CYBER REVOLUTION – MEET REAL ESTATE INVESTORS
Ok, I don’t live in a cave, but up until last week, I had never heard of the 4th revolution. What is it? In short: it is the era of artificial intelligence (AI), robotics, the Internet of Things, 3D printing, genetic engineering, quantum computing, and other technologies—all blended with everyday living and working.
Another definition is “the blurring of boundaries between the physical, digital and biological worlds.”
How does this translate to everyday LIFE? Siri is in many phones, we have “smart” homes, cars can drive themselves (a little debate there) and robots are replacing or working together with humans in factories. Online and digital connections begin very early in childhood AND are growing in every aspect of our lives. Some doctors are even visiting patients using a virtual interface!
What does the cyber revolution mean to the average entrepreneur in a post-COVID world? Well, who is still running a successful business right now? That’s right, anyone with e-commerce and online capabilities. In this week’s news: Shopify just became Canada’s largest public company on the TSX!
All real estate investors are small business owners; each property has profits and losses, assets, liabilities and equity. The Business Development Bank of Canada is watching small business trends very closely. They are reporting increases in income for companies that have already pivoted to online sales: furniture sales are up 84% online, clothing sales are up 62% online, appliances and building materials are up 71% in online sales, and food/restaurant orders are up 194% (their online order volume—does not take into account their overall income). So parts of the economy have already transformed/adapted in the digital world—COVID is simply accelerating this transition.
How can real estate investors use this ongoing trend or cyber-revolution to their advantage? The key will be creating the right blend of digital and human interactions. A great example of this is the evolving best practices for property management. And no, it doesn’t matter if it’s just you and your one property, or if you have dozens of doors.
Consumers will expect to find you online first. Oh yes, and they would like an easy process from start to finish. Wait, that’s ok—as busy real estate investors, we would like to streamline our processes too.
Do you advertise on Facebook Marketplace—or another digital platform? Can any client find your website online—at any time of day? If you have a vacant unit, can your prospective tenants do a virtual walk-through? Many tenants would even prefer to do an online application to rent from you. All of these marketing techniques will help you compete—especially in an economy where there are plenty of choices (vacancies) for your customer (tenant).
Personally, we believe the human interaction is still very important in property management. As a final screening step, we continue to meet our clients at the vacant unit … because sometimes the in-person connection is radically different from the online image! This face-to-face meeting can also set the tone and expectations for the tenancy—or either party can move on if it isn’t the right fit.
As real estate investors, we work hard on each small business/property. It is critical in today’s economy to keep up with the trends and provide fabulous customer service: both online and in-person. If your other job/business is temporarily slower than normal, this is a great time to be updating your digital footprint=your online presence. The Luddites will have a much harder time with their rental properties!
