Proptech is big business these days, with the rental property market finally opening its doors and its minds to the power of digital. Nowhere is this more pronounced than on the property management side of the market, where agencies across the size spectrum are starting to make a real investment in IT and tech. Here are 7 of the most fundamental ways (as evidenced in KPMG’s global annual report) property management lends itself to the digital revolution:
It’s the most resource-heavy part of the property lifecycle
Property management can be hugely time-consuming. Each manager has a multitude of properties under their care, all of which demand around the clock, instant responses and personalised attention. Going digital is one of the most effective ways to manage a packed portfolio.
Many of the tasks involved are repetitive
This makes them ripe for automation. Generating instant response emails and repairs reporting are just two of many ways in which proptech can step in and shoulder some of the straightforward, repetitive tasks that form part of a property management role.
Digital solutions are easy to integrate
Almost 1 in 5 of the companies who took part in the KPMG research found incorporating digital solutions into property management to be problem-free, with seamless integration, regardless of the depth of the digital penetration.
Property management is one of the biggest growth areas in the rental market
KPMG estimated the property management sector of the property rental market is set to be worth over $22 billion by 2023, making it a prime target for proptech solutions.
There are so many proptech solutions available
As one of the main segments of the market that proptech has targeted historically, there are plenty of compatible digital and proptech solutions available for property managers. Property managers also tend to be quicker to recognize the impact automation can make and thus more willing to invest in digital solutions.
Although the individual returns can be lower, property management is hugely competitive
It’s a crowded market place with plenty of letting agencies and property management companies looking to attract landlords and clients to their businesses. Those looking to make in-roads in the sector know they need to offer comprehensive, efficient and immediate services to set them apart.
Property management agencies know they need to be more customer-centric and provide bespoke products
In many cases, doing it digitally is the only way to meet these demands. Given this, while it’s currently the property management side of the market leading the way, it’s only a matter of time before the rest of the industry follows.