How Technology Has Changed Rental Management
Technology will play an immense role in transforming many industries in 2022. Real estate is one industry changed by digital innovations.
For example, technology makes it possible for landlords to advertise units more efficiently, manage tenants remotely, reduce waste, conserve resources, and maximize their return on investment.
Technology also streamlines the rental application and move-in process as well as takes the strain off overwhelmed landlords with day jobs or other responsibilities.
The most significant change to how landlords operate is property management system. This tool facilitates online rent collection, leasing, listings, and accounting. However, landlords also have access to a myriad of other digital resources: smart home technology, new appliances, web design, tax preparation software, and more.
Here are a few ways technology has changed rental management and why you should implement them in your business.
Automation is perhaps the single biggest change to the property management industry. With property management software, you can automate rent collection, communication, accounting, and more.
For instance, property management software allows users to write rent reminders that will automatically be sent to tenants who haven’t paid their bill by a certain date. Tenants can even use AutoPay to ensure they never miss a payment again.
Your software can also automatically generate payment receipts, general ledgers, financial reports, and certain tax forms. With automation, being a landlord could never be easier.
When you use property management software, your documents (leases, invoices, applications, etc.) are stored in the cloud. This means they are stored securely on the internet rather than on your local hard drive.
There are many benefits of cloud storage. You’ll never lose or misplace a file again. What’s more, your documents are protected from theft and accidents. Even if you lose your laptop, you can still access your files from any computer.
And if you’re concerned about security, rest assured that modern encryption will protect the confidentiality of you and your tenants’ information.
Since the E-SIGN Act was passed in 2000, electronic signatures have grown in popularity in many industries. In real estate, eSignatures are the perfect solution for online lease signing.
Digital leases can be emailed directly so your new tenants can sign them faster and at their convenience. eSignatures are also much more secure than traditional ones—they track the email address, physical location, and precise time of the signature to verify the signer’s credibility.
Have you ever experienced virtual reality? This cutting-edge technology has an excellent application in real estate: 360-degree virtual tours.
Virtual tours allow prospective renters to explore a unit remotely and at their own pace. They offer an experience as close as possible to an in-person showing. Create them for your units by investing in special camera equipment or simply downloading a software package for your mobile device and following the instructions.
Virtual tours offer enormous visual appeal and make an excellent addition to your website and social media.
Energy efficiency is of the utmost importance in 2022. You can do your part to care for your community and environment by investing in energy-efficient appliances for your rentals.
For instance, try installing low-flow water fixtures or energy-efficient washers to conserve water and reduce your tenants’ utility bills. Likewise, convection ovens save on electricity by using hot air rotation to heat food quicker.
Smart home technology is another trend in rental properties. Smart lights automatically turn off to save energy when your tenants are away, and smart thermostats control air temperature in your units to minimize utility bills whether the heat or AC is on.
Technology helps keep your tenants accountable to the lease agreement. This is possible through customizable late fee infrastructures on property management software.
First, designate a grace period, late fee amount, and fee type (flat or percentage). Then, your software will automatically push the fee to tenants who haven’t paid. With software, you can keep your tenants accountable while remaining hands-off.
Artificial intelligence is one of the fastest-growing industries around the globe. In 2022, computers can learn to analyze your data, assist your clients, improve your marketing, and invest your money.
Landlords can also use AI. A chatbot or virtual assistant on your website can support prospective renters by answering simple questions. You can also use AI to schedule showings, generate leads, perform background checks, and even choose where to market your properties based on website traffic.
Leveraging Technology for Rental Success
Real estate has a reputation for maintaining traditional approaches. Paper leases and mailed rent checks are a staple of the industry. However, you have much to gain by investing in the newest tech trends in the industry. By learning about and integrating any of the above digital solutions, you will already have an edge in a competitive industry.