Property Brokers

David Faulkner

When I started in Property Management nearly two decades ago, it was challenging to reflect on how far this industry has come. When I first started, it was a very manual process-driven industry. The software we used only gave us rent payment updates every three days; inspections were handwritten or recorded on a Dictaphone and then typed up back in the office. We had an old camera we would fight over for entry inspections, and then you had to upload the photos onto a CD. You even advertised your properties in the local newspaper.

However, back then, Property Managers were managing portfolios of much bigger numbers.

Today, the average portfolio size that Property Managers look after has reduced considerably. In the mid-nineties, the average Property Manager would manage portfolios of approximately 150 units. In New Zealand, this number has dropped to just under 100.

Compliance, increased legislation and stronger enforcement from the judiciary have resulted in an increased workload for Property Managers. What has become a challenge is that the increased workload has resulted in a mindset shift among many Property Managers. As new people have entered the industry, the mainstream view is that managing numbers as high as 150 properties is not feasible. I believe that will change.

The evolution of Proptech, which is a blend of property and technology, is starting to send a transformative wave of change throughout the industry. Slowly but surely, companies are beginning to learn how to adapt technology to improve efficiency within the sector.

Automation of tasks is going to be one of the focus points of many companies. As the number of properties that a Property Manager has dropped, so has the company's profitability. In property management, lots of the tasks are repetitive and mundane. Automation is slowly being adapted to remove these tasks from the Property Managers.

An example of this is rent arrears. Rent arrears is a process that is easy to automate. Every day, the Property Manager will receive a list of tenants in arrears once daily rents have been reconciled. They will then act on relevant tenants to recover the debt. Trust Accounting Software is now adapting automation to remove this task from the Property Manager. The software automatically notifies the tenants that rent has yet to be received. The Property Manager is notified that action has automatically been taken to recover the outstanding rent. The Property Manager is still responsible for the arrears; however, automation now does the donkey work.

"Compliance, increased legislation and stronger enforcement from the judiciary have resulted in an increased workload for Property Managers"

Embracing innovation, companies like Melbourne's Inspection Express now use 360-degree virtual inspections for rental properties, employing compact cameras for a comprehensive view. The improvements in service, efficiency and transparency far outweigh the small investment in such proptech solutions. This software can also be adapted for multiple uses. As well as being used for the marketing of a property, it could be used as a tool for maintaining a property.

In New Zealand, Tapi is the go-to choice for proptech solutions, streamlining maintenance reporting and management for companies and simplifying the process for property managers. The tenant scans a designated QR code on the property to report the maintenance and can take short videos or photos highlighting the problem.

The inspection app seamlessly integrates with Tapi, simplifying maintenance reporting for Property Managers. The next step for these protech solution companies is to enable tradespeople to access 360-degree inspections, facilitating quick estimates for maintenance requests. This, again, will save time for the Property Manager. It can also be used to keep investors informed so they have greater transparency around their property management. Time and money are saved through faster inspections and a quicker response time for maintenance.

Another area that needs focus is key management. I can see a time when we become a keyless industry. We already have the technology to do this, and it is only a matter of time before we see this being adapted.