The real estate industry has been one of the slowest to adapt to new technology to automate work and get in sync with the digital age. One of the biggest reasons why real estate has been slow to adopt new tech is they have been very successful without it for ages. Once the real estate was all about direct human interaction. But there is a major shift now. Now more NAR reports say 97% of people are looking for properties online. Previously it was more about newspaper listings and local agents directly selling properties.
But the times are changing fast, and so is the technology selection. Market reports also say that real estate tech investment is no longer a question of if; it is more about when. The time is now. At present there are an endless number of real estate technology available in the market that you can invest in. they can easily help you improve your business process overview and speed up your workflow.
But why this sudden rise? What initiated this drastic shift towards automated processes and tech investments? We have been working with real estate companies and business owners for over two decades and have a few observations. In this article, we will share with you some of the insights we have.
Why is there a rising need for PropTech investments?
According to our observations, here are a few reasons why the real estate industry is now vastly adopting PropTech investments.
Cost cutting due to the recession
There is an ongoing global recession that is shaking up the global business market. Many companies are laying off their employees to cut costs and save money. Though this process has its own repercussions for the workforce, many small businesses are forced to do it to avoid bankruptcy.
That is where tech investments can help. They automate most of the repetitive tasks and help save both cost and labor. When this process is in play, it also speeds up work and helps businesses optimize their resources.
The ripple effect of the pandemic
The Pandemic has pushed people towards remote work. Before the pandemic, people used to work from the office, and they had enough resources to physically handle business and coordinate with staff. Now, most employees are working remotely. The pandemic made the real estate industry realize how business process automation can save the industry from becoming irrelevant.
Statista reports say that even after 3 years of the pandemic, most employees are now working 2 - 3 days a week from remote locations. With the right tech investment, all stakeholders and employees can work from any location. They can automate rent collection, property management, tenant onboarding, marketing, sales, and multiple other tasks. Even if your employees are not physically inside the office, with the correct tech investment, they can still keep working seamlessly.
Rise in millennial homeowners
Reports say that millennials now form 43% of the total potential homebuying crowd. Millennials are not like the previous generations. They want to research properties only before they talk to an agent. They also demand things like virtual home tours, drone shots, and other new-age features. These rising demands are one of the top reasons why real estate is adapting to new tech.
Demand for real-time data reports
Real estate investors are now increasingly demanding real-time data on their investments. But analog processes can never allow businesses to speed up the data management process. That is where software options like Yardi or MRI can help. They can simplify investment accounting and management to streamline the process. Businesses can provide their investors with data anytime there is a need without having to go through bulky papers to find comprehensible reports.
Technological investments that are making a positive impact
Here we will try to explore all the technological investments and innovations that are making a positive impact on this industry. These trends are here, and they are on an upward rise. So, it is crucial that you get updated about them. Read on to get more details.
RPA
RPA bots can actually mimic multiple human actions. They are now helping real estate businesses answer client queries, basic decision-making, and other tasks. UiPath-developed RPA bots are one of the best in the market which helps reduce the number of human errors and also reduces boredom within the office of doing repetitive and tedious tasks.
VR
Market reports say that more than 77% of customers now look for virtual home tours before going for a direct site visit. These tours are hyperrealistic and help customers understand the full potential of a property. This also helps companies make more sales when potential customers have an immersive buying experience.
This also helps address the problems of the pandemic where people no longer want to travel to great lengths to buy things, be it real estate property or consumer products. Amplifying the online shopping experience is also crucial in real estate, and VR is one of the best fits for this situation.
Automation in business management
Real estate has multiple business processes like property management, back office accounting, vendor and tenant screening, rent collection, investment, and asset management. All of these processes can now be automated only if you can choose the right tech.
Even processes like inventory management, market analysis, budgeting, and forecasting can be automated. Depending on your requirements you can add more features to your ERP system and automate as many tasks as you want.
Partner with Assetsoft for the best technology implementation plans
NAR reports say that to date only 69% of real estate businesses have a website, even though 97% of customers are looking for properties only. This means that even with the fast rise of PropTech investments, there is a long way to go to fill this gap in the market. That is where our outsourced tech integration and implementation services can help.
At Assetsoft we have a plethora of technology selections at your disposal to help you adapt to the digital age. Once you discuss and help us understand your business plans and goals, we will help you with proper technology selection advice and eventual integration.
Our experts are swift, and they can complete the integration process within a few days. We also offer customization of tech solutions based on your needs. In case you have issues handling the new tech, we can also help train your staff for the new software options and help them adapt.
Talk to us for more!