2021 was a volatile year in the Property Management Industry, and we should expect the unexpected in 2022 as well. New Year’s Day may have come and gone, but it’s not too late to take a step back and create your business and personal goals for the new year. If you are ready to say goodbye to the obstacles of 2021 and want to step into this year with some fresh goals, here’s an article that outlines some of the great new year’s approaches in relation to Digital Transformation and PropTech to bring success in 2022.
Fostering In A New Era In PropTech With Digital Transformation
In the “New Normal”, the need of the hour is to rebuild an Organization’s Digital Landscape. Therefore most of the companies began to re-develop their Mechanism, from Customer Acquisition and Operations to Delivery and Post-Sales and Customer Experience.
Why Do Property Management Companies Look Into Digital?
Property Management Companies are pursuing Digital Investment and collaborating with PropTechs for a variety of reasons. Most of them are adopting Technology to differentiate themselves to maintain their Competitive Edge with Improved Efficiency, Cost Reduction, and Enhanced Decision Making.
Thus, they have begun to invest in Integrated Systems, Cloud-Based Solutions, Smart-Building Technologies, and the Automation of their Businesses’ more Manual Components to free up their teams to focus on Value Creation and Customer Experience.
Empowering Digital Transformation Through PropTech
PropTech has been a hot topic for quite some time, especially in a year of so much change and disruption due to the COVID-19 Crisis.
PropTech is part of the wider Distribution and Digital Transformation of the Property Management Industry. Many New Models are emerging in the Real Estate Sector in response to changing customers’ needs. It’s also crucial to note that PropTech isn’t just about Technology. The Real Estate Industry and the people in it are experiencing a mindset change, where most of the focus is on flexibility.
Digital Technologies That Impact The PropTech Space
Sustainability, Tenant Experience, and Data are three major trends driving change. Then there are enablers like Sensors and IoT, as well as Data Enablement and Automation Technologies.
These Innovations enable Property Managers and Real Estate Professionals to communicate Building Data in Real-Time, which can then be used to Optimize their Operations and Processes. Another significant shift in the PropTech Industry is being driven by Automation Technology. This allows employees to focus on the core value drivers while eliminating the need for tedious, mundane tasks
Digitalization in the PropTech Space also enables the provision of Value-Added Services to Tenants, which can ultimately increase Operating Profits.
Approach To PropTech in 2022
1. Customer-Focused Approach Through Technology
COVID-19 dominated the landscape in 2021, and it will undoubtedly loom over 2022 too, even as we get toward vaccinating everyone who needs it.
The necessity to adopt a more Customer-Focused Approach is a long-term result of the virus and everything surrounding it. Companies that provide Superior Customer Experience to their customers will acquire more business and achieve better results.
This may include Softening your Public Image and even Accepting a Financial Hit now to Improve Revenues in the Future, but it is essential. To achieve this, big Property Management Companies are spending more than ever on PropTech. This new approach presents itself in two critical ways, one Short-Term, one Long-Term, with regards to Technology.
2. Adopting A Data-Driven Approach
Property Management Companies can also take a Long-Term Approach by Leveraging Technology to become more Data-Driven. The more Data you have about your Customers, the better you will be able to serve them.
Using Technology to gather Customer Data and Insights, such as what they like and dislike, what methods of communication they use, and how it works for them, businesses would be able to Strategize and Plan for the Future in a way that put Customer’s Needs at the Center.
3. Real-Time Communication
Property Management Companies and their Service Agents are implementing ways to make it much easier for Customers to stay in touch, whether it’s Tenants, Buyers, or Anyone Else.
In today’s Fast-Moving World, people will not tolerate waiting days for a response to their inquiries. If sellers are unable to obtain the Quick Service they require, they will go to a Competitor. Likewise, if Tenants don’t feel like they are Receiving Value, they will move.
Technologies such as Chatbots and Social Media Auto Response make it easy for Property Agents to maintain Open Lines of Communication.
4. Embracing Real Asset Revolution
The Real Estate Sector is not comparable to any other Industry due to its structural size. It is by far the World’s Largest Asset Class; it has a fragmented and distinct structure, with most players welcoming the lack of Transparency and Efficiencies. As a result, it has been difficult for Technology-Driven Players to break in until recently.
Amazon, Google, and the Samsung Group are among the Tech Behemoths that are now setting their sights on the Real Estate Market, having already overturned the established order in other Industries.
Going forward, the Goal of a Property Management Companies should be to help Transform the Industry from its Core. Push for more change, Transparency, Efficiency, and Accessibility, as well as Transforming the Future of this Industry, which impacts all of us in some way.
Innovations For 2022
As we approach 2022, Businesses will use Technology to gain a Competitive Advantage on a broader range of fronts. Here are some examples of recent Innovations that we anticipate will have a greater impact in 2022:
- Virtual Reality (Online Viewing) – the ability to virtually view a home has been around for a while, but Coronavirus has transformed it into a must-have tool in an agent’s arsenal.
- Property Passports – These digital logs of property information make it easier for homeowners to sell or rent out their properties. Rather than having to enter their information each time, a digital property passport allows a Customer to set it and forget it, while the agent has all the information they need at their fingertips.
- Challenger Brands – In the Real Estate Market, Digital Technology has greatly reduced the barriers to entry. Many new online-only entrants have already entered the market. Expect more as technology improves and becomes more affordable.
What Are Some Of The Roadblocks & Emerging Trends In The PropTech Space Today?
Previously, the PropTech Sector had difficulty gaining market access. Despite several promising startups and trustworthy solutions, accessing the right solutions to bring much-needed Transformation and Growth has always been a challenge. Our Industry has historically underinvested in IT and Digitization, which has resulted in the Industry is a laggard in terms of IT and Digitization Investment. Furthermore, the Real Estate and Property Management Sectors are still in their early stage and are struggling to strike a balance between Buying, Building, and Identifying their core strengths.
Other Industries have gone through similar phases in which they discovered their Core competencies and partnered with Best-of-Breed Solutions. The Property Management Industry is beginning to incorporate new technologies into its Workflow and Operations. To accelerate this, Businesses must stay focused on their vision and strategy while allowing Digital Solutions and Technology to act as enablers of the Strategy and Vision.
The Real Estate Industry is undergoing a massive Digital Transformation, and Companies must now align the Transformation and Technology Roadmap with their existing Strategies. It is also helpful to Visualize Incremental Steps and Create Value along the way to Foster Change and Innovation.
Despite being a late adopter of advanced technologies, the Largest Asset Class has enormous Value Creation Potential. This increased interest in New Technologies has been fueled by the Expanded Emphasis on Sustainability, where Technology Creates Opportunities to Support the Transition to more Sustainable Buildings, with Tenant Experience serving as a subset. While there are several Change Enablers, including Connected Buildings, Concepts, Data Enablement, Data Sharing, and Automation Technologies, Companies perceive Sustainability as their Top Priority for the Future.
What Does The Future Hold For PropTech Space?
With exponential growth in funding volumes and the number of aspiring Startups in the Industry, many improvements mark key milestones in the PropTech Space. In the coming years, traditional Real Estate Companies and Tech Startups may see more consolidation as well as increased collaboration. As Property Management evolves, Companies must focus on Improving the Use of Data and New Software to move quickly into more contemporary dimensions of Proptech.
Should You Look At PropTech To Cut Costs Or Generate Revenues?
Of course, both are required, but Revenue must come First.
By focusing on Revenue through new Distribution Channels, Dynamic Pricing, and Revenue Management Tools, and then ensuring that onboarding is straightforward and exciting, an organization can then focus on freeing people up within the organization to Reduce Operational Costs and Administrative Time.
What is the right PropTech fit? How do you enable the success of the implementation of new tech?
PropTech is attempting to fit a “Round Peg into a Square Hole.” There is no such thing as a one-size-fits-all solution. PropTech must have a Clear Value Proposition, and the Organization must understand how and why it wants to Use New Technologies.
It must be led by a Strategic Plan and aligned with Technology. Sometimes Organizations need to think about rebuilding the foundation instead of layering things on top. If the plumbing isn’t in order, you won’t be able to fully Utilize the New Technologies.
One of the tricks with Technologies is determining what to make simple and how simple to make it. This will be a crucial skill in the Future of Proptech. You can’t have one without the other. Clients and Providers will also need to collaborate to develop the Best Tools for the job.
What Is The Best Approach To Identify Industry Solution Providers And Partners?
The most important aspect to keep in mind is to truly understand the Company’s Existing Capabilities and know what needs to be incorporated to improve them. This, in turn, helps to facilitate a more effective dialogue with the Solution Provider or Partner. To truly address the issues of Property Owners and Managers, the Solution Provider must be aware of the Real Estate Market, Key-Value Drivers, and Core Problems.
A Property Management Company should heavily invest in Digitizing Core Processes to Improve their Efficiency. They should look into bringing in Newer Solutions and Platforms for Future-Proofing Property Management. With a forward-thinking outlook, they should encourage Businesses to have the right know-how to Access Data and Gain Valuable Insights from the Property. In effect, a Collaboration Platform is needed to push New Solutions and Improve Property Management Workflow and Services.
Software Solutions That Make Property Management Simpler, Better, and Faster
Through i4T Maintenance PropTech, Property Managers can Leverage the Traditional Eco-System and Scale of the Real Estate Sector with the Flexible Scalability of Tech-Enabled Frameworks.
The i4T Maintenance PropTech combines Deep Real Estate, Data Technologies, and Engineering Expertise as well as Direct Access to Large-Scale Real Estate Portfolios from selected LPs (Owners and Operators) with a Permanent Capital Approach, all under the Leadership of a Single Brand.
Going forward, the vision of Property Management Companies should be to build Real Asset Investments, Data Science Management as well as Digital Transformation Expertise, and the Realization that Real Estate can be the most potent medium to ignite change.
By reshaping their Ecosystem from within, into a more Compliance, Efficient, Transparent, and Futuristic, they can even Transform the Lives of Generations that are yet to come.
From Doing Digital To Being Digital As We Move Into the New Year
It is important to invest now to “Digitize Processes, Differentiate, and Drive Revenue Up, Change the Customer Experience (and/or) Drive Down Expenses” to Remain Competitive.
Throughout this article, it became clear that the Real Estate Industry is primed for Continued Change, Innovation, and Experimentation with New Business Models and Technology by all Parties. We are excited to see what the Future holds for Many Verticals across the Industry.
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