There was a time when realtors had to go out in the streets and give away flyers to advertise their business. Cold calling unverified contacts and hard selling to random audiences were also standard practices. Today, it’s different. Real estate professionals now leverage digital property technology or “PropTech” in almost every aspect of their businesses. As a result, managing assets, portfolios and property has never been faster.
The real estate industry is increasingly adopting PropTech to streamline a broad range of property management processes. For example, PropTech solutions provide improved oversight over available properties, making it easier for developers to track their portfolios and monitor market conditions. It also allows them to quickly update their listings on multiple platforms without manually entering all the data. Additionally, PropTech can automate leasing and tenant screening processes, eliminating paperwork and speeding up the process of finding tenants.
What’s driving the shift?
Many, if not all, realtors have already shifted from traditional property management and oversight to digital systems, and it’s easy to understand why. Before, they had these challenges to deal with:
- Lengthy sales process and paperwork – Everything had to be done manually back then. Physical documents had to be sent and resent via mail for signing and verification. The client’s presence was also often imperative.
- Complex and unsecured financing solutions – Checking for creditworthiness and getting pre-approved for a property loan took weeks or months. Even lease documents were difficult to acquire.
- Inefficient property management strategies – From listing to inspection to lease renewals, managing property is hard work. No steps could be performed remotely.
Then comes PropTech
PropTech, short for property technology, is a collective term that refers to the different technological tools that make real estate management more efficient. It’s considered disruptive innovation because it significantly optimised real estate processes, including asset management, marketing, sales, and research. However, as vast as its coverage seems, it’s a tiny portion of the ongoing digitalisation of the real estate industry.
By using PropTech solutions, property managers and real estate agents can ensure that their properties are managed efficiently and effectively. PropTech systems provide a comprehensive platform to manage all aspects of a portfolio of real estate assets including marketing, tenant screening and payment processing. These systems have allowed property managers to track their portfolios in real-time, providing complete visibility into the status of each asset.
Through PropTech solutions such as analytics and artificial intelligence, property owners can assess market trends quickly and accurately. This allows them to make better strategic decisions about their investments and maximize returns. Additionally, PropTech platforms make it easier to manage tenant and lease information, as well as track rent payments. This enables property managers to streamline their workflows and improve customer service.
PropTech solutions have also made the process of buying and selling real estate much easier. By providing access to data on properties, PropTech systems allow buyers to compare pricing, inspection results, and availability at the click of a button. This technology has allowed buyers to find properties quickly and efficiently, saving them time and money in the process.
Whether renting out or selling property, if you’re using real estate management software or any digital tool to run your business more seamlessly, you are using PropTech. And it’s not just property owners and realtors who benefit from its features. Any individual involved in the purchase, sale, lease, construction or development of real estate does, including:
- Architects and engineers
- Construction subcontractors
- Mortgage brokers
- Construction project managers
- Facility managers
Project management software programs like PlanRadar with PropTech capabilities provide a data-driven platform where professionals and stakeholders can collaborate, communicate, access/share real estate data and perform tasks.
In addition to simplifying listing services, advertising, product selection, and purchase transaction, it also automates certain functions. For instance, some PropTech tools allow automatic responses to FAQs or create a daily status report for asset or property portfolios.
Standard PropTech features you’re probably using already
Real estate transactions can be intimidating for four reasons:
- It involves large sums of money, often worth a buyer’s life savings or a significant portion of their wealth.
- It’s a life-changing decision. A recent survey has shown that Aussies consider selling, buying, or moving to a new home one of their most stressful life events.
- The risk is too high. From a builder’s point of view, guesswork and assumptions are unacceptable. That’s why they don’t take chances. They only decide and act based on data-driven insights.
- The process can be confusing, and mistakes such as missing critical details before signing a document could have grave consequences.
The bottom-line value of PropTech is the ability to improve client experience by making real estate and asset management transactions less intimidating. Real estate agents, asset managers, property developers and agencies alike are leveraging PropTech to increase efficiency and accuracy when prospecting buyers or sellers. They can use PropTech to search relevant databases faster than ever before and access additional information about potential clients with greater accuracy than manual research would allow. PropTech can also track inquiries, generate automatic quotes and schedule viewings with a single click.
Here are some standard features of PropTech tools that make these perks possible:
#1. Listing sites and marketplaces
These are platforms where you can list, buy, or lease property. Each listed property comes with detailed information, including address, floor or land dimensions, amenities, photos of each room, and video. They also have filters to allow visitors to narrow down their choices and concentrate on properties that match their specific needs.
Advanced features include an interactive visual navigator, which uses virtual twins to allow visitors to navigate the property remotely. Some even cover the neighbourhood for more in-depth inspection. Providing prospective buyers with as much data about the property as possible helps reduce flop purchases, saving the realtor time and resources.
#2. Asset management software
Managing multiple assets can be tricky and confusing, especially if all of them generate income. Whether those assets are buildings, vehicles, or machines, you need to track their development, appreciation, or depreciation to determine when it’s time to sell, lease, replace or upgrade. Using asset management software, you can monitor all your assets and make timely financial decisions.
With the right asset management software, you can also improve your assets’ regulatory compliance and security, increasing their market value. The automation this PropTech offers fastracks reporting and audit operations, which reduces operation and maintenance costs and, ultimately, boosts ROI.
#3. Construction project management
Real estate developments are massive projects implemented in stages by a large team of building professionals within a specific time frame and budget. Various tools and methodologies are needed to ensure each project is progressing at the right pace and that all activities are within the scope of work – and compliance is also a significant aspect of any construction project.
Traditional construction management systems are inadequate with these complexities, which generally involve big data. Advanced construction project management software is needed to maintain a smooth and safe operation. Integrating AI, machine learning, and digital twin technology further optimises construction processes by automating some of the tasks, particularly the high-risk ones.
#4. Remote-first property management
Managing a few rental properties may not require advanced tenant screening, facility or property monitoring and audit and compliance procedures. But it’s different when managing dozens or even hundreds of apartment units. Make it easy for you and your tenants to communicate and interact through a dedicated app accessible to all devices. This way, you can track digital document management, inspections, compliance and communication flow that comes with your real estate management remotely from anywhere, at any time.
You can also install IoT devices and sensors to monitor activities in your properties. These advanced tech structures can be programmed to alert concerned personnel on potential fire accidents or automatically shut off power or water supplies during an emergency. They can improve your building’s safety and disaster readiness, which gives your business a competitive edge.
What’s next for PropTech?
PropTech is still in its nascent stage but is evolving fast as digital technology advances. Property owners and managers can look forward to better data handling, more practical functions and bolstered automation features in the future.
Overall, PropTech solutions are transforming the real estate industry by providing property managers and real estate agents with access to smarter, faster and more efficient tools for managing their business. By utilizing PropTech, developers, property managers and agents alike can save time and energy on daily tasks while also improving accuracy and boosting customer satisfaction across the board. With PropTech solutions, the future of real estate management looks brighter than ever.
Adopting scalable PropTech-enabled property management tools is critical to keep up with real estate management trends and tech updates. These tools must also be adaptable to regulatory changes to keep property management or construction operations compliant with safety and quality standards.
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