Friday 14 January 2022
The way properties are managed is changing, impacted by factors like the new Victorian regulations and even the Covid-19rollercoaster. Things are not what they were, but it presents property managers with an exciting opportunity.
As the industry transitions to a time where change is the new norm, property managers need to be open to new ways of operating to keep ahead of emerging technologies and customer expectations.
By understanding the changes you’re likely to face in 2022, you can find solutions that will help you address the issues the property management industry is likely to face and stay focused through what will be another busy year.
With property purchase prices up and maintenance costs as high as ever, there is a concerning drop in ROI with a number of places rental revenue has reduced, or even been suspended due to personal financial crisis, putting the pinch on landlords and property management businesses to handle the profit margin squeeze.
As well as profit margins receding, property management is facing a lot of pressure from:
Fragmented technology landscapes
Shifting circumstances making decision making difficult
Increasingly higher tenant and landlord expectations
Service economies requesting 24/7 operating hours
Digital first agencies offering fee reductions
Increased regulatory compliance obligations
There is a lot going on, but it's not going away. Each issue needs to be worked through to come out on top.
Software programs and Artificial Intelligence (AI) in property management can handle property maintenance as well as addressing common tenant questions or requests like, “Can I bring in a pet?” or “When does my lease expire?” or “How do I pay my rent?”
Utilising the right software applications can help you work through the challenges that come your way in 2022, especially if your chosen software solution is:
Integrated with your existing systems so there is no data duplication
Programmed to understand each jurisdictions varying compliance /regulatory scheme
Affordable, with no lock-in contracts
As your tech partner, Rental Heroes software applications can achieve all of this and more.
Here are the five biggest trends we are expecting to see in 2022. Being prepared in advance can help property managers put measures in place to continue their growth and meet expectations.
There’s been an incredible labour shortage throughout 2021, which is expected to continue into 2022. This has resulted in a shortage of available property managers and administrative staff to handle the increased workload, especially since more tenants work from home.
Our property management software uses natural language and AI to handle tenant issues and enquiries so you no longer have to. Systems are in place to instruct tenants on how they can implement steps to get their own solutions, cutting down on your team’s workloads and demands.
Having a centralised cloud Customer Relationships Manager (CRM) also allows all property managers and their team, even those operating remotely, to have access to data and communications in real-time.
In a world where convenience, ease of access and efficiency are in high demand, tenants and landlords are also increasingly setting higher expectations and placing bigger demands on property managers.
There’s a challenge to keeping pace with the demand from both tenants and invested landlords who want to stay up to date with maintenance progress, regulatory compliance, property reports and desire tailored communications.
You can help meet stakeholder expectations by utilising real estate automation and property management automation through Rental Heroes software and effective CRM integration solutions. PropertyMe is the largest cloud property management software available in Australia, with built-in accounting features including bulk disbursement.
These solutions not only improve and streamline your internal systems but also offer:
Intelligent chatbot systems for tenant communications
Tenant self-help options to take the burden of small jobs off property managers
Maintenance requests tracking so tenants can see the delivery progress
Fully integrated software that plugs into your existing cloud-based CRM or workflow system like PropertyMe
Rental Heroes was created to give tenants, property managers, and landlords the opportunity to experience the positive effects of artificial intelligence, many of which they already use everyday as consumers of other services.
By adopting early AI technology it makes it easier for property managers to update their systems and have greater familiarity with new AI applications as this intelligence continues to grow and have a bigger influence on the property management industry in the years to come.
Technology disruptions are now the norm across all industries. As we become more reliant on cloud-based systems to run and manage offices and work teams we need a way to make these technologies reliable and error-free.
Property management companies rely on technology to:
Streamline internal work systems and communications
Inform tenants of upcoming changes
Keep up to date with regulatory compliance
Communicate with maintenance crews
Track the progress for ongoing property maintenance
Respond in emergencies
As well as intelligent software systems that can run communications through central databases, there will also be an increasing complexity related to the application of The Internet Of Things (IoT) which includes CCTV, Smart thermostats and Smart locker storage.
In order to meet these expectations and provide a seamless service response, the current fragmented technological landscape demands efficient integration of software, data and processes.
Technology is changing property management with the integration of fast, clever, streamlined systems including:
Technology like Customer Relationship Management (CRM) combined with Real Estate AI have been especially helpful for finding and retrieving customer data and call logs, improving productivity and helping to customize responses relative to individual tenant or landlord history.
Purchasing the technology alone is not enough. Property managers will also need to employ a careful examination of how new technology will fit into managing properties day-to-day, in order to ensure data is available and accessible to all parties when they need it.
Traditional property management models will be under more pressure to perform as new business models continue to enter the market.
Digital entrants such as Different and Yabonza offer fixed or affordable management fees. Coming in with the aim to disrupt the industry, these providers are digital first in their interactions so that investors have the flexibility to choose between contactless services or more traditional property management services.
Traditional versus Tech-enabled property management
Traditional property management that uses tried-and-true methods for:
In-person property inspections
Work order systems
Trust / accounting systems
Onsite task executions
Issues handled by calls and emails
Tech-enabled companies use property management AI tools to:
Collect and disburse rent payments
Track work status
Have distributed teams for round the clock response
By utilising technology and integrating their own Property management AI, traditional property management companies can stay ahead of the competition and reduce the gap in the offering from digital entrants, so that while their prices are higher, their service offering is both more personal and highly efficient.
Regulatory compliance obligations differ from state to state, adding a layer of complexity for nationally run property management companies. As well as the differences between states and territories there are also multiple changes to keep ahead of in order to protect and respect the health and safety of tenants and landlords alike and 2022 will be no different.
Complying with codes is non-negotiable and consequences for breaching regulations are steep and can include:
Loss of positive brand reputation
Loss of licence
With so many different compliance areas to address and constant changes and alterations to the existing framework, it can be hard for you to stay across everything.
Luckily, technology can help you meet your regulatory compliance obligations by delivering:
Accounting software - Well known and trusted accounting platforms can benefit from being aligned with specific property management software to make it more efficient in completing your property accounts.
Tenant Relations - There is a lot of compliance regarding tenancy, from credit reporting and eSignature storage, through to their rights in the Fair Housing Act. Intelligent software can assist with screening tenants, signing the lease and reporting with built-in compliant technology.
Automated reminders - Pop up reminders can remind staff members of upcoming changes to current compliance as well as bring up a checklist prior to a property visit or task so they have the relevant requirements fresh in their mind.
Payment processing - Payment processing is a highly regulated sector to be able to quickly identify instances of fraud as well banking errors and data-entry issues. Technology can be used to safely transfer funds between banks and process payments between parties.
Maintenance software - This can manage workflows across multiple parties, from the landlord and the property managers to the trade, to ensure that things don’t fall through the gaps. Traditionally, there can be an average of 13 steps from a maintenance issue being raised to reaching the final step, which is invoice reconciliation back to the trust accounting system. Having reliable maintenance software can make the process more efficient and effective. Some maintenance tasks to delegate might be seasonal or annual so these can be checked into calendars ahead of time.
We understand that there are challenges ahead for property managers to understand and overcome in order to come out on top when the dust settles. By preempting these challenges you have more flexibility and choice to steer your company in a direction that will dodge those obstacles and get ahead of your competition.
Having the right system software can help with all aspects of running your property management company by organising, integrating and streamlining your systems to one central database.
It is so important to bring in new technologies and Artificial Intelligence early so you can transition to future technology gently and comfortably as well as keeping up with emerging digital entries.
We are so proud of our AI capabilities and what they can do for your property management team. We are especially excited about introducing you to our AI chatbot, Alex. Using natural language Alex can handle all tenant maintenance issues and answer common questions, taking work off your team's shoulders. Alex integrates seamlessly with your existing cloud-based CRM.
We’d love to discuss our property management services with you. Book a free introductory chat today with our National Sales Manager, Leanne Sorby: Meet Leanne
212 / 530 Little Collins St, Melbourne VIC 3000
ABN 13 628 193 742 | ACN 628 193 742
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