Evolve to serve the new generation of tenants and owners; the challenge for the rental housing industry

Five or 10 years ago, a person could put up a physical sign or announce to his acquaintances that his house or apartment was in renta; he made the lease deal personally and, each month, collected his payments in cash.

However, the new generations and their taste for technology have come to change the dynamics of this sector, which must adapt quickly, since the new generations are gaining more and more ground in demand.

This was stated by Caterine Castillo, co-founder and general director of the proptech Neivor, who indicated that 56% of the potential real estate market belongs to the millennial generation, while 25% is represented by the Z and Alpha generations.

“The industry must face the fact that the people who are renting today are very different from those who were served a few years ago. The current client wants different experiences, spaces that provide convenience, mobility and flexibility, ”he commented during his participation in the INMOtech 2022 Forum.

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Digitization for administration

According to Castillo, the ecosystem of the housing lease it is necessary to adapt to a new reality, in which the aspirations of the people who susceptible they have changed and, on the other hand, the expectations of the owners have risen.

“Owners are also looking to maximize the value of your incomepay less for the administration of a property (6-7%), and get less involved in the operation”, explained the co-founder of Neivor.

In this context, new models have emerged such as coliving or multifamily, which allow more than one tenant in a property. This has become a challenge for real estate and security firms. rent administrationbecause the workload has increased.

And it is that, in the words of the specialist, a lot of value has been created in the rent administrationwith contracts and digital notaries, but when it comes to the operational part, there are no tools.

That is why Neivor sees an area of ​​opportunity in the rent collectionissuance of invoices, reports, maintenance management, through technology so that real estate companies can increase their volume of managed units.

“If we are prepared and have the tools, we will be able to face whatever happens in the market. Achieving digital evolution is not about changing everything overnight, but about advancing so that each of the parts that make up businesses can be done more efficiently,” Castillo concluded.