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It is no secret that the lettings industry as a whole is dragging its feet when it comes to entering the world of tech. Letting agents and landlords can be quite “stuck in their ways” with their ways of working and not easily tempted away from their usual practices.
The idea of using technology to help let or manage a property can seem daunting. Younger adults have been found, during a recent study, to use a wider breadth of technologies compared with any other age group so it is not surprising that the lettings industry, where the average age of a landlord being 60 years old, has some reluctance to jump on the technology train.
However, the introduction of new property technology (prop tech) companies over the years, followed by their successes, demonstrates that there is a shift towards innovation and digitisation for the property industry. With the number of prop tech companies on the rise, as well as investment into the industry taking a steep increase, it is likely to become the norm for many.
So How Does This Effect a Property Inventory?
A property inventory is one of the most important documents created in the letting process. It is a thorough and detailed report of the property aesthetics, contents and their condition. The humble pen and paper was, once upon a time, the only way that this information could be documented however there are limitations with this such as its time- consuming nature, unreliability and lack of easy access. These limitations have been thrust into the spotlight by the introduction of the tenancy deposit schemes and adjudication systems as well the increase of demand within the lettings industry, making agents busier than they once would have been. With prop tech threatening to take over the lettings industry, it is inevitable that the inventory will tag along too.
Why are Landlords, Agents and Tenants Preferring a Digitised Inventory?
Analysis of reported user feedback carried out by PropertyMark has shown that agents use prop tech for their inventories to help with communication, audit trails and supporting evidence. An article published by Raconteur also stated that 73% of real-estate decision makers saw digital and technology innovation as an opportunity.
Reliability
The Association of Independent Inventory Clerks has stated that “most inventories would not stand up in court” which is quite a worrying statement to make from a landlord or tenant’s point of view. Unlike hand written or basic typed inventories, a digitised one benefits from the inclusion of date- stamped photos, prompts and listed categories to ensure all areas are assessed. Not only that but the ability for digital signatures anywhere at any time and real time documentation are also examples of why they are deemed so much more reliable.
Easily accessible
Gone are the days of sifting through files to find the hard or original copy of an inventory. As well as the ability to be printed if needed, digitised inventories not only have the ability to be saved down onto any computer but are also stored onto a cloud system via the inventory provider (depending on which one is used). On some inventory software, the inventory can be accessed via a link, as well as a PDF, which can be easily accessed anywhere on any device which saves a lot of time and eliminates the worry of a lost inventory.
Time alleviating
Any letting agent will know that an inventory is a very time-consuming task; attending and assessing the property, making hundreds of written notes and photographs to come back to the office to either type it all up or scan it into the computer as well as uploading photographs which still need to be formatted in a way that can be easily sent to tenants and landlords. A digitised inventory, however, can be completed at the property during the clerks visit. It is typed onto a mobile or tablet device either by hand or by voice dictation with photos automatically imbedded into the report. Aside from a proof read when back at the office, the inventory has been completed and ready to send to awaiting parties. Depending on the software used, the reports can be sent directly to recipients where they are able to access the document, make any necessary comments, and return with digital signature in tow.
It is also becoming evident that savvy prospective tenants or buyers are slowly picking up on the digitisation of the industry. How technologically advanced an agency is could therefore be interpreted as a marker of the agents stature. Even the need for an innovative and modern website has been key for those seeking or selling a home with 81% of potential vendors claiming they would not contact an estate agent if their website appeared outdated and did not include high-quality imagery according to Opinium. With over 4 million homes in the UK currently being rented out and the average tenancy length being around 22 months, it is likely many tenants will be dealing with multiple agencies throughout their tenure as a tenant, with the natural inhibition to contrast and compare. With easy access to review sites such as Google and “All Agents”, positive or negative experiences are so easily expressed therefore any negative reviews concerning outdated service or practices or substandard documents such as an inventory, can be easily accessed by many.
Of course, digitising anything can have some possible downsides. As PropertyMark found, it can make a busy agent reliant on the technology with the ability to implement endless photos and get away with minimal detail for example. It can also ostracise tenants or landlords that may not have easy access to such modes of technology to view and complete the documents.
In summary, evidence is showing that the pros of a switch to a digital inventory are quite defiantly outweighing the cons. With the lettings industry being as competitive as ever, it is vital that agents keep up with these revolutionary changes in order to remain afloat within the industry.
