According to industry data, 76% of institutional investors expect their property management companies to utilize technology in their operations. Implementing a robust tech stack is no longer the exception but the norm and technology profoundly impacts investor relationships and retention.
In our latest webinar, Dave Heggman, Rent Manager CEO, Josh Harrison, Director of Operations at Excalibur Homes, and Ray Hespen, Property Meld CEO explore the advancements in property management technology and how it impacts investor relationships and retention. They discuss how property management companies are navigating the challenges and opportunities presented by automation and AI, leveraging these innovations to enhance investor returns and improve retention.
The property management industry is in a state of constant evolution, and the challenges faced by property management companies are continually shifting. As technology advances, the expectation for property management companies to adapt and advance quickly is becoming more prevalent than ever.
“It’s just the speed at which these challenges are changing. As soon as we get our feet under us, we face a new challenge requiring our attention. We don’t want to be caught reacting to change, but instead being proactive.” said Josh Harrison, Director of Operations at Excalibur Homes.
How has the investor landscape changed?
Before 2020, there were many more accidental or retail investors in the industry. Companies were traditionally growing at rates of about 5% a quarter. Then, the industry shifted, and we saw a large boom of institutional investors, increasing door counts rapidly.
With inflation, the costs of owning and maintaining homes have increased, slowing profit growth. This has made investor retention even more crucial for property management companies.
How have software expectations shifted?
With these changes in the rental market, the expectations of software have also changed. Property management companies expect their software to do more than ever before.
Dave Hegemann, CEO of Rent Manager , mentioned that property managers now expect their tech stack to be faster and to offer best practices along with solutions.
“We can’t just do basic functions; we must do everything more efficiently. Customers are no longer asking software companies if they can do it, but what’s the best way to do it,” said Hegemann.
Software companies can no longer just provide a service; they must educate their users on implementing best practices. Property management companies need to determine clear outcomes of what they want to achieve.
He likened it to using a hammer when you need a screwdriver. You must utilize tools in the way they were designed to achieve the best-desired outcome.
How does communication play a role in investor retention?
Despite these new challenges that property management companies face, the same solution arises and is a concept that has been introduced previously.
Harrison stated that communication is still the most crucial aspect of their business.
“What do we need to communicate, when do we need to communicate it, and how will we communicate it? We can leverage technology to solve all these aspects of communication,” said Harrison.
Additionally, he mentioned that focusing on these three aspects of communication again results in much better customer retention.
Investors also have higher expectations regarding data. They expect analysis from their PM companies regarding maintenance, leasing, turnovers, etc. Not only do they expect more data, but they expect it quicker.
This means property management companies must ensure they utilize technology with accurate data that can be quickly pulled and shared.
Ways to build trust with data
One of the best ways to build trust is by sharing accurate data with your investors, especially when it comes to the costly factor of maintenance. Providing clear, accurate, and detailed information about their properties shows that demonstrates your expertise and makes decisions based on facts. This transparency makes investors feel more secure and confident in their investments and managing their assets. But remember, the data has to be spot-on. Any mistakes or errors can quickly make them doubt you. Using tech and AI can help ensure the data you share is reliable and up-to-date, reducing human errors.
However, even though data and AI are super important, you must remember the human touch. Investors appreciate accurate data, but they also want to know a real person on the other end cares about their concerns. Regular updates, personal check-ins, and being available to chat when they have questions make a big difference. Combining accurate data with personal service helps build a stronger, more trusting relationship. It shows investors that they’re not just another number to you but valued partners in a shared journey.
Watch the webinar above to gain access to this insightful conversation and learn more about best practices for building better relationships with your investors.
Or, to see how Property Meld can help you increase investor retention, book a demo with our team of experts.
