Here are some amazing statistics from Ashkán Zandieh, chair and founder of the Dallas Real Estate Innovation Center (CRETI): To date, approximately $ 1.5 billion of venture capital has been invested in asset management technology. This is an increase of 138 percent compared to the same period last year.
Real estate managers have discovered the benefits of technology support, primarily through the COVID-19 pandemic, thanks to requests from tenants, residents and clients. The management industry has seen skipping years ahead within a few months.
(Full Disclosure: Recently I was able to participate in Ash for a special CRETI webinar entitled “The Future of Property Management in the Technology Era”. This is a lively conversation, current technology status and property manager. Shame. Allow plugs, but free replays are available here.)
Before the pandemic, real estate, especially property management, was often said to lag behind other industries in adopting technology. There are some truths in it, but in a sense it is also clear that proptech companies have not coordinated their efforts to meet the needs of the industry in a comprehensive manner. As Ash’s statistics prove, it’s clearly changing and is now being addressed by property managers with digital solutions for both new and old operational issues.
I’m proud to be part of a profession that quickly confronts the unprecedented challenges of a pandemic and employs virtual tours, online rent payments and leasing, touchless technology, or many other technical tools. increase. application. Of course, these technologies have existed in some way long before 2020, but the evolution of the industry’s adaptability is a testament to evolution through need.
It’s important to note that not all VC funds are transferred to real applications in dollars, and the obligation to enable technology is not the same for everyone. As Ash points out, there is a turning point between need and ability.
“It comes down to organizational structure,” Ash said, saying that not all real estate managers are part of an institutional company with a huge number of real estate and deep pockets for technical testing under their control. Point out the facts. In fact, a significant number of managers represent smaller properties and portfolios, both in apartment buildings and in the commercial end of the industry.
Still, according to Ash, the focus on technology is “bigger, better, faster.” “But is 5G essential to managing my assets? Is it artificial intelligence? Maybe it’s not a 10-unit building.” Sure, these are significant advances with significant contributions, but all. Not required in the situation.
Regardless of the size of your business organization, you will never lose sight of the fact that you are caring for people. Yes, we have made fundamental changes in the way we do business, but software and system advances should be perceived as a play of “change management” rather than a “play of technology.”
And you should stop asking where the demand for new technology comes from. I think it is not only optimizing efficiency from the management company’s point of view, but also customer expectations and business practices.
We can recall the days when many in the real estate management industry declared that the rise of so many digital features had transformed their property management or real estate companies into high-tech companies. I agree with Ash that this was a very narrow view of things. Technology is neither a goal nor a final game.
The goals are: Freeing time from performing repetitive administrative tasks (busy work) and allowing people to spend more time on higher value activities. In other words, a technical application (available at a price that doesn’t break the bank) allows employees to provide exceptions and enjoy customers while performing “internal and external” tasks and “busy work”. will do so. experience.
Technology certainly plays an important role in so many areas, from security and energy control to operational efficiency that can bring value to real estate and portfolios. But we need to reverse the trends of those who provide technology and reset expectations for the existence of technology that serves people … to make the world a better place for people.
Barry Brunton is the president of IREM in 2022. In addition, he is the chief problem solver and founder principal of Seattle-based Brunton Turner.