Do you remember where you were when you saw your first smart home technology commercial? If you’re like most Americans, your immediate thought was, “I need that!” Believe it or not, smart homes have been around for decades, but the difference between now and 30 years ago is you don’t have to be Bill Gates (or someone of similar means) to own a smart home.
Smart home technology is merely one of the many advanced technological innovations brought to us by property technology (or proptech). In fact, the proptech sector is nearly $10 billion strong, and all indications are that it will continue to grow for decades to come. After all, we love smart technology in America, and now it’s become as much an expectation as it used to be a luxury. Everyone, from commercial real estate developers to renters and landlords, benefits from this burgeoning field of technology. Continue reading this beginner’s guide to property tech to learn more about how it’s changing the real estate industry for everyone.
The proptech industry relies heavily on big data.
Big data has permeated every sector of the business world, and the real estate industry is no different. Real estate agents rely on real-time data to get insights into potential buyers and keep up with new trends in the real estate market. Proptech relies heavily on big data and makes managing real estate assets easier for real estate professionals and independent landlords.
Many proptech software programs also boast financial technology (fintech) to enable landlords and property management companies to manage billing processes. Furthermore, many of these software platforms come with customer-facing features (or portals) that enable customers to pay rent and utilities and fill out work orders and requests.
Property technology powers smart cities.
In the introduction, we talked a little about smart home technology and how intriguing it is. We also warned you that smart homes are merely the tip of a fairly large iceberg. Smart homes are one thing, but now we’re talking about entire smart cities.
Smart cities tap into the power of the internet of things (IoT) to deliver valuable insights that aid in various city-planning operations. Some of the data sources include buildings, cars, traffic lights, and smart cameras. Smart city technology enables governments to lead more efficiently and provide better services to citizens.
Real estate developers and agents use proptech for virtual reality purposes.
If you’re a technology buff, you may have heard of smart factories. Proptech provides building contractors with many of the same capabilities as smart factories. They can use real estate tech to create a digital landscape or mockup of a building. Interior decorators also use proptech to create virtual layouts of design concepts for customers.
The proptech industry is growing quickly.
As we mentioned in the opening paragraphs, the proptech sector is large and still expanding, signaling its value to real estate professionals, renters, and landlords. However, that also means it has potential for investors. Many proptech companies are in the initial public offering phase, and investing in proptech could allow you to see strong growth in your investment portfolio.
The real estate industry is ultra-competitive, and real estate firms and property management companies all over the country are getting on board with property technology. There are numerous technological innovations that can enhance your property management operations, attract more tenants, and make your commercial buildings safer. Also, many proptech innovations are scalable, making them affordable for startups and providing them with systems that can grow with them. As you can see, the proptech industry has a lot to offer property owners and property management companies.