Top 5 Disruptive Property Management Technology Trends to Watch Out for in 2024
Currently, technology has expanded into all spheres of life, including industries. We are surrounded by technology, from news updates to online shopping. Similarly, technology influences and affects the real estate industry.
The property and real estate industries have been slow to adopt modern technologies and remain largely traditional. However, this is changing as the industry undergoes massive digital transformation. As one of the last industries to adopt digitalization, the real estate industry is actively compensating by adopting the most popular property management technology trends.
This industry is currently experiencing its best times due to the continued emergence of financial investments, new models as well as functions of real estate platforms. Let’s have a look at the most prominent emerging technologies that are likely to shape the future of property management.
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PropTech businesses and scaleups are leveraging emerging technologies to influence the entire industry. Throughout the property lifecycle, technology is being utilized to enhance the client-tenant experience and make informed decisions. Virtual reality (VR), augmented reality (AR), Artificial intelligence (AI), property management software, and the internet of things (IoT) are the most significant technological developments of this generation. However, the application of these technologies in the real estate industry is still in its infancy, and tremendous innovation is occurring.
In the coming years, it is anticipated that the real estate industry will continue to experience rapid expansion. Consider the following real estate-related statistics:
According to a study by Grand View Research, Inc., the global real estate industry is anticipated to generate $4,263.7 billion by 2025. During the forecast period, global demand for residential real estate is anticipated to increase significantly, particularly in North America, Asia Pacific, the Middle East, and Africa. (2014-2025).
As the global population increases, the demand for real estate to house public, private, and institutional services such as schools, hospitals, and shopping malls increases. This means that property management businesses will strive to achieve more in the coming years, and that is only possible when they employ digital technology in property management.
This, however, brings us to a crossroads—where do you begin? And how can you make real estate technologies work to your business’s advantage rather than become a resource drain? You will find the answers here. In this blog, we will talk about five property management technology trends that are projected to drive the industry into the future.
But before we go there, let’s talk a bit more about the technology itself to help you understand the trends and its impact on the industry better.
Table of Contents
Property Management Technology Trends: An Overview
Property management technology, or proptech, is defined as the usage of technology in real estate. Similar to how FinTech focuses on the application of technology in the financial sector, PropTech employs digital innovation to address the needs of the real estate industry. The goal of Proptech is to make everything easier for everyone involved in owning, leasing, renting, buying, selling, and managing properties.
For example, imagine a person who lives in a residential building and has access to an app that not only allows them to enter their apartment but also provides a mobile key card, food ordering, visitor registration, and much more. On the other hand, there are different software applications and mobile apps that property owners and managers can use to improve real estate management, repair, and maintenance tasks. This includes scheduling technicians, managing rent and ownership, performing predictive maintenance, hosting home visits by potential tenants, and more.
The number of such applications has increased over the past few years, but the trend is accelerating now. Proptech now incorporates more capabilities and features than ever before. Proptech shows no signs of slowing as more consumers and real estate agents adopt it to facilitate faster rentals and more convenient living.
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Clearly, the way property management was previously conducted is being massively disrupted by innovative technology. Here are the major property management technology trends to watch out for if you wish to join the real estate disruption bandwagon.
Emerging Property Management Technology Trends
1. Artificial intelligence (AI) and Machine Learning (ML)
The most prominent property management trend today is definitely AI and ML. The objective of AI research and development is to create intelligent machines capable of performing human-level tasks. This innovation’s purpose in the real estate industry is to automate and accelerate the entire process. It suggests that real estate agents now have quick access to information on all available properties.
Using artificial intelligence and machine learning, the collected data becomes actionable. This combination enables smarter decision-making through pattern recognition. In addition, the combination of artificial intelligence in real estate algorithms and a robust IoT device framework will facilitate high-quality property management, including improved control of energy, lighting, and security systems.
Using AI-powered personalization, for instance, an online real estate marketplace assists users in streamlining the home search process. The system determines consumer expectations and makes property recommendations accordingly. The search is no more a consequence of the search query than the entire system.
2. Virtual Reality (VR)
Virtual reality enhances the search and purchase of real estate by providing prospective buyers with a virtual tour of the property, which they can view remotely. With the implementation of virtual reality, real estate has reached the third stage of technological synthesis. The COVID era has furthered the acceptance of virtual reality.
3D virtual house and apartment tours are gaining popularity as a result of virtual reality (VR) technology that enables buyers to view their desired properties virtually, bringing them close to the actual viewing experience. It saves time and money and enables buyers to make informed decisions quickly.
With today’s advanced VR technology, buyers can see the property from the inside and feel details such as furniture placements and interior design ideas, which can assist them in making the right property purchase decision.
3. Blockchain
Many real estate transactions still require the participation of neutral parties, such as banks and brokers, as well as copious amounts of paper documentation. Increasing home prices also exert pressure on the real estate market. Due to the high prices, fewer individuals under 35 are willing to invest in real estate.
Emerging blockchain property technology is attempting to address these issues in a number of ways. On the blockchain, smart contracts are digitally signed agreements that contain information about real estate transactions.
It makes the process more transparent and secure by eliminating the need for paper documents and third-party participation. Due to tokenization and blockchain technology, even individuals with limited financial resources can participate in the real estate market by purchasing tokens.
4. Big Data
Real estate websites attempt to customize the user experience by recommending properties based on previous selections. Big data will play an important role in the future of real estate. It enables the software to suggest more intelligent and individualized searches.
5. Property Management Software
Last but not least, property management software solutions have garnered massive popularity in the last few years. This is perhaps the most popular property management technology trends, owing to its simplicity and accessibility. Unlike complex technologies like big data and virtual reality, even small businesses are leveraging this technology to their advantage.
Real estate agents, owners, and tenants all have to keep up with a substantial amount of paperwork and regulations. Cloud-based customer relationship management (CRM) services are growing in popularity within the real estate industry. These customer relationship management systems guarantee that agents never lose track of their clients or the specifics of any active contracts.
These cloud-based systems facilitate anytime access to vital data. Using cloud computing, customer-centric property as a service (PaaS) systems are becoming a reality, enabling tenants to optimize a building’s amenities. Tenant experience platforms are an increasingly prevalent type of property management software. They provide a direct communication channel between landlords and tenants.
The adoption rate of digital technologies by the real estate industry and its participants will determine the industry’s future. This strategy necessitates not only the installation of modern equipment or software but also fundamental alterations to management approaches and external communication. As a result, the organization’s productivity, efficiency, and customer satisfaction increase, and the company gains a reputation for being a progressive and modern brand.
Having said that, embracing new technologies is always a daunting task. But there is no way you can keep away from these emerging technologies in property managementt. You can start with simple solutions like property management software. And your best choice in this regard is Field Promax. Not only is it efficient and improves productivity, but it is also one of the easiest tools to learn and use. Plus, it fits every budget.
For more information, contact Field Promax.
FAQ's
Most of the time, property managers have trouble keeping track of their time. Taking care of repair requests, talking to tenants, and doing inspections can take up a property manager’s whole day, leaving him or her with no time to do the other twenty things that need to be done. This is the reason property management software solutions are gaining popularity, for they take care of all this hassle on their own, leaving managers to handle important things and emergencies.
Maintenance and repairs, collecting rent and fees, leasing and paperwork, and a review of the property are the four most important parts of property management (in that order). Then there are things like evictions, putting properties for sale, sales, outdoor services, etc.
Some of the most significant property management trends in 2023 include artificial in (AI) and machine learning, blockchain, big data, mobile-friendly websites, and property management software.
There is a lot of anticipation that revenue will go up in 2023 as the size of a business grows. In fact, not a single big business respondent to a survey thinks revenue will go down in 2023. In fact, 81% of the private property management companies that were polled think that their income will go up.
The global Property Management Software market size was valued at USD 3092.21 million in 2021 and is expected to expand at a CAGR of 7.35% during the forecast period, reaching USD 4731.29 million by 2027.
The biggest challenges for a property manager include:
- Scaling revenue
- Tenant management
- Project costs
- Lack of time
- Admin work
- Keeping up with maintenance requests
- Hiring quality staff
