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Many people find real estate appealing as an investment for a variety of reasons. Real estate investments can provide income, control and tax advantages not found in other sectors. In today’s world, technology is making real estate even more profitable.
1. Streamlining Management
Buying a property is one thing but managing it is an entirely different ballgame. Not everyone is prepared to be a landlord. It’s a process that involves screening potential tenants, collecting payments, performing maintenance and a number of other duties essential to the job.
However, with new software, a number of these jobs can be performed with automation. New technology allows for 3-D virtual tours, online applications, automatic background checks and even maintenance updates that can keep landlords and real estate investors profitable without a lot of hands-on time.
The right property management software can be especially helpful for those with multiple investment properties.
Even remote land can now get a cell signal or use a satellite for cell or TV service. This makes living and vacationing remotely more attractive than it used to since there’s little chance of total isolation. Investors seeking properties in rural or unpopulated areas can now market them as opportunities to get away from it all without giving up connection.
Connectivity isn’t just important in rural areas; it’s essential in most commercial real estate investments. Most facility systems and business equipment operate via the Internet so reliable connectivity is a must.
This connectivity in both rural and commercial real estate often means more cell towers are needed. Cell tower companies often seek new cell tower lease agreements directly with landowners to meet these needs. With the right agreement, real estate investors can even make additional income from the property and potentially increase its overall value.
3. Smart Technology and The Internet of Things
The Internet of Things (IoT) has finally entered real estate and is having a significant impact! Smart building technology is rapidly changing real estate investments and providing even more room for profit. In both residential and commercial real estate, smart technology is boosting operating efficiency, reducing energy waste, and generally means a more rapid return on investment.
With IoT data and smart technology, landlords and commercial property owners alike can appreciate security monitoring that allows for real time, remote access. This means even multi-use or multi-tenant buildings no longer require a security person at the door.
Doors can lock/unlock themselves. Elevators and lobbies can be monitored remotely as can smart appliances and electrical systems, which means reduced waste in energy and expense.
This value is passed on to tenants who can experience lower energy bills. Continued monitoring of smart buildings also means landlords can also preemptively handle repairs or maintenance before a tenant is even aware of an issue.
Bottom line: smart technology can be a boost for real estate investments.
Technology is changing and improving our lives daily, why wouldn’t the same be true for real estate investments?