Unleashing the Power of Digital Transformation

Rapid technological advancements have profoundly impacted our lives, reshaping the very fabric of how we live, work and interact. Every industry has witnessed a transformative wave of updates, revolutionizing their infrastructures to thrive in a digital
world. These sweeping changes have propelled industries into new frontiers and unleashed the power of technology to enhance efficiency, connectivity and innovation across the board. Real estate should be no different.

Unlocking the potential of digital transformation in the real estate industry is necessary in an increasingly competitive market. Property owners and managers are actively seeking innovative solutions to revitalize their offerings and stand out amidst competition
in the market.
Increased rental demand,
changing tenant expectations and
industry disruption from emerging property tech startups are just a few factors pushing industry workers for market differentiation. The real estate space must embrace technology to fulfill its true potential and reach a new era of growth and efficiency.

Overcoming challenges in our current real estate landscape

Old legacy systems hinder industry growth as real estate companies are reluctant to invest in new solutions. These antiquated technologies limit operational efficiency and stifle innovation. Moreover, outdated software exposes companies to increased risks
of data breaches, which can have severe financial consequences. Yet approximately

95% of websites using obsolete software are vulnerable to attacks, and alarmingly,
nearly 75% of real estate companies are ill-prepared to handle such threats. 

The industry’s skepticism towards adopting new technology often leads companies to persist with outdated platforms, despite their inefficiency and inconvenience, impeding progress.

To overcome these challenges, real estate companies must stay agile and adaptable. Real estate companies should partner with reliable solution providers with successful implementations and strong support systems to implement property tech solutions effectively.
These partners can offer expertise, guidance, and customized solutions tailored to company needs and objectives. Technology leaders demonstrating the value and benefits of adopting new tools can help alleviate concerns and build trust. Some benefits involve
improved operational efficiency, streamlined processes, enhanced customer experiences and increased profitability.

Real estate leaders who promote a culture of innovation and continuous learning within the industry can encourage stakeholders to explore and adopt new solutions, including:

  • Smart home technology that lets tenants control various aspects of their living space through mobile apps or voice commands.

  • Online property listings and platforms to showcase property listings with detailed descriptions, high-quality images, virtual tours and location-based information. 

  • Mobile applications for rental management, allowing tenants to access important information, like online rent payment, renters insurance, maintenance request submission, lease signing and communication with property managers, and complete these tasks conveniently. 

  • Digital tenant screening for a streamlined and expedited tenant approval process. 

  • Cloud-based property management systems that allow property owners and managers to centralize their operations, manage security deposits and security deposit insurance, streamline workflows and automate tasks. 

  • AI and machine learning (ML) for enhanced tenant communication, improved response times, rental market trend predictions, optimized pricing strategies and increased operational efficiency.

Adopting such technologies can enhance convenience, accessibility, security, and overall satisfaction for tenants and property owners in the rental market. By embracing innovative technologies and fostering trust, real estate companies position themselves
at the forefront of the digital revolution, opening new opportunities and driving sustainable growth.

Envisioning a digital-first industry that supports efficiency, equity and ethics

Tools are available to streamline and automate the rental process, streamline operations and enhance user experiences by fixing issues regarding:

  • Outdated verification methods.

  • Excessive paperwork.

  • Cumbersome administrative tasks.

  • Limited tenant access and engagement.

Modernizing rental procedures saves renters and property owners time and resources, addresses biases and promotes fairness in tenant screening.

The renter approval process may
disproportionately limit opportunities for minority groups, particularly African Americans and Latinos. However, big data, machine learning and AI can create a more equitable system. These tools analyze data to identify and eliminate discriminatory patterns,
ensuring equal access to rental properties, regardless of applicants’ backgrounds, ethnicities or personal characteristics. Companies in the rental market space should prioritize fairness and responsible use of technology to prevent unintentional biases from
influencing algorithms or systems. Doing so will position the industry to protect renters’ well-being and rights.

Building a solid foundation for property technology

To embark on a journey of lasting change and harness the benefits of property tech, stakeholders must lay a solid foundation for implementation. Start with these steps:

  1. Assess and understand your property’s needs: Identify issues like poor maintenance management and rent collection, and use technology to solve them. Choose innovative solutions to simplify rental processes and improve the rental experience.

  2. Train your team and communicate benefits to renters: Educate your team on the new technology — and clearly explain the changes and updates to your renters. This approach will maximize workflows, provide transparency and improve renting experiences. 

  3. Monitor progress, gather data and adapt to market trends: Implementing property tech requires ongoing monitoring and adaptation for long-term success. Continuously collect and analyze data to identify and stay ahead of market trends and find areas for improvement.

With a strategic approach, ongoing evaluation and a willingness to adapt, you position your property for long-term success in an evolving rental landscape.

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This post originally appeared on TechToday.