Although modern technologies can make landlords' lives much easier, digitalization has not yet fully arrived in the real estate industry. In our new study, landlords learn more about current digital trends and tenants' preferences in order to find the right technology solutions for their business.
Digitalization of the real estate industry Header
In this article
Landlords are lagging behind in digital change: 53% do not offer their tenants modern technologies
Technical errors reduce the advantage of the convenience of digital tools
Communication is the key to a good rental relationship
Technology offering can alleviate discontent over rent increases
Keeping pace with technological progress and securing a competitive advantage
The rental market faces numerous challenges: housing shortages in many cities, macroeconomic factors such as inflation, rising rents and more can lead to frustration among apartment seekers.
The new Capterra study examines the challenges tenants face and which software solutions can help landlords and property managers address these challenges and ensure tenant satisfaction. For 68% of tenants, the availability of advanced technologies such as smart devices and keyless entry systems influences whether they sign a lease.
Digitalization in the real estate industry not only meets tenants' expectations, but also offers landlords a number of benefits, ranging from increased efficiency and time savings to improved communication and transparency. Software can simplify and optimize property management , which relieves the burden on the landlord and ultimately leads to a better rental experience for both the landlord and the tenant.
Capterra conducted a global survey of tenants in twelve countries, with a total sample of 4,800 tenants. Among them were 400 respondents from Germany, whose statements this article mainly focuses on. The goal of this study was to learn more about current digital trends and tenant preferences and to explore actionable strategies that landlords and property managers can use to implement the right software solutions, increase tenant satisfaction and ensure tenant loyalty.*
Landlords are lagging behind in digital change: 53% do not offer their tenants modern technologies
Tenants and landlords now have access to countless digital tools that support them in all areas related to renting or leasing an apartment. Some examples are contract management software , maintenance tools and communication platforms .
However, real estate technology, also known as Proptech, does not yet seem to be widespread in the German housing industry. The most common technology currently offered for rental apartments, mentioned by 17% of the tenants surveyed, is online payment portals . This is followed by intelligent energy management (15%) and special communication platforms for the apartment (14%). However, over half (53%) of the participants said that none of the technologies on offer are offered for their home.
This clearly shows that the majority of property managers are not yet digitizing the leasing of their properties to make their work easier and improve tenants' experiences. One explanation for landlords' reluctance to embrace new technologies could be that the real estate industry is traditionally considered conservative and often has a low willingness to adopt new technologies. There is often a "we've always done it this way" mentality that makes change and innovation difficult.
Business tip for optimized energy management:
Energy efficiency is playing an increasing role in all industries, especially in light of rising electricity prices. The real estate industry is no exception. The use of modern energy management software gives rental companies the opportunity to save energy, costs and time and to operate sustainably.
Renters who do not currently have access to digital tools for their homes are mostmexico telegram data interested in smart energy management (29%), smart locks (25%) and remote security apps (21%). However, 48% said they are not interested in any of the technologies on offer.
Technologies that tenants want in their current apartment
The lack of interest of some participants in technology for their home may be due to various reasons. Many tenants may not be familiar with digital tools or have little experience with them. This may lead them to be skeptical or hesitant to use such tools for their apartment. Possible concerns about the security and privacy or the usability of the tools could be other reasons.
In the following section, we will see that tenants who have experience with digital tools for their home are satisfied with them, but also that the reservations mentioned are not unfounded.
Technical errors reduce the advantage of the convenience of digital tools
Overall, the availability of advanced technology is well received by tenants, with 68% of those whose landlords provide digital tools for their home saying they are “satisfied” and 15% saying they are “extremely satisfied.”
Respondents cite convenience (46%), greater efficiency (34%), less administrative effort and better communication with property management (31% each) as the biggest advantages of using digital tools.
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