How Proptech Modernized the Real Estate Industry

Evaluating global trends can be a dominant factor in determining the course of innovation. The unprecedented real estate surge led to historic overall sales of residential homes, while global commercial real estate is forecasted to grow by $260 billion by 2027. Streamlined property maintenance, optimized property life cycle, and profit are all paramount for a successful industry. Software specialists have solutions to transform how the industry responds and create partnerships to continue historically high revenue streams.

The ascension of ‘smart home’ and ‘smart building’ tech has been a boon for software specialists as real estate investors and industry officials reevaluated strategies to address the unprecedented surge attributed to high demand for property and historically low mortgage rates. Utilizing software-based technology to innovate real estate has been termed ‘proptech’ and is powered by IOT-enabled devices. Proptech is forecasted to increase exponentially to $86.5 billion by 2032.

Leveraging IoT to Boost Real Estate Functionality

Proptech’s success is predicated on fully optimized IoT sensors and other software-based innovations. Software designers are the foundation of the continued growth of smart home and smart building technology as they have successfully optimized the functionality of buildings and homes by expanding the limits of how connected devices and monitoring sensors transform how owners, investors, workers, and building staff utilize and interact with buildings.

IoT sensors are embedded within hardware and are utilized to detect changes in environments. Users can access data to gain a unique insight into equipment’s performance and how it is being used. Property management companies can easily determine which resources are in high demand and how efficiently they perform within a building.

Smart thermostats are a rudimentary example of IoT and proptech converging. Smart thermostats are Wi-Fi-enabled devices that can be used to accurately monitor and control temperature settings with a connected smart device app. IoT does not operate within a vacuum, devices can only be effective through connectivity.

APIs are critical for proptech technology’s functionality because their primary use enables two software-based applications to communicate with each other. The thermostat’s sensors monitor heating and cooling and with an API, enable a user to adjust and schedule temperature settings accordingly and remotely. Additionally, a user can monitor consumption data.

Residential property owners have readily embraced IoT-based enhancements within their daily activity. Connected devices paired with smart lighting systems enable homeowners to remotely activate lights, facilitating efforts to reduce utility bills and energy consumption. Additionally, homeowners continue embracing ‘smart utilities’ or more intuitive utilities such as ovens that can be pre-set remotely and even refrigerators that technicians can monitor and diagnose remotely, reducing the need for costly in-person technician service calls. Smart security systems, such as door cameras, have proven very popular and continue to realize significant sales. Homeowners pair the door camera system with their smart device and are able to monitor their property for any unusual activity.

For effective communication between appliances and connected devices, software designers had utilized Simple Object Access Protocol (SOAP) as the primary method to enable communication but now implement REST (Representational State Transfer) to facilitate improved communication between software-based devices.

REST is considered to have improved flexibility and works more efficiently compared to SOAP, which uses XML for communicating messages. To perform actions, REST APIs are programmed to use HTTP and common network protocol for IoT networks is HTTP.

As homeowner demands and trends change, technology’s evolution has kept pace to not only modernize today’s real estate, but transform how homes operate in daily living.

Streamlining Property Management

The recent real estate surge was attributed to historically low interest rates but as mortgage rates approach near highs seen 20 years prior, investors should reevaluate how properties are managed in order to efficiently maintain revenue.

Property management companies can apply IoT proptech across a variety of utilities and infrastructure to efficiently manage how utilities are monitored, implemented, and maintained. By accessing critical data available from IoT sensors installed and embedded within smart spaces, property management companies can use this invaluable data to reduce expenses while increasing a building’s functionality.

Utilizing IoT sensors within smart spaces enable property management companies with the unique ability to assess what utilities are being used, the consumption rate, and the duration. The following are typical IoT-based sensors within smart buildings:

• Temperature Sensors

  • Users can monitor and manage the temperature of critical infrastructure equipment. Overheating and failing equipment such as an HVAC system can be catastrophic and very costly for a property management company to replace.

• Humidity Sensors

  • Accurately monitor the humidity levels that are controlled by heating and cooling systems. With connectivity deployed via IoT, a property management company could remotely access its HVAC system to accurately monitor the performance of such critical infrastructure.

• Proximity Sensors

  • The sensors can detect if anyone is physically present in a smart space area and, as a result, a utility such as lights or an HVAC system will only run when required.

• Ultrasonic Level Sensors

  • Sensors are used for detecting levels of waste collected within a building’s waste management system. Users can receive alerts from connected devices indicating which waste containers are full and in need of pickup. This can reduce the high costs associated with waste management by eliminating unnecessary pickups a property management company is billed for.

Smart Spaces Facilitate Proactive Asset Management

Asset and equipment management has traditionally involved a property management company placing a service call only after equipment fails. This leads to delays in repairs and inconveniencing tenants. Software designers can provide solutions with IoT sensor enhancements that enable property managers to proactively monitor the condition and efficiency of the utility equipment used in buildings. Property management companies can receive real-time updates about the performance of critical infrastructure equipment via connected devices.

Another way to monitor equipment is to use IoT-based predictive maintenance algorithms. These algorithms would be useful for assessing conditions such as operating temperature and voltage supply. The information from the algorithms would provide insight into how utilities are being used and which equipment consumables are the most vulnerable to wear and tear.

Properties of the Future, Today

Property construction methods have not drastically changed, but how we utilize and interact with properties has significantly evolved. Homeowners reliant on connectivity have embraced proptech and successfully implemented software-based systems enhancing security and convenience to optimize home functionality within daily living activities.

Real estate investors and property managers have recently seen unprecedented profit. Proptech’s role within this continually impressive revenue stream remains strong because streamlined property management, proactive asset management, and a building’s ability to adapt to change rely on proptech powered by IoT.

Software designers responsible for ushering in the first wave of ‘smart homes’ and ‘smart buildings’ are as vital as ever. As businesses change how they operate, they must reevaluate their respective building functionality and how it can exceed personnel needs. Software-based innovations will continue elevating the functionality of our homes, buildings, and communities.