23 May The Evolution of Property Management
Technology allows forward-thinking property managers to plan ahead, collect crucial data, and simplify rent collection. When you think about it, most of the challenges facing property managers are similar to those in other industries. These include: providing customer-centric services and collecting vital data points.
Rent collection is just one aspect of a property manager’s list of activities. If anything, technology has added to property managers’ job description as they are expected to demonstrate strong data reporting and communicate effectively with clients/stakeholders.
Two key aspects of effective property management are seamless communication and organization. This is where most property management software solutions come in. It may not be possible for most property managers to achieve workflow fluidity and a high level of organization without leveraging property management software.
Today’s busy property manager is expected to be reasonably tech-savvy in order to use the property management software and be willing to adapt to new technological advances.
Property Management Automation
Most property managers deal with an excessive workload, particularly on account of repetitive tasks such as collecting rent on time, renewing tenant leases, making data reports, and organizing maintenance.
Property management software allows these professionals to get more valuable work done with less paperwork, keeping landlords and tenants happy. Recently 1836 Property Management introduced a significant new tool for the single family home property management industry – REI Monitor. The platform collects your rental property data and provides you with the ability to evaluate your key performance indicators and track the success of your investment.
Moreover, automation of redundant tasks allows property managers to focus on other aspects of their services, such as:
- Simplified bookkeeping and accounting
- Managing maintenance requests
- Tracking marketing advertisements for prospective tenants
It is worth noting that certain tasks cannot be automated – a problem that isn’t exclusive to property management:
- Interpreting the data generated
- Creating new strategies and troubleshooting problems
- Building a working relationship with tenants and landlords
It is obvious from these examples that technology doesn’t replace humans. More specifically, technology simplifies repetitive and redundant processes, allowing human managers to focus on other, more challenging aspects of their work.
Property management, like most services, will require humans for effective management. It brings more efficiency, frees up time, and facilitates better customer service.
Changes to a Property Manager’s Job Description
Property managers are required to study data and use it to identify potential problems before they occur. The use of data can provide property managers with more tools to predict problems. Their new job description now extends to:
- Analyzing if something requires preventive maintenance
- Forecasting market changes and rental rate adjustments
- Deciding if a particular update could affect customer satisfaction and the value of the asset
- Strategizing and forecasting long-term ROI and ROE for investment properties based on key performance indicators
Property managers should have access to the right tools and use the data collected to troubleshoot issues before they occur and set up an investment for success in the long-run.
Update and Improve their Toolbox When Needed
The ongoing evolution of technology means that property managers need to add more tools to their toolbox. The right tool should be easy to use and customizable because no two situations are alike.
Data collection continues to be an important part of their job description and should allow managers to:
- Efficiently meet the needs of their tenants and clients
- Minimize vacancy time
- Expedite accounting procedures
- Effectively create great strategy for real estate investments
At the time of writing, there seems to be no artificial intelligence that could automate data analysis based on client needs. This is why property managers must hone their data analytical skills to provide customer-centric services.
Data analytics is the next stage in property management. The new insight will allow property managers to anticipate problems and strategize goals based on real-time numbers.
And it doesn’t have to break the bank because there are many flexible and customizable tools that evolve with the property manager. It also goes without saying that property management software does not replace a property manager’s need to be competent and experienced.
Just like any other industry, property management can go a long way in preventive measures and communication with tenants and landlords alike.
Ready to hire property managers for your rental business? Get in touch with 1836 Property Management to work with an Austin property manager who combines technology with empathy to improve business and financial outcomes.
By: Kayla Gonzales, 1836PM Marketing Manager