Blog Article

What is proptech and why do you need to know about it?

Monday 21 March 2022

Real Estate Technology

Australian proptech is one of the strongest in the Asia Pacific region and it is arguably as advanced as (if not more than) the UK and the US industries. That makes us the ideal hub for innovative tech solutions and development. 

Property technology covers a wide range of built-in environments, but residential proptech is definitely leading the way in Australia, with 65.71% of proptech companies operating in this sector. This is unsurprising considering that there’s now an increase of digitally native consumers looking for technologically-driven solutions so that they can access more efficient, desirable and cost-effective property processes.

The “rent generation” is also impacting the growth of proptech as more tenants demand better and more updated personal spaces that incorporate the latest technology. This leads back to the rising movement of the “digital occupant experience,” which consists of consumers expecting an experience or environment they can control—such as lights, temperature or access—either from a smartphone or through remote online channels.

The development of proptech delivers the digital occupant experience by elevating the property process for both the tenant and property management companies. Utilising proptech can enable companies to provide a seamless tenant onboarding process and improve the customer experience, all while reducing overheads and freeing up staff to work on other tasks. Proptech can be used to develop integrated systems, ensuring that data is stored accurately and diligently so that you can retrieve data in batches to locate key insights to enhance your services.

The incoming wave of property management trends is expected to cause major changes in the industry, so it’s important for companies to be prepared with the right tools, including proptech, in order to face these changes with as little disruption as possible.

What is proptech?

Proptech refers to the use of technology to improve the way key stakeholders (e.g. property management companies, property owners, tenants and landlords) can buy, rent, sell, construct, design and manage property. Real estate is one of the most traditional-thinking industries around the world, and the proptech trend represents a growing mentality change geared towards innovation and digital transformation, as it moves away from the tried and true methods typically used in the market.

Proptech can actually be considered a single, global industry with regional markets around the world; a solution designed and developed in the US, for example, can easily be applied in Singapore or Australia. Proptech has a dynamic synergy that enables one regional market to inspire another into developing tech solutions, the consistent back and forth is a big factor in proptech’s continued growth.

Proptech also has positive impacts on an individual level. There are three ways that proptech solutions can increase the returns for active and passive real estate investors:

Investors can source potential deals using proptech tools, helping them find commercial developments as well as single-family and multifamily properties

  • Landlords can develop resident loyalty and perks programs to improve tenant retention and minimise turnovers, allowing them to increase cash flow.

  • Proptech solutions can increase cost savings by streamlining and digitising internal processes. 

What are the challenges surrounding proptech?

While the real estate industry is moving in the right direction when it comes to digital transformation, there are key industry issues that can potentially hold back a property management’s development. 

Many property management companies still have the mindset that “if it’s not broken, don’t fix it.” This indicates a reluctance to embrace change, leaving these companies unable to adapt to the constant disruptions within the industry. 

The truth is, utilising proptech is a necessity for growth within the industry, it supports property managers in handling their daily (and heavy) workload. By adjusting to new technologies in small increments as they become available, your company will gradually evolve, instead of being forced to take on big changes later on to be compliant or remain competitive. 

Although some property management companies are reluctant to implement relevant technologies, other stakeholders are well on the way to making proptech a daily part of life, and it’s definitely not geared towards reducing the human agents within the property management industry either. Communicating and educating your team about the importance of these advancements will inspire them to accept these changes and get their buy-in.

Proptech is a vast industry, and there are multiple solutions within the residential management market. It’s important to do your due diligence before jumping in since chasing a shiny new “solution” will only lead to superficial growth, especially since the real estate industry is competitive and compliance-driven.

Finding the right match for your property management company will address your operational and structural needs. Successful proptech companies will focus on scalable growth by developing a structured strategy that balances smart tech alongside human, emotional needs in their solutions.

Creating upgradable and adaptable tech amidst all the disruptions is also an important challenge that companies must face and prepare for to maintain their competitive advantage. Launching a new solution that doesn’t have a track record yet can be another hurdle for property management companies to overcome, which is why it’s important to broadcast the value and benefits of a proptech solution to fellow industry professionals and potential clients to win them over.

What are the benefits of using proptech?

Proptech can support property management businesses in streamlining processes, especially in the midst of dealing with significant labour shortages across Australia, enabling companies to adapt in a post-Covid world and reinvent themselves with innovative tech.

So many residential property managers are resigning from their jobs because they’re inundated with time-consuming and labour-intensive tasks that prevent them from attending to their actual responsibilities. Proptech can lighten the burden on your team by automating administrative tasks and allowing your staff to handle the human aspect of their jobs. Authentic social interactions will always be a necessary frontier in the industry, no matter how advanced technology becomes, people will want to be shown around the property by other people.

PropertyMe is a trusted and well-established online cloud property management software in Australia, it provides automation and scalability tools that allows you to easily access your property data in the cloud and enables you to focus on your core competencies. As an industry expert, PropertyMe drives growth by keeping a pulse in the market, allowing PropertyMe to forecast proptech trends that continue to be relevant today. 

It’s important to understand how proptech works and how it can benefit your company, especially now that the real estate industry is moving towards digital transformation. Preparing for the challenges that come with using proptech and taking advantage of its benefits will give you a competitive advantage and enable your company to grow further.

If you need support in finding the right proptech solutions for your property management company, book a demo with the Rental Heroes team

We’re more than happy to assist you in your journey to digital transformation. 

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