Is tech set to reinvent the Single-Family Rental industry? In a recent article, Gregor Watson, co-founder of Roofstock and a savvy investor himself, explains why he believes it will. Why – and how – might this wave of new tech impact SFR owners and operators like you?
According to Watson, the technology revolution in SFR is driven by a few things. First of all, the size of the opportunity. The SFR market is much larger than the multi-family market, with over 16 million single-family rental homes in the US.
Next, just as importantly, the SFR market is highly fragmented, with the top 10 owners accounting for only 1% of the market. This fragmentation provides the opportunity for tech entrepreneurs to provide solutions to the many pain points experienced by SFR owners.
Thirdly, Watson feels PropTech is only just beginning in most areas of SFR. He calls out 4 areas where innovation is likely to have a significant impact: Property management, leasing, financing, and data analytics.
Learn more about Watson’s predictions for each of these segments, and check out Backflip’s favorite technologies that are leading the change.
Property Management
Currently, most property management is done through traditional property management companies, which can be slow and inefficient. Watson expects tech to create more efficient prop management solutions, leading to better returns for investors and a better experience for tenants.
Try: Mynd
Combines technology with local experts
Leasing
Many SFR owners still rely on traditional methods of advertising their properties, such as yard signs and Craigslist, says Watson. That means an opportunity for PropTech companies to create better advertising and marketing solutions that help owners fill vacancies faster and reduce turnover.
Try: Tenant Cloud
Multiple features and properties interlinked
Financing
Watson points out that SFR investors often face challenges when trying to obtain financing, as many lenders are not familiar with the unique characteristics of the SFR market. He sees an opportunity for PropTech entrepreneurs to create new financing solutions that are tailored to the needs of SFR investors.
Try: Backflip Capital
Tech supported, human focused loans
Data Analytics
Watson highlights the importance of data analytics in the SFR PropTech industry. Many SFR owners and operators do not have access to the same level of data and analytics as their multi-family counterparts. New tools and platforms will allow SFR owners to better understand their properties and potential properties and make more informed investment decisions.
Try: Backflip Real Estate Investing App
Fast ARVs anywhere, anytime
Like Watson, Backflip believes that the key to success in the SFR PropTech industry is to focus on solving real pain points for owners and operators and to create solutions that are tailored to the unique needs of the market. Find out more about what we’re doing.