What exactly is proptech?

Property technology, otherwise known as proptech, is a collective term used to define the technologically innovative products and business models being produced for the property market. 

Simply, it is the marriage of property and technology.

It is a relatively new term that has grown in use over the last five years as more property management companies turn to technology to modernise their business. 

Global proptech investments have been increasing at around 36% annually in recent years (CM, 2021) and this growth shows no signs of slowing down.

What can proptech offer your business? 

Proptech provides property management and estate businesses with many benefits. 

Firstly, there are numerous parts of the property management business that are better handled by an automated process rather than a human. 

As well as this, COVID has caused many companies to adopt automation as face-face meetings have become increasingly difficult for all to schedule and attend. 

Additionally, automation provides a more sustainable and green office to property management firms. 

Less travel for face-to-face meetings means less pollution, less traffic and a more sustainable future for the property industry.

Furthermore, proptech also provides property management companies with insight and stats into their company. 

New software and apps with built in analytics highlight the use of the application and/or software from the user’s perspective through statistics.

New technology also provides greater efficiency to property and real estate firms. 

Here at Appt, we have vast experience in providing proptech to many companies. 

Our work with Pier Management best exemplifies how proptech can be used to forge new pathways for outdated and costly business practices.

Efficiency

To briefly summarise our extensive work with Pier, Appt designed and developed an app in which leaseholders could use to access their invoices, pay bills and be notified of overdue payments.

The Pier team also has access to the app and can manage their clientele, and payments through it.

Previously, Pier was sending invoices via email, the post, over the phone and through a payment portal. Pier have over 35,000 leaseholders on their books. 

Appt developed the app to combat the inefficiency of manually processing 35,000 individual leaseholders. 

The Pier team now has one single place to access all their incoming payments, reducing the time needed for the team to respond and manage their workload. 

As well as this, Pier cut economic costs by firstly reducing their phone bill and secondly, only paying for the app, as oppose to several off the shelf systems they were using to manage the payment portal.

Efficiency was also increased for their clients.

Clients use the app to instantly to track, manage and pay their outgoing fees, which is more efficient then using over the phone payments, or the post.

Communication

Another benefit of the app we developed for Pier, and proptech in general, is the increase in effective communication. 

Pier’s convoluted communication system involving emails, phone calls, post and a payment portal was streamlined from four communication channels to one on the app. 

Clients could seamlessly contact and pay for their bills on the app immediately from their mobile.

If any issues arose regarding a property or leasing, Pier and the client can contact each other quickly through the app to resolve any issues with speed.

In addition to this, communication has further been increased through client and site management. 

Every client or on-site manager has a phone and with the app, is easily contactable which further increases the communication between Pier and its clients.

What does the future hold? 

Proptech strategies need to accommodate the rising demand for fully automated and mobile applications processes as Gen Z takes it first steps into home ownership or rental. 

50% of millennials use their phone to search for homes with a further 26% using their phones as the next step for the purchase or renting of a property (CM.com, 2021).

Proptech is therefore vital in ensuring that the property industry is ready for a new digital age. Property management companies desperately need to modernise or they face an uncertain and difficult future as homeowners look for digital systems to help them get on the property ladder.