virtual tour.
Enhancing tenant experience digitally
As digital communications continue to replace in-person meetings, property managers are looking for ways to communicate more effectively online. This is where machine learning and AI come in. Artificial intelligence chatbots make communication faster and more efficient (when they work.) In theory, they should be able to handle a number of different types of operations, such as answering generic questions, getting to know customer preferences, or even holding virtual showings.
AI can also be used to assess pricing trends and make corresponding predictions and analyses. This saves property managers, landlords, or Realtors time and effort by doing most of the research for them.
Big data is another tool that can be used to give property managers a broader view of the market. By understanding their tenants’ past activities and preferences, managers can offer more relevant properties. Tenant data can be sourced from websites, property management systems, or CRMs.
Leveraging data analytics insights
Jova Xu of Jovi Realty says that one of the most significant impacts of technology in property management is the ability to collect, store and analyze data. Property managers can now leverage big data and analytics to make informed decisions and improve their property management services.
According to a recent report by MarketsandMarkets, the global real estate analytics market size is expected to grow from $9.9 billion in 2020 to $21 billion by 2025, at a compound annual growth rate of 16.7% during the forecast period.
Big data helps managers and clients better understand their facilities’ energy, water, and electricity consumption. By tracking all utilities in real time, managers can promptly address unusual situations.
Tenant management technology
The use of technology has also brought about significant changes in tenant management. Property management firms are now leveraging various technologies, such as mobile applications and tenant portals, to improve tenant engagement and satisfaction.
A recent survey by Buildium, a leading property management software provider, revealed that over 80% of tenants expect their property management firms to use technology to manage their rental properties. This has resulted in an increase in the use of mobile applications and tenant portals, which allow tenants to pay rent, report maintenance issues, and access lease agreements remotely.
Another significant transformation brought about by technology is in property maintenance. Property managers can now use technology to monitor properties remotely, reducing the need for physical inspections. Sensors, cameras, and other devices can be installed in properties to detect potential issues, such as water leaks, mold, and pests. Property managers can then take proactive measures to address these issues before they escalate.
According to a report by McKinsey, predictive maintenance enabled by IoT devices can reduce maintenance costs by up to 40%.
Leveraging technology to improve security
Technology has also played a critical role in improving security in the property management industry. With the growing threat of cyber-attacks and physical breaches, property managers are now leveraging technology to improve security.
Electronic access control systems, video surveillance, and biometric authentication are some of the technologies used to secure properties. According to a report by Allied Market Research, the global smart locks market size is expected to reach $4.37 billion by 2027, growing at a CAGR of 16.4% from 2020 to 2027.
The use of technology has also had a significant impact on property management accounting. Property managers can now use property management software to automate various accounting processes, including rent collection, accounts payable, and financial reporting.
According to a report by Research and Markets, the global property management software market is expected to grow from $1.5 billion in 2020 to $2.5 billion by 2025, at a CAGR of 11.0% during the forecast period.
Property management industry and technology
Technology has transformed the property management industry in a number of significant ways. From collecting and analyzing data to improving tenant engagement and satisfaction, property maintenance, security, accounting, and virtual property tours, technology has brought efficiency, transparency, and convenience to property management.
Property managers who embrace technology can improve their services, reduce costs, and stay ahead of the competition. As technology continues to advance, I expect to see more transformation in the property management industry.
Alistair Vigier is the CEO of Clearway Law, a website that allows the public to search for every lawyer and law firm and compare ratings.
This column does not necessarily reflect the opinion of RealTrends’ editorial department and its owners.
To contact the author of this story:
Alistair Vigier at twfalistair@gmail.com
To contact the editor responsible for this story:
Tracey Velt at tracey@hwmedia.com