Managing Multifamily Properties: Trends and Innovations in Fintech

Print Friendly

Technology has revolutionized almost every aspect of life, and that includes the world of multifamily real estate investing. An array of technological innovations have made it easier to create investment strategies, manage portfolios, invest in properties, and manage multifamily real estate assets, which are all part of the fintech space.

With so many new tools available for investors, getting started in real estate has never been easier. Here’s a look at some of the major innovations and trends that are changing the way people like you invest in properties.

Revolutionary Fintech Investment Platforms

Traditionally, investing in real estate portfolios, such as a REIT, required the help of a broker. These investments were not readily accessible to the general public, and everyday investors might not have even known how to invest in real estate without purchasing an entire property.

Fintech investment platforms have expanded access to real estate investment opportunities through the use of mobile apps and websites, letting potential investors select properties and portfolios without the need for a personal broker. These platforms also allow individuals to invest smaller amounts to easily diversify their portfolios. Fintech also provides better access for accredited investors to make significant investments while managing their portfolios without the need for an intermediary.

AI Real Estate Investment Strategies

The use of AI in some industries has proven controversial, but the application of AI-driven data analysis can be beneficial for multifamily real estate investors. Artificial intelligence can analyze market trends, including property values, vacancy rates, rent rates, and other key metrics to help investors predict the potential success of a property. The technology can also be used to identify emerging markets based on demographics, job markets, and social data.

While it might take an individual a considerable amount of time to research all this data, AI can perform the same tasks quickly to help users craft real estate investment strategies and portfolio management strategies for individual markets and submarkets. Of course, any data acquired from artificial intelligence still needs a human touch to identify any potential errors and to make informed decisions based on the provided information.

Trends and Innovations in PropTech

PropTech, or property technology, is used in every aspect of real estate. You see it in action whenever you look for a new home using real estate websites, and it’s also used by real estate agents, banks, and underwriters to initiate and complete real estate transactions. Proptech is an umbrella term similar to fintech, but its impact on multifamily real estate investment can’t be ignored. Property managers use this technology to keep track of rents, vacancy rates, and other metrics to help ensure assets run smoothly and maintain profitability for investors.

Every step of the real estate purchase and management processes has been improved through the use of PropTech.

Digital Property Management and Solutions for Tenants

Of course, no multifamily real estate investment can be profitable without its tenants, and tech trends for renters have helped improve their quality of living and satisfaction with their rental units. Property management dashboards allow tenants to pay rent and request maintenance online, making it easier for them to access the services they need. Smart home technologies, such as keyless entry doors, eliminate the need to call maintenance for lost or stolen keys, provide temporary access codes to guests, and help increase the feeling of safety on a property.

Renter engagement software programs and apps used by property management companies provide information about upcoming repairs, community events, and other important information, and they also help automate the process of renewing leases. Access to these benefits and services were limited before technology trends began playing such an integral role in the multifamily real estate industry. 

Fintech and PropTech have made lasting marks on real estate, and these technologies continue to benefit both investors and renters. Automated data services, simple investment platforms, streamlined property management services, and AI-driven investment strategies have made it easier than ever for everyone to become an informed real estate investor.

Of course, you should always consult with an expert to weigh your options and determine your individual risk level before making any financial decisions.

Source: DiversyFund