If you’ve been skirting PropTech modernizations over the last few years you may think your old tried-and-true methods have been turtle-ing along just fine. But the dirty leasing secret is if you don’t pay attention now, in a few short months, you could be looking at a dusty, empty inbox with zero renter applications.
KPMG data shows global investment in PropTech companies in 2021 totaled $24 billion, a 28 percent increase year over year. And a recent ULI and Goodwin survey noted PropTech is increasingly seen as essential to maintaining a competitive edge in real estate. Investments from revolutionary venture capitalists and the about-face from property management pros show the power tech is gaining in the sphere and that, without adoption, many operations will soon crumble.
Although dozens of software platforms and apps have come to fruition, it’s the forward-thinking property managers that flock toward tenant screening PropTech to help them eliminate fraud, eradicate vacancies and expenses, and screen for ideal tenants faster than ever. By diving into leasing tech and innovative apps, smart property managers streamline their business while increasing revenue and aligning with the future of renting.
As renter habits morph alongside tech, property managers need to understand these shifts and see why a start-to-finish tenant screening and leasing platform is their right next step. To help you figure out how to build the right technology partnership for the future of leasing, here are some significant transformations to put on your radar.
According to JLL data, the number of PropTech startups seeking to bring high-tech to real estate has increased three-fold in the last 10 years. This expansive growth not only bloomed year over year, but the recent ULI and Goodwin survey showed 80 percent of real estate owners and operators said PropTech apps have positively impacted their operations.
As potential tenants ask for more tech-savvy ways of working with their leasing company, and PropTech founders are finding more footholds for funds, property managers looking to streamline their business seamlessly are turning to tech to align with market changes. By downsizing process and system headaches, growing their recurring income, and using a single tool, they’re able to scale their portfolio with less overhead.
Opting for a start-to-finish tenant screening tool and leasing platform, a previously rare option, offers the chance to have a single spot for potential tenants to submit their application then finish every single leasing onboarding step to a signed lease and sent security deposit. Making it simple for potential tenants to quickly jump on your chosen app and finish their leasing process fast helps you make an excellent first impression and tie into future trends.
Plus, with the right screening app, you can reduce the chance of unpaid rent and eviction costs, filter out the noise with pre-qualification settings, and only have to check one dashboard instead of multiple platforms (with several expensive subscriptions). Tech-forward rental processes are attracting tech-obsessed tenants, but it’s up to you to invest in the proper screening app to meet their needs.
High-performance portfolios are generated by figuring out your differentiators, what you do best, delivering above-and-beyond for your residents, and how you can gain a slice of wins ahead of your competitors. And it’s that investment in tech that master property managers know help them in each of those critical categories.
Because today’s and tomorrow’s renters rely heavily on their smartphones, those who align with this preference through tenant screening apps are winning the game. Why? They’re able to provide 24/7 access to submitting applications through smartphones, already have filters set up so they only spend time with qualified applicants, and they’ve automated as much of the upfront leasing processes as possible so they can get back to expanding their properties and service.
When your leasing strategy is strengthened not only by using an always-open app, but machine and human intelligence, you don’t have to sweat fraud, mistakes, errors, or tenants scurrying away without paying rent. With 78 percent of global consumers agreeing that smart products are extremely appealing, now’s the time to figure out how you’ll use tech to gain your edge while lowering vacancies and upping recurring income.
One of the main shines taken to tenant screening apps is their ability to screen tenants 10 times faster and detect fraud 10 times faster. With breakthrough advances, these apps speed up old time-and-money-hungry manual processes while removing any scraps of fraud or missed information.
Verifying residency, employment, and income through a connection to your potential tenant’s bank account plus providing robust reports on credit, eviction, and background, tenant screening apps get to the nitty gritty of your tenant’s info so you can make smart (and profitable) decisions. Between selfie AI with facial recognition to help remove identity theft and fakes, and deeper history checks like care for their last property and respect to neighbors, you can use tech to review a wider landscape of data and still have time to deliver your best to current residents.
These leasing apps and tenant screening tools, some of them free, automatically and natively move through tasks to ensure your tenants are the right fit for your unoccupied units and that they can afford to regularly pay their rent. By using this tech, property managers protect their rent revenue while partnering with state-of-the-art systems.
Admit it: You’ve forever frankenstein-ed your platforms and tools together to get just the right mix of features and benefits. But you ended up with a ton of costly subscriptions, a frustrating way to operate day-to-day, and a difficult path for ideal tenants to follow to sign their lease.
However, if you swapped over to a single PropTech innovation that integrates with your main project management software, instead of jumbling systems together, you’d be able to manage a step-by-step process that’s easy for you and future renters to logically and quickly move through for a better experience. You can attract the tenants of the future who love your tech-first attitude then have your tech’s filters in place so you’re only securing security deposits from the right fits.
%20(1).png)
With median rent hitting a new high at $1,879 in Realtor.com’s July 2022 Monthly Rental Trends Report, 12.3 percent rent growth year-over-year, and 80 percent of renters who considered purchasing a home saying inflation and rising interest rates have delayed or impacted their plans, it’s a good time for property managers to focus on the value of leasing tech. But only if you have the right tech in place can you increase retention while limiting your vacancies as much as possible.
With Millennials and Gen Z as the largest and most valuable tenant groups, and many of them slowing their home buying journey due to changing times, it’s now about catering to their needs. And at the very top are leasing companies who understand their drive for tech in all aspects of their renter journey.
Choosing the value of leasing over the turbulence of the home market, a survey by a Realtor.com company showed renters have been in their current units for up to two years, but that doesn’t mean they won’t ship out if their property managers don’t update with the times. Adopting tech for the largest crop of renters where it infiltrates all aspects of their lives means current and future profits can rise. Additionally, the right tenant screening app will always have you a step ahead of competitors, tech trends, and processes so you can stop forever-worrying about fraud and evictions, and start enjoying a regular revenue flow of qualified renters.
Looking for a reliable end-to-end leasing partner with a tenant screening solution that’s ahead of its time? Check out Sunroom’s tenant screening platform today.
