Real estate businesses, including those within the rental housing sector, are increasingly using technology to gain a competitive edge. Technology can help these organizations stand out from the crowd by creating efficiencies and lowering costs.
Amidst a “crisis-level” construction work shortage that’s impacting property supply, skyrocketing mortgage rates and increased demand for property managers, real estate businesses are adopting technology tools to help them navigate turbulent market conditions.
Tech tools can also help real estate businesses do more with less, function nimbly, attract top talent and establish a competitive edge in an industry facing the challenges outlined below.
Hybrid Work is Here to Stay
The real estate industry is decentralized by nature – professionals often work from different office locations or on-site at properties. But the post-pandemic popularity of hybrid work is demanding the few remaining centralized back-office functions like finance to become decentralized as well.
Given this shift, employers must invest in the technology tools that will allow employees to retain the same level of productivity and collaboration associated with in-person work. Digitized paperless accounts payable (AP) tools can keep your processes moving and efficient regardless of where your team is located.
A Shortage of Talent and Digital Skills
The real estate unemployment rate was 1% as of October 2023. This presents a challenge for businesses that need to hire individuals with specific skill sets.
To address the current lack of qualified talent, many organizations are launching upskilling programs, which provide technical training for existing employees. A Gallup poll recently found that 69% of business and financial staff are interested in upskilling opportunities. In addition to addressing the digital skills gap, upskilling programs offer businesses an affordable way to retain existing employees and attract new talent.
Rental Demand Grows
Home mortgage rates reached 8% in October 2023, which has slowed down home-buying demand. The number of renters in the U.S. has grown for nearly 60 years and will likely continue to grow given the state of the housing market.
This will likely lead to a mounting need for property managers. Organizations in the rental housing space should prepare for a potential upswell of business as economic uncertainty remains and inflation reaches a 40-year high. To navigate an increased workload, real estate finance teams must implement tools to streamline processes.
Automation Provides a Solution
Investment in the right technology can help your organization adapt to these macroeconomic changes. Implementing automation software that integrates with your existing accounting system brings benefits such as:
Centralized Processes
AP automation software allows finance departments to have visibility into invoice approvals and payments at any time on any device from anywhere. Businesses no longer need to have an employee physically present for essential activities like issuing payments.
Growth Without Adding Headcount
Finding qualified talent is difficult in the current labor market. Automation lets your finance team get more done without adding employees. The technology handles the menial tasks so your team can focus on more strategic work.
Improved Employee Satisfaction
AvidXchange’s 2023 AP Career Satisfaction Survey found that employees are more engaged when their organization invests in tools that help them do their jobs more efficiently. This is especially true when technology investments are paired with upskilling opportunities. Given the tight labor market, it’s essential for real estate businesses to retain existing employees.
As real estate businesses address market challenges, digital skills training combined with technology, including AP automation tools, will enable organizations to successfully cope with a decentralized work model and increased pressures from a growing workload. By implementing the right digital tools, real estate businesses can successfully overcome current market conditions.
To learn how AP automation can become your company’s competitive advantage, request a meeting with the AvidXchange team here.