What is Proptech?: What You Need to Know in 2022

By: Amelia Woolard

Proptech is rapidly transforming property management in the United Kingdom.Proptech is rapidly transforming property management in the United Kingdom.Proptech is rapidly transforming property management in the United Kingdom.Proptech is rapidly transforming property management in the United Kingdom.

What will we see more of in 2022? Proptech.

Proptech transforms homes into connected ecosystems, in which residents can use smart devices for an enhanced lifestyle.

Investment in proptech is booming as UK residents seek out proptech in their next home. Venture capital firm Pi Labs finds that proptech investment has more than quadrupled since 2020, reaching a record £1.6 billion in 2021. These investment levels are over 15 times higher than they were in 2016.

As the numbers indicate, asset owners stand to benefit from proptech and, for that reason, should be familiar with the concept now. Keep reading to discover how proptech can help communities function more efficiently.

Ready to get started with high-performance proptech? Request a SmartRent demo.

What is proptech?

Property technology, or “proptech,” is defined as home amenities equipped with automated connectivity. Proptech can automate daily tasks for the user, such as turning on lights or controlling the thermostat, as well as provide a birds' eye view of an asset for the manager.

Along with perks such as smart climate control, proptech enables asset managers to track everything from energy consumption to who is accessing their buildings. With web-based software, like SmartRent’s Community Manager platform, asset managers can see and track this data without having to be on-site.

You'll typically find the following products in proptech-enabled communities:

Access control

Although you can't always be on site, your access control platform is. Access control platforms grant access to residents and guests in a secure, automated manner. Property managers can remotely manage access and streamline move-ins and move-outs.

Asset protection

Stop catastrophic leaks before they start. Leak sensors mitigate the risk of catastrophic water damage and can save money on insurance premiums. This is helpful across England and Wales in particular, where just under 3 billion litres of water is lost to leaks every day.

Smart thermostats

Trim energy costs at the unit and property level with smart thermostats. Because they are remotely controlled, smart thermostats regulate climate when occupants are away or have vacated their smart home.

Why invest in proptech?

Although proptech may entice residents to sign leases, investors and asset managers also benefit in the following ways:

Increase revenue

Along with providing sought-after services to residents, proptech often boosts rent premiums. For proof, look to Millennials, who pay 60% of all rent in the UK and are willing to pay 20% more for smart home integrations.

Property technology also helps management teams take advantage of ancillary revenue opportunities. For example, a smart parking system can monetise unoccupied spaces that would otherwise remain vacant.

Decrease costs

Smart technology decreases costs at the property level. Save time on menial tasks and reduce labour costs by automating countless workflows usually assigned to an employee.

Proptech like smart thermostats can also reduce energy consumption. According to Energy Star, nearly 20% of a typical building's total expenditure goes to energy. With a 10% reduction in energy use, you could gain 1.5% more net operating income (NOI).

Streamline operations

Modern proptech packages save time and labour with their ability to handle strenuous tasks. Automate move-ins and move-outs with access control that eliminates the need to rekey every unit door. Put an end to manual appliance checks with leak detection devices.

SmartRent users also enjoy access to a wide network of integrations with leading property management systems. This eliminates the need for multiple apps and allows for seamless control of daily processes. Streamline asset management with one app: SmartRent!

Simplify proptech with SmartRent

Proptech is a must-have for communities hoping to fit into their residents' connected lifestyles. With property technology, tenants live well and save money, while managers conserve resources, cut operating costs and increase revenue.

SmartRent makes property technology easy for even the least tech-savvy team. Interested in learning how proptech can transform your portfolio into a community of smart homes? Request a demo with us and we’ll dive deeper into the best proptech solutions for your asset.