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Proptech Solutions

Proptech Solutions 2022

Over the years, we’ve become more familiar with the term Proptech, or the fusion of technology and property management. We’ll hear it more and more because it delivers significant financial benefits to property managers.

Proptech can include a wide range of digital and device technologies that help property managers do more work, automate, improve asset management and performance, improving tenant experiences and satisfaction, and grow services.

This extensive range inspires a lot of tech developers who want to build solutions for problems that resist resolution.  Tech is another path and it’s creating an advantage for a number of start up property management companies. They’re able to bypass roadbacks (e.g., automation and mobile vs office).

Each year seems to be the year of PropTech.

There’s no doubt it is changing the business of managing rental properties. In fact, the short term vacation rental marketing might be seeing the fastest adoption. That sector was crying out for improved maintenance, payment, and vacationer support systems.

Software Still is the Core of Proptech

Although hardware and systems improve, the real value delivered by Proptech is in major all in one platforms.  As an example, ManageCasa Proptech leverages cloud technology to for surprising improvements in accounting, online payments, and automation which is really the big value add for busy property managers.

Definitely review the property management software platform and ask for a Demo.

Investors are Into PropTech

Investors are sinking billions into new tools, apps, and solutions, and according to some accounts, 70% of all that investment has been in the last few years. And billions more will be poured into PropTech in 2022.   

According to a recent survey by MetaProp — a real estate-focused VC in New York—a whopping 96% of PropTech investors planned to invest the same amount of cash in 2018, if not more, than they did last year — Forbes article

Real estate firm JLL reported Proptech startups across the real estate industry in the last ten years have risen from under 2,000 to nearly 8,000.  JLL believes hybrid work, health and safety, and sustainability initiatives are also increasing demand for these solutions. The company says those 8,000 companies collectively raised more than US$97 billion of equity funding in the past decade.

If anything, the Covid pandemic has quickened the pace of Proptech adoption. We’ll see further adoption statistics as researchers get back to work in 2022. The fact is, landlords and property managers need tech efficiencies and staff training and operating ease are additional positives.

 

The Commercial Observer describes PropTech investment as “a rosy picture for a fledgling sector of the real estate industry that has grown at a rapid rate as landlords, investors, brokerages and consumers have sought more efficient, tech-centric ways of doing business.”

 

Definition: What is PropTech?

PropTech is hardware and software technology applied to the property sector of real estate. Some could argue that proptech is focused solely on the property management sector. It’s likely meant to revolve around any element of the property business. Those in the real estate sales industry might refer to their sector as RealTech, but that phrase isn’t used much.  If you have any clarification of that, please do leave a comment below.

Property technology solutions are designed to help property managers all of their work including lease management, communications, accounting, maintenance work, financial management and more.

PropTech encompasses platforms, communications media, electronic devices, and computing infrastructures.  They’re often developed in concert with arriving technologies such as cloud infrastructure, 5G channels, mobile devices, and the software used on these.

Wikipedia offers another description of the entire technology:

PropTech encompasses property management using digital dashboards, research & analytics, listing services/tech-enabled brokerages, mobile applications, residential & commercial lending, 3D-modeling for online portals, crowdfunding real estate projects, shared spaces management, as well as organizing, analyzing, and extracting key data from lengthy rental documents.

In a nutshell: PropTech is the hardware/software alternative to current property management systems which use general software solutions and hosted IT platforms not designed for property management business. Proptech specializes and adapts systems to work solely with property management business.

Real Estate is Ripe for Disruption

Real estate is old school. Lagging investment in new technology and reliance on old paper-based document management slows the selling, renting, and financing of real estate. Everyone is looking for a better way, and Proptech entrepreneurs know things will go their way.

Successful Proptech companies are in a position to leap ahead of everyone to gain sizable marketshare and ROI. Successful funding will be a key differentiator for many firms trying to gain marketshare.

According to Dreamit, Venture investors sank $18.6 billion into real estate property technology — known as Proptech firms from 2015 to 2017 with the pace quickening in late 2017

 

Confidence in PropTech Adoption and ROI among CEO’s and Investors. Screen Capture courtesy of Commercialobserver

Merging with All Aspects of Global Real Estate

PropTech is merging itself with a potential 13 trillion dollar global real estate market. Everything from construction to financing, transactions and advertising, to property management and accounting will be impacted by PropTech solutions.

The upside is obviously immense. Consider how much will be invested in PropTech in the next 2 years, how much time and technology is being applied, and you might understand the hype and excitement about disrupting real estate.

Unfortunately, the topic is still regarded less as an opportunity to improve business, and more as a disruptive threat. Yet, we’re already within a change in mindset and when you dig into the value you can generate and how that translates to dollars and more sustainable business for your company, you’ll be excited.

PropTech is Big and Nichey

New proptech startups are targeting niches in real estate where little technology exists. Market opportunities keep popping up all over. Well established firms such as Zillow, Zumper, Homelight, Reali, OpenAgent, and Rentberry for instance are gaining significant marketshare in core services.

And niche players such as UK proptech startup RentalStep were reporting 150% growth monthly. Using RentalStep, UK landlords can list available properties on popular UK rental websites such as Rightmove, Zoopla and PrimeLocation. The solutions will be ever more creative in 2022.

1. RentalStep –  Landlords can access an online booking system, comprehensive referencing services, and find the best tenants using a tenant screening and credit checking service. Combining that with a good property management solution, and you have a product that can serve rental property managers very well.

2. RentMoola – RentMoola offers an interesting twist to help tenants to pay their rent on time, and be rewarded for paying.  They pay rent any number of ways from credit card/debit cards to cash.  Tenants earn points which they can use to buy travel, shopping, and home services along with chances to free rent, prepaid gift cards, and trips around the world.

3. Amenify – If you’re active in the multifamily property sector, Amenify offers the types of services renters are missing. Amenify creates amenity programs with mobile-first technology which matches tenants to apartment cleaners, dog walkers, yoga and exercise classes, ride sharing services and more. Amenify turns an apartment building into a service for residents.

4. Zillow – Zillow as a PropTech company has been around for a while and its market cap is now $5 Billion dollars. Zillow’s website enjoys hundreds of millions of visitors each year. Its success comes from providing an feature rich, accessible, open market alternative to Realtor.com and many other alternative online services such as its Zesstimate tool. Where Realtor.com was not consumer friendly, Zillow has brought real estate to the smartphone generation. More Realtors are finding they need Zillow.

5. Zumper – Zumper offers a real-time home and apartment rental platform for tenants and landlords to find/rent apartments. Zumper, financed at on $37 million, uses direct data feeds and partnerships with landlords, brokers and property managers. Zumper gives renters real-time, curated apartment rental listings, and an interesting lead generation opportunity for landlords and brokers.

6. Homelight – Homelight uses a “matching engine” to connect homesellers to real estate agents. This machine learning algorithm analyzes 29 million transactions and 2 million agents. Home sellers are matched to the best, compatible Realtors thus increasingly the likelihood of a sales conversion. Homelight doesn’t allow Realtors to advertise, it makes money based on a share of commission, which old school real estate associations would never allow.

7. Reali – Reali ($30 Million funding) replaces the real estate agent with a platform and app that connects home sellers directly with buyers for a flat fee + commission instead of the full 5% to 6% Realtor commission. It serves the California housing market only. They make the transaction process more frictionless and transparent.

8. OpenAgent – OpenAgent is an Australian based service that helps home sellers find an agent that meets their criteria and terms. They provide the typical property information and free property reports. Sometimes, Proptech can be average companies yet provide a pleasant software, mobile device user interface with good support and win millions of customers.

9. Rentberry – Rentberry is a transparent rental application and price negotiation platform for tenants and landlords. Rentberry is the only platform to provide a transparent rental auction with the ability to submit custom offers. That makes it unique from Airbnb, VRBO, and other rental platforms.

10. CriteriaCorp – CriteriaCorp’s tools are used by real estate companies and HR companies to assist with hiring. The software’s pre-employment screening tools and testing service helps property management company exec’s and brokerage managers screen in better employees. Hiring and recruiting is identified as the number one challenge of property managers.

11. ManageCasa – ManageCasa is the Swiss Army knife of Proptech. This all-in-one software platform integrates a number of accounting, communications, scheduling, internet payment, and reporting tools that help automate and streamline operations.

Using ManageCasa, property managers remove the grind out of daily work and allow direct to tenant services (e.g. online rent payment, maintenance tickets, and problem resolution).  ManageCasa gives property managers an insightful picture of the status of their complete array of property accounts.

vivint12. Vivint Smart Home Systems – Vivint’s smart home systems integrate valuable home security, climate regulation, security cameras, door lock access all via a mobile app.  Security is an increasing concern whether burglary, gasoline theft out of autos, and unauthorized building or facility access. This service offers the peace of mind and security that many renters are demanding now.

 

Don’t disrupt your business for the sake of disruption. Platforms and improvements should be useful, compatible and relevant to your current business tools and software and with your current business partners.  Fitting in without dominating your business, good tools provide a user friendly, business platform for your property management company.

 

Proptech startups are launching every day, however which will thrive to deliver solid benefits is still unclear. As you look at the value proposition and services of each and what they’ll demand of your IT and other staff, you’ll see where they’re headed and whether they’re relevant to your company.  Keep it simple.

What Happens to Realtors and Property Managers?

Do we need Realtors anymore if Proptech gets rid of intermediaries? It turns out that Proptech will empower Realtors, and property managers. So the question might be, how will you be using the technology to improve your services, find opportunities, increase value, and boost your earnings?

These are just mobile-friendly and customer friendly software tools that open doors to you to expand and grow value for your clients.

Further opportunity is in entering new business areas, improved buying and managing strategies, attracting business partners, working with contractors, and making your company “cloud friendly.” The issue of being a cloud empowered software is no small matter to many clients — professional and enabled, factors into their estimate.

From efficiency to market reach and local market sales growth to analytics and market knowledge, PropTech could start giving you some big and even unfair advantages over old school competitors. Clients today want to know you’re using this technology.

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Reinvent Your Property Management Business

The property management industry is booming across the world. It’s competitive and you’ll be feeling pressure from new entrants in your business area. They’re hoping to use Proptech systems and tools to outcompete you. These are cloud-based software platforms stoked with business advantage.

 

Property companies are getting an advantage from what’s called Proptech – a variety of software solutions and apps that help property managers learn and reinvent how they do business.

 

Innovating to Connect and Maximize Rental Yields

Fortunately, this same software is available to smaller property managers. Whether big or small, the matter of operations efficiency, business intelligence, and sound management decisions reigns supreme.  This is how you grow rental yields forever.  

Rental Management Software | Commercial Property Management Software |  Rental Property Software Reviews | Real Estate Market |  Landlord Apps |  Property Management Companies | Property Accounting SoftwareRental Vacation Management Software |  Mobile Property ManagementProperty Management AutomationProperty Accounting Software

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