Real Estate Ideas for 2013: Tech Meets Real Estate
What can be rental owners collectively do to improve our businesses, save costs, reduce friction or generate additional revenue?
On January 1st I posted a list of ideas that I had that some of us could consider to collaboratively work on. I intend to pursue one or two of the ideas presented and may entertain partnering with the right person or persons.
This was the fifth of five segment and the one that I feel holds the greatest promise. So great that I threw up a WP site to gather comments. If any of the topics interest you comment either here or directly to me at: Tim [at] ApartmentsMilwaukee.com
Tech Meets Real Estate
There certainly huge opportunities for software/web solutions for things that cause frustrations for real estate investors, rental property owners and perhaps tenants.
We are in an industry that has low margins and high expenses. A 10% swing in effectiveness can mean the difference between wildly successful and a miserable failure.
Some thoughts on where tech and rental real estate may intersect:
- Setting rents to market rates. How much are you losing because your rents are too low or how much have you lost due to your rents being too high and your vacancies languish? Me, too, to some extent. ;-( What if there was a site that effectively tracked what other rents are at in your area?
- Property acquisition. Look at what sites like SpotProperty are doing elsewhere, but not here.
- Vacancy filling Craig’s List used to work, but now there is too much spam and fraud. What about a system where the tenants need to prequalify before actually applying. While pre qualifying without processing the full app by an individual owner may be problematic from a fair housing standpoint, a proper third party system could work.
- Tools for group maintenance supply buying mentioned in Part One of this series where owners could opt into a group purchase of bulk supplies
- Improved tenant screening. Things like “Bad Tenant Lists” are illegal, but there must be things that are not being done today or being done in a manner that is more difficult than necessary or simply be improved by tech solutions.
- A site for creating and serving 5-day notices etc. by certified mail or personal service from your computer without ever having to leave your home or office.
- Put your solution here… I will publish a paragraph or even a page about all the really interesting ones that come along
Where tech helps our industry today
Obviously MLS is the big tech tool of real estate. The MLS challengers such as Zillow and Trulia also are helpful.
The right property management software is essential for all but the smallest of property owners. Our company uses very customized management software that makes many tasks and decisions automatic or semi automatic. In general a click a button and the machine does exactly what a well trained person would. Receive a WE Energies service termination notice and a work list item is created to check for vacant. Tenant collection actions are automatically determined on amount due, last pay date and how long they have been a tenant. One button and it select the proper notice or reminder for all tenants. Of course there are overrides as special circumstances require special treatment.
Automation of routine tasks frees our employees to think about things that need thought about, rather than thinking about the repetitive and mundane. Computers are great at those tasks.
Another example of tech meeting rental real estate is the free eviction notices we provide members on the AASEW site.
Outside of MLS, management software, five days and the examples above, there are certainly other solutions and improvements just waiting for us to identify. Well, waiting for you to identify, as I’ve put all I can think of in the above list.