Throughout history, man has strived to make his life & work easier. Hence our dependence on technology – as a means to automation. However, with ease comes a dilemma of human redundancy, as our means of livelihood is threatened due to technological automation.
This phenomenon, not new in our history, has seen a lot of human skills rendered redundant with ever-advancing technology. This phenomenon is loosely known as the industrial revolution. And, we are on our way to the fourth industrial revolution with AI (Artificial Intelligence), robotics, and the IoT (Internet of Things).
The property, construction, and building management sector is not exempted from this transformation. As the entire industry has witnessed significant technological integration over the last decade.
How Technology Has Influenced Building Construction and Management
The future for buildings is to have them fully automated and efficiently running themselves – with little no human supervision. This constitutes the idea behind smart buildings. Although we are a long way from fully-automated buildings, the few technological advancements that have been adopted are already making a difference in the property industry. Technological advancements such as:
- BIM (Building Information Modelling): this is an intelligent 3D model-based process that gives architecture, engineering, and construction (AEC) professionals the insight and tools to more efficiently plan, design, construct and manage buildings and infrastructure.
- Building Management System (BMS): a system that uses the Internet of Things (IoT) and sensors to monitor and regulate air-conditioning, humidity, power, temperature, Co2, heating, security, and lighting systems within the BtR development. Creating a graph or chart of the overall health of the utility systems.
- Internet of Things (IoT): is a network of interconnected smart devices that allow each separate device to interact (i.e., send or receive data) with other devices on the same network.
- Smart Home Apps: these apps could be anything from home assistants connected to the BMS through the IoT; to live apps that update tenants about their apartments and communal spaces. Also, with apps connected to the BMS, the management team can monitor and regulate the facilities of the building remotely. In a way, app integration with a building allows its occupants to communicate with it.
Future of Employment Within the Build to Rent Sector
Here, we review areas of employment within a BtR that may be displaced by technological advancements over the coming decade.
Financial Modeling
BtR is a long-term form of investment. With profitability dependent on a complex series of accurate financial analysis – at every stage of the investment. Financial analysis like underwriting cash flow, yield, internal rate of return, operational expenditure, etc.
Ultimately, the aim of financial analysts is to provide the best forecast for the best investment decisions. However, human forecasts tend to be colored by assumptions and personal bias, putting the accuracy forecasts between 50% and 80%.
With AI or machine learning algorithms, financial forecast accuracy can be improved up to 90%.
Through pattern recognition and at a faster speed and large scale than humanly possible.
The future of work in this area of BtR will feature a heavy collaboration of both AI and Human teams. As you will always need humans to find and structure a deal for a BTR investment.
Maintenance
In maintenance, some technological advancements like BMS, BIM, and IoT have already been integrated into some BtR developments. These systems assist the maintenance team in performing their duties efficiently by monitoring facilities within the BtR for any changes. In this sense, advancement in this area is yet to replace the human aspect of maintenance. Right now, it is more of a tool. For instance, BMS can alert the team when a bulb has gone, automatically order a new one – and have it delivered. But, crucially, it cannot install it itself. We are still very far away from a robot coming in to carry out the work.
Data Collection
In the area of data collection, AI and machine learning remain unparalleled. Data is collected from all aspects of a BtR development continuously and efficiently in ways humans cannot. This data provides us with ways to improve every aspect of efficiency in a development. It has become an instrumental part of the growth of the BtR sector. Today, investors and architects are provided with data analysis of their previous BtR models. Allowing them to create the best possible developments.
Leasing and Rent Collection
This area faces the most threat of technology taking over. As, most of the processes involved in acquiring a lease and rent collection, from finding an appropriate apartment, signing lease documents, to move in, can be conducted virtually & digitally. The advent of COVID-19 has encouraged the use of electronic signing and remote witnessing. According to GlobeNewswire, the global digital signatures market is estimated to grow from $1.83 billion in 2019 to $4.95 in 2023. At a Compound Annual Growth Rate of 28.58% due to the effects of the pandemic.
Public Relations and Tenant Experience
This is an area we believe that AI could never replace. Humans are social beings, and we always prefer a human interface at points of interaction. Although AI and robots are progressing quickly in this area, they are still a long way from perfecting social interaction. One of the core philosophies of the BtR sector is “outstanding management”. This is the heart of what makes a BtR development sell and retain tenants. Lack of human interaction can harm our mental health, and the lockdown period proved this. As, there was an immense increase in the demand for mental health services, according to the WHO. Consequently, it is safe to say this area of employment is BtR is secure.
Conclusion
While it is inevitable that machines and AI will make life easier… There’s a paradox. As humans, we often create to make life easier, subsequently losing the initial skill we sought to simplify.
The future is not humans in competition with AI; it is a collaborative one. Where humans and machines compliment each other’s work.
However, jobs that are routine in nature have a high probability of being replaced. But, as machines take over jobs, new opportunities are bound to be open. Kevin Kelly, author of the 2016 technology classic The Inevitable sums it up best:
Dr. Kevin Kelly; The Inevitable
Subscribe
Every Friday we send an email with that weeks published posts. Subscribe to our weekly newsletter to make sure you don’t miss a thing.