Market survey results: Technology in the real estate industry

Everyone knows that technology is important, but there’s no substitute for actual data to help predict what matters most to residents/tenants. MRI Software is dedicated to bringing open and flexible real estate software to market, and every once and a while, we like to take the pulse of the industry in a Market Survey to better understand how organizations are actually using technology today and what their plans are for the future.

In the fifth episode of “Building Success: A Real Estate Podcast,” our very own Chief Marketing Officer, Mandira Mehra, unpacks the results of our Market Survey about technology in the real estate industry and answers questions including:

• Who’s more likely to adopt new technologies?
• Who’s using those technologies currently?
• What technologies are needed to succeed in property management?

Who took the survey?

Conducted at the end of 2017, more than 200 people from both commercial and multifamily real estate firms in the United States responded to the web-based survey. More than 50% of those respondents are at a Vice Presidential level in their organizations or higher, while 35% are directors, managers, and property managers.

Some of these respondents were MRI clients, but the majority were not. The most shocking statistics, however, were in regard to how many were still using paper and simple spreadsheets to conduct business. Forty two percent of respondents still use spreadsheets and paper to record data. In addition, 34% of respondents in organizations with 50 or more employees are still using spreadsheets and – unbelievably – 9% still use paper alone.

Commercial property management software

In commercial property management, the majority of technological interactions and software uses are focused on internal processes. Here’s a breakdown of a few of the technologies used by commercial property managers:

• 54% of respondents have property management and accounting solutions in place
• 43% use software for budgeting and forecasting
• 32% are using SEO
• 27% offer virtual tours of available spaces

While these may look like serviceable statistics, the survey results continued to paint a picture of contrast between technologies already in use and technology that is desired.

When asked what new technologies commercial property managers wanted to deploy:

• 14% wanted to provide an online portal through which tenants could pay rent
• 13% wanted to utilize SEO
• 13% wanted to implement property management and accounting solutions
• 12% wanted to implement business intelligence solutions

Multifamily property management software

The responses from commercial real estate professionals may display a sector of the industry disinterested in upgrading its technology, but the responses from multifamily property managers lie on the complete opposite end of the spectrum.

• 60% of respondents use social media
• 55% of respondents use property management and accounting tools
• 47% of respondents use online work order systems
• 47% of respondents utilize SEO
• 44% of respondents use online resident payment software
• Almost half of respondents still don’t use any technology

The percentage of residential property managers using new technologies is higher, but with half of respondents not using any tech, one might suspect that the industry is a long way away from catching up with the digital world.

There is, however, a twist. A higher percentage of multifamily property managers wanted to invest in new technologies than commercial property managers.

• 21% of respondents wanted to implement virtual apartment tours
• 17% of respondents wanted to implement mobile inspections
• 17% of respondents wanted to implement a lead tracking system
• 13% of respondents wanted to implement investor portals to share metrics with shareholders
• 11% of respondents wanted to utilize SEO

What does all of this mean?

From the results of the survey, it’s fairly clear that multifamily real estate professionals seem to be leading the charge in adopting new technologies. Even though the industry as a whole has a long way to go and multifamily properties need to improve systems, they seem to be more open to adopting technologies than the commercial side of the industry.

Why might that be? Why are property managers ahead of the curve? The answer has more to do with the nature of their business than anything else. Multifamily properties are increasingly seeking to draw in younger renters who have grown up with Internet and have higher expectations for technological integrations.

We asked multifamily property managers what kind of amenities are typically sought by different demographics, and unsurprisingly, high speed broadband and online bill pay capabilities outranked all other amenities (including laundry options) within the demographic of students, young professionals, and Millennials. In contrast, senior/retiree renters didn’t even list Internet in their top six amenities.

As such, new technologies are proving vital to multifamily property managers because their consumers demand them. In contrast, commercial property managers are falling behind because the kinds of tech they can implement are all self-serving.

The big takeaway

Adopting new technologies is no longer vital to simply obtaining a competitive advantage, it’s a massive cog in the wheel of remaining competitive at all. It’s no longer time for early adoption. It’s time to embrace technology quickly as younger generations push demand. Those who don’t are likely to be left in the dust.

To dive even deeper into these market survey results, read the full report here. To keep up with the latest thought leadership in the real estate industry, tune into “Building Success: A Real Estate Podcast.”