The real estate business is evolving, and technology is expanding. In an industry that has previously been centered around face-to-face, what will these developments and innovations mean for the real estate industry?
Real estate is one of the most successful sectors of the economy, and technical development has contributed to its expansion. While Millennials and Gen Z desire to learn more and search for the best software solutions, older generations oppose the advancement of technology. The digital transformation trend is sweeping the real estate industry and affecting everything from how we buy and rent properties to how we maintain them. Whether you can adapt or not, technology will force us to conform.
What is real estate automation?
Real estate automation software gives us more time to focus on urgent tasks with the help of automating repetitive processes, including automated email workflows, lead management, and notifications. Real estate marketing automation sales boost output by 14.5% while cutting back on marketing expenses by 12.2%.
Real estate automation reduces manual labor, saves time, and boosts efficiency. These tools may involve such working methods:
- Automatic notifications
- Lead management
- Financial management
- Transaction tracking
Currently, 61% of real estate agencies use automation in their daily operations. The tools for system automation and team management are the most popular. Meanwhile, 35% of agencies are thinking about automating some of their procedures.
Related: Landlord Forms: Lease Agreements for Your Rental Business
How soon will the real estate industry be fully automated?
Proptech (property technology) is, undoubtedly, one of the most developing industries, and its efficiency will probably continue to fuel profitability, opportunity, and innovation. Automated real estate systems will achieve an even more integrated and straightforward strategy across real estate industry transactions and operations that will increase the use of proptech apps that are already available.
Source: TenantCloud Landlord Community
What is the best automation tool?
Well, it depends on your needs. Rental property software for small landlords and large portfolios alike can demonstrate a wide variety of automation tools, such as:
Collecting rent online is more convenient for many reasons:
- Tenants can choose to pay their rent automatically each month and build their credit history with the rent reporting system.
- Landlords can turn on automatic late rent fees and save time without driving to the rental property.
- Bank information is private, and the transactions are transparent.
- Last but not least, landlords can easily link properties to different bank accounts and add unlimited bank accounts to the system.
With TenantCloud, tenants may submit maintenance requests through their accounts, complete with all the essential proofs, and add photos of the issue, making it unnecessary for landlords to visit the property. Keep track of each maintenance request, create invoices, and share the request with multiple tenants on the lease or unit.
Landlords can respond to the request immediately and communicate with their tenants inside the maintenance request. You can delegate the maintenance request to a service professional or fix it yourself.
There is no question that the rental application fees exist for a reason. This legal charge allows landlords to pre-screen tenants from day one in many states, in addition to helping to defray the cost of tenant screening.
TenantCloud makes it easy to run a tenant background check to verify an applicant, check their criminal record, work history, past evictions, and more, thanks to a collaboration with TransUnion. Credit checks allow you to see a prospect's credit score and history. A background check, a credit check, and a search of National Eviction Records are all part of a full tenant screening report.
Related: How to Choose the Best Property Management Software in 2023
- Give you property management-specific accounting software.
Instead of using spreadsheets, landlords can conveniently track their rental income and expenses in one place with the help of the free TenantCloud accounting tool. Our free property management software allows you to instantly connect and synchronize with your QuickBooks Online account to save time and be more productive.
An accounting tool is a great way to streamline the tracking process for income and expenses.
Best property management software for small landlords can help in the following ways:
- Increase visibility.
- Make tax season easier.
- Track the performance of rentals.
- Simplify rental listing.
Save time with property management tools that help you to post your rental listing for free, where millions of renters search each month.
What are the benefits of the digitalization of real estate?
When workloads in your company reach a certain level of size and fluctuation, adding more employees won't solve the issue. Another poor decision is to keep adding additional responsibilities and burden the existing workforce. The potential for human error increases as your team becomes more overworked.
With the help of digitalization, landlords and property managers can better understand their client's needs by using insights from big data. AI tools enable them to participate in the renting process more quickly and make specialized recommendations based on client preferences.
Real estate automation is an excellent tool for accelerating processes and relieving tension on the team. Landlords and property managers can concentrate on more duties, like advertising properties and growing portfolios, by automating mechanical processes like organizing papers or listing submissions. Shortly, the digitalization of real estate allows you to close more deals and grow your portfolio.
How important is innovation in the real estate sector?
According to Statista, the number of Internet of Things (IoT) devices worldwide is forecast to almost triple from 9.7 billion in 2020 to more than 29 billion IoT devices in 2030. The most important use case for IoT devices in the consumer segment is smartphones, where the number of IoT devices is forecast to grow to more than 17 billion by 2030.
Another emerging pattern that impacts all aspects of proptech is an aging Generation Z that is starting to rent. Gen Z renters are far more tech-savvy. They are interested in smart home technologies and eager to have everything under their control via their phones.
Source: TenantCloud Landlord Community
That's why digital solutions like virtual property tours, online rent payments, and e-signing are becoming more popular. Virtual tours and e-signatures have become more commonplace due to the COVID-19 pandemic, and there is now a greater chance to invest in technology that will appeal to Gen Z and Millennial renters.
Can property management software help me find better tenants?
There is no disputing that the tenant screening process is time-consuming. Artificial intelligence-supported software for predictive tenant screening (AI) has aided landlords and property managers in streamlining the procedure.
Handle every step of the tenant screening procedure with property management software. The perfect software solution will pull the proper reports and send automated messages to applicants at each step of the screening process.
An automated process ensures that all applicants are screened thoroughly - tenant screening services offered through property management software make the process more comfortable for tenants and landlords. Additionally, using digital technologies improves the experience for candidates and paves the way for more solid ties. Landlords would be able to discover and keep better tenants with proper screening. That means less vacancies.
Related: How To Choose The Best Rental Property Management Software
Looking Forward with TenantCloud
Automating and digitalizing your real estate business is a perfect strategy to grow and scale your business. To increase productivity on your team, you can automate tasks that require too much time or effort. Property management software allows business owners to make their real estate businesses more productive and automate tasks like accounting, marketing, team management, and property administration.
Innovation in the real estate sector improves the way to screen applicants, reduces costs, eliminates time-consuming manual processes, and helps ensure the completeness, validity, timeliness, and consistency of your real estate portfolio. The best part is that this technology is already integrated with software solutions like TenantCloud and can be put to work with little effort from your team.