This is not an easy time to be a residential owner or property manager. Whether you own or manage 10 or 1,000 properties, profit margins are being squeezed by rising costs, increased safety and business legislation and a demand for increased service fuelled by the build-to-rent sector.
This makes it more important than ever to invest in the right technology that boosts efficiency and cuts down on administrative costs, according to Yardi Sales Executive Vanessa Edet. Owners and property managers of small and midsized portfolios need to embrace proptech and move away from Excel spreadsheets and disjointed technology if they want to continue generating profits over the next few years.
“This is a critical time for landlords, owners and property managers,” Edet said. “They need to reduce costs while keeping residents happy, which is not easy. Without increasing rents, the only way forward is to optimise processes and increase productivity by using an all-in-one property management solution.”
Technology allows a business to automate and reduce repetitive tasks so it can focus on optimising its business, Edet said. It also allows a business to prepare for current or future legislation.
For example, the upcoming changes to energy performance certificates will impact landlords over the next few years. From 2025, all properties with a new lease will need an EPC rating of C or above.
“To make the necessary changes will require maintenance and building work, which needs to be organised and budgeted,” Edet said. “Using the right technology, such as an all-in-one solution, can allow you to assess existing property data, identify what needs to be done and budget and plan accordingly. Without storing and tracking data, costs can spiral.”
Yardi software has been specifically designed for real estate. It automates all the processes associated with tenant management from onboarding to rent payments and forecasting.
“It’s easy to use and simple to set up,” Edet said. “Because it is a cloud-based solution, everyone in your team can access the same real-time information from wherever they are.”
Although there are a range of business solutions that can deal with general accounting forecasting and project management for SMEs, opting for a property-specific tool pays off, Edet said.
“Opting for an overarching proptech solution will mean that processes can be streamlined,” she said. “Using a single solution can be a smaller investment in terms of both time and money. It reduces the overhead of managing different solutions and cuts down the time the team needs to learn how to get the most out of the solution.”
As well as property management, Yardi RentCafe helps a user market properties. The solution can push listings directly to websites such as Rightmove and Zoopla, or create direct marketing websites for businesses.
“The whole point of creating a property portfolio is to generate net operating income, which means people have to minimise voids,” Edet said. “Using a seamless, digital marketing platform can take a resident from making an enquiry to signing a lease and moving in. This helps speed up the process for both the resident and the property owners and managers.”
Once a resident has moved in, an all-in-one solution can be used to manage their ongoing experience. Yardi RentCafe can be used to report maintenance issues or communicate information about events and services.
“Residents who took part in HomeViews’ 2022 Build-to-Rent Report mentioned how useful resident apps are,” Edet said. “They expressed how their experience is improved if they feel heard and listened to, which can be achieved using the right technology.”
The growth of BTR is creating more competition for smaller and midsized landlords, owners and property managers. While some buy-to-let landlords are leaving the market due to the current climate, others are seeking to maintain their portfolios and will face increasing competition as UK-wide investment in BTR grows.
“Using an end-to-end, proptech solution such as Yardi’s Residential Suite, property owners can compete with other BTR operators,” Edet said. “Residents want a landlord to be transparent and to resolve issues quickly. If this works, they are more likely to stay, which in the current climate is more important than ever.”
This article was first published on Bisnow.