Digitalization has affected every industry, from fitness, health, and e-commerce, to investing and doc signing. But real estate was lagging, and property management had to stay relevant because it's always in demand. Now, it's catching up quickly.
The customer experience is critical to the success of any business. Rental property management firms are not exempt from this initiative. It is also vital that your tenant feels heard, that you are meeting their expectations, and that they have access to cutting-edge technology to make their stay on the property exceptional. This process starts from the moment of initial contact with your team, proceeds to the rental screening process, and then to tenancy.
Before Tenancy
The first place that technology can eliminate a considerable problem is within the realm of tenant fraud. Or, more specifically, rental application fraud. Rental scams have increased dramatically following Covid-19. The issue has only been exacerbated by the staggering rise in potential tenants perpetrating scams on management companies. The potential renter hopes to mitigate any red flags via apartment application fraud. During the screening process, prospective tenants submit falsified paystubs and bank statements that, today, can easily be bought online.
Pre-pandemic, 66% of property owners and apartment managers reported being targeted by rental application scammers. Now, 85% say that's a problem for them. When those applicants slip through the screening process to the tenancy or move in, the consequences can be costly. And these expensive consequences are what the latest technologies are positioned to solve. Managers' stress in this area demonstrates the advantages of incorporating technology into the application screening process to eliminate rental fraud—more information on Spirited's application fraud detection service to follow.
Until then, here are the property management technology trends that improve the customer experience and even a glimpse into the future to gain an advantage.
Automatic Accounts Payable
One of the most efficient ways to improve your operations as a property management team is to automate accounts payable.
According to the Digital Journal, the DAP (digital accounts payable) industry, from 2021, until 2026, will experience a CAGR (cumulative annual growth rate) of 7.4%.
Automating APs will not only help you keep up with your competition, but it'll also cause you to minimize fraud risks, save time when tracking payment trails, and be efficient when onboarding new clients. Most importantly, it'll vacate your staff to other tasks, helping you avoid labor time loss.
Embedded Payments
Embedded payments are another form of payment digitalization—mainly used to integrate e-commerce shopping journeys and carts. This solves the need to rely on a 3rd party provider or a bank service.
Today, property managers use this tech to make the rent (or services rendered) payment smoother for both their landlord and tenants, transforming the clunky to seamless—increasing satisfaction and retention.
Tenant Portals
After discussing making payments automatic and having them in-house, without relying on any 3rd party, it makes sense to treat your most important relationship with your tenants precisely the same. After all, a happy tenant means a happy landlord, and a happy landlord means retention, referrals, and growth.
Tenant portals are hubs for digital communication between you, the landlords, and tenants. Many service providers can help you set up a digital portal. Setting up a portal paves the way for more back-office automation, such as:
- Accounting
- Maintenance cycles
- Vacancy management
- Automatic rent collection
- Online ticket support for maintenance
You can find portal setup service providers for different sectors in the industry, like:
- Multi-family housing
- Commercial real estate
- Single-family home rentals
Data, Artificial intelligence, and Machine Learning
AI (artificial intelligence) and ML (machine learning) are already used by cutting-edge management firms to help predict market shifts, rent increases, missed payment patterns, and fraudulent tenant applications.
Blockchain for Smart Contracts
Crypto coins and ape-shaped images aside, the underlying technology used to bring them to life is an inevitable part of our future. It's called blockchain technology and can be used in many different ways, such as proof of signatures and chain of custody or property tokenization—one of the most promising real estate futuristic startup trends.
The blockchain is an ecosystem based on the cloud containing "smart" contracts. Property management is propelled forward by using this technology to automate contract processing, save parties time and effort, and add more safety and transparency to real estate transactions.
3D Modeling and AR
Sure, it's sexier for buyers/renters to fly to Hawaii and see the house in person, but what if you could lure them into paying rent and relocating without the cost and logistics of a flight? What if your firm used tech which allows the houses your rent to be viewed digitally, from anywhere?
3D scanning technology is deployed in commercial real estate by companies such as Matterport and in residential real estate for home viewing by bleeding-edge brokerages.
Tech Trends & Spirited Application Fraud Technology
We covered the three tech trends implemented right now by the most competitive property management teams; automatic accounts, embedded payments, and tenant portals. Then, we delved deeper into some more advanced tech that is newly used—but inevitably is part of our industry's future, such as data, AI, blockchain, and 3D/AR.
As you consider the current and future technology offerings for property managers, Spirited's application fraud detection service is one to reach for now.
With Spirited's application fraud technology, managers can target bad debt before it can get through the door. Thereby putting a lid on delinquencies and rent payment issues that undermine the value of your property.
Spirited's proprietary technology analyzes a wide range of properties looking for evidence of fraudulent alterations. Ultimately, this service will certify whether the documentation is authentic or fraudulent.
Designed to complement your existing leasing process, Spirited's software provides quick fraud detection at a great price. With no long-term commitments, volume-based pricing options, FCRA-compliant, and a 24-hour turnaround time.
To learn more, Contact Us Today or Request a Demo.
