In a study by Transparency Market Research on property management softwares, the global industry is projected to expand by 7% during the forecast period of 2019 to 2027 and gain a valuation of $2 billion by 2027. Property managers have found that success relies on maintaining and building relationships with tenants. And it has increasingly relied on automation and artificial intelligence. Many property owners and managers are eyeing innovative, advanced technologies like data analytics. The goal is recognize business-critical patterns and offer insightful solutions to many customer-facing issues.
As we recently announced, Hostify customers can now access Keydata integration. This real-time benchmarking tool allows you to gather your vacation rental and market data in one place. You get to analyze performance, compare booking history, and discover market recommendations to inform your overall strategy. Today, we’ll delve more into exactly how data analytics can be used to support your business. Particularly, through data touch points online and smart home technologies.
Here are three ways data analytics can make property management a piece of cake:
It improves maintenance and utility efficiency
One of Entrepreneur’s recommendations on property management emphasizes how property owners and managers should practice basic maintenance on their rental units. When small, cheap maintenance tasks are neglected, they build up into larger, more expensive problems to fix. A responsibly maintained property continues to generate revenue because people always want to stay there.
Smart IoT sensors generate data so you can identify potential issues and take action as early as possible, so your property is ready to be rented out at all times. Aside from real-time equipment failure response, smart sensors are also helpful for improving your unit’s energy efficiency, which may be in demand for your market. These sensors adjust lighting based on tenant use. And also manage HVAC systems depending on the weather or the season for a much greener rental space.
It minimizes customer churn
Customer churn refers to the percentage of tenants who stopped renting your vacation property during a certain time frame. Modeling customer churn lets you estimate the likelihood of tenants leaving your unit. Based on data points like rental history, tenant demographics, and previous feedback. Maryville University’s feature on data analytics in accounting points out that tapping into this data can boost profitability and reduce the costs of doing business. With customer analytics, you can identify consumer spending habits and other behaviors to predict customer churn, spot market trends, and anticipate new opportunities. You’d have access to unstructured data, such as social media feeds, which can broaden the scope and increase the timeliness of your analysis. This, in turn, can translate into actionable efforts.
For example, you can offer incentives to people renting your property by a certain date. With customer-centric data analytics, you gain business insights to support your growth plans.
It keeps you on top of the competition
A report on the US property management notes that the market size of property management in the country has reached $101.3 billion. Thanks to the work of approximately 80,000 property managers. A lucrative industry draws fierce competitions, but data offers visibility so you can evaluate yourself against your competitors. By using your local market as a benchmark, you can improve the quality of your services. Algorithms can compare between you and your competitors’ amenities and rent prices. So you can adjust according to your target market’s requirements.
Furthermore, data analytics will let you better understand the needs of your market, so you can attract more tenants and boost your revenue generation.
Written exclusively for Hostify.com
by Ashley Crowbar