{"id":154302,"date":"2023-06-21T15:26:03","date_gmt":"2023-06-21T21:26:03","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=154302"},"modified":"2023-11-07T10:32:23","modified_gmt":"2023-11-07T17:32:23","slug":"putting-proptech-to-work","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/putting-proptech-to-work","title":{"rendered":"Putting PropTech to Work For Your Real Estate Business"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC4585691410\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p><span data-preserver-spaces=\"true\">PropTech is a relative newcomer to the \u201cTech\u201d suffix world; you may be more familiar with the more recognizable MarTech and FinTech terms. While this terminology may be trendy and buzz-worthy, what does it really mean to put it to work in your real estate investment business? Keeping your competitive edge, and creating efficiencies across your growing portfolio, requires deft use of technology. Implementing the wrong solution or technology that doesn\u2019t deliver value can be a costly mistake. Understanding which technology can have the greatest impact on your bottom line is essential.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">What is PropTech?<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">It\u2019s a good idea to understand what PropTech means before you consider implementing it in your own business. PropTech (property technology) is a category of technology dedicated to the real estate industry. Specifically, PropTech helps real estate investors, landlords, property managers, agents, leasing agents, investors, contractors, and other persons or businesses research, build and develop, buy or sell, rent, and manage real estate.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">FinTech (such as online rent\/payment collection and accounting solutions) and MarTech (such as property marketing syndication functions and tools to create outbound communications) functions are often embedded in PropTech solutions. PropTech-specific tools can include online tenant screening, virtual inspections for rental properties, renters\u2019 insurance solutions, and real estate communication tools, such as landlord-tenant text messaging services.&nbsp;<\/span><\/p>\n\n\n\n\n\n\n  <div class=\"lg:block\" x-data=\"{ ad_block_block_64936ae0050d8: popAds(1) }\">\n      <template x-for=\"ad in ad_block_block_64936ae0050d8\">\n        <a\n          :href=\"ad.linkURL\"\n          class=\"no-underline text-black\"\n          x-on:click=\"adClicked('https:\/\/www.biggerpockets.com\/blog\/putting-proptech-to-work', ad.sponsor, ad.title, ad.id, 'blockAdClicked', 'blockAd', '')\"\n          target=\"_blank\">\n          <div\n            class=\"py-4 border-b flex flex-col flex-nowrap text-sm border-t px-0 rounded-none\"\n            x-init=\"\n              analytics.track('blockAdLoaded', {\n                referrer: 'https:\/\/www.biggerpockets.com\/blog\/putting-proptech-to-work',\n                sponsor: ad.sponsor,\n                ad_title: ad.title,\n                ad_page_location: ''\n              })\n            \"\n            x-intersect:enter.once=\"adViewed('https:\/\/www.biggerpockets.com\/blog\/putting-proptech-to-work', ad.sponsor, ad.title, ad.id, 'blockAdViewed', 'blockAd', '')\">\n            <div><span class=\"text-xs text-slate-light block bg-slate-50 p-1 inline-block rounded-md\">Sponsored<\/span><\/div>\n            <div class=\"flex items-center text-sm space-x-4\">\n                <img :src=\"ad.imageURL\" :alt=\"ad.imageAlt\" class=\"h-10 w-10 object-cover rounded-full\">\n\n                <div clas=\"text-sm\">\n                    <span class=\"font-bold block\" x-text=\"ad.sponsor\"><\/span>\n                    <span class=\"text-slate\/80\" x-text=\"ad.description\"><\/span>\n                <\/div>\n            <\/div>\n\n            <div>\n                <span class=\"font-bold\" x-text=\"ad.title\"><\/span>\n                <p class=\"mt-2 text-slate\/80\" x-text=\"ad.body\"><\/p>\n                <span class=\"mt-2 text-themeBlue block mt-2 underline\" x-text=\"ad.linkTitle\"><\/span>\n            <\/div>\n          <\/div>\n        <\/a>\n      <\/template>\n  <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">An Example of PropTech in Action<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">To bring it down to basics, let\u2019s examine a real-life example of PropTech. Traditionally, tenants have paid rent to their landlords via check, generally by mail. This process requires several manual steps:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Writing the check.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Placing it in an envelope.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Attaching postage.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Getting it into the post office box.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Then the landlord waits a few days for it to arrive. There are so many inefficiencies here that it&#8217;s cringe-inducing in today\u2019s automated \u201cclick-of-a-button\u201d landscape.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Implementing PropTech in this scenario is as simple as employing a platform that allows tenants to pay rent online. Finding a solution that allows tenants to sign up to pay rent via eCheck (ACH) or credit card can streamline this process exponentially. In fact, data shows that tenants with this option pay rent on time more often, sometimes even automating the payment each month so they don\u2019t have to think about it at all, making it genuinely touchless. According to our data at Rentec, landlords are looking to offer online rent payment solutions to tenants more and more to meet demand.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Other tools in the PropTech arena that real estate investors can consider are:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Tenant screening, including automated delivery of <a href=\"https:\/\/www.biggerpockets.com\/blog\/evaluating-credit-reports\" target=\"_blank\" rel=\"noreferrer noopener\">credit reports<\/a>, rental history, and more.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Tenant portals for <a href=\"https:\/\/www.biggerpockets.com\/blog\/landlords-venmo-paypal-collect-rent\" target=\"_blank\" rel=\"noreferrer noopener\">rent payments<\/a>, maintenance requests, communications, and more.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Marketing vacant properties across a wide number of websites with a single click.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Virtual tours of available rental properties, both for tenants and for potential purchasers.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Modeling tools that can calculate your <a href=\"https:\/\/www.biggerpockets.com\/glossary\/return-on-investment-roi\" target=\"_blank\" rel=\"noreferrer noopener\">potential ROI<\/a> if you are looking to invest in a new property.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Smart home technology (e.g., thermostats, locks, and security systems) to help manage properties remotely (while also being a selling point for potential tenants).<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Transforming Real Estate with PropTech<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Like its other \u201cTech\u201d counterparts, PropTech solutions create efficiencies, making the resources, tools, and systems you need cost-effective and easy to access and use. From a tactical standpoint, the right technology can streamline communications, add value to everyone using the solution, allow you to expand your business by simplifying tedious or manual processes, and ultimately save you time and money.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">To uncover what type of PropTech you might need in your real estate investment business, ask yourself a few simple questions:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">What are the biggest sticking points in my daily or monthly workflow? Is there a technology available that can relieve these points?&nbsp;<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Does the PropTech solution I\u2019m considering address all of my concerns or just one piece of the problem? Was it created with my actual job in mind?&nbsp;<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">What are the core strengths and weaknesses of my key team members? Can they work alongside technology to create efficiencies across my business?&nbsp;<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Does the technology work for all my stakeholders? For example, your partners, staff, tenants, contractors, and others?<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Will it free me up to do what I do best? From running my business to exploring growth opportunities and building relationships? The right PropTech solution can allow you to focus on high-value tasks.&nbsp;<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Technology-based solutions truly emerged during the pandemic as people sought new ways to do things in many industries, including real estate. Before this occurred, PropTech may have been considered useful and efficient, but now it is necessary and invaluable (not to mention expected). It is the new normal, and as real estate investors adopt new technologies, the efficiencies, and cost benefits will outweigh the learning curve.<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_a956b2ab6593801697e2247de1265d01\" class=\"visibility-group  hidden\">\n        \n\n<div id=\"hero-block_975d70be2e0a1493ad8eada4048c0313\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-theme-gold-light-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-theme-gold-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Get the Best Loan Today<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:16px\">Find trusted, <em><strong>investor-friendly<\/strong><\/em> lenders who specialize in your strategy. <\/p>\n\n\n\n<p><\/p>\n\n\n\n<div id=button-custom-event-block_a9208dcc5c3007ba8989cba7fe3f1c0f class='button-custom-event'>\n      <a\n    href=\"https:\/\/www.biggerpockets.com\/business\/finder\/lenders\"\n        x-on:click=\"window.analytics.track('Blog Block | B2C Marketplace Lender Finder', {\n      referrer: 'https:\/\/www.biggerpockets.com\/blog\/putting-proptech-to-work',\n    });\"\n    class=\" btn-shape inline-block no-underline has-background has-theme-gold-background-color has-text-color has-white-color\" target=\"_blank\">Find a Lender<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\" first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Marketplace-Blog-Blocks-Lender-v3.png\" alt=\"investor friendly lender, investor friendly real estate loans\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a\n    href=\"https:\/\/www.biggerpockets.com\/signup\"\n        x-on:click=\"window.analytics.track('Blog Block | Acquisition | Free Membership Signup', {\n      referrer: 'https:\/\/www.biggerpockets.com\/blog\/putting-proptech-to-work',\n    });\"\n    class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>PropTech is a relative newcomer to the \u201cTech\u201d suffix world; you may be more familiar with the more recognizable MarTech and FinTech terms. While this terminology may be trendy and [&hellip;]<\/p>\n","protected":false},"author":132929,"featured_media":154305,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4241,7119],"tags":[],"class_list":["post-154302","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-business-management","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/154302","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/132929"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=154302"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/154302\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/154305"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=154302"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=154302"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=154302"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}