With responsibilities ranging from marketing and maintenance to leasing and legal, many residential property managers probably dream of cloning themselves to handle the workload. Sadly, cloning technology isn’t quite there yet –but luckily, property management technology is.
Today’s digital property management systems are designed to streamline cumbersome processes, allowing both property managers and tenants to easily keep tabs on every rental-related detail. And “proptech” is still growing–according to recent market research data, the property management technology industry is projected to nearly double in market size from its current $22 billion to a whopping $43 billion by 2030, indicating even more exciting developments to come.
What is property management technology?
Property management technology is an umbrella term that covers the various software, devices, and systems that make a property manager’s job easier, from smart sensors in buildings for monitoring HVAC systems to mobile listing apps that automate the marketing of available rental properties.
Tenants can also reap the benefits of technology for property management, with virtual tours and tenant portal apps that provide a single touchpoint for rent payments, maintenance requests, and visitor access.
Why residential property managers are embracing proptech
As property technology evolves, property managers and commercial real estate property management firms are realizing more of its benefits every day. Here are a few of the most commonly appreciated perks:
- Convenience: Mobile access to climate control, security systems, and rent collection allow property managers to oversee management operations even away from the office.
- Cost and time savings: Automating communication for things like rent reminders and lead nurturing can save time to focus on tenant relationships, and energy-saving technology like smart thermostats and lights lower utility costs.
- Data collection: Proptech can act as a silent observer, noting how space is being used and what residents prefer, spotting trends both within your property and in the housing market so you can find more effective property management solutions to delight your tenants.
- Automation: Automatically track vacancies, lease renewals, and new leads in real time; refresh listings and generate reports, all in one place.
- Record keeping: Proptech can keep all communication organized so you don’t have to worry about misplacing important correspondence with tenants or vendors.
- Attracting new tenants: Potential tenants value the streamlined experience offered by a property with tech-savvy management versus one without, leading to higher rental rates and fewer vacancies.
Most popular property management technology tools
Technology for property management can cover a lot of bases, but these are some of the most common tools found in today’s proptech toolboxes.
A la carte software tools
- Document management systems: Get leases and other documents signed digitally without the hassle of in-person meetings, document scanning, couriers, or fax machines with software like DocuSign or Acrobat Sign.
- Customer relationship management (CRM) software: CRM software like Zoho or Salesforce can help you track customers through the sales pipeline from lead to closed deal.
- Online payment systems: Easily accept credit or debit card payments, or immediate bank account transfers with online payment services like Venmo or Paypal.
- Communication tools: Secure messaging platforms like Slack or WhatsApp let property managers, tenants, and property management companies easily communicate about all things rental related.
Comprehensive property management software
Software that is designed specifically for property management can be on-premise or cloud-based (cloud-based is becoming standard) and often has both desktop and mobile applications. Basic proptech software typically covers communication, rent collection, maintenance requests, and tenant screening.
Larger properties may benefit from premium software options like VTS Activate that can also include features like building system access, virtual tours, automated marketing, insights and analytics, report generation, and more. Quality comprehensive proptech also has the ability to integrate with other existing property management software you currently use.
Smart security
End-to-end smart security technology keeps properties and apartments secure while at the same time simplifying access for residents, visitors, and maintenance personnel. At the property-wide level, smart security can include keyless building access, digital visitor keys, motion-sensing security cameras, package receiving, and secure amenity access.
At the unit level, security technology may include video doorbells like Ring, smart locks like Level Lock, alarm systems like SimpliSafe, video cameras like Google Nest Cam, and smart home hubs like Alexa or Google Nest Hub to tie it all together. Today’s property management companies are also considering tenants’ virtual safety, offering VPNs and stronger WiFi security to residents.
Smart environmental sensors
Environmental sensors allow property managers to remotely monitor things like temperature, moisture, and light, and to track usage of common areas and amenity spaces. Sensors can help alert you to any potentially disastrous maintenance issues before they start, reduce energy usage in vacant units, and give valuable feedback on how space is being used.
Popular environmental sensor devices on the market right now are the Google Nest Thermostat, Honeywell passive infrared (PIR) sensors, and Wyze smart home products.
What to consider when selecting property management technology
Here are five questions to ask yourself when evaluating which property management technology to incorporate into your day-to-day:
- How many units does your proptech need to manage?
When it comes to proptech tools– especially proptech software –size matters. Ensure that the property management tool you’re choosing can accommodate the workload of the property you manage. - Where are your pain points?
When it comes to proptech tools– especially proptech software –size matters. Ensure that the property management tool you’re choosing can accommodate the workload of the property you manage. - What do your tenants want?
Tenant feedback is key. Communicate with renters to learn what processes they’d like to see streamlined, whether it’s amenity access, package delivery, visitor access, maintenance requests, security –then find a proptech solution to address the issue. - What technology are you already using?
If you have a team of people trained to use one software platform, switching can be a real headache. If you want to expand your proptech tools, look for platforms that integrate with the systems you already have in place. - Which tools deliver the highest ROI?
Proptech can be an investment, so it’s important to be able to prove ROI to property owners and investors. Consider platforms and devices that reduce energy costs, enhance marketing visibility, and add value to the property.
What to expect from proptech in the years to come
Want to be ready for what comes next with property management technology? Here’s what’s on the horizon for the property management industry:
- Increased mobility: Property management technology is becoming increasingly portable, with cloud-based software and more companies offering mobile apps with their proptech products.
- AI: Expect to see proptech incorporating artificial intelligence for everything from tenant screenings to customer service to sophisticated algorithms that predict renter behavior.
- Virtual reality: As virtual reality becomes more refined, expect virtual tours to move from 2-D and 3-D video to interactive virtual reality.
- Internet of Things (IoT): Smart apartments of the future will integrate with the Internet of Things (IoT) as property managers look to incorporate environmental sensors, security systems, and other smart products to provide wraparound smart technology for residents and staff.
From ‘nice-to-have’ to necessity
Just like we all eventually bit the bullet and switched from “dumb” cell phones to smartphones, now is the time to take the leap into the world of proptech. Learn more about what property management technology can do for your multifamily residential properties at VTS.com.
