Real Estate is in a lot of ways the old store of value.
Going back to biblical times, people who owned a lot of land had the country’s wealth.
But the internet and technology, which has no bounds, is destroying the traditional way of doing business.
It has left me wondering, how is technology changing the real estate industry?
The Technology Shift
During the interview, he accurately said, “we are living in a very unique time when organizations are having to change how they are managed to effectively compete in the economy”. Seeing this need, he has started a consulting company to help companies implement the same strategies he implemented in the military as a General.
Related: Gen. Stanley A. McChrystal on Leadership [ VIDEO ]
A True Story
While listening to Gen. McChrystal, as a bank credit officer, I was reminded of one of my first banking clients. My client was kicked out of college so he started flipping houses at an early age.
Currently, he owns around 600 rental units(!!!), along with a couple of farms, and despite being extremely successful he still managed all of his rental properties on a spreadsheet. To make matters worse, most of his tenants paid in cash which his assistant was in-charge of collecting.
I am certain that he could have doubled his profitability if he simply utilized some simple modern technology to automate his books. Because of his inadequate bookkeeping, his loan applications were always criticized and it was difficult to get capital. His system made it impossible for a credit analyst to figure out how profitable he was.
To reiterate, Gen. McChrystal, I believe we are currently in a generational shift to not only have more renters, but also utilize technology to increase profits, eliminate the need for paper, and reduce our reliance on the postal service.
Finding the Right Technology
In the first article in this series, I ended with how I was also utilizing Cozy to increase my revenue and decrease the time involved with my real estate business.
In this post, I’m going to show some specific examples of how I utilize Cozy to increase my revenue and decrease the amount of time I spend on your rental properties.
The best part of this is that it cost absolutely ZERO dollars for Landlords and Property Managers. Additionally, you basically get a free website listing for each of your rentals as well.
I feel like I’ve waited 10 years for this.
I have owned rental properties for over 10 years and have always wanted to set-up a website for my units, but lets face it, it’s a lot of work. But in less than five minutes after signing up for Cozy, I was able to have my first property listed and have my tenant pay their first months rent and deposit.
I realize that there are several hundred property management software options on the market. However, it appears to me that 99.9% of them are built for large-scale apartment owners, and as such cost hundreds of dollars.
When looking for a solution, I chose Cozy for one simple reason: it’s free!
I was hesitant to try other solutions, since Cozy was free, I figured that I could always revert back to old school paper and not feel any effects.
My Initial Walk-through of Cozy
Cozy has an extremely simple sign-up and on-boarding process – one that many companies should emulate.
1. Sign Up
I filled out the form on their website, and verify my email address.
2. Login, Get Started
When I logged in for the first time, I was kindly greeted:
3. Add a Property
When clicking “Add a Property” in the lower left hand corner, I was prompted to add my rental property details:
I always forget to take a picture of the outside of my properties, so I took a screenshot of the google street view. Yes, this is very low-quality, but in my opinion it’s better than no picture at all.
After adding a property, I was prompted to invite current tenants to setup payments, or find new tenants.
4. Advertise Your Listing
When clicking on the “Accept Applicants?” toggle button, I’m presented with a few ways to market my vacant listing:
I was given a free property website + online application:
When you share it on Twitter, it looks like this:
5. Setup Rent Payments
Clicking “Payments”, I was invited to set up a lease payment schedule that should match my actual lease:
As you can see from the above screen shots the process is extremely easy. My initial and continual response is “I can’t believe this is free”.
Within just a few minutes, I was able to get setup to accept online rental applications, collect rent online, and had created an online website for my rental property. Amazing.
I can’t believe this is free!
I encourage you to try to utilize some kind of technology to improve the profitability of your rental property business this month.
The ironic thing is that your tenants will be happier with having an online system than having to mail in checks.