Transforming Property Management: Emerging Software Trends
Date Written: 04/28/2023
Last Updated: 02/26/2024
Are you an owner or manager of residential rental properties? If you're struggling with manual tasks like inspections, leasing, and advertising, now is a good time to try modern digital solutions. The proptech and property management software market, valued at around $3 billion, is projected to grow by 4.8% in the next five years.
The reason behind this growth is the remarkable progress in property management software, designed to simplify the lives of property owners and managers. Keep reading to discover the transformative impact property software is having on the future of property management.
What Is Property Management Software?
Property management software is a digital solution that is specifically designed to address the needs of real estate owners, property managers, tenants, and other parties involved in the rental property industry.
While there are property applications that are custom-built for a particular enterprise, most of them have the same basic features. These include a digital communication infrastructure, audit trail system, database storage system, automation tools, and many more.
Some of these solutions can even be directly integrated into Internet of Things (IoT) platforms and smart home devices. This makes modern property management software more accessible and convenient to use.
Software Innovations That Are Changing Property Management
In the rapidly evolving tech scene, proptech is keeping up. To succeed in the rental property industry, it's important to learn and adapt to the latest technology trends in property management. Below are the most important innovations that are transforming the industry landscape.
Artificial intelligence (AI) has had several technological leaps in the past few decades. Current AI systems are equipped with advanced disciplines such as machine learning, natural language processing, and speech recognition. These implementations allow AI to understand human behavioral patterns and continuously learn and improve. This technology is likewise becoming more reliable, with most AI programs having an 80% to 95% accuracy rate.
When applied to property management software, AI tools can streamline property managers’ workflow by automating tedious processes. This includes repetitive tasks like rent collection, tenant screening, payment accounting, and status reporting.
Additionally, AI systems analyze data specific to your target audience, delivering tailored advertisements directly to your potential renters. AI also compiles insights into the latest trends in the housing and rental market, aiding you in crafting effective promotional campaigns and setting optimal rent prices.
Moreover, AI-powered chatbots and voice assistants streamline transactions and issue resolution, offering quick and accurate responses to any tenancy-related questions. This means your current tenants and potential clients won't need to endure long waits for assistance from a human representative.
Augmented and Virtual Reality
With the social distancing mandate made during the recent pandemic, the development of augmented and virtual reality (AR/VR) systems has amplified. These systems project an immersive computer-simulated environment, allowing the user to perceive a virtual setting as though it really exists.
By investing in AR or VR software and crafting 3D representations of your rental property, you unlock the capability to conduct captivating and interactive virtual tours. This provides numerous benefits, including the ability to showcase your rental real estate to multiple prospective tenants simultaneously. Furthermore, virtual staging empowers potential lessees to experience living on your property from the comfort of their homes.
AR and VR systems can also reduce operational costs, eliminating the need for frequent on-site visits when a prospect requests a tour. Additionally, there's less need for frequent property clean-ups and preparations for the next visitor.
Online Leasing Systems
Consumers are moving away from paper transactions and towards digital solutions. Two-thirds of the global adult population already use digital payment software. The same transition is happening in property management as online leasing systems become the preferred transaction platforms.
Online leasing software makes the entire rental process more efficient and convenient. This software allows lessees and lessors to enter into a lease agreement electronically. Rent payments can likewise be sent and monitored through the system. These features are especially beneficial to handicapped or senior tenants who have difficulty leaving the property.
Furthermore, user-friendly online leasing systems enable landlords and property managers to easily screen tenants and accept applications. If your rental business has specific needs, companies like ExactEstate, specializing in property management software, can create customized systems tailored to your exact requirements.
Blockchain technology gained global attention during the cryptocurrency boom. Despite controversies, the technology continues to grow in popularity and is currently being used by around 40 million people worldwide.
Blockchain acts like a virtual ledger that records and stores financial transaction data in secure database networks. It facilitates decentralized dealings and eliminates the need for intermediaries like banks and brokers.
In recent times, technology has made its way into property management, providing a more efficient way for property managers to buy, sell, and rent out properties. Rather than dealing with financial institutions and facing high fees, parties involved in a lease agreement can now utilize blockchain-driven platforms. Apart from being cost-effective, these decentralized platforms are streamlined, transparent, and secure.
Most importantly, blockchain software is tamper-proof. Before a transaction is entered into the digital ledger, both the lessor and lessee need to approve. Once approval is confirmed, the system will automatically update both parties’ ledgers in real-time. Any attempt to change or modify the entered data will corrupt the entire ledger.
Modern property management solutions are no longer bound to a specific device. Instead, they can be opened on any smartphone, laptop, tablet, or desktop that has internet and cloud access. Thus, landlords and property managers can now easily monitor payments and property conditions wherever they are and no matter what device they have.
Another advantage of cloud-based property management software is that it constantly receives support from the provider. For instance, ExactEstate’s complete cloud-based real estate management software solution is regularly maintained and updated by a team of professional web developers and engineers. Hence, you don’t have to worry about system glitches and obsolescence.
Moreover, since cloud-based systems are not stored in your local database, they are easy to back up and recover. This means that you won’t experience long operational downtimes even if your computer device gets corrupted or stolen.
Certainly, property management software is reshaping the landscape of property management. From artificial intelligence to online leasing systems, various software innovations are simplifying the process for property owners, managers, and tenants to engage in lease agreements.
For a comprehensive solution encompassing all these software innovations, ExactEstate is your go-to destination. Whatever your property management requirements may be, we've got you covered. Explore our website to request a demo.