Just like many other businesses and industries, more and more real estate companies and real estate agents are employing technology to run their operations. PropTech is proving to be a real game-changer, and that is why so many real estate agencies are moving toward a digital real estate ecosystem.
What Is PropTech?
PropTech, otherwise referred to as Property Technology, refers to using technological advancements to make the selling, buying, and renting of real estate easier. In other words, PropTech works toward helping manage assets more efficiently.
Some of their technologies include:
- Crowdfunding real estate projects
- 3D modeling for online portals
- Mobile apps
- Research and analytics
- Smart home technology
- Property management via digital dashboards
- Commercial and residential lending
- Shared spaces management
- Automation
- Listing services
- Extracting key information from lengthy rental documents
Advantages of Applying PropTech in Real Estate
The application of PropTech has significantly improved the real estate industry, making the process of selling, leasing, and promoting property not only easier, but also faster. Below are the various advantages of using PropTech:
1. Virtual Tours
By using various digital real estate techniques, such as virtual tours, you no longer need to have potential buyers physically come to the property to see what it looks like. You can provide virtual tours to people in any location.
Virtual tours can help increase your market by encouraging international buyers to make bids. It is one way to possibly increase your sales, and it also makes things easier for consumers.
2. Improved Communication
With the use of PropTech, communication has never been easier.
Digital real estate companies use messaging services to better communicate between tenants and landlords. They create platforms that house access to various documents and files for claim reporting.
Such platforms enable property managers to leave information about the property to potential buyers or clients.
These platforms also enable communication between landlords and tenants, allowing faster responses between the two parties. This helps eradicate any misunderstandings or confusion brought about by outdated methods of communicating.
3. Optimized Operations
As the real estate industry uses technology more and more, day-to-day operations are increasingly optimized. The use of technology has enabled a simple connection across all business functions.
With dozens of digital tools at your disposal, it is much easier to run and operate a business remotely. This easy accessibility to digital technology helps optimize company operations because agents can now work from anywhere at any time. This level of control allows commercial real estate to make better decisions.
4. Increased Transparency
The application of technology in the real estate industry has increased its transparency.
Technology provides access to various tools that allow people to track their property transactions at the touch of a button. It increases transparency by allowing both parties to view the transaction details.
5. Better Promotion
The use of technology has helped property managers minimize the hassle of promoting their property. It has also made finding tenants simpler and quicker.
Property managers can now use 3D virtual technology to make floor plans of various properties, which in turn helps them to promote their property to potential clients easily.
Technology also enables the application of augmented reality. Augmented reality allows real estate agents to stage properties without having to purchase and physically move around furniture. This has been a massive game-changer in the digital real estate industry.
6. Cost-Effective
PropTech helps reduce expenses related to selling and showing a house. Before PropTech,, you would have to showcase properties to countless uninterested clients. But now, with PropTech, you can evaluate and find the best clients virtually, eliminating the cost of planning and traveling to open houses. Looking at houses virtually also can save you quite a bit of time.
Technology also helps cut costs in terms of the resources a real estate agent incurs to complete a sale. When agents can work remotely, it helps reduce a company’s expenses by reducing the office space needed, allowing better pay for agents.
7. Tenant Screening
To maintain a constant flow of property revenue, you need to find the right client for your property. By using technology, you can screen clients online. This will help you eliminate anyone that doesn’t fit the requirements for renting your apartment or house.
Digital Real Estate Ecosystem
Many real estate agencies are realizing the significant benefits of using technology to conduct real estate business. Due to that, the use of PropTech has grown increasingly.
The following trends imply that the future of real estate is going digital:
- More and more agents are using 3D walk-throughs
- An increasing number of real estate agencies use digital means of communication, such as Zoom, to conduct private tours
- Agents are now using virtual reality to showcase properties
Find the Best Digital Real Estate Partner
Whether you work in the world of real estate or you are simply looking to sell or rent your property, you need to find a company to work with that can provide the best digital real estate ecosystem.