How technology and a collaborative approach to renting property is ultimately going to win out…
Technology is a catalyst for change, and always has been; a catalyst for good, for improving quality of life and living, for growing communities and increasing productivity. All of this has had the effect of giving people more time for learning and additional development (which in turn has driven more technological change and additional development).
There have been many technological advances over the centuries that have improved the human condition, from flint tipped spears and the printing press to steam power and the Internet. These advances have enabled human beings to sustain larger communities, spread knowledge to more people, move larger distances and communicate information faster.
The Internet in particular has enabled people to collaborate with one another in ways unprecedented only a few years ago. Using the power inherent in the crowd has given individuals and business more opportunity, whether it’s crowd-funding buy-to-let mortgages or the pharmaceutical industry using the crowd to power drug developments.
I am going to coin a phrase, tongue in cheek, and suggest that we’re now moving into the period of homo-collaboratus. Technology is powering the species forward, and recent developments of the sharing economy reduce the costs for many around the world, whilst opening up access to assets for the masses (car-sharing, short term rentals, tool hire and more!)
However, one thing that never quite made much sense to me, what with all this amazing new technology available to us all, was the reason behind the slow adoption of technology in the long term property rental market. Paper contracts, slow phone communications, excel spreadsheets and in turn high costs.
It was for these reasons that we could see a very real reason to create a better way of doing business, one that enabled people to easily use technology to achieve their objectives, both as a renter and a property owner. Now, I can fully understand why this is the case.
There has been little imperative for landlords to make the change because they have been in control. And, generally being slightly more mature they do, in general, have less affinity with technology and social media. Ideas of privacy and security have moved leaps and bounds in a few generations, and now a large gap exists between the business (landlords) and the final customer (renters).
However, as the rental market is set to grow considerably over the coming 15 years here in the UK one could argue that the renters are beginning to balance the power, as they come in large numbers and are used to fast, mobile and transparent ways of doing business.
They can quickly spread bad (and good) news, and demand higher levels of service at a reduced cost. They are demanding a more transparent approach to renting property and want to deal with the best landlords, as much as you want to deal with the best renters.
Technology has continued to create and empower communities, but this time they are online. And trust me they are talking… perhaps about you! The Internet, Web 2.0, social media and blogging have given the renters an enormous amount of knowledge.
They now have an almost infinite number of options, and trust me, you are losing the position of power. But don’t panic, this could be a great thing. Technology is entering the world of property, and is called Proptech (aka Property Technology). It’s here to stay, and it's here to help you manage your rental lives.
Tomorrow’s landlord is in control 24/7, and knows far more about their properties and renters than ever before. They are mobile, and connected easily using technologies to make their lives easier and ultimately increase yields on rental income.
Tomorrow’s landlords will be able to manage any number of properties remotely, and remain 100% compliant in everything they do. You now have a rental mentor to ensure that you remain litigious in every way.
Proptech businesses will offer services that don’t exist right now, performing regular compliance checks to ensure that you and your renters are safe. You’ll make fewer mistakes, because you will have the right renters in your property, due to a more holistic approach to referencing and credit checks. And, one of the best things is that these landlords of tomorrow don’t have a large filing cabinet in their study but instead embrace cloud storage, where their data is far safer and accessible all day every day!
The number of disputes over rental agreements will decrease because of IP, date and time stamping used in electronic signatures meaning that rental agreements signed online (via approved e-signature providers) are more easily upheld in a court of law.
Movebubble is one such service that offers many of these things already and takes a collaborative approach to rental tasks, taking note from other sharing economy business such as Airbnb and Uber. Movebubble already offers many of the tools that you need mange your rental portfolio on the move, including:
- Instant advertising and publishing of your property profile
- Simple screening of renters, even before the viewings
- Schedule and remain in control of viewings
- A simple way to develop your brand and showcase your references as a landlord
- Sign a legal, customisable Assured Shorthold Tenancy Agreement online
- Easily take rental and deposit payments
- Free legal compliance and easy online signature of rental agreements
- Notifications of renter notice
- And you can do all this from one simple dashboard!
These platforms exist to put you back in charge, and facilitate a collaborative approach to rental tasks and property management.
So to summarize Generation Rent is here, and it's not going away anytime soon. Those clever landlords that realize they are themselves are part of Generation Rent are already trying to communicate with their renters in ways that they understand, using channels they frequent.
They are already building quality online profiles to show their prospective renters they are trustworthy and honest. This gives makes them stand out from the crowd. They are the ones that understand its about customer service, and use any tool at their disposal to offer great customer care, ensuring their renters are happy and that rental income is consistent. These savvy landlords are already using these Proptech businesses, and are reaping the rewards. They have the competitive advantage already; the question is how long will you let them stay that way?
If you are interested in what we are doing at Movebubble then please pop over and come and say hello.
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