Allen Matkins, Lek Gamble, Mallory & Natsis LLP
United States: PropTech Trends & Strategies for Landlords
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A recent roundtable hosted by Allen Matkins looked at trends in real estate technology (PropTech) and landlord strategies to strategically use such technologies.
The team investigated how the pandemic catalyzed PropTech, the short and forecasted long-term impact of PropTech on the real estate industry, and how landlords and other stakeholders can invest in PropTech.
Guests included Zander Jeronimos, Head of Partnerships and Business Development at MetaProp, a leading venture capital firm PropTech; Dave Garland, managing director of Second Century Ventures, the venture capital arm of the National Association of Realtors; and Eric Moxham, Director of IoT (Internet of Things) Revenue at PropTech Bractlet.
PROPTECH HERE TO STAY
Panellists agreed that 2020 was an important turning point in PropTech’s development: over the past year, landlords have seen a sharp and sudden surge in demand for virtual and contactless tours, electronic document signing and remote payments.
Panellists also noted that as a result of the success and effectiveness of interaction through the virtual world in 2020, stakeholders have come to understand that PropTech is more than just a plaster – in fact, it was noted that brick and mortar rental and sales offices can generally disappear – instead of them “virtual” showcases, accessible via the Internet, will appear.
PROPTECH CAN IMPROVE TENANT EXPERIENCE
Panellists raised the idea that there is a common misconception that technology hides personal interactions in business. The opposite has been proven in real estate: Landlords have strategically deployed PropTech to provide their tenants with a personalized and personalized experience – for example, tenant engagement software (which usually has a white label with the landlord’s brand and is available through the iOS and Google app stores) provides an opportunity for tenants access to payment options, maintenance requests and feedback channels. The communication and transparency provided by PropTech, combined with smart building technologies that allow tenants to lock doors, regulate the thermostat and turn off lights remotely using their mobile phones, contribute to the modern luxury that today’s tenants are accustomed to and will expect long after. before the pandemic is no longer the focus of attention.
PropTech enables experienced landlords to offer these full-featured white-glove capabilities without the significant upfront capital and labor required to implement traditional enterprise platforms – payment systems, virtual tours, and smart building platforms are often offered in software-as-a-service form. (SaaS), available through the cloud, enabling landlords to quickly implement PropTech. Because the SaaS solution implementation process is generally low-cost, labor-efficient, and highly scalable, PropTech deployments are flexible and can scale very quickly to keep up with growing business and rental portfolios.
CONCLUSION: PROPTECH IS THE KEY TO MAINTAIN A COMPETITIVE ADVANTAGE IN 2021 AND BEYOND
Already on an upward trajectory, PropTech experienced exponential growth in 2020, with over $ 37.7 billion invested in PropTech in 2020, up from $ 14.92 billion in 2019, according to Pitchbook.
According to panellists, using PropTech to run a real estate business represents less of a change than “modernizing” the real estate industry, which has historically relied heavily on face-to-face communication. it is for the technology-augmented world in which we live and do business today. While only time will tell the long-term impact of 2020 on the real estate industry, one thing is for sure: identifying, implementing and leveraging PropTech’s strategic technology is key to landlord success in 2021 and beyond.
The content of this article is intended to provide general guidance on the subject. You should seek professional advice regarding your specific circumstances.
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