The real estate industry is adopting PropTech to streamline a range of property management processes. PropTech solutions can help provide improved oversight over available properties, making it easier for developers to track their portfolios and monitor market conditions.
What’s driving the shift?
Many, if not all, realtors have shifted from manual property management and oversight to digital systems, and it’s easy to understand why. Prior to widespread uptake of digital property management platforms, manual property management presented many challenges:
- limited reporting and documentation capabilities
- lengthy sales processes and duplicate paperwork
- complex and unsecured financing solutions
- inefficient property management strategies.
Now there is PropTech
PropTech is considered a disruptive innovation because it significantly optimises 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. Some of the benefits of using PropTech systems to manage real estate assets include:
- it’s a complete solution for managing real estate assets, including inspection reporting, tenant documentation, and payment processing receipts
- it tracks property portfolios in real-time, providing complete visibility into the status of each asset
- it can use analytics and artificial intelligence (AI) to assess market trends, leading to more strategic decision making, maximising returns on investments (ROI) quickly and accurately
- it’s a much easier way to document tenant and lease information, as well as track rent payments
- it provides access to property data, letting buyers compare pricing, inspection results, and availability quickly and efficiently
PropTech features you’re probably using already
The primary advantage of solutions like PropTech is the capacity to enhance client experience by reducing the complexity of real estate and asset management transactions. The tech helps real estate agents, asset managers, property developers, and agencies streamline the process of finding potential buyers or sellers. PropTech lets them quickly search databases, obtain precise information on clients, and manage inquiries, quotes, and viewings efficiently.
Standard features of PropTech feature a range of applications across channels, including:
#1. Listing sites and marketplaces
PropTech enables listing, buying, or leasing of properties with comprehensive property details, like dimensions, amenities, and multimedia content. The platforms also offer filtering options that let users refine their searches and find properties that match their specific requirements.
Advanced features, like interactive visual walkthroughs using virtual twins, offer remote property navigation and neighbourhood inspections. By offering extensive information, PropTech reduces the likelihood of failed purchases, saving time and resources for realtors.
#2. Asset management
Managing multiple income-generating assets like commercial buildings, office space or residential complexes can be challenging. Asset management software lets users monitor their development, appreciation, and/or depreciation, and make more informed decisions about selling, leasing, replacing, or upgrading. The right asset management software can also enhance regulatory compliance and security, improving the market value of assets.
PropTech’s automation streamlines reporting and audit operations, reducing operation and maintenance costs and ultimately boosting return on investment (ROI).
#3. Construction project management
Real estate developments involve a large team of building professionals, implementing massive projects within specific timeframes and budgets. Advanced construction project management software helps to maintain a smooth and safe operation. Integrating artificial intelligence (AI), machine learning, and digital twin technology further optimises construction processes by automating some tasks, including particularly high-risk ones.
#4. Remote-first property management
Managing multiple rental properties requires advanced tenant screening, facility monitoring, and audit and compliance procedures. A dedicated application accessible on all relevant devices can simplify tenant communication and interactions, and facilitate remote tracking for document management, inspections, compliance, and communication flow.
In addition to the app, Internet-of-Things (IoT) devices and sensors can also be installed to monitor property activities, alerting personnel to potential fire accidents or automatically shutting off power or water supplies during an emergency. They can also improve building safety and disaster readiness, which can give businesses a competitive edge.
What’s next for PropTech?
By 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, the future of real estate management looks brighter than ever.
Adopting scalable, PropTech-enabled property management tools is vital to keep up with real estate management trends. The tools must adapt to regulatory changes to keep property management and construction operations compliant with safety and quality standards.
Bart Crowther is the Regional Lead, Australia for the global SaaS Construction Tech platform PlanRadar. With more than 10 years’ experience in the construction industry, Crowther has worked in a number of high-profile and senior leadership roles for companies such as Aconex, Avoka Technologies, Fujitsu, Kronos and Data#3.