We saw the most significant fall in house prices for 13 years, with 42% of surveyors reporting a decline. New buyer enquiries and agreed sales similarly dropped off.
Property prices and rental prices are in a toxic relationship, with the value of property tumbling, and yet rental prices going through the ceiling. As the saying goes, red sky at morning, sailors take warning. But what does this foreboding economic situation mean, in practice, for landlords?
Tenant demand for residential properties remains high, and the rental market is booming. However, with many (especially amongst the younger demographics) unable to afford mortgages, rental landlords are facing more pressure to ensure that they remain resilient enough both to weather the storm as well as capitalise on the opportunities presented by an imbalanced market.
Property management processes which drain time must be the first thing to fall by the wayside: landlords need to be able to focus on staying nimble and streamlining businesses through directing energy into value-add activities.
Enter automation
Fortunately, landlords can enlist automation to help. Property management has, in the past, been perceived as a time-heavy, data-intensive headache. But tech functionality has improved swiftly and innovations such as digitised invoice systems help to remove the administrative burden.
There are few corners of the property industry which could not be aided by automation – integration with smart meters can help work towards EPC ratings, bank transactions can be automated.
Proptech is no longer the new, niche disruptor it once was. Tech solutions are not a luxury or an afterthought, but a necessity. Investment in efficient management processes may in fact turn out to be a key tool to help protect against an oncoming recession.
Automating processes not only helps to cut costs from across a business but can have a transformative effect on the well-being and satisfaction of employees. In an employee’s job market, it is essential that a business focus on its people, and freeing them to focus on more enriching, important tasks is a key way of doing so.
Creating communities
Niche sectors in the property industry have seen success by focusing on the community value of new projects. Look at the build-to-rent sector, for instance. Shared living brings with it unique opportunities, with the possibility to live in a block which draws together the best of the residential property world with the best of the hospitality and service industries.
Properties which tap into this experiential aspect of living and look to create a sense of place rooted in community for residents are firmly on the right track. Innovative future collaborative projects suddenly become possible – a digital hub for food sharing to eliminate waste, for instance. Of course, this is a case of not running before walking. Integrated tech functionality is the essential first step.
Tenant satisfaction: demanding, or in demand?
Cutting-edge technology is only worth investing in if new solutions remain focused on the needs of the tenant. Rightly, residential tenants have come to expect more from their rental properties than once may have been the case.
Energy efficiency and sustainability are now front and centre of requirements, and cutting corners or refusing to meet expectations may come with increasingly high stakes. Social media and property forums are natural homes in which tenants may voice complaints, denounce landlords, and destabilise carefully constructed, long-protected reputations.
User-friendly, intuitive tenant communication systems are one way to create a smooth, satisfying experience for landlords and tenants alike. At Grosvenor Systems, for instance, we have recently joined forces with Spike Global, integrating a tenancy management solution where tenants can view the progression of their tenancy, sign contracts and communicate with lettings teams from the platform.
Property management is still evolving, but innovation and tech-driven solutions are driving growth. As we move into a recessionary period, it is essential not to instantly go into lockdown. First, ensure property management processes are as efficient as possible. The benefits are not just economic, but human.
