Survey: Security Emerges as Paramount Concern in Rental Tech Industry
The safety of client funds and overall system security rank remain the top two priorities for PropTech buyers, according to South African property professionals polled in the 5th annual PayProp State of the Rental Industry Survey.
The high importance placed on security reflects the heightened threat of cybercrime in South Africa – the country is more heavily targeted by cyber criminals than any other in Africa and is among the most frequent targets globally according to Interpol.
In third, fourth and fifth place respectively were functionality, ease of use and cost.
“It’s very positive that real estate agents see security as a non-negotiable factor when choosing PropTech platforms,” says Johette Smuts from PayProp. “Like banks, estate and rental agencies handle vast amounts of client money and sensitive data, and so they need bank-grade security to keep those assets safe.”
Residential rental professionals are increasingly aware of the benefits of technology with 71.1% of respondents agreeing that investment in technology can increase productivity more than an increase in the workforce can (compared to 67.2% the previous year). Added to this, 91% agreed that the investment in property technology is worthwhile.
And encouragingly for professionals in the sector, tech is seen as a tool for workers, not a replacement for them. Just 0.7% of business leaders planned to improve profitability by cutting staff this year.
Smuts says despite the adoption of technology in the industry appearing to have slowed down, it might in fact be because tech usage is already high. “Just over 50% of respondents said automation increased in their business over the past year (down from 60%). However, large majorities of businesses have already digitised important functions including accounting, tenant vetting and marketing. Viewed together, these two statistics might indicate that many businesses had already integrated tech into many of their processes before 2023, and employees and business owners alike have already realised the benefits of these investments,” she says.
A sunny outlook for agents
All in all, residential rental professionals expect 2024 to be a good year. The survey reveals that industry players went into 2024 with an optimistic and forward-looking outlook. 84.3% of respondents said they are optimistic about the industry’s future, compared to 79.1% in 2022. In addition, 79.6% indicated they are likely to stay in the industry for at least the next five years.
And their positive outlook is borne out by facts. Fewer respondents listed arrears (33.7% vs 38.8% in 2022) and profitability (27.1% vs 36% in 2022) among their top concerns for 2024, which correlates well with the rebound seen in the rental market and the reduction in arrears as measured by the PayProp Rental Index.
The top three challenges identified by property professionals for 2024 remained consistent with the previous year. Rental agencies’ main challenges are finding quality tenants, acquiring new properties, and managing inspections and maintenance.
“It is wonderful to note that the survey reports positive trends in landlord confidence, arrears and more, suggesting that property professionals’ confidence is well-founded,” says Smuts.
