Earning Rental Income from residential and commercial properties has become a great way to earn passive income in India. However, manually managing multiple properties poses several challenges for the owner. Such as finding potential tenants, managing rental documentation, collecting timely rent, managing invoices and receipts, etc. Here, PropTech has emerged as the ultimate solution.
PropTech (property technology) is the use of information technology (IT) to help individuals and companies research, buy, sell and manage real estate. Similar to the way FinTech focuses on the use of technology in finance, PropTech uses digital innovation to address the needs of the property industry.
Now that you have a fair idea about PropTech, let's dive into how rental property owners are leveraging the same for simplified processes.
What Problems Is PropTech solving for Rental Property Owners and How?
- Rental Process
The process of searching for tenants, tenant verification, paperwork, and completion of online rental transactions were some of time-consuming tasks for landlords. But with PropTech, property owners have been able to access a streamlined rental process using property softwares. This saves time and resources for both landlords and tenants.
- Payment Monitoring
Landlords can set up automatic reminders for rent due dates, reducing the risk of late payments. This is particularly beneficial for those managing multiple properties and tenants, eliminating the need for personal checks and payment reminders.
- Simplified Invoicing and Receipts
Proptech offers automated solutions for generating rent receipts and invoices, making paperwork more efficient for landlords. It also simplifies tax filing and facilitates sending necessary documents to tenants for HRA claims or record-keeping purposes.
- Convenient Document Storage
Proptech platforms provide online storage spaces where landlords can upload and store rental agreements, lease documents, and other critical paperwork. This ensures easy access for tenants to review their agreements and reduces the risk of lost or fraudulent records.
- Efficient Inventory Management
Proptech platforms assist landlords in effectively managing their rental inventory by providing online booking and resource allocation platforms. Landlords can also use these systems to manage service requests such as cleaning and maintenance, ensuring prompt assistance for tenants and optimal property utilization.
- Online Customer Service
Tenants can utilize online help desks or chatbots offered by proptech platforms to submit requests or concerns, avoiding delays associated with traditional communication methods. This facilitates clear communication, and quick issue resolution, and enhance tenant satisfaction.
- Building Community
Community spirit and reducing tenant turnover, ensuring a steady income for Proptech platforms help landlords foster a sense of community among tenants by providing online forums for interaction, sharing experiences, and collaboration. Additionally, these platforms assist in organizing social gatherings and activities, promoting a strong landlord.
How is PropTech Influencing Tenant Experience?
In India, property ownership has traditionally been synonymous with financial stability and social status, while renting has been frowned upon. However, factors like soaring real estate costs, evolving lifestyles, and flexible work arrangements have fueled the rental market's rapid growth and shifted societal attitudes.
To adapt to this changing landscape, the rental property industry in India is increasingly embracing proptech platforms. These technologies facilitate effective communication with current and potential customers, streamline business processes, and attract tenants willing to pay higher rents. As a result, landlords experience increased profitability, while tenants enjoy a seamless renting experience.
This technology-driven approach has the potential to make renting an appealing option for many Indians and remove the stigma associated with renting properties. As the era of proptech unfolds, it holds the promise of being a game-changer for landlords nationwide, ensuring a thriving rental property industry for future generations.
