Founder and CEO of Rentec Directreal estate management software for real estate professionals.
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Traditionally, real estate has been a slower technology adoption than other industries, but that is rapidly changing. “Proptech” is a thing now as those in the real estate space are embracing technology to create efficiencies in everything from the home selling process to property management tasks. (Full disclosure: My company provides real estate management software solutions, as do many others.) Bottom line: Technology, especially automation, can help cut costs, streamline workflows, and give people the freedom to use their skills for more than mind-numbing manual tasks.
Many companies – in the real estate sector and beyond – are hesitant to adopt new technology due to a number of factors: economic uncertainty, potential downtime during onboarding, leadership that is resilient to change and, especially in the last few years, a general sense of being overwhelmed. to be. But the truth is, taking advantage of the right solutions will keep your business future-proof and competitive. There are several questions to ask yourself before implementing new technology to help you make the best decisions for your unique business. Here are three.
1. Which tasks take up the most of my/my employees’ time?
Some tasks, such as one-on-one relationship management or developing creative outreach campaigns, may not be well managed by technology. But if you spend a lot of time entering data for things like accounting, this is one area where technology (especially automation) can really shine. For property managers, accounting tasks, such as preparing invoices and statements or tracking receivables, and gathering all this information for the tax season, can take a tremendous amount of time. This is an area where great progress has been made recently, with targeted solutions to streamline the entire accounting continuum. Take a good look at your daily work, interview your employees and discover where the bottlenecks are. This gives you a good place to start when looking at the type of technology you need to improve your business. Who knows – maybe you’ll have more time to nurture your current landlord-tenant relationships, expand your portfolio and grow your business, or maybe even take that vacation you’ve been dying to get to.
2. How can I better serve my customers with technology?
As a landlord or property manager, one of our external target groups consists of the tenants themselves. When you provide them with cleaner, easier ways to do activities, such as paying rent, you both benefit. In fact, data collected by my company shows that renters who pay rent online and are enrolled in automatic payments: more likely to pay the rent in full and on time. Using a system built specifically for tenant communication, conversations such as maintenance requests, inspection notifications, and tenant reminders can all be automated at varying intervals, be that daily, monthly, or yearly. Your tenants can receive notifications via text or email, or both. The more rental units you oversee, the more responsibility you have. Automating your tenant communications as much as possible can be an easy way to remove a step from your daily workflow and ensure your tenants are up to date.
3. How can technology positively impact my bottom line?
There are always some hard costs associated with implementing new solutions, so you’ll need to explore the long-term impact on your business if you choose to upgrade your processes with technology. However, the return on investment almost always outweighs the initial cost, as you save on labor and management costs almost immediately. Some of the things I’ve seen companies achieve in implementing technology include increased accuracy as automation reduces human error; more flexibility, with time to do things like build stronger relationships; and the ability to scale, providing a consistent platform for future growth. By automating certain functions, rent payments can be paid on time and vacant properties can be rented out faster – a clear positive effect on the bottom line of any real estate company. Look at your own business to evaluate the true costs versus benefits of implementing new technology.
Final Thoughts
Incorporating automated processes and new technology into your workflow won’t completely eliminate the personal element that property management requires, but it will certainly allow you to spend more time on the high-value, important tasks that require your immediate attention. Every company is unique, with different demands when it comes to technological solutions. Take the time to step back and look closely at your current workflows, and ask the right questions of yourself, your employees, and other stakeholders so you can make the best decision. If you’re already using a software platform, make sure you take advantage of all the tools it has to offer.
Work smarter by letting the available tools do more for you. With a deliberate strategy, automation and new technology can be the key to taking your rental business from good to great.
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