Technology plays a central role in many industries, and property investment is no exception. There are a variety of tech tools property owners use to run their investment business, including software for managing tenant requests, collecting rent, sending notices, and tracking profitability.
Your profitability depends on how well you manage your properties and tenants, but you also need to make smart financial decisions. There’s no limit to how tech can support investors, and if you own rental property, technology can help you stay profitable simply by using the right tools.
Article Breakdown
Software helps property investors avoid big mistakes
Property owners make plenty of mistakes with their tenants just out of ignorance, and most of them are avoidable. For example, not communicating and not knowing landlord-tenant laws are two of the biggest mistakes landlords make. However, landlords who use certain software applications can often avoid these and other mistakes.
When it comes to landlord-tenant law, one small mistake can have massive consequences for property owners. For example, if the federal Fair Housing Act applies to you, and you deny a tenant the right to have a service dog or emotional support animal, you will be held accountable if they sue you. You might be required to pay a judgment or allow the tenant to remain in the unit if you were trying to evict them.
Tech can help you stay legal
Using technology can help you stay on the right side of landlord-tenant law by keeping you organized. For instance, after consulting with an attorney to fully understand your legal responsibilities and obligations as a landlord, you can use technology to manage all of your obligations according to the law. For instance, you can schedule regular inspections as outlined in the lease, create forms for tenants to make accommodation requests, and create templates for lease changes.
Once you have all of the documents you need, you can use various applications to ensure you follow the law each time you need to use those documents. For example, once you have an eviction template for every possible type of eviction, you can attach the information regarding how to execute an eviction properly. Since different reasons for eviction require different amounts of notice, this will be an essential tool in your toolbox.
Where more complex laws are concerned, support is often built into the app. For example, some of the best rental advertising apps make it easier to follow the law regarding ads. Inside the app, you will be reminded that you can’t discriminate based on race, color, religion, sex, disability, familial status, or national origin.
If you’re a new landlord, this kind of reminder is helpful because it can be tempting to state preferences in ads, or say things like, “This is perfect for a retired couple.” Unfortunately, statements like this can be considered discriminatory, so it’s best to stick to describing the property rather than who you think might want to live there.
Apps can help you find profitable properties
If you’re searching for additional properties to buy, there are apps that make this easier. Aside from sites like Zillow and Redfin, there are several other apps you may want to try. For instance, Homesnap will give you MLS information and other data, like the property’s history, tax records, and nearby schools all based on a photo you take and upload. There’s also Trulia, which is a good way to estimate home values so you can make better buying decisions.
Since you need a decently-sized portfolio to make good money in real estate, it makes sense to use technology to acquire more properties. No matter how good you are at researching, these apps make it easier than figuring things out on your own. If your goal is to grow your investment portfolio, tech will give you an advantage.
Technology can help increase tenant satisfaction
Getting good tenants is just the first step. You also need to keep them happy. Satisfied tenants are less likely to damage your property, and are more likely to renew their lease and become long-term tenants. Since vacancies are the enemy of profitability, long-term tenants are ideal.
When you use technology to streamline your operations, including tenant interactions (like inspections, notices, and repairs), the lack of friction will create a smooth experience for your tenants.
Use tech to be more profitable
The right tools will help you find properties, stay organized, and take care of your tenants. When you enhance operational efficiency, you’ll also be increasing tenant satisfaction, which ultimately supports your bottom line.