One of the key appeals of real estate investing is that it is available to everyone with relatively low entry costs.  Real estate investors come in all types, and you have to look no further than your own neighborhood to see evidence of this.  One property owned by a single landlord with a one property portfolio might sit side by side with another owned by a multi-billion dollar REIT.

​

Finding the right property is one thing, but the ability to manage the property successfully requires a different set of skills.  Smaller local players have regularly shown over the years to be as adept as the largest REITS in the buying phase, but fall behind when it comes to the day to day management.

​

Many investors who begin with the intention of managing a small portfolio directly often become overwhelmed and pass off the duties to a management company, eating up a considerable portion of their profits.  While many of these management companies are worth their weight in gold, others can drive a property into the ground.  Without understanding what drives success in property management, investors can find themselves overpaying for reputation, rather than analyzing the underlying capabilities which will drive future success.

​

A good landlord must excel at marketing their property, setting rent prices, screening and processing applicants, collecting rent and fees, performing maintenance, and understanding the legal aspects surrounding the tenant landlord relationship. 

The key to being successful is knowing which of these tasks to automate and which of these tasks require the human touch. 

 

Software solutions targeting the small to midsized portfolio are currently revolutionizing real estate investing.  It is now possible for a private investor to access most of the same tools that were previously available only to the largest players in the industry.  3d tours of properties allow applicants to know a property to a greater extent than ever before, so that fewer showings are required, and sites are more likely than ever to be rented site unseen. Applications and screening can be accomplished online, and resident portals allow tenants to pay their rent and make maintenance requests without picking up the phone.

​

Property Management focused accounting systems allow for quicker tenant processing, easier and more thorough investor reporting, and offer users the ability to perform reconciliation functions in minutes that would take weeks in Quickbooks and Excel. 

​

This is not to say the human touch is no longer required.  Property Management is still a very personal business.  What technology is able to do is radically reduce overhead while freeing up man hours that can be focused on better knowing and servicing tenants.  Those slow to adapt find themselves perpectually busy, even as they fall behind.

​

Whether an investor wishes to self-manage their portfolio or hire a third party to oversee this critical component of their business, it is critical that they develop an understanding of the technology which helps automate the processes discussed above.  

​

While there is, as of yet, no computer that can fix a leaking roof, it is critical that real estate investors and managers learn to leverage technology in order to manage costs while assuring the rental experience everything you want it to be.

​

​