How innovative technology is shaping real estate management
The technological revolution is slowly but surely penetrating almost all industries and economic sectors providing business owners and organizations with better, more efficient solutions to their challenges. Plus, real estate has always been one of those economic segments that are usually interested in innovation.
Therefore, realtors have long embraced the use of high-tech tools for their day-to-day job. They were among the first to understand the importance of promoting your business online (after the eCommerce and retail segments) and also didn’t shy away from implementing systems for remote access to data and tools. After all, real estate agents are always on the road, and remote access to company data and other online tools made their lives a lot easier.
But technology didn’t just change the way real estate agents behave. It also determined other actors involved in the process (buyers, sellers, tenants, property managers) to change their behavior and decision-making process when it comes to their overall experience with real estate.
For instance, many property managers are now realizing that the right software solution has the potential to make their properties more profitable. Plus, real estate agencies learned that automation can save them time and money. So, in the name of increased efficiency and better profits, the world of real estate management is changing under the influence of innovative technology.
Moving forward, we’ll talk a bit about these changes and the main technological drivers that sat behind them.
Lower operating costs
Real estate management entails a bunch of operations that require time and mental effort. However, most of these operations can be automated and entrusted to clever software that runs in the background and only bothers you when there’s something important.
Whether we’re talking about CRM solutions or a smart management system that can keep track of appointments, task assignments, and progress, automation is a big step forward when it comes to lowering operating costs.
Yet, every real estate broker will tell you that there’s a cost to technology. And they are right, of course. It does cost to find and implement the right technology for your business. However, if you look at it as an investment, it’s easier to see the future benefits.
Let’s take commissions as an example. Broker agencies work with real estate agents on a commission-based agreement. Yet, these commissions can be tough to calculate manually because of various factors that come into play. That’s why many brokers put these calculations on the back burner until it’s actually time to pay.
While this can be a time-saving tactic (why worry about something you may not have to do for months?) it also means it can catch you off-guard. Plus, it takes time and resources to make all the necessary calculations.
Nowadays brokers can use specialized calculators that do the job in no time without any effort. Plus, by using the calculators for real estate commissions, you save on time and money, which leads to lower operating costs.
IoT & property management
Again, the Internet of Things (IoT) is not a new concept. However, it just now makes a full entrance into our personal and professional lives. Devices like smart speakers, smart thermostats, security systems, smart fire alarms, smart door locks, and others make homes safer and more convenient for the tenants.
On the other side, they can also make property management easier as managers can collect data in an effort to understand tenants’ behavior. Plus, it’s easier to keep track of the consumption on each property.
Analytics software for deeper insight
The use of IoT devices goes hand-in-hand with the use of analytics software. That’s because IoT devices collect and transmit the information to a central database and analytics software receives the data and processes it into useful reports for the managers or the owners.
Plus, analytics software can receive data from other sources as well, like the housing market, or the real estate agency’s website. This helps discover patterns and trends in the market which can be used to make better business decisions in the long run. Also, due to analytics, real estate agents may discover connections between various elements that influence the market.
Good use of analytics results in predicting the best moments to rent a property for maximum profit. Also, the software can offer insight into tenets’ preferences and needs so the owners can upgrade their property and make sure they get the best possible deal.
Focus on cybersecurity
IoT devices, automation, and analytics software are all great and nice, but what do you do if there’s a security breach?
Cybersecurity challenges are, sadly, the dark side of technology which is why every business, regardless of size, must integrate cybersecurity systems into their operations. The setup is different for each business, so you just have to find the best approach the works for your agency.
Of course, there are various solutions to protect businesses’ data and the confidentiality of clients. However, considering the fact that real estate agencies work with remote connections a lot, this is an aspect that needs to be taken into account. In this case, the right solution may require that agents only use safe devices, provided by the agency and connect to the main database using an encrypted channel.
It may be a bit more cumbersome than just using your personal phone, but in the end, it is safer.
The competitive edge
The real estate market is one of the most competitive in the world, which is why agents and brokers use innovative technology to gain a competitive edge. Due to their efforts, the world of real estate is now more efficient, faster, and more informed than ever.
By investing in cloud-based solutions and smart-building technology, owners and property managers are more in touch with the people who use their property. Also, it’s easier to execute a wide range of tasks due to automation technology.
Due to all these technological advancements, realtors and property managers can focus on creating value for their businesses. And they are not the only ones to benefit from it. Tenants and buyers also have a lot to earn from this because the specialists now have the time and drive to focus on solving their problems.
Overall, a highly technologized real estate sector means better-prepared specialists who can have one-on-one sessions with their customers. Plus, they will always have access to the newest data in the market, in the format that’s easiest to understand.