You may have heard the term ‘proptech’ and wondered what it means. Well, while there have been some fairly innovative tech and digital advancements relating to property, ‘proptech’ is just a shorthand term that covers all aspects of technology relating to the property industry.
The first major piece of proptech to hit the industry was probably Rightmove, in 2000. Other national and international sales and lettings advertising portals quickly emerged, and agents gradually built their own websites. And now tech has enabled so much to be done online - video tours of properties, credit checks and referencing, conveyancing, banking, even the signing of documents – that pretty much the whole property transaction process in both lettings and sales can take place remotely. Thanks to proptech, it can be quicker and more convenient than ever to sell, buy, let and rent property.
So, what are some of the main proptech tools available today and how useful are they to landlords?
Property management software
If you’re a self-managing professional landlord, it can be useful to have a software package that tracks all your property information and lettings business tasks in one place and reminds you when various things need doing. However, you’ve still got to take care of the practical jobs, which can take up a considerable amount of your time – things such as:
- Carrying out viewings and property inspections
- Arranging and following up on maintenance and repairs
- Dealing with tenant queries
- Managing paperwork
- Investing time and effort in staying up to date with legislation.
And it’s because of the time and knowledge it takes to successfully run a rental business – no matter how small – that the majority of landlords still choose to reply on professional agents to let and manage on their behalf.
Online valuation tools
There are lots of portals that offer free valuation tools – and as a landlord it’s important to keep track of how much your property is worth so that:
- You know how much equity you have, which can cushion you against future price fluctuations
- You can calculate the return on your investment in terms of capital growth
- You can see whether you might be able to remortgage – either to release equity or get a lower LTV mortgage and a better interest rate.
The Land Registry website lets you search quite specifically for sold price data, so if you’ve already identified a property very similar to yours that sold recently, you can find out how much it went for. Or you can look for the same type of property in your street – e.g. all semi-detached, non-new build properties sold within the last 6 months.
So, you can get a pretty good idea of what your property might be worth online, but by far the best way to get an accurate value is still to ask for a market appraisal from someone with local knowledge, such as a local surveyor or estate agent.
Lettings portals for rental valuations
Rents tend to be far more consistent and stable than house prices, as they generally depend more on the property size and type than its individual features. Plus, the advertised rent is usually what a property eventually lets for – or very close – unlike sale prices, which can be wildly different from what you see in the online listing.
So, lettings portals can give you a pretty reliable idea of the current market rent for your type of property, which can be very useful if you’ve got a long-term tenant and haven’t increased their rent for a couple of years.
Making Tax Digital (MTD) software
According to government estimates, errors on self-assessment returns for 2018-19 cost the Exchequer around £8.5 billion in tax revenue – in just one year! And that’s not surprising, as it can be particularly hard for individuals to keep track of their precise income and expenditure over a whole year.
So, to help avoid mistakes and make the process more straightforward, self-assessment is going digital. From 6th April 2024, all self-employed businesses and landlords with annual income of more than £10,000 will need to follow the rules for Making Tax Digital for Income Tax, which include:
- Downloading MTD-compatible software
- Keeping financial records digitally
- Submitting quarterly updates online to HMRC
A live pilot is already underway, giving you the opportunity to make the transition to MTD now, ahead of the mandatory change in 2024. You can check if you’re eligible, find compatible software and sign up for MTD via the GOV.UK website.
Databases that help you find competent contractors
Whether you’re undertaking a major renovation or refurbishment project, or you just need someone to carry out your annual gas safety check, you’ve got to make sure you’re using competent contractors. If substandard work by a cowboy results in damage to your property, not only could you have put your tenants in serious danger, but you may find your insurance is void – and that could prove very expensive.
But, thanks to tech, it’s now fairly easy to find properly registered, accredited and qualified contractors and tradespeople in your area. There are specific websites you can search for any trade, such as:
- Gas Safe engineers
- Electricians registered with a government-approved body
- Members of the Glass and Glazing Federation
- Insulation installers registered with the Cavity Insulation Guarantee Agency.
You can also find individual tradespeople and companies on Trustmark and Checkatrade. These sites give assurances that all their members have been vetted, their work is guaranteed, plus you can read reviews from past customers.
Smart tech for your property
A happy tenant is always more likely to stay for longer in your property, and there’s plenty of smart tech that can make life easier for them – especially when it comes to controlling their energy costs, which has never been more under the spotlight than now.
If you haven’t already had smart gas and electric meters fitted, your tenant can request a switch with no up-front cost, so direct them to the Smart Energy GB website. Some other smart home devices that can also help them keep an eye on their costs include:
- smart thermostats so tenants can control heating remotely
- smart plugs that let them switch devices on and off remotely
- water-saving shower heads
- eco-friendly white goods.
For you as a landlord, one of the most useful proptech inventions out there is smart water sensors. If they detect a leak, they notify you via your phone, so you’re alerted at the earliest possible stage and aren’t relying on tenants to report issues. They can also record water temperatures that you can access via an app, which can see whether there’s a danger of pipes freezing or legionella forming. Prices start at around £25 for a simple sensor and app.
If you have our Fully Managed service, you can relax, as we’ll take care of most of these things for you. You can check on your rental any time via our landlord portal and if you’d like to chat about rents, the value of your property or what improvements you could make to increase its appeal to tenants, we’re always here to help. Just get in touch with your local branch and speak to one of the team.
The Your Move Content Marketing Team
