The integration of tech and real estate has driven the industry to unprecedented heights. One of the most significant growth areas we see right now is in property management software.
Over the next 5–6 years, the real estate management software market is expected to grow by 50% into a $13 billion industry.
The question every HOA and property manager should be asking is: how property management software can impact your bottom-line?
Understanding the property management software industry
There are two factors every realtor and developer should consider: technology is a game-changer, and today’s consumers are more demanding than ever.
Property managers are now facing more pressure from regulators, consumer groups, tenants, and the mercilessness of social media to be at the top of their game, always. This means no delays, no errors, and no second-chances.
Who or what can be that perfect? Well, nothing yet, but management software comes close.
If you are a small company looking to scale, or a large one with too many tenants, property management software can help handle routine admin tasks. Instead of relying on a chain of people to get simple jobs done, you can automate processes easier than ever before.
Here are the five major uses of property management software:
- Maintenance management — using real estate management software makes it easier to schedule and allocate maintenance tasks. It also gives tenants an easy way to inform property owners of problems that need fixing without complicated paperwork, email-chains, or missed appointments.
- Accounting — this is one of the most important aspects of any business. Having the payroll, rental and tax information all in one place and auto-generated is a huge load off.
- Tenant portal — with people now spending more time on apps than on calls, this is a great way to communicate with tenants. Beyond communication, tenant portals also provide a quick snapshot of who your occupants are, when their agreement will come to an end and other relevant data you can use to improve efficiency.
- Building management — Your most valuable asset should never be left unattended. Even when you’re not present, management software with IoT integration can help you stay on top of things and keep your property from deteriorating.
- Marketing tools — if you’re looking to scale, then you need marketing automation tools for traditional and digital campaigns. This will help you reach more people easier and faster than ever before.
Why do you need your own property management software?
There are currently over 200 property management software on Capterra. So, why should you have your own?
Of these 200, what are the chances that one of them was built for your specific business? Every developer, agent, and property manager is unique. From the staff you have to the property types, location, and tenants, you are different from other companies in so many different ways.
That is why you need a custom-made package.
Not only do you need a tailored-solution, but you also need some advanced features rarely found in generic software. If you do find them, they are expensive. Having these features will not only reduce your workload but can also drastically cut down expenses and increase guaranteed income.
Features you need to consider for your property management software
IoT Connectivity and Analytics
The advantage of the Internet of Things (IoT) is that it can sync automatically with your management software. Instead of relying on input from the property manager or the tenants, IoT connectivity brings the data to you.
To accomplish this, you would need smart appliances. While they cost more initially, the data they send will help you manage the property better.
You will be able to predict more accurately when maintenance will be required for electrical equipment, for example, the bills to expect each month and energy consumption.
IoT can also improve customer satisfaction. When customers know that tasks are being handled even without having to make a request, they enjoy the service better.
Artificial Intelligence (AI) and Machine Learning (ML)
AI and ML are revolutionizing every industry, including real estate software management. AI and ML can analyze the data acquired from your IoT devices, tenant and staff input, and provide recommendations that can improve efficiency.
Intelligent software can help keep you ahead of maintenance issues, utility concerns, accounting, and admin tasks. AI and ML can be applied to every aspect, from marketing to inventory management and client prospecting.
Right now, tenants pay for their energy consumption, so most landlords aren’t bothered. However, it is only a matter of time before the pressure is put on developers to make their properties greener.
Your property management software should be able to help you monitor energy consumption and advice tenants as to the best way to keep it low. It should also run diagnostics for wastage and predict the outcome of using renewable alternatives.
Every negotiation is different, and every contract is unique. But most of it can be automated and changed quickly with the right software tools.
Blockchain-based smart contracts are a much-needed addition to commercial real estate transactions. Not only do they make negotiations and agreements easier, but they also provide excellent cybersecurity, which gives tenants and vendors peace of mind.
Right now, there is no clear market-leader. If you can build a system that has these upgrades, you could be able to sell it to other homeowners.
How to build your property management software
An effective property management software is one that runs on the web and an app. It should be cloud-based and incorporate the latest AI features available.
To build an intelligent system, you need the services of highly-skilled developers. Needless to say, that most HOAs either don’t have this expertise or can’t afford to hire full-time staff to do it.
The best option for most real estate professionals is to outsource the development to a company that can handle the creation and execution at a fraction of the cost. All you will need to do is discuss the specificities and leave them to develop it.
Once it is complete, you maintain full ownership of your property management software, and you can begin to take your business to new levels. If you like, you can decide to put it on the market and gain some revenue from it.