Did you know that during the previous year of 2018, the total global volume of Proptech investments exceeded the $9 billion USD mark? This is a clear indication of how rapidly the niche develops and that should be a sufficient reason enough to launch one’s own Proptech software solution with multimillion profit prospects.
In order to increase your chances of getting maximum profit, however, it’s important that the users of your software get sufficient help in calculating basic readings in this field. Let’s discuss this in detail.
6 Data Points & Metrics for Proptech Software
- Level of profit/income. Income is all the finances received from distributing product/services while profit is something that you get if you take all the related expenses, like taxes and such, out of the total sum you earned (i.e., profit is pure income). These are two basic parameters for any Proptech solution as they define the financial status of a company. On top of that, constant monitoring of these points allows for indicating efficient directions for company activities and make forecasts;
- Average duration of the rental term. This metric is also quite important for real estate business as it defines the long-term viability of a certain object. Basically, an application should be able to capture the duration of any real estate rental deal in order to later sum up all the data and subdivide it by the number of clients (i.e., count the direct average per a certain time period);
- Client satisfaction. This indication depends heavily on the previous metric (because, as a rule, the client’s satisfaction with a particular realty object is reflected in for how long they rent out this object, although, surely, there are plenty of conditions apart from the realty object that impact the level of satisfaction in the long run). That’s why it’s important to provide a separate column for a description of circumstances that affected the soon contract annulment. Simple feedback will allow your app users to see a big picture of the demand for all realty objects the company manages, helping it work on the boost of the customer satisfaction level;
- High-level client service costs. These expenses are, usually, calculated in the form of an abstract value that implies the margin between income and profit. We believe, however, that this metric should be regarded more closely, literally point by point. Thus, we’d recommend composing detailed reports on how much money goes where (taxes, renovations, salaries, etc.). This will help users of your software decrease expenses by identifying certain excessive aspects and optimize the budget in the long run;
- Debt sizes. Last but not least, your software simply won’t do without the timed monitoring of debt sizes regarding utility service debts, sponsor debts, etc. Even the positive dynamics in the income graph cannot at times help define whether a company works at a loss or not.
There are many more formal aspects a competitive solution must cover, the property business requires thorough planning and forecasting as many other business niches do. For instance, if a company has its own official website, it is good to provide an ability to define the percentage of real clients in the traffic (shortages of orders may be caused not by insufficient promotion – the traffic rates may be just fine – but by some other aspects like the better competitor prices that stamp out the demand for your particular offer).
Despite the mentioned metrics and data being based on simple formulas, it’s pretty challenging to calculate them in terms of the real estate management software development. That’s because sources for the required data extraction are numerous and scattered. To develop new efficient software, you should look for a truly experienced team that would be able to implement up-to-date functionality and provide end-to-end security for data, its storages, as well as its sources.