With growing urbanization, space limitation, and inflation people are looking for affordable housing options, and renting has growing demand. Multifamily housing has emerged as a winner in these challenging times. Multifamily investors are always looking for ways to increase efficiency and maximize ROI.
Managing and maintaining cash flow from hundreds of apartments is not easy, but that is where technological innovations step in to help multifamily investors and property managers.
Many tools are available to multifamily investors, from property management software, to lead management platforms, financial applications, etc. In this article, we will look at some of the most cutting-edge technology in real estate for multifamily investors.
Why is Technology Critical for Multifamily Investors?
Due to demographic changes and technological advancements like artificial intelligence (AI), the multifamily industry is going through a paradigm shift and revolution.
To provide knowledgeable information about future events, AI uses complex algorithms and analysis. Furthermore, it offers an analysis to set precise and accurate actions based on analytical results.
Technology is essential for multifamily investors because of the following:
AI has impacted the practice of property management. Using cutting-edge technology in real estate, like apps and services, to assist managers in managing their daily tasks can reduce the likelihood of human error and provide better satisfaction to tenants.
For any multifamily owner, incorporating innovative technology into the operation of your units adds a distinctive selling point. New-generation renters find these tools very appealing and in a lot of cases will not rent if they do not exist.
Adding features like smart locks, online payments, automated package delivery, high-speed internet, innovative home feature, self-guided tours, etc. has made it possible for multifamily investors to capture additional other income in the $50 – $80 per month range, significantly increasing the value of assets and boosting returns.
According to a recent Epsilon study, Eighty percent of consumers prefer businesses that offer a more personalized experience.
Instead of just putting up a standard advertisement, it’s better to send customized notifications to potential tenants. Imagine this: your multifamily unit is located near a university; you should place online ads in forums that not only cater to the broader market but specifically to students. A sample ad might read, Apartment home available, will nurture young dreams and can also make a big difference in helping raise a young family, this will attract both demographics.
Tailored emailers and postings on property sites will help reduce your vacancy rate.
How to Find the Right Tech for Your Property Investment Portfolio?
Tech tools assist multifamily investors in managing multifamily rental properties to increase returns. Using cutting-edge technology in real estate operations can assist with the following:
1. Identify key performance indicators like fair market rent
2. Tracking income and expenses
3. Responding to online reviews
4. Handling and documenting tenant maintenance requests
5. Conducting self-guided tours
6. Tracking rental leads
7. Providing key services to tenants that lead them to want to stay long-term.
Multifamily Lead Tracking Tools
Despite the exceptional performance of rental real estate over the past number of years, one of the difficulties multifamily investor faces is the elevated competition for Tenants with the prospects of the pending recession. Now more than ever it is important to have the right technology in place to track leads from different sources and consolidate them in a single access point so site staff can quickly and easily correspond with prospects.
Integrated Maintenance Activity software
Utilizing maintenance software that is integrated to the base operating software used increases the ability to track multifamily maintenance staff performance and has proven to increase the amount of revenue-related expense recovery for unit damage on move-out.
Yield Optimization Software
Cutting-edge technology in real estate now exists that helps set asking rents on a weekly basis. It has been proven to increase annual ROI by 2 to 6 percent. It not only sets rents but more importantly it helps keep on-site staff on point when it comes to lease expiration management, it prevents them from giving away unnecessary concessions, committing units to Tenants too far in the future, etc. All of this improves ROI.
Maximizing Real Estate Tech in Your Investment Strategy
Concerning tenant amenities, property management, and other aspects of real estate, there is no denying that technology is advancing across various industries. As multifamily investors, you can harness additional profits by deploying the above approaches into your investment strategies.
The Future of Real Estate Technology
Due to new cutting-edge technology in real estate, the real estate sector is undergoing rapid change. Multifamily investors and their property managers can manage their portfolios more effectively and streamline their operations with the latest property management software. We think we are in the midst of the technology influence for multifamily real estate. We expect the emergence of effective digital solutions to continue and help increase ROI.
Summerfield Property Management has taken the time to incorporate the right software tools not just to make it easier for us but to help improve the investment experience and return on investment (ROI) for our clients. To learn more about how Summerfield can help you with your investment just schedule a meeting with one of our team members!
Q: What is multifamily investing?
A: Purchasing multifamily properties, such as apartment buildings, condos, or duplexes, which provide multiple rental spaces, is referred to as multifamily investing. It’s a well-liked type of real estate investment because of its essential need and thus lower risk.
Q: What is real estate investing?
A: In real estate investing, properties are bought, managed, and then sold, hopefully for a profit. Real estate investors or entrepreneurs are those who make either active or passive real estate investments. An active investor is involved in all aspects of investment whereas a passive investor is more like a silent partner.
Q: Is investing in multifamily projects worthwhile?
A: Even though investing in multifamily real estate can become complex and has a higher barrier to entry, it can be very profitable for those who can manage the initial outlay.