How to select the best PropTech for your business in 7 easy steps

Have you ever looked into property management software only to be overwhelmed by all the available options?

They all claim to streamline one or more business processes, but their features, user experience, and pricing vary widely. Which of those processes do you prioritize? And how do you evaluate which candidate platform best solves it for you?

The best PropTech for your property management business is the one whose core function is best aligned with your business goals. If it also enhances efficiency and provides great ROI, you’ve got a winner.

Here's a step-by-step guide to help you decide which platform that is:

Step 1. Define needs and goals

For many businesses, their main goals are increased efficiency and profitability.

The best path towards those goals is to isolate the issues that stand in your way of achieving them.

Pain points in your day-to-day operations might be more pragmatic, like reducing overhead, or more personal, like wanting to spend less time staring at a computer. Either way, the answer will help narrow down the type of solution that will work best for you.  

For example, if you’re spending an inordinate amount of time on rent collection and reconciliation (as do all property rental businesses that don’t have the right processes and systems), consider an automated rental payment platform offering a dedicated client trust account instead of an all-in-one solution cluttered with features you don’t need.  

If maintenance is an additional headache, an integrated maintenance ticketing system may also be at the top of your list of must-haves.  

If you have several goals, the solution might still be to choose several best-in-class platforms instead of an all-in-one system. PropTech platforms that publish their APIs and offer easy integrations with other platforms let you have the best of both worlds – the best tool for the job as well as quick access to other leading solutions you might need.

Step 2. Consider future business growth

The PropTech you choose should be able to accommodate any expansion plans and handle a larger portfolio of properties without major disruptions.

In fact, it should enable growth in some way, either by enabling a new service, increasing your efficiency (time and resource savings), or other means impacting growth.

Step 3. Assess data security and compliance

Iron-clad security is the one feature you can’t do without, whatever you want your PropTech to accomplish.

When it comes to handling sensitive information, property managers must have as much trust in their service provider as their clients have in them.

To achieve this, make sure the PropTech solution you’re researching meets industry security standards and complies with local, relevant privacy regulations.

Check for bank-grade encryption, two-factor authentication, system audit logs to record user actions, and flexible user permissions and access controls. All of these security measures are built into PayProp.

Step 4. Determine ease of use

PropTech should be easy to use for your team (and clients, if the product comes with a self-service dashboard for owners and tenants) to navigate with minimal training.

User licenses should be unlimited and training included, or costs run up quickly. Take a look at some product shots or videos to see if the interface is user-friendly and intuitive. Request demos to see your chosen contenders in action.

While you’re at it, inquire about onboarding processes, available training resources, and the responsiveness of the support team. After all, you don’t just invest in the PropTech solution, you invest in the whole company.  

Step 5. Check out user reviews

There’s perhaps nothing more revealing and humbling than user reviews.  

Online forums, industry events, Google and Facebook reviews, and vendor review websites such as Capterra and Software Advice can help you gather honest feedback from real property managers who have used the PropTech solutions you're considering.  

Read case studies provided by the PropTech company to gain insights into users’ real-world experiences. No case studies? No go!

You can explore PayProp’s case studies here.

Step 6. Do a cost analysis

PropTech solutions come in all shapes and sizes, and so do their price tags.

With your budget in mind, compare the pricing models of different PropTech solutions, taking into account the initial setup, any recurring costs, and add-ons. Be aware that some providers won’t make it easy to figure this out, which isn’t a great sign either.

Remember that the cheapest up-front option may not always provide the best value in the long run. Think long-term value, not just short-term savings – or worse, nasty surprises.

Will your chosen PropTech help you save time, money, and effort for years to come? Will it help you achieve your business goals? Will it provide additional benefits like revenue increases and happier clients? Does it charge extra for other functions, additional users or support?

Make the necessary calculations and make sure you compare apples with apples, especially in very competitive vendor landscapes like PropTech.  

Step 7. Make a final decision

Now that you’ve figured out exactly what you want from a PropTech solution, it’s time to compile all your research and make an informed decision.

The best PropTech for your property management business will depend on your unique needs, goals, and budget. You may also want to get your team involved, especially the members who will be using the product the most. Have them look at the options and give feedback on their favorites. There’s nothing worse than buying the latest and greatest that fails to clear the first hurdle: user acceptance.

Finding the perfect PropTech for your property management business might seem like a daunting task, but with this ultimate step-by-step guide, you’ll avoid choice overload and have a solution that takes your business to new heights in no time.