Leveraging Property Technology

How innovative property management software is helping property owners and managers optimize the rental lifecycle.

Technological advancements are rapidly transforming operations across every vertical, and the real estate and rental market is no exception.

For forward-thinking property owners and managers, property technology—or “proptech”—is enhancing operational efficiency and driving outcomes across every workflow, from apartment listings and tenant screenings to tenant communications and rent collection.

Below, we explore what types of property management tools are available, how they benefit both property managers and tenants, and why it’s so important to find a best-in-class software provider that can keep pace with a rapidly evolving industry landscape.

Challenges of traditional property management

Despite years of digital transformation, many property management companies still manually carry out repetitive day-to-day tasks that could be fully automated. Many also rely primarily on spreadsheets—or even pen and paper—to create and maintain their rental property records.

This can take a big toll on their bottom line. According to one study, each property manager using outdated methods costs their business an average of 235 minutes per day and $10,000 per year. That’s significant time and money that could be spent on higher-impact projects and initiatives.

Let’s take a closer look at how the effects of manual property management operations break down and how they can be felt across the rental lifecycle.

Operational inefficiencies

Where are all of those wasted hours and dollars spent, and what consequences do they have for property managers and renters?

Traditional operations typically involve:

Time-consuming paperwork related to lease agreements, lease renewals, and property maintenance requests—which leads to properties staying vacant longer, revenue opportunities being missed, and urgent maintenance needs going unaddressed
Difficulty diagnosing and documenting facility issues and contacting service providers to carry out prompt repairs
Inefficient communication channels, causing important messages and tenant requests to fall through the cracks
Slow rent collection procedures that are carried out in person or through the mail, leading to late or missing payments

Heightened risk of fraud and financial loss

Reviewing tenant applications by hand makes it difficult to spot fraudulent documents or otherwise deceptive practices—especially as advances in artificial intelligence have made fraud methods more accessible and sophisticated. Manually entering and processing data also easily invites human errors in important tenant communications and property records.

In turn, this can lead to:

Inaccurate tenant screening outcomes, causing property managers to inadvertently approve irresponsible renters and increase risk of missed payments, property damage, and costly evictions
Inability to meet regulatory compliance requirements, potentially resulting in suspension, fines, reputational harm, or even legal action

Lack of comprehensive data and insights

With manual data collection and analysis, property management teams often face informational siloes, so they get only a fragmented view of key business areas. This could include:

Incomplete tenant screening processes, including tenant income and employment verifications that are critical to mitigating risk in housing decisions
Inability to properly monitor, analyze, and optimize property performance metrics like occupancy rates, energy usage patterns, and operating expenses
Limited understanding of tenants’ needs and preferences, leading to weaker rental relationships
Short-sighted view of how practices align with greater industry and market trends

Where property management technology comes in

Many different categories of proptech have emerged to address these property management challenges and help both property managers and tenants get ahead.

While some platforms—like DoorLoop, RentPost, and RentRedi—offer an all-in-one approach to property management, other proptech solutions are hyper-specialized, focusing on and optimizing one particular aspect of property management operations.

Types of property management technology

Let’s take a closer look at the different operational workflows covered by niche proptech solutions, along with select examples and the specific advantages they provide.

Apartment listing and showing software

Proptech software providers like AppFolio, Showdigs, and ShowMojo automate the process of listing and marketing properties, scheduling showings, and communicating with potential renters.

They often incorporate innovative features and functionalities to streamline the leasing process from end to end, including:

Listing management: Creating and maintaining property listings and syncing key details (like images and pricing models) across platforms like Zillow and Apartments.com
Digital scheduling: Enabling prospective tenants to view available showing times and sign up for a property visit online
Virtual tours: Facilitating virtual property viewings for remote or out-of-town prospects, including live-video or interactive 3D walkthroughs
Prospective tenant communications: Tracking and responding to inquiries from interested parties, including via in-app chatbots and automated follow-up messages
Payment integrations: Allowing prospective tenants to send application fees, pay deposits, or even share documents and sign leases without leaving the listing platform

Tenant screening software

Providers like Snappt automate the process of thoroughly evaluating potential tenants. This helps property managers quickly approve renters who are trustworthy, financially responsible, and likely to pay their rent on time and take good care of their home—so they can slash application review times, reduce their overall risk, and maximize profitability.

Tenant screening platforms typically cover multiple data sources and take a wide range of criteria into account, including:

Identity checks: Confirming a renter’s personal information to prevent fraud
Credit reports: Providing information on a potential renter’s credit score, outstanding debts, and debt payment history to paint a picture of their financial dependability
Criminal background checks: Affirming a potential tenant has no history of criminal activity that could pose a threat to property or fellow residents
Income and employment verifications: Ensuring prospective tenants are actively employed, can afford the monthly rent, and have supplied legitimate financial documents (like paystubs and W-2s) that are accurate and up to date. There are many methods providers use to verify tenant income, but the most comprehensive is through direct payroll connections—which, unlike open banking data, offer real-time access to active earnings, granular gross-pay details, and up-to-date proof of income documents.
Rental histories: Contacting previous landlords or reviewing past rental records to check for any evictions, lease violations, missed payments, or evidence of property damage

Many tenant screening platforms will also generate automated reports, provide legal and regulatory compliance support, and send real-time updates and alerts once screening steps are complete—so property managers can make efficient and confident application decisions.

Facilities management software (FMS)

Proptech providers like FM:Systems and UpKeep help property management companies keep their physical assets (like buildings and infrastructure) in the best possible condition.

Some of their primary functions include:

Preventive maintenance: Avoiding equipment breakdowns and property wear-and-tear by automatically scheduling routine maintenance and inspections in advance—so property managers can address potential problems upfront and reduce property downtime
Work order and vendor management: Automatically assigning and tracking work orders and coordinating with external service providers based on expected or reported maintenance needs
Space, asset, and inventory management: Consolidating information about buildings and equipment on one accessible dashboard and tracking related metrics like maintenance costs and occupancy rates
Energy management: Monitoring utilities and energy consumption and costs in order to spot inefficiencies and flag areas for improvement
Regulatory compliance support: Ensuring all properties and other assets meet applicable laws and industry standards related to health, safety, and environmental sustainability and keeping track of required inspections, certifications, and audits

Rent collection and tenant communication software

Software solutions like Buildium, Zego, and PayYourRent streamline tenant communications around rent schedules and balances, provide embedded tools for processing and tracking online rent payments, and facilitate financial reporting for property managers.

Some of their critical features and functions include:

Online payment processing: Allowing tenants to automate recurring monthly payments or pay rent month by month through card transactions, ACH transfers, or other digital payment methods
Automated notifications: Sending tenants scheduled messages or invoices to remind them of upcoming payments, alert them if rent is late, and provide a confirmation and receipt upon payment
Late fee enforcement: Automatically calculating and applying late fees when rent is not paid on time, according to a property manager’s specific preset rules
Tenant portals: Providing a centralized dashboard for tenants to review payment histories and schedules, update payment information, and communicate with property managers via messaging app or chatbot
Financial reporting and data analytics: Producing detailed reports on rent payment histories and overdue balances and offering advanced accounting, budgeting, and tax preparation tools

Rent collection tools often integrate with other property management software, so management teams can sync their financial information seamlessly across different systems and have instant access to consistent, real-time data.

Smart home technologies

Smart home technologies typically follow an Internet of Things (IoT) approach, combining sensor-equipped devices with smart software that is able to simplify day-to-day tasks, maximize efficiency, and optimize energy usage.

Providers like Google Nest, Ecobee, and Ring offer a wide range of devices and solutions, including:

Automated and remote access tools that allow property managers or tenants to activate or control various devices and appliances—like smart locks, heating systems, and digital security systems—automatically or remotely via mobile app
Energy efficiency tools that use artificial intelligence and machine learning to understand tenant behavioral patterns and schedules and automatically adjust smart thermostats, lighting systems, and other utilities to maximize sustainability
Security and surveillance tools like smart cameras or doorbells, motion sensors, and alarm systems that detect movement, send instant alerts, and automatically trigger emergency calls
Predictive maintenance tools that use smart water sensors, leak detectors, and other devices to automatically detect sudden issues or gradual wear-and-tear and schedule proactive service before damage occurs
Health and comfort tools like smart air purifiers that optimize air quality and connected refrigerators that track grocery inventories and make recipe suggestions, improving tenants’ quality of life

Smart home technologies are often integrated and synced with other proptech solutions so property managers can get a high-level view of building operations and oversee a range of functions—including heating, cooling, lighting, security, and more—all at once.

Benefits of property technology

By integrating these different software solutions and digital tools into their daily tasks, property managers can optimize every aspect of their operations.

Some of the distinct advantages offered by proptech include:

Enhanced efficiency and productivity

Proptech automates otherwise manual tasks, from listing available properties to sending routine maintenance requests to collecting rent from tenants.

That makes property managers’ workflows more efficient, saving their team time and money that can be spent on more strategic projects.

Greater tenant satisfaction

Proptech can facilitate communications between renters and landlords, speed up service response times, and simplify the way tenants make and track rent payments.

That not only improves the tenant experience and drives higher retention rates, it supports healthier rental relationships that make property managers’ lives easier.

Reduced risk

Proptech strengthens tenant screening processes and helps property managers identify and prevent fraud before it takes a toll—so they can be confident they’re only approving trustworthy, financially stable tenants that can afford their rent and care for their space. That helps protect them not only against fraud, bad debt, and compliance gaps, but also against the fines and legal consequences that could result.

Proptech can also equip property managers with smart home devices—like fire alarms and security systems—that help them effortlessly keep up with property safety requirements.

Lower costs

By leveraging proptech, property managers can optimize the way they track and deploy resources across their facilities—including the expenses they typically pour into energy use and administrative busywork.

Plus, property teams can use proptech solutions to accurately track their finances, generate and analyze detailed financial reports, and better forecast and modify their budgets.

Data-driven decision-making

Finally, proptech consolidates all of a property manager’s data in real time, giving them a holistic view of their business and valuable, high-level insights—so they can make more strategic decisions around their properties’ pricing, marketing, maintenance, and more.

Choosing the right property software

There are many proptech vendors on the market, and choosing the right one for your business can be an obstacle. However, there are a few fundamental steps and best practices you can follow to help you get started.

Identify your precise needs

Determine the specific gaps and challenges in your current property management operations and what functions and features you’ll need to resolve them. That will help you avoid contracting—and paying for—a property management solution that doesn’t specialize in what you need and won’t actually improve your status quo.

Research and weigh different options

Explore different software providers that address your specific challenge area and compare their different strengths and weaknesses. You’ll want to be sure to consider:

Functionality: How many features and capabilities does the provider’s software offer, and which operational tasks will it be able to streamline for your business?
Ease of use: Does the software offer a simple and intuitive user interface, and is it accessible across multiple systems and devices?
Scalability: Can the software scale to handle your current and future needs, especially if you plan to grow your property portfolio over time?
Flexibility: Can you customize the provider’s software to meet your different property needs and adapt to your current branding and workflows?
Pricing: Does the provider offer a transparent cost structure that aligns with their value? Do they offer a free demo or trial that ensures a good product fit before requiring you to sign a long-term contract?
Security and compliance: Does the provider have security standards and certifications in place to protect sensitive data, and do they maintain strict compliance with all legal and regulatory standards?
Customer support: Does the provider have a dedicated, responsive customer support team, and do they offer training resources or other guides to help you get up and running quickly?
Results and testimonials: Most importantly, what do the provider’s current and past customers say about their service and offerings? Are there published case studies you can review to get an idea of the outcomes they’ve secured for businesses like yours?

Don’t forget about connectivity

As mentioned above, it’s essential that any proptech platform you implement integrates seamlessly with the other systems you’re already using—like your accounting software, banking platforms, and marketing tools.

You may want to consider prioritizing providers that offer open APIs, which allow you to easily integrate new features without a complete overhaul as your business needs evolve.

Follow expert advice

Finally, make sure to consult with other property managers or technology consultants in your field—and seek out trustworthy content from reputable sources that can serve as a helpful buyer’s guide.

Key takeaways

Property owners and managers have a lot on their plates when it comes to daily operations. Luckily, innovative property technologies have emerged to automate their most repetitive tasks, boost efficiency, save resources, delight tenants, and optimize the rental lifecycle from end to end.

By learning about the ins and outs of proptech—and implementing the right solutions—you can equip your business to handle whatever the future of property management brings your way.

Learn how Argyle is powering the best in proptech

Argyle’s industry-leading Income & Employment Verification solution allows tenant screening services to connect directly to prospective renters’ payroll accounts and tap real-time income and employment data straight from the source. Discover how we helped our partners at Checkr slash their background check turnaround times from days to seconds and save managers 90% on verification costs.