The effects of the lockdown imposed by the UK government has significantly affected every aspect of the economy today. The rental housing market particularly has found itself in a state of confusion. Since the beginning of lockdown in March, many tenants have had little or no means of earning money to survive. Which, in turn, has increased the difficulty of paying rent on time.
The coronavirus lockdown continues to disrupt market activities. Furthermore, it’s continuing through the rental housing peak period – usually the period between the start of summer and early autumn. A period when people start university & need to move to new properties closer to their school’s location.
Due to obvious constraints, there has been a drop in rental demand since the beginning of lockdown. According to Zoopla, the demand has dropped by 42%. Despite constraints, there are still renters looking to move. Zoopla noted, “some tenants are already mapping out their next move”. As you would expect, giving the circumstances, tenant relocation has been forecasted 25% lower in 2020 than it was in 2019.
Lockdown has significantly hindered the BTR sector’s ability to pursue and close potential tenants. To overcome these challenges, the BTR industry must adapt and make use of technology. Just like the many businesses thriving despite lockdown.
How Technology Can Aid Tenant Lease-Up During Lockdown
Touchpoints with Tenants
Touchpoints are defined as every point of interaction a customer or potential customer has with a business at any stage. These touchpoints make up what is known as the “customer experience”. That is, the customer’s experience from the first moment they encounter your product, through to purchase & follow-up. This certainly determines how well a business makes sales and retains customers.
As a result of lockdown, physical touchpoints are largely unavailable. Thus, leaving digital touchpoints as the best alternative for BTRs to implement, enabling them to engage potential tenants effectively. Digital touchpoints include the following: website, search engine optimization (SEO), social media (Twitter, Facebook, LinkedIn), tenant portals and more.
For BTRs’ to close on potential tenants, further steps are required. Virtual Tours, also known as 3D Tours/Walkthroughs are a form of digital touchpoint. 3D Tours or Virtual Tours allow potential tenants to view the apartments from every angle. It’s almost as if they were there physically – but from the safety of their homes. Virtual touring gives renters a more accurate feel of the apartment in a way pictures and videos can not convey.
Digital Leasing and Tenancy Agreements
Before lockdown, many tenancy agreement conclusions/signings were preferred in person with the tenant, landlord and a solicitor (if required). However, with lockdown, physical meetings are discouraged. This poses another constraint on one of the most important stages: securing a new tenant or renewing a lease. Digital leasing offers a solution to this problem by allowing parties the opportunity to sign the contractual agreements remotely. This also cancels the need for renters to postpone the signing process.
Digital leasing involves a secure online electronic contractual leasing agreement. This allows the landlord, tenants and concerned parties to append their signatures on the electronic document. One of the misgivings about digital leasing is the expected legality of such an agreement. However, a digital agreement carries the same legal weight as a physical agreement. The digital completion, is the only difference.
The benefits of digital leasing include flexibility. It allows tenants and landlords to make adjustments to the tenancy agreement during the drafting stage. Besides the flexibility and convenience, digital leasing is also environmentally friendly. It cuts out the need for paperwork. Which is especially beneficial with a large development like a BTR, where the paperwork can be voluminous.
Online Integration
This deals with the process of keeping renters informed with the important details about their tenancy throughout their customer experience. Conversations between renters and agents (normally held in person), are now preferred to be held via online or mobile platforms. The use of online platforms to communicate, minimises doubts renters might have regarding a BTR tenancy. Also, it allows new tenants the chance to discuss with the service team how to organise a safe move-in strategy.
To achieve effective virtual communication, it is important that agents and management are easily contactable via phone or e-mail. Also, that they can provide quick responses to all the questions and inquiries. Transparency in dealing with renters and good communication skills are crucial to securing and renewing leases for any BTR development.
Conclusion
The leasing process may never become fully automated as some people will always desire human contact for reassurance. It makes the experience more personal – especially with a big decision like moving into a new apartment.
However, understanding & mastering the booming tech industry can add huge value. Offering the flexibility, efficiency & environmentally friendly digital version will be a benefit for many. Also, it may just give you the competitive edge should we experience another lockdown.
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