News & Blog
How Technology Like Blockchain Modifies Property ManagementJanuary 07, 2019
Whether you’re a property manager or a landlord, there’s a good chance you follow current tech trends in the property management industry as well as the global financial sector. Innovative technologies like blockchain as well as cloud-based solutions have opened up new paths related to the development of property management.
Let’s dive into how technology can modify property management:
Blockchain and property management
Blockchain technology came into play about ten years ago and may, to a certain extent, change property management in 2019. But how? Are these innovations able to change the character of daily landlord-tenant interactions and the financial aspects of their cooperation? In general terms, blockchain is technology that allows digital data to be distributed throughout a network. The decentralized nature of blockchain means that it isn’t controlled by any central authority. Blockchain technology makes it faster and more secure to create transactions and exchange information.
As referred to in the property management industry, smart contracts can become a good alternative to lease agreements and a regular rent collecting procedure. As an alternative currency, bitcoin has become the most popular form of a cryptocurrency. Today, multiple landlords accept rent and pay taxes with bitcoin. Ohio has even recently become the first state to accept bitcoin for taxes. Probably not everyone supports the value of blockchain technology in reference to a property management business, but the way it optimizes time and reduces the involvement of third parties remains essential.
In order to stay ahead of rental market trends, landlords and property managers look for end-to-end solutions—hence, smartphone apps—that will help them manage their rental properties without any further hassle. It seems that not so long ago we were office monkeys tied to our office computers, compared to the mobile freedom of the 21st century. Mobility is now considered a crucial factor allowing us to interact with each other and become engaged in corporate activities, regardless of where we are.
One management tool, the property management software system, is a relatively new phenomenon that immensely simplifies the lives of landlords by automating repetitive tasks. New software technology offers plenty of solutions regarding online payments, accounting, maintenance management, tenant screening, and more. Thanks to tech solutions, you can run a completely paperless business and provide your employees with access to all necessary files and documents, since they’re all stored in the cloud and you can get there with the click of a button. No more mountains of paperwork and logistical issues. It definitely improves the renting experience and allows you to keep all records in one place.
With technology you can also use digital advertisements and listings to market your properties and therefore get more potential renters. Marketing websites attract a lot of tech savvy visitors every month, so consider posting your listings to marketing websites you like. Additionally, it’s much more convenient to use online rental applications and electronic signatures than to require physical lease agreements from your tenants.
Making purchases on the internet is also more convenient and time-saving. It’s so much easier to order anything online, since cyber shopping gives you the opportunity to make purchases 24/7. For landlords and property managers, this option can be even more beneficial. Imagine that your tenant submitted a maintenance request. They need you to replace a pipe in the bathroom at your earliest convenience. Due to the massive variety of online stores, you just need to search for a specialized shop, carefully read the product description, pay the purchase price, and wait for delivery. There’s no need to drive to the nearest shop, especially when there’s little possibility you’ll find exactly what you need.
And finally, the very nature of landlord-tenant communication has changed significantly: Face-to-face communications have been replaced by digital solutions such as texting apps or built-in messaging options.
How has technology changed your property management business? Share your thoughts and experience by leaving a comment below.:)