What is PropTech? How did it bring a change in the field of property management?

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Mar 23, 202202:35:31pm

What is PropTech? How did it bring a change in the field of property management?

Today, technology is integrated into our daily lives more than ever. PropTech or Property Tech refers to the use of software, tools, websites, apps, and other digital solutions to optimize and manage real estate projects. Similar to “FinTech” (‘finance + technology”), PropTech emerges as an innovative approach among the real estate market aiming for efficient systems through a digital landscape.

Although the real estate industry shows a slow adaptation of technologies, the introduction of PropTech has already started transforming the sector.

How is PropTech used in property management?

PropTech, or property technology, is primarily designed to facilitate the purchase, maintenance, management, and investment in real estate. Major property tech tools include CRM (Customer Relationship Management) and ERP (Enterprise Resource Planning). One can use these technologies to execute several functions, including property listing and rental services, mortgage applications, marketplaces, customer management, and much more.

Now, there are two domains of PropTech in the real estate sector:

1. Residential Property Tech

As the name implies, residential property tech includes software and tools developed by PropTech companies to facilitate buying and renting apartments and houses.

The residential property tech is shaped by:

• Property Search Platforms (listing, marketplaces, real estate agents, etc.)
• Property Sale Tools
• Financing Tools (digital lenders & brokers, alternative financing, etc.)
• Lender Software (loan application and management)
• Real Estate Closing Tools
• powered tools
• Loan Management Systems (loan securitization, etc.)

2. CRETech

CRETech or commercial real estate (CRE) technology covers all the innovative tools used to search, manage, rent, or sell office, industrial, and other commercial property assets.

The landscape of CRETech space is defined by:

• Property Search Platforms (listing and marketplaces, Brokerage management, etc.)
• Constructions Planning and Management Tools
• Evaluation and Financing Tools
• IoT powered tools
• Asset utilization

What changes did it bring in the field of property management?

Like every business, it is essential to maintain a good relationship between the company and its customers. Incorporating CRM and ERP tools have been a boon to the property management sector with several benefits to both parties.

For the real estate business owners and entrepreneurs, the adoption of these PropTech solutions brought the following changes:

• Easier data evaluation & AI-driven marketing: CRM and ERP tools can be used to easily screen and evaluate the development, investment, leasing, buying, and selling processes. Many PropTech companies have also paired this with data analytics so that you get better insights and conquer the best deals.

• Automated paperwork & cost reduction: CRM and ERP technologies streamline the complete brokerage processes through automation. This saves a huge chunk of time & resources that you can invest in more important tasks, like market research and finalizing deals.

• Digital contracts & secure online transactions: You enjoy a better and faster buying and selling process through safe remote transactions. Yes, no more tons of paperwork to read and sign at closing!

• Direct digital engagement: This has proved to be a significant advantage since the onset of Covid-19. CRM and ERP limit physical interactions by introducing contactless solutions like online customer care, chatbots, etc.

For buyers and investors, property technology has brought the following positive impacts:

• Quality communication: Through CRM tools, the potential customers, existing tenants, repair workers, and maintenance teams can communicate easily with the seller.

• Distance doesn’t matter: Home inspections or house tours can now be easily executed with the help of virtual reality and IoT tools. Property owners and buyers can do all this from the comfort of their homes!

•Improved market research: Investors can use property technology tools to track the development, investment, leasing, buying, and selling opportunities across the exuberant market.

•Secure contracts: Much third-party involvement has been reduced with property technology tools. Now, it’s all between the seller and the buyer without relying on the “middle man” that might misalign the customers' interests during the sale process.

What changes are we looking forward to?

Real estate is one of the world’s largest asset categories, so the market opportunity for PropTech is immense. PropTech is booming and continues to curb various pain points in the coming years. The PropTech companies are working on several important aspects such as:

• Increasing Security with Edge AI
• Incorporation of Big Data Analytics
• Data-Driven Decision-Making
• The Growth of Direct Digital Engagement
• Integrating Virtual Interactions into Operations

How is Metadata Technologies transforming real estate tech?

If you run a real estate company, Property-xRM is the solution to streamline all your business operations. We at Property-xRM are a leading provider of CRM solutions to top business fields and companies worldwide. Our cutting-edge PropTech software Property-xRM can handle all crucial aspects of the property management cycle. From constant lead generation to validation and successful payments, manage everything from the comfort of your device.

Let us help you achieve faster, better, and more efficient property management today! Get started with Property-xRM by Metadata Technologies. Contact us to learn more.

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