Generating higher profits in real estate requires a multi-faceted approach. On one hand, securing better deals means better profits. On the other hand, how you run your investment business can also impact your profits.
For instance, you’ll save money by cutting expenses, but you can also increase your efficiency by using the right tools.
If you’re looking for ways to grow your real estate investment profits through increased efficiency, these four tech tools will help.
- A property manager
Although property managers are human beings, they’re also indispensable tools to real estate investors. For example, property managers routinely help retired couples keep track of their assets. Although, you don’t need to be retired to benefit from having a property manager.
Here are some of the tasks a property manager will do for you – all of which will help you keep more of your profits:
- Collect rent and late fees
- Serve lease change notices properly
- Serve eviction notices properly
- Manage property expenses, like landscaping
- Perform property inspections
- Market and fill vacancies
- Review applications
- Run background and credit checks
- Perform maintenance and repairs
All of these tasks are critical, yet they take up valuable time that could be spent finding and acquiring more investment properties. Hiring a property manager is the easiest way to free up your time so you can focus on building your investment portfolio.
- Online rent collection software
Collecting rent online can increase your profits for several reasons, the main reason being ease. Online payments are easier than manual payments, which makes tenants more likely to pay rent on time and in full.
Also, when your tenants can pay their rent through an app on their phone and set up automatic deductions, you won’t miss out on rent because of minor hangups. For instance, it won’t matter if they lose their checkbook or can’t get to the post office to buy a stamp to mail the rent.
If you’re tired of chasing down late or partial payments, consider collecting rent online to make the entire process smooth.
- 3D virtual showing software
You probably already show your properties in person, and you may have some photos and videos online. However, you should also consider using software to create a 3D virtual tour of your property. Video tours aren’t the same. A user has no control over a video tour – the video will take them on a pre-determined path through your property. A 3D virtual tour, on the other hand, gives the user complete control over how they view the property.
A 3D tour captures a three-dimensional image of all the areas you choose to film, and uses software to make it interactive. A user can move through the property, look in every direction, and see the property as if they were standing right in the middle of it.
3D virtual tours generate more interest
When you own rental property, your profits depend on your ability to keep your unit(s) rented. Showing your property to people in person is always an option, but some people actually prefer taking a virtual tour first. It takes a significant amount of energy and time to drive to a property for a tour.
While seeing a property in person is important, 3D virtual tours can tell prospects a lot about a property. For instance, a tour can reveal deal-breakers like the wrong layout for back bedrooms or the presence of a small bathroom. 3D virtual tours can also reveal points of interest that might stand out and make a user book a live tour.
- Comprehensive property management software
There are countless software applications made for landlords and property investors, and many of them offer amazing value. However, before you start downloading random apps, look into getting an all-in-one property management suite. You’ll save time, money, and space on your phone.
Many comprehensive property management apps offer the following staples:
- Automated rent collection
- Ticket support
- A tenant portal
- Vendor tracking
- Inspection tracking
- Repair and maintenance records
- Electronic document signing
Investopedia published a thorough review of the top 7 comprehensive property management applications, so check it out to find some great recommendations.
Efficiency is king – these tools can help
No matter how profitable your investment properties are, efficiency will determine your profitability. Thankfully, you can make your investment business more efficient by using the right tools to stay organized and on track.
At the end of the day, the more efficient you become, the more profitable you’ll become.