From drones to Bitcoin, the capabilities of today’s technology continue to advance by leaps and bounds. Real estate has been one of the latest sectors to benefit from top tech trends, with investors pouring more than $5 billion in 2018 into this rapidly-expanding field—often referred to as PropTech. But how can Prop (and Financial) Tech benefit the multifamily market in particular? Read our list below, updated every quarter, to find out.
The continuing rise of “big data” has enabled real estate investors and owners to use facts to aid their property decisions. Not only is this data more readily available to investors, through companies like CoStar or Yardi, but it is allowing CRM apps and tools to flourish. These tools make it simple to gather key data on current and prospective renters, and once this data has been acquired, the possibilities are endless. Whether you want to know how best to market a multifamily property to a wider pool of prospective renters or you would like to triple the number of clicks on your properties over the next month, CRM tools can help you achieve your goals.
The use of blockchain is revolutionizing many industries, and real estate certainly isn’t exempt from this trend. Blockchain transactions go far beyond using Bitcoin or Litecoin to pay one’s rent—blockchain can be used to accurately account for payments to subcontractors, streamline the closing process through title, and seamlessly return damage deposits to renters. Looking forward, the transparent, completely secure nature of blockchain transactions could dramatically reduce the costs associated to litigation in real estate.
Automated Property Management
Property managers are eagerly moving toward PropTech to improve their own efficiency, relying on technology to automate everything from marketing new properties to collecting rents. The easier it is to offload these tedious tasks to an automated program, the more time a property manager can devote to improving the experience of the community, duties like meeting tenants in person, communicating with the property owner, and investigating new marketing opportunities.
Construction and Development Tools
Not only are property owners and managers using PropTech, but also the companies that build and develop commercial properties, an industry with a reputation for delayed, over-budget projects. Developers are using software that can analyze land and determine the best possible building configuration and structure to maximize its ROI. Construction companies are using technology to increase supply chain efficiency and reduce costs by establishing a design-build model that reduces or eliminates the number of subcontractors working on a single project.
PropTech doesn't just benefit owners, investors, and property managers—more and more tenants are enjoying affordable technology advances like USB port outlets, smart thermostats, and fast-charging stations in their rental units. Although PropTech refers to infiltration of technology into real estate tools and companies, it is certainly safe to say the asset itself is also getting smarter.