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As the world goes full throttle on digital processes, data is fast becoming the basis for strategic decisions. Big data, as the name infers, is unusually large amounts of complex data that render it immune to traditional analysis tools. A striking feature of big data is its rapid accumulation rate. Each day, the digital world receives tons of data that touches nearly all spheres of life.
In the corporate world, harnessing big data may be the difference between success and failure.
Rental property managers cannot afford to ignore the impact big data has on understanding consumer behavior. Relying on old-age tactics such as intuition and first impressions is setting oneself up for failure.
In this article, we discuss six ways big data benefits rental property managers.
Better marketing strategies
Big data offers insights into real-time and current information.
Getting the correct information at the right time is crucial in the formulation of marketing strategies for the rental market. It ensures rental property managers are in a position to design marketing strategies that suit the target audience.
Apart from increasing efficiency, big data can also help to mitigate losses occasioned by poor marketing.
For example, Blueground, a real estate tech company that provides furnished apartments on a monthly basis, incorporates big data in its marketing strategy to better promote its rentals.
Risk mitigation
By using predictive analytics, rental property managers are in a better position to make decisions that positively impact their ventures.
Thanks to Big Data and AI, rental property managers can compare past data with current data and from it, make viable deductions about the future of a property.
By analyzing aspects such as infrastructure growth, crime rates, social amenities rating, and overall development index, rental property managers are better-positioned to make informed decisions about their investments.
Tailored customer solutions
A great disconnect between corporates and clients is the inability by the former to understand their clients’ needs.
Unlike in the past where consumers had to adjust their needs to a product’s features, the current market demands for consumer-oriented products.
Indeed, whoever said that the customer is now the king couldn’t have been more right!
The same is true for the rental industry.
Rapid growth in the sector means consumers have more options in their hands. Survival and growth are therefore pegged on the ability of rental property managers to accurately read and satisfy consumer needs.
Big data offers crucial leads for property managers seeking to address gaps in the market. This enables property developers to formulate personalized offers based on real-time data and in doing so give themselves an edge in an overly competitive market.
Accurate valuations in real-time
One of the benefits of big data on the rental market has been the generation of accurate valuation in real-time.
Through analysis of aspects such as demand, security status, infrastructure level, social amenities rating, and overall locality growth, AI can make accurate appraisals that are acceptable to the investors and clients. This in turn encourages the uptake of rental listings, as clients feel they are getting their money’s worth.
For investors seeking additional financing, Big Data generated valuations are a sure way of getting favorable loan structures.
Additionally, big data can help generate future valuations enabling developers to leverage their investments accordingly.
Favourable insurance deals
Based on property appraisals and forecasting, rent property managers are better placed to choose favourable deals for their units. The benefits of big data on insurance deals stretch as far as getting the right insurance cover.
For instance, through analysis of historical data, AI can assist property managers to select appropriate cover based on common mishaps in a given locality. This is a cost-saving mechanism that ensures resources are channelled to the right areas.
Integrating Big Data with social media
Over the past decade, social media has become the go-to marketing avenue for most businesses. These platforms are rich in diversity and make for an easy market segmentation pool.
The largest market segment for the rental market consists of people aged between 18-35 years old, most of whom spend around 3 hours daily on social media.
This creates a rich pool of potential clients for the rental market. Through AI and Big Data, rental property managers can further segment this group according to gender, interests, and location for more personalized offers.
Conclusion
Big Data and AI are changing how the corporate world interacts with consumers.
For rental property managers, this change could not have come at a better time. The benefits brought about by Big Data to the rental space cannot be overlooked.
Not only has it helped streamline processes in the rental space, but also opened up new opportunities for growth and service improvement.