Updated April 22nd, 2020
The United States real estate market is pegged at an astounding $33.6T as of the end of 2019. About 36.6% of Americans being active renters. With such huge numbers involved, it is no surprise that 89% of investors in the United States are attracted to real estate. The allure of real estate's profit potential is hard to resist.
Yes, even amid the COVID-19 economic slowdown, rentals are available, and you may be seen more homes on the market due to sales decreasing by a few percents. However, according to analysts, this is not expected to stop or even remain slow. Sales are expected to pick up throughout the year.
Whether you plan to invest in a rental property or plan to buy and sell, you need the right tools for the job. Real estate software can help you manage your portfolio optimally.
Keep reading to find out how this software can make your life easier and your investments wiser.
1. Better Rent Discovery
Knowing the right amount of rent to charge per location is a mission-critical component for a property owner or manager. If you don't know how to find the market rate in your area, you will end up charging too much for your property. Consequently, your property will stay vacant for longer due to slower tenant uptake, losing you money.
On the other hand, if you lack the means to help you know how to find average rents, you might fall into the trap of charging too low. You end up leaving money on the table, and as such, your property will take longer to recoup its cost.
Property management software can help you spy out the market rate in your area so that you can avoid losing potential revenue by over or undercharging. Using this software, you can get median and average rental rates in your area with batch analysis. As you collect a trove of information on other properties around, a batch analysis will help you efficiently calculate rent prices. You will then have an idea of what others are charging.
2. Better Valuation
When you want to invest in real estate, you must find the property that falls in line with your valuation objectives. Otherwise, you may buy something too expensive and compress your profit margins. Data mining software can aid your search for valuation by assessing information on yield and cost analysis through batch analysis of data on comparable properties.
You can also track different markets and their real estate transactional activities over time to develop a trend that can inform your valuation strategy.
3. It's Easier to Scale
As you consider scaling your property portfolio, your backend systems have to hold the capacity to grow with you. Every new property that enters your portfolio means more vendors, more transactions, and client feedback to track. That's not considering the endless stream of research you need to remain relevant in that market.
When using property management software in the cloud, you get uncapped storage and other virtual resource limits that can grow in step with you. The software's batch analysis capability ensures you can search through data to study emerging trends effortlessly. For example, if you need to examine rent statistics, you can do so no matter how complex your portfolio grows.
4. It Increases Operational Efficiency
Every business needs to run in as lean a manner as possible so that it can keep its overheads low. When you use real estate software, it helps you gain operational efficiency by lowering your data input costs. Since the software uses batch analysis, you won't need to bring on board many data entry teams to help input the necessary information. The software is automated, and you can run it without interaction, meaning that once you provide the data, you sit back and wait for the results.
The software can also run on specific timing schedules to give you flexibility. Property management software also creates efficiency in collaboration as it uses exception-based management notifications to alert the necessary staff when an issue arises. Thus, you can pay attention to other essential things.
* Bonus Tip! Real Estate Software Can Help Your Portfolio
Investing in real estate is a popular choice for many people due to its tendency to keep appreciating. To run your portfolio well, you need the right tools for the task. Real estate software can help you derive efficiencies in operations that can help you grow your business.