The housing market has entirely changed thanks to rapid advancements in PropTech. PropTech has allowed people to leverage tenancy against their mortgages, allowing a steady cash flow from tenants, to landlords, to the banks.
It’s easier now than it ever has been to rent out a property. This is entirely thanks to PropTech making properties instantly marketable, with or without an agency. The power is in the hands of the landlord more, with rapid advancements in technology allowing them to advertise a property and maintain it remotely.
This benefits both parties, with the landlord able to manage a cash flow from multiple tenants and properties, without sacrificing the quality of a housing experience for tenants. As housing prices rise, renting is often the only viable option for many. An ability to maintain properties efficiently and remotely keeps everyone happy.
However, PropTech can do more to assist landlords.
A landlord’s bottom-line will be a cost-saving perspective. So, how can PropTech help keep costs low and tenants happy?
Find More Tenants With PropTech
With websites and apps such as SpareRoom and GumTree, it’s now easier than ever to advertise and market a property.
This saves costs in several ways. For a start, advertising is inexpensive and doesn’t require multiple channels. It’s possible to diversify where one is advertising, but now it’s possible to keep adverts in fewer places while achieving the same results.
Tenant retention is also helpful for predictions. However, tenants will leave sooner or later. Whether they’ve been recruited to a new job, are moving abroad, or can simply afford to buy, tenants will eventually move out.
Using inexpensive PropTech solutions means that landlords don’t have to own an empty room for long.
Energy Efficiency and Sustainability
Smarter homes are developing, whether it’s in terms of entertainment or, more importantly, energy. Smart meters and other cost-effective means can improve any Energy Performance Certificate (EPC).
Better energy efficiency means that landlords can be more tactical when it comes to pricing. If a landlord includes bills in the rent, for example, a better EPC means cheaper rent for the tenant and a higher profit yield for the landlord.
A top-line perspective for a landlord will be to maximise their revenue. So, how can PropTech drive this?
Manage More Properties
A landlord’s properties will be their greatest asset to create revenue. A House of Multiple Occupancy (HMO) will make more profit the more tenants that live there. However, in the past, managing multiple tenants has added a strain on landlords, meaning a second property would be out of the question.
PropTech allows easier control over the minutia that goes into running a property. This may be a more streamlined way to manage issues than emails, or a variety of FinTech software which makes cash flow much more manageable.
The easier it is to manage one house, the easier it is to manage multiple, either separately or in tandem.
Managing issues in a house also assists with tenant retention.
Of course, as stated before, tenants will always leave. However, if a house is energy efficient, if issue management is streamlined and anything broken is fixed quickly, and if finances are taken care of, there’s more time to keep tenants happy.
If a tenant has decided to move to another property within a similar radius and at a similar price, there may have been an opportunity for PropTech to improve their experience. There will, of course, be multiple factors, but leveraging PropTech to keep a house well maintained and running smoothly minimises these.
PropTech is continuously creating more opportunities for building managers, landlords, investors, and the general public. The future is clear. It’s time to invest in PropTech, whether in terms of talent acquisition, or stocks.