The last few decades have seen a significant evolution in property management. The current state of the market has prompted property developers to look at alternative solutions and technology that can help them overcome some of the challenges they face in their daily operations.
Various elements go into managing a property. Developers need to keep an eye on their budget, schedule, materials, and labour costs while ensuring that they keep track of invoices and payment schedules effectively so that everything runs smoothly. This is where PropTech can help. It allows developers to manage all aspects of their property from one platform and provides a centralised hub for all their data. This helps them streamline processes, automate repetitive tasks, and provide better visibility into operations.
In this article, we will explore PropTech and why property developers should consider using PropTech for property management.
What is PropTech? Why is it used?
PropTech is short for property technology or real estate technology. It is an umbrella term referring to any digital tool that helps improve the efficiency or effectiveness of residential and commercial real estate operations..
The need for PropTech in the industry emerged due to several factors:
- Rising costs
- Increasing competition
- Changing consumer expectations
- Rapid technological advancements
- Growing environmental concerns (e.g., climate change).
Therefore, it has become necessary for property developers and managers to embrace these innovations if they want to stay competitive in today’s fast-paced environment.
Examples of PropTech
Popular PropTech examples include Building Information Modelling (BIM) software that can be used by architects, urban planners, and engineers to build virtual models of their projects from start to finish before they even break ground on the project itself.
Other examples include virtual reality headsets which allow developers to take people through tours of their projects before they’re completed so they can get an idea of how everything looks – without actually visiting any locations in person.
PropTech is also being used to improve the buyer experience. Buyers can now search for homes and apartments using mobile apps that allow them to view the features of each property in detail before they even go see it with their realtor. This allows them to compare prices and amenities between properties before making a decision about which ones they want to visit first.
The need for PropTech in property management
Proptech is the use of technology in property management, and it’s an innovative way to improve outcomes for any real estate or property management business. Proptech offers many benefits, including:
- Reduce time spent on repetitive tasks, like collecting rent or reconciling accounts
- Reduce labour costs by automating manual processes with software
- Increase productivity by making more informed decisions in less time
- Improve communication with employees, owners, and tenants through real-time data analysis and reporting tools that allow to quickly identify problems before they occur
Following are some of the critical ways property management software can help property developers and managers.
1. Real-time communication and collaboration
Real-time communication and collaboration are critical in property management. There are a lot of moving parts in property management, and it’s impossible to keep track of everything on paper or through email. The best way to stay on top of all the information is by using PropTech, which makes it easy for managers to collaborate on projects.
Property management software can help with real-time communication as well as managing projects more easily since it uses checklists and templates to streamline fire safety, fault recording, and inspections.
Property management software also makes it easy to share important documents with clients, contractors, and other team members. It can be used to create contracts or lease agreements that are legally binding and cannot be tampered with.
2. Single source of truth
The concept of the ‘single source of truth’ is the idea that all data relating to the property is in one place. Property management software provides an easy way to achieve a single version of truth by making sure all data is stored in one central database. This helps make sure that there are no duplicates or conflicting records, allowing managers to have a clear view of what’s going on across all aspects of their business. The single version of truth also helps prevent errors, because it makes sure that everyone is working off the same information. This allows any necessary edits or changes made by staff members instantly visible to everyone else within the team.
3. Asset tracking
Another feature of property management software is the ability to track assets. This comes in handy when managers want an accurate list of all their assets, their locations, and their condition.
Asset tracking is a feature that helps property developers and managers keep track of their assets and make sure they are being used properly by identifying any possible issues or problems they may be facing. This can give them valuable information about the condition of the assets so that they know how much longer they will last before they need replacing or servicing. Tracking this data can also help managers reduce costs through preventative maintenance measures such as replacing worn-out parts in advance.
4. Contractor management
PropTech software can help managers keep track of the progress and costs of the contractors. It also allows them to ensure that they’re delivering quality work, in addition to ensuring that their invoices are accurate.
PropTech software is also great for managing inventory and tracking the progress of repairs. If there are a large number of properties, it can be difficult to keep track of who’s doing what and how much work they’ve done. Property management software allows managers to track this by creating projects for each property. Each project contains a list of tasks that need to be completed for the property to be considered complete. This can help them to ensure that all repairs are completed before the property goes back on the market. It also means that if a project is delayed for any reason, it’s easy for managers to identify this and find out why so that it doesn’t happen again in the future.
5. Automated workflows
Property management software can reduce manual tasks by automating workflows in a number of ways:
- Automated data collection – This means that teams don’t have to manually input information anymore! Instead of having to check off boxes or write down notes on paper, managers can use software to keep track of different aspects of their properties. For instance, property managers can use their software to collect information about the buildings they manage; how many units are in each building, what type of units they are and where they’re located. This type of data is particularly important when it comes to developing new strategies or improving existing strategies for managing buildings more effectively.
- Automated checklists and inspections – Another great way that property management software can save time is by automating the inspection processes so that everyone involved knows what they need to do before moving forward with a new project. This also makes it easier for other team members to stay up to date related to the project
- Automated Reporting – Property management software can automatically generate reports so that managers can stay on top of their properties without having to manually crunch numbers or hunt down missing information. The software also allows them to quickly pull up reports whenever they’re needed.
6. Alerts and notifications
Automated alerts and notifications are a great way to keep the property management team in the loop. Automated notifications help reduce time spent on communication and make sure everyone is on the same page. Teams can also use automated alerts to ensure that key personnel are notified when they need to be involved in a project or when something needs their attention. For example, if there is a maintenance professional who’s working on a property, an integrated system would allow her to receive messages about issues with monitoring devices so that she can address them before they become serious problems for tenants.
Additionally, automated alerts can be used to inform the team when there’s an issue with a particular system. For example, if there is an integrated security system that includes cameras and alarms, it’s easy to set up an alert that will notify everyone when something goes wrong. This can help the staff quickly identify what needs to be done and address any problems before they become major issues.
Integrated security systems can also be used for routine maintenance. For example, if the HVAC (Heating, Ventilation, and Air-conditioning) system starts making strange noises, an integrated system would send an alert to the right team so that they can get it fixed before there’s a problem with tenants. This can also be helpful if there is a fire or flood detection system in place. If there’s a problem with the sensors, an integrated system can notify everyone on the team so that they can address it before it becomes serious.
From a business perspective, there are many benefits of using PropTech. One of the main advantages is that teams will have greater visibility into their property. This can help with making more informed decisions about improving performance and achieving success. Managers will also be able to get a complete picture of their business performance, which allows them to make better forecasts and predictions about future events. This is essential if they want to plan to meet targets or avoid problems before they arise.
By using PropTech, teams will be able to cut costs and make better use of their existing resources. They will also be able to improve the quality of customer service by providing a faster response time. This is an important benefit as it can help businesses stand out from competitors.