Now, more than ever, our lives are intertwined with technology. Right from getting up in the morning to going back to bed at night, you’ll find yourself surrounded by new-age devices. Digital innovation changes economies and markets, altering how business is done regardless of industry. Many sectors, such as telecom & media, were affected a while ago, while others, such as real estate, are only now benefiting from the profound effects of digital transformation.
The real estate industry was slower than others to transition to digital. However, this has changed with more businesses recognizing & realizing the value of technology to their portfolios. In this article, we’ll discuss Protech’s impact on real estate & list down technologically induced factors responsible for changing the rental real estate industry & how it’s filling the long due gaps created by the traditional structure.
The Impact of Proptech On The Real Estate Renting Industry
As proptechs rise in the market, they’re reshaping the property purchasing and renting experience in numerous ways, for example, Supporting leasing and administration, Operating homes and buildings more efficiently and sustainably, Cutting out intermediaries in property leasing & purchasing, Providing insights into tenants, Collating and leveraging market data to evaluate investment, development, leasing, and purchase opportunities, Managing to underwrite – whereby financial institutions review a loan application to determine the degree of risk involved.
Technology is mitigating many of the problems and uncertainties of buying & renting a house. Multiple online platforms can be used to identify the agents in a market, match them with consumers, facilitate services like mortgage and escrow, and close the deal. As with other forms of investing, big data and artificial intelligence (AI) significantly impact real estate market forecasting. These tools can support strategic decision-making and gradually become more intelligent over time.
Factors Responsible For Changing The Rental Industry
Given below are a few factors that are responsible for filling the gap in the real estate rental industry:
1. Better & easy user experience – Ease of use is essential for any technology to obtain widespread adoption. If a feature is complicated, it gets harder and useless for everyone. To attract homebuyers & renters, Proptechs are coming up with simple user interface. Another essential component is mobile accessibility to use the technology anywhere.
2. Online Leasing & Tenant Screening – Smoothening the application process of tenants and the approval process increases the bottom line for agents and landlords. Having a digital leasing solution creates a user-friendly experience for all the stakeholders involved & also saves up resources.
3. Neighborhood Analysis – Almost all renters & homebuyers look for properties online first, making this an essential factor moving forward. Renter and homebuyers wish to know what their neighborhood is like before making their final decision & these platforms help a lot in this.
4. IoT Compatible advanced smart Buildings – IoT basically works on devices that connect technology with the internet facilitating automation. Automated buildings give users access to information about the structure, digitally connect to smart devices like cell phones, and send updates on the house’s condition for timely maintenance.
5. Digestible Insights – Renters want the data collected from the software to be something easily understandable. Once they can easily interpret the data presented, they can take action on it. New age Proptech facilitates this by providing crisp, to the point helping renters see whether their requirements are fulfilled or not.
6. Time-saving – Accelerate a process that traditionally took longer when done manually. With the online application process, real-time virtual tours & automation in all other aspects, a lot of precious time is saved for all the parties involved.
The Covid -19 Pandemic has accelerated the adoption of these modern platforms, which presents an efficient solution for property hunting. Property appraisals can now be conducted remotely, saving time, reducing costs, and decreasing the number of strangers touring your home. Looking in the future, more real estate and property management companies will embrace proptech. As new technologies continue to affect and advance the rental property industry, real estate service providers can stay ahead of the curve by developing and implementing effective strategies to meet the demands of the modern-day, convenience-loving renters and homebuyers!
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.