The Role of Technology in Real Estate Investing for Millennials

The world of real estate investing has been transformed in recent years, thanks to advances in technology. Millennials, in particular, have been quick to embrace new tools and platforms that make it easier than ever to invest in real estate. Every geographic location is available to us as well as connecting with critical members of our real estate team from financiers and cleaners. 

In this post, we’ll explore the role of technology in real estate investing for millennials and how it’s changing the way we invest in real estate.

Access to Information

One of the biggest advantages that technology has brought to real estate investing is access to information. With online listing platforms like Zillow and Redfin, investors can quickly and easily research properties that meet their investment criteria. With features like saved searches and email notifications, we have the tools to quickly access this information.

These platforms often provide tools to analyze trends like recently sold properties within a given timeframe and embedded mortgage calculators. These tools help us quickly evaluate properties to decide whether it’s a good investment or not. 

Not only can you view property details online, but agents are now equipped with smartphones to make virtual tours easy to do! I’ve had agents FaceTime me to show me the property and had them do their own virtual tour recording to later send to me to review. Real estate investing has never been easier for a new investor. 

Crowdfunding Platforms

Another major development in recent years has been the rise of real estate crowdfunding platforms like Fundrise. These platforms allow investors to pool their resources with others to invest in larger real estate projects, such as apartment buildings or commercial properties. 

This makes it easier for millennials with limited funds to get started in real estate investing, allows them to diversify their portfolios across multiple properties, and gives them exposure to real estate passively. 

Property Management Software

Managing rental properties can be a time-consuming and complex process, but technology has made it easier than ever to streamline the process. Property management software platforms like Avail, TurboTenant, and RentRedi allow landlords to manage everything from rent collection to maintenance requests, all from a single dashboard. You can read my review of Avail here. This makes it easier for millennials to invest in rental properties without having to worry about the day-to-day management of those properties.

Of course, there is always the option to outsource property management to a property management company. These companies use property management software to streamline their operations all in one single platform to manage dozens, if not, hundreds of properties in their portfolio. 

Virtual Tours and 3D Modeling

An extraordinary new development in the more recent years has made it possible to view properties in new and innovative ways. Virtual tours and 3D modeling allow investors to get a detailed look at a property without having to physically visit it or to rely on an organized photo gallery to understand the layout. This is especially useful for millennials as it makes out-of-state investing so much easier with the peace of mind of knowing the ins-and-outs of properties. 

How this helps is that you understand the layout without being at the property and assess what renovations may be needed. It provides a clear picture (literally) of the property’s interior lay out that doesn’t show in still photos.

Dynamic Pricing Tool

Short term rentals inherently have volatile monthly revenue. Revenue is based on booking demand and nightly rates. The formula is the number of nights booked multiplied by the average nightly rate. Nightly rates change all the time from seasonal demand, events planned, availability of rentals in the area, etc. It’s important for short term rentals to maximize their monthly revenue since future revenue isn’t guaranteed. That’s why dynamic pricing tools exist. 

Beyond is a revenue management solution for short-term rental owners and investors to get, grow, and keep revenue. By using Beyond, pricing is automated to effectively maximize revenue. This allows you, as the owner, to spend your time doing other things to grow your business instead of tracking scheduled events to change your nightly prices. Beyond doesn’t charge any upfront or onboarding fee and even offers a free trial to test out their tool!

Contractor Marketplaces

Need to find a contractor to renovate your new rental property? That’s where contractor marketplaces are useful! Marketplaces allow users to send out project details, receive bids from contractors, and view contractors’ reviews. Past customers are able to submit photos of each contractor’s work and leave reviews which are helpful in vetting contractors.

Smart Home Devices

Lastly, smart home devices have completely elevated the playing field. Originally designed for personal home use, it eventually transitioned over to rental properties. As a short-term rental investor, I rely on smart home devices to manage my properties. You can read the smart devices I use and recommend here. Without it, I would be severely disadvantaged and would have to rely on my team on-the-ground to make sure my systems are working. 

I commonly use smart locks, smart thermostats, and smart security cameras. There are other devices that can be used for managing short-term rentals, but I believe these three are requirements for any successful short-term rental investor who also manages their own properties.

Final Words

In conclusion, technology has had a significant impact on real estate investing in the modern day. It has made it easier than ever to access information, invest in real estate projects, manage rental properties, and view properties remotely. 

As technology continues to advance, we can expect to see even more innovation in the real estate industry, making it easier and more accessible than ever for everyone to invest in real estate.