An article by Mobility
Real estate investment management businesses exist to raise capital to acquire, develop and sell buildings to generate returns for investors. Other activities of these businesses include screening investment opportunities and managing properties. Investment management businesses face many challenges in the real estate industry, including poor financial analysis, improper communication and inadequately maintaining continuous and harmonious data.
With economic uncertainty, dealing with these challenges is at the top of most investment management businesses’ list of priorities. Because of this, business owners are continuously looking for innovative solutions to overcome these difficulties. In recent years, the focus has turned to using technology to effectively solve challenges.
One of the technologies that are having a significant impact on the real estate investment management industry is the Internet of Things (IoT). It helps businesses to move beyond just a focus on cost reduction. IoT implementation can be used to enable more efficient building operations, improved tenant relationships and increased revenue generation opportunities.
What Exactly Is IoT Technology?
IoT technology involves a network of internet-connected devices, such as processors, sensors and communication hardware, that work together to collect and transfer data without human intervention.
These devices connect through embedded sensors via machine learning. Machine learning is when devices learn similarly to humans, by gathering data from surroundings, and this is what makes these devices smart. Machine learning is a type of artificial intelligence that assists devices to learn without having to be programmed by humans.
IoT allows for seamless communication between people, processes and things. It also produces the data and insights needed to visualize usage patterns, streamline workflows and compete better in a changing business environment.
Additionally, IoT technology allows businesses to automate processes and decrease labor costs. As a result, IoT is one of the most essential technologies of the modern business world, and it will continue to gain popularity as more businesses recognize its potential to keep them competitive.
Today, IoT is used in a variety of industries to make processes easier, simpler, more convenient and more secure.
The Role of IoT Software Developers in the Real Estate Industry
Any business that wants to succeed with implementing IoT should hire IoT software developers or a development team. The role of an IoT software developer focuses primarily on the creation of platforms, software, hardware and other systems that enable devices to function and connect successfully with other systems and function properly on their own. Other duties of the IoT developer include designing, coding and testing features of platforms, software, hardware and other systems.
Because all industries and businesses are different, they have unique needs when it comes to the development and implementation of IoT technology. In the real estate investment management industry, IoT developers can assist businesses to create tailored IoT systems. This involves:
- Assembling of physical hardware
Developers can use pre-assembled boards and sensors, or create their own.
- Developing of IoT devices
This involves the developer directing the data from the IoT sensors to the server.
- Programming the server
Server-side languages, such as ASP.NET or Node.js, and database queries based on a SQL derivative are used to program the server that will receive and store the data from the IoT devices.
- Effectively displaying data to the user
This requires the developer to create a dashboard that will depict collected and stored data to the device users.
Businesses need to realize that the average IoT software developer cost is much lower compared to the major investment they make when hiring such a professional for the successful implementation of IoT solutions. The below graph can give businesses an idea of the annual IoT developer cost in five different countries:
How IoT Influences Real Estate Investment Management Businesses
IoT is seeping into many different industries as increasingly more connected devices are being used in everyday processes. The real estate investment management industry is no exception. Let’s explore how it is infiltrating all aspects of this industry:
- Increased property acquisitions
Acquiring properties is the main aim of property investment management businesses. To make this process more manageable, devices can be installed to transmit data via the Internet. This data can include information about square footage, prices, photos and even 360-degree virtual tours.
- More accurate financial evaluations
Finances and budgeting are important aspects of real estate investment management businesses. With IoT, data can efficiently and effectively be gathered to produce accurate results. In turn, this can lead to better decision making, while also avoiding poor planning.
- Trends and predictive analysis
Investment managers can look at the trends of their industry using different software and with the help of machine learning, predictive analysis can also be produced which can assist with business decision making.
- Improved development
IoT technology can also assist with the development phases of property investment management through proactive repair and maintenance measured by smart devices. Of course, IoT devices can also be used to develop properties into smart buildings that are much more valuable in the modern property market.
Modern businesses are motivated by IoT and the possibilities of reducing operating costs, increasing revenue and improving productivity. Businesses that harness IoT will thrive in the future, as they achieve a significant competitive advantage.
Using IoT Technologies to Gain a Competitive Advantage
One field that can benefit considerably from IoT technology is real estate investment management. With the right IoT software development and implementation, investment management businesses can increase property acquisition opportunities, experience more accurate financial planning, gain better insight into trends and predictive analysis and enhance development opportunities.