Thinking about going digital in your rental property management business? You’re in good company. Digital transformation is a top priority for 74% of companies. Also, 61% of real estate businesses have adopted technology, with a third embracing one to two solutions. 💪
But in rental property management, there’s a lot to consider, and the stakes are high. Should we invest in fixed or custom-built solutions? What’s this project going to cost? What’s our ROI? Is this move worth the risk? 🤔
The apprehension is understandable when you consider how quickly solutions become obsolete. After all, technology like floppy disks and fax machines were once high-tech.
You’ll need to plan for longevity to see long-term success in your digital transformation. We’ve got you covered. In this article, we’ll share the key areas to consider when selecting solutions. We’ll also cover some current trends to guide your decisions.
Your future-proofing tech list for rental property management 📋
Do you want to see long-lasting results from digital transformation? Well, as the famous saying goes, you’ve got to “start with the end in mind”. Let’s explore some features to consider.
Scalability
When you’re running a rental property management company with ambitious growth goals, scaling fast is a possibility, and you’ve got to prepare for it. So, it’s essential your tech stack can grow with your business. 📈
Opting for flexible solutions that allow you to scale usage up and down to support business needs is an effective way to do it. This move will ensure uninterrupted service as your portfolio expands and can reduce costs in market downturns.
Adaptability
Things change, and over time, so will your business. Throughout your digital transformation, it’s critical to onboard flexible technology, allowing you to adapt to changes in business and market demands.
Agility will be invaluable to your rental property management company. Compared to non-agile companies, agile businesses report better customer satisfaction (93%), enhanced employee engagement (76%), and increased operational performance (93%). 🔥
The companies you partner with shouldn’t stagnate, neither should their technology. They should have a history and commitment to incorporating new functionalities and processes.
Integration 🔗
“If cash is King, data is Queen.” Integrating solutions within your rental property management ecosystem reduces data siloes and unlocks a new level of insight sharing across teams.
You’ll have a more accurate view of your company’s current position on liquidity and compliance. You‘ll eliminate data sharing inefficiencies, making it faster to spot potential opportunities and challenges and giving your company a competitive advantage. For instance, such an integration could involve linking your HR, IoT, property management, HR, accounting, and flexible payment solutions.
Costs for setup and maintenance 👨🔧
Tech debt is real. Solutions can be expensive through time investment and cause lost productivity or funds. Companies incur $1,083,000 of technical debt for every 300,000 lines of code. Companies also saw 23-43% in wasted time.
The result? Your business progress stumps. Affordability and good value for money are crucial to future-proofing your technology investment. A cost-effective solution should balance upfront investment, long-term operational savings, and income production. Don’t just look at now but a few years down the road.
Top tip💡: Evaluate both the initial setup costs and ongoing maintenance expenses.
Automation 🤖
What would your team’s work day look like if they didn’t manually battle rent week or admin? We’ll set the scene for you: more efficient, productive, and happier.
The not-so-secret digital transformation hack is automation, and every solution you pick should leverage it. 73% of IT leaders say automation saves 50% of their time. Also, 51% believe automation slashes costs by 10% to 50%.
Selecting solutions with built-in automation will ensure that every new tool takes tasks off your team’s hands instead of creating new ones. Automation can also reduce errors, resulting in increased accuracy rates. For best results, look for systems that offer rent payments and collections automation, maintenance scheduling, rental property management tools, and communication features.
User-friendly interface
Have you ever had to send money by bank transfer, money transfer service, or online rent payment portal? Using these solutions involves a lot of clicking, double-checking, and hoping the details are right. If not, your company or the tenant could be footing the bill. 😟
Yet, many tenants endure this stress monthly. There’s also no leeway for split rent payments without going through the laborious admin again. Then there’s the notorious rent week [Link to rent week blog post], where many teams battle collections month in and month out.
To eliminate these battles, ensure every rent payment and rental property management solution you select balances ease and convenience with security and affordability. For example, a long-term approach to digital transformation could look like implementing a rent payments app like Flex. Our solution allows you to offer flexible payments on a mobile app with a UX-optimized interface. This setup will allow painless rent processing for tenants and your team.
Data security and compliance
Whether it’s the typical tenant or a mega-corporation, fears surrounding data security are rising. It’s easy to see why. Between 2021 and 2023, data breaches skyrocketed by 72%, obliterating the previous record. Additionally, 40% of US consumers are concerned about their digital privacy. 😰
Protecting tenants’ personal and financial data is essential to building trust and maintaining good relationships. To achieve this, ensure that each technology complies with relevant data protection and compliance regulations and has robust security measures. For instance, end-to-end encryption, security certificates, firewalls, pen tests, and security audits to safeguard data.
Mobile accessibility 📱
These days, it’s a challenge for most people to spend a day without using their phones. We use them to execute routine tasks, from paying rent to booking repairs. So, it’s unsurprising that mobile payments are tipped to make up 79% of all digital transactions by 2025.
Mobile apps are the future. Your rental property management tech should reflect this. Every solution you select should facilitate on-the-go property management for tenants and staff. For example, tech-savvy property managers use a flexible payments app integrated with a comprehensive property management solution to collect rent, handle maintenance issues, manage service requests, and keep tenants updated.
Customer support and training 📞
Did you know that 86% of customers would stop engaging with a brand after one poor experience? On the bright side, companies prioritising customer satisfaction alongside margins, growth, and profitability are more likely to experience customer success and 29% more likely to get CX budgets. With this much at stake, ensuring that each solution offers top-notch customer support is crucial. What counts as excellent service will depend on your tenants’ wants and needs. For instance, if your resident base comprises busy professionals, you could look for solutions that offer 24/7 online customer support and quick training for property managers and tenants. 📝
Reporting and analytics 📊
As we saw earlier, insights can have huge payoffs in your rental property management business. Data-driven companies aren’t only 23 times more likely to secure new customers and six times as likely to keep them. Such companies are also 19 times more likely to be profitable. So, once you’ve unlocked data within your ecosystem, you’ll need a way to interpret it quickly and accurately. That’s where advanced reporting and analytics tools come in. By leveraging real-time insights, these solutions keep your team informed on what’s happening in the business and what’s upcoming so they can make informed decisions quickly. Such capabilities can help you improve tenant satisfaction, retention, and profitability.
For instance, you could push data to business intelligence software or a customizable dashboard solution through native and API integrations. These solutions will help your team get up to speed quickly.
Top digital transformation technology trends shaping rental property management
Gone are the days of needing an entire team on hand 24/7 to handle even the most basic tasks. With more people leading busy, digital lives, there’s an emphasis on self-service and automation to get things done. Let’s cover some of the most popular digital transformation technologies.
The bots, a.k.a., AI, Internet of Things (IoT), and blockchain 🦾
Best for: Enhancing security, automation, and efficiency.
Blockchain: Tools like blockchain efficiently promote security, trust, and transparency while reducing instances of fraud. Blockchain strengthens tenant screening by creating an unchangeable record of the tenant’s rental history and financial transactions. [link to blog post on tenant screen red flags] Vehicles of choice include smart contracts, automatic tenant screening, and document verification—40% of property managers implementing blockchain in tenant screening see verification time drop by half. The increase in trust has also created a 25% spike in on-time rent payments and a corresponding drop in eviction rates. Additionally, around 30% of landlords see a decrease in tenant-related fraud.
AI: Whether it’s virtual assistants or virtual tours, property managers now use AI to enhance their customer experience and team capacity. The bots can take over many administrative tasks, freeing time and energy for driving growth. AI-powered solutions can also improve tenants’ view of your company. Properties that use intelligent assistants are viewed as five times more forward-thinking and tenant-centric. 👌
IoT: Property managers and landlords leverage IoT solutions to transform properties into smart ecosystems. Digital transformation efforts include smart security (like home locks and package lockers), heating, and lighting technology in units that tenants can control remotely. This setup creates a greater sense of control and safety for residents. Some property managers and landlords also embed sensors in buildings to collect data on occupancy, temperature, and security.
Big data analytics
Best for: Driving more accurate decision-making, resource allocation, and threats and opportunity spotting
These days, it’s common to see property managers and landlords leveraging big data analytics in their digital transformation efforts. They use it to build comprehensive analyses, better understand their business position, and make informed decisions. They also use big data analytics to support increasing tenant satisfaction and revenue growth.
Some avenues of choice include customer segmentation and personalization, price testing, analysis of external factors, competitor analysis, demand analysis, and personalized business strategy recommendations. Their investment is paying off. Users see increased operational efficiency, better pricing models, and improved resource risk management. 🚀
Property management tools 🏡
Best for: Operational efficiency, cost-savings, and forging better tenant relationships
Thanks to innovative property management solutions, businesses are shedding huge administrative loads and climbing costs. Popular tools include communication portals to keep tenants informed and stay on the pulse of renter sentiments. Predictive maintenance is also popular for estimating system failures and proactively scheduling repairs. Then, there are the automations to optimize maintenance schedules to reduce costs, reduce downtime, and improve efficiency. So, it’s no surprise that property management software is a hit. Get this:
- Approximately 98% of property management software users confirmed the solution saves them time and adds to actual cost savings
- Around 70% of property managers use property management software to automate business processes
- 58% of property managers say property management software significantly aids them in their daily tasks
Digital, flexible payments 💳
Best for: Increasing on-time rent payments, decreasing admin, and boosting tenant satisfaction
With a precarious job market and rising living costs, more consumers are tightening their spending belts and bracing for impact. So, property managers and landlords have had to find creative ways to secure rent on time. A key solution they’re leveraging is flexible payments, typically through a mobile app. Allowing residents to split rent payments is pivotal in boosting tenant satisfaction and timely rent. [link to tenant satisfaction blog post] It’s easy to see why when you consider that 40% of tenants say flexible rent payments are important to them, and 5.5 million units in the US use Flex. The digital and automated aspect also helps improve operational efficiency.
Quick-fire questions to ask before onboarding a technology 💥
- What are the setup and upkeep costs of this solution?
- How will implementing this solution affect our long-term and short-term cash flow?
- Will we need to take on any debt to afford the solution?
- Can we pay for this solution on our bare-bones budget? (For example, the cash in emergency savings)
- How likely will we get buy-in and high adoption rates from tenants and staff?
Build a tech stack that stands the test of time ⏰
In today’s evolving market, the ultimate growth hack is having innovative technology to support your business through the highs and lows. So, before you sign up for any solutions, stop and assess. Also, consider how to support tenants and staff through the transition and beyond to maximize your digital transformation investments. Don’t be afraid to demo multiple solutions and compare features and services to find the right fit. Take these steps, and keep tweaking your strategy. Your rental property management company will have a tech stack that lasts. 💪
