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What Can Augmented Reality Do to Reduce Commercial Property Management Costs?

Discover how much commercial property management costs can reduce with AR technology. Explore what augmented reality can do for property with Fixzy.

Real estate is a hugely significant portion of the global economy, worth an estimated £145 trillion ($205 trillion USD) in 2021. Enterprising property owners have taken advantage of increasing property values, building steady portfolios over recent years.

Although property is a sound investment, costs can stack up quickly for private landlords. Whatsmore, the cost of property management isn’t just a problem for landlords, as private companies managing properties also have to ensure that tenants and occupiers are serviced with repairs and maintenance work as damages occur.

Whilst landlords can hire commercial property management companies to take control of the day-to-day upkeep of their properties, they represent an additional cost for landlords’ budding businesses. Furthermore, for the commercial property managers themselves, the logistics of maintaining multiple locations at once can rapidly cause a logistical nightmare.

However, AR (Augmented Reality) could soon put an end to these concerns, reducing the cost of property management for all involved. In this article, we’ll explore the ways in which new AR technologies like Fixzy are saving money for property managers and private landlords.

What Does Augmented Reality Mean?

Augmented Reality (also known as AR) is a system by which a computer overlays an image of a ‘real’ space with additional images and information, providing a composite view to the user. This allows commercial property management companies and landlords to maximise the value of their portfolios.

What Does Augmented Reality Mean for Property Owners?

New, no-download platforms like Fixzy Assist enable property owners to link up their tenants and occupiers to experts directly. Immediately, repair professionals can assess damages and the level of work needed, without requiring an initial visit to scope out the scale of the problem.

Some of the benefits of using innovative AR applications for commercial property management include:

  • Faster fixes: by providing a composite view, repair personnel can quickly illustrate simple fixes that tenants can perform themselves under the expert’s supervision.

  • Remote measurements: augmented reality can capture spatial data with pinpoint accuracy, resulting in fewer onsite visits.

  • Reduced costs: scoping projects remotely enables repair personnel to arrive at properties with the correct tools every time, increasing first-time fix rates and making expensive additional call-outs unnecessary.

But besides the immediate reduction in day-to-day property management costs, how else do AR tools like Fixzy benefit private landlords and property managers?

For more on the use cases of AR in property, check out our blog.

Reducing Tenant Turnover

Poor communication and maintenance are some of the main reasons tenants move out. According to research conducted by insurance firm AXA, 15% of tenants would move out due to disrepair whilst a fifth of tenants would do so if the property was found to have damp issues. As we discussed in our recent article on water damage and computer vision, identifying causes early is essential to minimising the effects of damp, making tools like Fixzy Assist essential to proactive property management.

One of the most significant benefits of AR in property management for landlords is that faster fixes make happier tenants. Landlords can reduce the level of churn in their properties, keeping them occupied for longer and minimising their financial risk.

Improved Condition, Higher Rents

When tenants and occupiers do move out, poor maintenance becomes an even more pressing problem. Although other factors, such as location, play a significant role in the value of a property, poor maintenance will likely force landlords to drop rental rates to stay competitive. By taking this approach, landlords place constraints on their portfolio’s income potential.

If landlords could enable their current tenants to identify problems as they occur and improve first-time fix rates, they can improve the quality of their properties. In turn, this would enable landlords to justify more competitive rental pricing when their properties become vacant.

Commercial Property Management: Resourcing for Growth

As mentioned earlier, commercial property management companies are often limited by the size of their portfolio, and their ability to manage multiple properties with finite resources.

Using remote fixing tools with AR technology reduces the logistical challenges of running a property management company. One system can be deployed to cover a variety of properties, regardless of location, enabling ambitious commercial property management companies to grow beyond immediate geographic considerations.

For more on the use cases of AR in property, check out our blog.

What Augmented Reality Can Do for Property Management

Augmented reality represents an exciting opportunity for the property management industry to reduce its cost in both direct and indirect ways. But to make the most of this opportunity, private landlords and property managers must leverage flexible tools that tenants and occupiers can use with as much convenience as possible.

With no-download platforms like Fixzy Assist, landlords, property managers and occupiers can mutually benefit from improved efficiencies long overdue in the industry as a whole.

Harness the Power of AR: Reduce Property Management Costs with Fixzy

Ask if your contractors are using Fixzy’s innovative technology today.

We use artificial intelligence, computer vision, AR and deep learning to reduce the cost of property management and increase first-time fix rates. Embrace certainty with Fixzy’s no-download, self-service technology for property management.

Get in touch to request a free demo today.

Posted in Blog Articles on Sep 06, 2021