Technology grows exponentially, and over the past several decades, we’ve seen our world shift to center around digital technology. The internet’s overarching presence connects us to people around the world and has created a globally integrated economy. Technology has changed the way that virtually every industry works, and real estate is no exception. Here are some of the ways that technology has changed the real estate industry, and how investors can leverage these changes to succeed.
VR technology has allowed agents to create full 360 degree digital tours of their properties. With the right software and devices, these tours can be completely immersive. This has completely changed the way that investors (and renters) look at properties. This means that a potential buyer can assess the property from anywhere in the world, and they can thoroughly assess several different properties in one day. With this increased access comes greater investment opportunities – as well as greater competition.
Another way that technology has benefitted the real estate industry is by making it easier for tenants to communicate with their landlords. Not only does this make for a much safer and more enjoyable tenant experience, but it also helps landlords keep their tenants for longer periods of time. For residential rentals, it’s easier for landlords to set up an online portal where tenants can pay their rent, request maintenance services, and address any other issues they may have. You can also use the internet to screen tenants more effectively to begin with. Landlords can post detailed, transparent listings on user-friendly smartphone apps and websites which potential tenants can browse.
Investors can also use technology to increase the value of a property, helping it sell or rent for a higher price and generating a better return on investment. In residential properties, smart home technology is very valuable and can dramatically change the tenant experience. For example, smart heating and cooling systems are not only adjustable to the temperature preferences of the home’s residents, but can also save money and lower energy bills. Technology can also be used to implement security features on commercial properties, making them safer for tenants. As technology becomes more affordable and accessible, it becomes easier for investors to upgrade their properties.
Technology is already changing the way we buy, rent, and sell properties, but this is likely just the beginning. Over time, we can expect to see the real estate industry become more streamlined and accessible due to technology. However, real estate is unique because it has a social component that cannot be replaced by technology. Residential and commercial properties are always large purchases, which means that buyers will typically want to talk with agents and assess the properties thoroughly. Digital technology enhances this process.
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