According to a 2022 report by Strategic Market Research, the size of the property management software market in USA is projected to reach $2.71 billion by 2030. Technology has made a lot of progress in property management. It has automated many routine tasks which unfortunately created a distance between tenants and managers. This means that their interactions where very transaction based, and therefore more detached.
But recently there’s been a shift. Harkison (2017) has published a paper about the importance of personalized staff services in ensuring tenant satisfaction for luxury properties. Managers have started using new tools that allow them to build a bridge between themselves and their tenants so they can focus on building relationships. We’ll discuss how this is making things work better, faster, and more efficient.
From Digital Detach to Emotional Attach: A Shift in Perspective
Modern property management software helps you establish an emotional connection, instead of this digital disconnect brought upon by technology. The innovative tools that managers are now able to use, allow them to offer something more than just a place for someone to live. They’re able to create communities and experiences that’ll be memorable for all the right reasons.
We’ve seen this kind of switch before when automation was introduced into industries. The first thing that happens is all the processes become much faster but personal interaction takes a hit. We saw this while digitizing administrative tasks like rent collection, maintenance requests, lease agreements, and lease renewals, which made those areas streamlined in terms of operations.
But it reduced meaningful human contact, which plays a big role in tenant satisfaction and retention. Now that we are trying to re-establish these personal connections, we face major issues because of physical and geographical boundaries.
Tech-enabled personalization has become a significant focus as the industry tries different ways to enable property managers build these connections without physically needing someone there. The definition here refers to using technology not only as an aid for managing properties but also as an instrument used by managers so that they can make each tenant experience unique and emotionally engaging.
Here’s an example of how technology is used to create an emotional connection:
1. Identification of Tenant Preferences
Upon moving in, potential tenants will provide information on their preferences and routines, either through an initial survey or through direct input into a smart home app.
2. Smart Home Integration
The property is equipped with smart devices, such as thermostats, lights, and blinds, that are capable of learning from tenant behavior and can be controlled via a smartphone or voice commands.
3. Personalized Environment Adjustment
The smart home system uses algorithms to learn the tenant’s schedule and preferences, perhaps noticing that the tenant likes the room to be warmer in the early morning and cooler in the evening. Over time, the system automatically adjusts the environment without the tenant’s direct input, creating a personalized living experience.
4. Proactive Communication
The system could also proactively communicate with tenants, for example by reminding them of upcoming maintenance schedules or suggesting the best times for energy-efficient appliance use based on their habits.
5. Community Building Features
Beyond the individual apartment, property managers utilize tech platforms to foster a sense of community. This might include a resident portal that organizes events, creates forums for neighbor-to-neighbor communication, or offers local discounts.
These are just few examples of how technology can improve the way people interact with and feel about their homes. By integrating personalization and smart systems, property managers can create a tenant experience that feels personalized and connected.
What role does technology play in this?
CRM (customer relationship management)
CRM systems give managers the ability to see all tenant information. They enable property managers to communicate and provide services tailored to tenants’ needs. This includes maintenance requests that have been submitted, resident interaction history, and general customer service preferences.
Enhancing Tenant-Manager Relationships
With this access to specific information about maintenance needs for each resident, it’s a lot easier for managers to build better relationships with tenants. The attention to detail leads residents to make regular conversations with their property manager. It is an opportunity for relationship building instead of just another thing on your list for the day.
IoT Devices in Smart Home
Personalized Experiences through IoT
The term “smart home” has become a buzzword as of late but the benefits these devices offer are truly invaluable. Lavado-Nalviaz and colleagues (2022) found that humanization of smart home devices and personalization of messages, up to a certain extent, improves the perceived credibility and benefits of IoT services.
Whether it’s adjusting temperature preferences without manual input or lights that know when they’re needed, smart homes adapt to you. These devices are capable of understanding things like temperature preference or daily lighting patterns simply by identifying small choices you make every day.
Adapting to Tenant Preferences and Behaviors
As time goes on these devices collect usage data that helps create an even more personalized experience. For example, if it’s warmed up outside since you last left home — your house knows because it learned from you leaving at that exact time yesterday. It’s fascinating how quickly technology has learned individual behaviors which residents might not even realize exist themselves.
Mobile Apps for Personalized Tenant Experiences
Tailoring Services to Individual Preferences
Similar to the concept of a smart home addressing user preferences over time is exactly what mobile apps do too. It gives us personalized tenant services without even having to directly involve property managers. These apps make communication between tenants and property owners or managers easier, facilitate payments, and can even offer community-building features such as event calendars or local recommendations.
Adapting to Tenant Behavior Over Time
The true power of these apps comes from how many interactions they can learn from over time. With every message sent or service requested, they gain a better understanding of the tenant’s preferences — this creates a more tailored user experience unique to you. For example, the app may learn from the tenants’ grocery shopping habits, and suggest the best time to visit the supermarket based on crowd or outdoor temperature.
The Concept of Automation in Real Estate
Automation with a Personal Touch
Having things automated while still maintaining a personal touch — is what autonomation aims to achieve. It’s the use of technology to automate processes while keeping the user experience warm, friendly, and personal. For example, maintenance requests are automatically processed, and repairs are scheduled as per urgency and tenant availability.
Efficient + Human-Centric Service
Property management is one field where it would be easy to lose sight of empathy while trying to streamline operations. But what makes autonomation work is that it’s centered around emotion. Even if systems operate smoothly their core goal is understanding tenant needs on an emotional level.
What’s Next for Property Management
The conversations about software in property management have been incredibly exciting. We’ve talked about everything from AI-driven concierge services to virtual reality tours to helping prospective tenants visualize their future homes, and the general consensus is that the horizon looks bright for property management.
As a central theme, all of this change is being made with the idea of autonomation in mind — automation with a human twist. One where operational efficiency isn’t prioritized at the expense of personalized service. Technology will enhance our interactions instead of replacing them completely with artificial intelligence.
Empathy is at the core of autonomation as tech providers make understanding and responding to emotional needs through AI as seamless as possible. With these fresh insights from tech providers, the property management industry is set to change. And we can’t wait for you to experience it yourself.
This is just the tip of the iceberg in terms of what personalization and connection could achieve. Home environments are about to become a lot more emotionally resonant thanks to technology. The impact this has on tenants will be monumental, as they experience an environment that’s catered entirely towards them.
