4 tech tips for new property investors who want passive income
Technically, technology can only assist you in becoming a profitable property investor.
Are you a new property investor with dreams of creating passive income? Technology has the power to support your dreams, but only if that tech is used in the right way. For example, there are several popular real estate listing sites online, but not all are accurate or user-friendly. Many cost money and don’t provide results to justify the fee.
There are plenty of distractions in the tech world, including mobile apps, cloud software, and handheld gadgets. Not all tech will serve your end goals. If you’re looking for tech to make your investments profitable, try these options to start.
- A property management team
Handing your landlord duties over to a professional property management team will contribute to your profitability and eventually support your goal of generating passive income. Professional property management teams already use the best real estate apps and technologies to manage properties efficiently.
Happy tenants equal long-term profit
When your goal is to turn your investment property into a source of passive income, your top priority should be getting high-quality tenants and keeping them happy. Minimizing vacancies brings you closer to passive income one day at a time.
High-quality tenants pay rent on time and won’t complain about paying late fees. Happy tenants are more likely to report needed repairs and less likely to cause intentional or reckless damage to your property.
How do you get high-quality tenants? It’s a process that requires setting strict screening standards and experience in making decisions. If you’re not proficient in this area, you’re better off hiring a property management company.
Property management companies will do just about anything required. For instance, the Green residential property management team performs all the landlord duties that new Austin investors might not know how to handle. Typically, property management services will take over all landlord duties for a monthly fee.
While property management services cost money, your tenants will be taken care of, and you’ll have more time to acquire other investments, which will ultimately get you to your goal.
- Accept digital payments for rent
Accepting digital payments for rent will make it easier for tenants to pay rent on time and in full. You’ll need to make exceptions for people who still use a checkbook, but most people will want to pay from their smartphone or computer.
You don’t have to accept Bitcoin or any form of digital cryptocurrency, but you should accept payments from common platforms like PayPal and Venmo. Or use a proprietary rent payment software platform, like Cozy or Avail, that offers a variety of platforms to tenants.
- Allow tenants to email you
While it’s a bad idea to let tenants text message you, you’ll benefit from allowing them to send you emails.
Giving tenants the option to email you will increase the quality of communication. For example, tenants who don’t like talking on the phone will shoot you an email when they need a repair. Tenants who have simple needs will email you with questions you can answer on your own time.
You can email tenants to confirm maintenance appointments, scheduled inspections, and repairs. You can even request that tenants email you when they first learn they can’t make the rent and offer to discount the late fees for their prompt communication.
Email is too easy and convenient not to use with your tenants. However, make sure you don’t give out your personal email or any email address associated with a social media account. Some tenants might try to find you and start connecting with you on social media, and that’s something you want to avoid.
- Use virtual 36-degree tour software
Thanks to the coronavirus pandemic, you can’t host open houses or easily give tours to groups of people. In some states, you can, but social distancing and mask requirements make it awkwardly difficult. The solution is to use virtual tours.
If you don’t want to hire a professional company, all you need is a smartphone or a tablet, some virtual showing software, and the patience to learn how it all works. Virtual home tours were gaining popularity before the pandemic, but now it seems to be a necessary tool for home sellers and landlords.
The right tech will make you profitable
Technically, technology can only assist you in becoming a profitable property investor. However, the right digital tools will support your efforts in ways that manual tools can’t.
With the right tech tools, you’ll become profitable much faster than you expect.
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