 What are the other advantages that you guys have picked up that specifically are attributed to automation? So from the survey To answer your question 90% of participants said that technology is actually a worthwhile investment And I think I think that's changed a bit over time It used to be I want to call it I don't want to call it a graduate purchase but it I mean it's something that it's a cost that people didn't necessarily want because They they reasoning is that you know people can do this on an Excel spreadsheet Good evening and welcome to the private property podcast. It is the weekday. It's 7 p.m So where else would you rather be then right here with us where we have insightful conversations about anything and everything property? My name is to me and I'm your host for tonight. So if you are joining us On on our Facebook page. Thank you so much for coming back. Thank you so much for staying with us mark The register and send us those green hearts. We really really want to start engaging with you and a special shout out of course to everybody Who's joining us on the Twitter spaces, you know, the people on Twitter man My heart goes out to you because you guys can't even see us. You're listening into the conversation But you are going to receive such amazing information tonight Because I am with as usual a seasoned professional in the field who's going to be giving us insights about on the past Topics in the property industry. I'm sitting with Joe hits nuts. Who is the head of data and analytics at pay prop Jan Joe heads. Good evening Hi to be nice to nice to chat to you on a on a fake Friday Yes, thank you so much for joining us and we are looking forward to the conversation tonight Me too me too So we're talking the latest rental industry survey results and this is for both agents and landlords and really just looking at all the players in the property industry and Just talk to us a little bit about why you guys do This survey and what kind of insights have you guys gotten in the past and What are specifically your highlights for this year? So this is the third year that we that we've done the survey it usually goes up to those people on our database, so that's people subscribed to the paper up rental index and our users who are mostly other estate agents or Administrators or business owners and we just want to kind of get their perception on when where the rental market is I mean when we when we do the paper up rental index that really is from a from a Statistical data point of view so it's nice to get people's thoughts and feelings about what they about what they Experience in the market on a daily basis Sure, and and what has been some of the highlights that have been Seen well with the trends that you guys have picked up with doing the survey as you said, it's an it's in a studio Yeah, so I think I think the most interesting one is just kind of knowing what challenges business owners especially struggled with and that's something that we've run every year and I think the most surprising thing to me when we first started was was how how few people Embrace the technology and that's that's something that we can see has changed a lot over the last three years So that's that's one of the highlights for me Sure, and you know talking about three years We are talking smack them in the middle of a worldwide pandemic So we have seen how really technology has been helping a lot of industries You know to keep their businesses going to keep the business model or the business models going So let's let's talk about how covert has really forced people in the property industry to To be more inclined to using technology. Do you guys see this particular trend in in the survey? Yes, for sure. I think I think covered force people To to work from home and then they kind of also forced people to embrace the technology We many agents already had technology but I think the extinct in which they started using it during the pandemic changed a bit and and what we see from our Survey is that about 70 60% sorry of respondents said that that automation that technology brings makes their business more productive and About 60% of respondents also said that it is actually cheaper to use technology for automation than it is to increase the workforce So those two definitely definitely stood out for me from a COVID perspective And when we talk specifically with agents right and real estate agencies are we seeing Them understanding the value of automation or because it's really just it's I don't want to say It was force-fed because of COVID but now they're here Do you see that they're realizing that value? They're seeing the value You just you spoke a little bit about them saving some money. What are the other advantages that you guys have picked up that? specifically attributed to automation So from the survey To answer your question 90% of participants said that technology is actually a worthwhile investment I think I think that's changed a bit over time It used to be I want to call it I don't want to call it a grudge purchase But it I mean it's something that it's a cost that people didn't necessarily want because They their reasoning is that you know, people can do this on an Excel spreadsheet That has changed completely. I think and with people Kind of revaluating the Priorities, I think the fact that automation saves them so much time that they can do I mean go play golf if you want grow your business if you want spend time with your family if you want so that to me I think shows that people actually realize the value of technology is not just times saving it's it's changing your priorities and and Growing your brand and your business if that's what you want to do Yeah, no, definitely and you know, I always say technology only is amazing if it works And they are probably challenges that come with automation and with imbibing these new technological ways of doing things You know, we were speaking just not too long ago on the podcast on how Technologies changing some of these spaces, you know and some of the apps and the technological advancements that the property industry has done And I would like to know from your perspective What do you think are the biggest challenges that come with technology or with automation as you guys have seen? So, I mean there there are a lot And I want to speak more to the solutions that that technology this survey that the top three challenges from business owners specifically is managing areas firstly Finding the tenants is a big one and then lastly growing their portfolios I mean, they're fishing in a limited an unlimited fund and from paper props perspective We really focus on helping with all three of them. So if we look at areas for example, we have multiple areas reports That gives so much transparency into exactly where your rental book is that it makes it so much easier to manage that An agent can send automated reminders from the system literally with the click of a button They can send letters of demand and these are very effective tools and helping them managing them their areas Secondly, of course, if you place better tenants you areas will be less of a headache And our tenant assessment report, which is basically a credit check designed for rental agents Takes information from a credit check as well as rental information So that gives an agent a better indication of the type of tenant that someone will be instead of just looking at his credit check So that is finding good tenants that that helps with that and then lastly If agents want to grow their book, I would suggest using technology that focuses on Offering benefits to the landlord so that they can distinguish themselves from the competition. So using Amazing technology can really help a state agent business owner with managing their biggest challenges Yeah, and and I really think this the the movement also is warranted because if you can't pay rent then it's People think it's easier to rather move out than to have this this back paying that you would have to do so Let's talk we just spoke about Landlords that dealing directly with the attendance Do you think that that commission or that that commission expense is is something that will that is worth it for the landlords? And do you see this trend maybe changing because we saw it as due to lockdown Do you feel that they are going they will most probably not drift that way even post the pandemic? So I mean, yeah Commission is it's definitely worth paying that commission and I think and I think a lot of landlords hopefully Realize that especially during COVID if I can use my my investments example again I mean anyone can in anyone can buy stocks You can log into a Profile this online options and buy your own stocks and if the market's good You'll think that you're an amazing portfolio manager And if the market is down, you probably won't be performing so well because that's not your area of expertise So when it comes to an rental agency managing a landlord's property knowing all the laws and regulations is Massive and it's increasing and that is definitely something that the landlord especially if you have like one or two properties You don't want to spend the time to to stay on top of all of that at the other end, I mean agents probably have a Database of tenants looking for For place to stay so if it takes an agent maybe a month to find a tenant and it takes a landlord two months to find a tenant That landlords property is vacant for a month so If you think the the rental income that he that he doesn't get during that month Is that really worth the 10,000 rand commission that you're saving during a year. I don't think so Yeah, no, definitely and they there's a reason why skilled individuals are in the industry So I think if they can as a landlord if you if you are a landlord watching us tonight It's better for you to have someone skilled, you know Who can also manage your property once the tenant is inside instead of trying to do everything yourself and most probably even Having a bigger problem than the one that you actually have so When we when we speak about rental agents, do you do you have any specifics or advice that you could give to a landlord in terms of What should they look for in a in a rental agent? Yes, I would definitely I would definitely say Find out what technology they use and and more specifically from a security point of view So, I mean with cybercrime increasing safety of funds within any any system that that Trance acts Is is super important. We've seen cybercrime figures increase massively during covid. So that's So the security of the system and safety of funds is definitely The biggest thing and then I would also say Make sure that the the technology that an agent uses Has benefits for you as a as a landlord if I can take a proper example We have an owner app. That's free for landlords to use it offers complete Transparency into into a landlord's portfolio with the year's one property or 10 properties So that is just for a landlord and if you're if you're looking for an agent those types of things Could really make a difference for for you as a landlord No, sure definitely and if if I'm a landlord and I've got a couple of properties and I'm thinking and looking at getting Managing this this portfolio. Do you feel that the market is about to change? It's about to grow Oh, it seems like we lost your head. Did you hear me? I'm back. Sorry So my question was just asking about if you're a landlord and you are managing a couple of properties What what how what are you anticipating the market to look like? In in the next two to three years because we've really seen a dip because of of course the pandemic And are we saying it will still fluctuate? What are what are the trends that you guys are anticipating in the next two to three years so I think two months ago. I would have given you a different answer that we've David seen If you look at the rental index itself, we've definitely seen the rental growth rate. So the the increase in in average rent prices decrease a lot. So Year on year growth was below 1% for for quite some time Recently got quarter one stats. It's looking a bit better but I think I think the effect that the that rushes Invasion of Ukraine is having on Not just the country, but but globally. It's affecting inflation in South Africa and the rest of the world that on a macro level will mean that Interest rates are rising Which means that economy will grow in slower. So you have high inflation on one on one part of of this Expenses and you have a high interest rates on another section of their expenses So really there isn't a lot of wiggle room. So with that being said, I I I don't really see that the rental market will Will rebound quickly. I think we can expect to see to see low rental growth rates for at least the next year But I mean it's it's every every investment has it's Has it's frozen cons and and this is to me just one of the one of the possible cons is low rental growth Sure slow and steady really there slow and steady growth. So we have a couple of questions from our family on social media And I'll just hoy those in quickly and if you are watching and you have a question sent it now So that we can quickly tackle that before we close the conversation of tonight So mishuk is asking can I use pay prop for my property stock fell members to make their monthly contributions? So I'm fortunately only registered estate agencies with a valid if you see Can be a paper client okay, so I think that really just does answer that so if maybe they are property stock fell Are there any ways that they could use? Do they still have to do they have to register or pay use or use a real estate agent? Is that what you're saying? They could potentially use a real estate agent for that. Yes. So so automation of collections Is something that an estate agent would be able to help with yes Oh, great Let's talk also a little bit about the trends that you guys are seeing coming up, especially in the technology space And when it comes to landlords tenants and real estate agents What are we seeing? Come up as as a trend for the next year or two that people need to start adopting that they need to look out for And maybe even some of the the challenges that you guys are foreseeing because I like that we just spoke about The happenings in the world and how it might just be slow and steady growth for For landlords and people who really own properties, but for everybody else. What are the things that we should start looking out for? So I think for all three of those groups just knowing what goes on in the market Is quite important and I if I think from a from an agent landlord Relationship point of view A landlord shouldn't be expecting 10 percent year on year increases If he was used to that five years ago because that's just not the market that we're in the same for tenants. I mean Know that you can expect The high inflation rising interest rates and budget accordingly So I think just just being aware of what's happening not just in the rental market, but in the economy And and I want to say plan around that to make sure that that you can pay your rent on time to make sure that Your expectations for the return on your investment is reasonable That that I would say is very important and especially in turbulent times as as we're in at the moment Sure and anything specific for for for real estate agents because I hear you talking mostly to tenants anything specific for real estate agents Will real estate agents know what technology is on the market Make sure you ask the right questions, especially about security safety of funds um being compliant with all the all the necessary laws and regulations and Make sure that that is your focus instead of you know, finding the cheapest solution out there that will will not Vote well for you if things go wrong Yeah, I think education education is very very important Especially in an industry that is ever changing and there's all these technologies that are coming in the globalization That's happening. It's it we are becoming one big village and it's very important that In every industry we make sure we know what's on offer so that we can take advantage of it Any last words before we close the the conversation tonight? Um Nothing that I can think of sign up for the paper of rental index The new one will be out within a month or so And you can do that from our website and other than that enjoy the The public holiday tomorrow Thank you so much for that. Thank you so much for joining us tonight We will definitely look out for the 2022 one and I'm I'm really looking forward to reading it I really enjoyed reading the 2021 one and hopefully they will be great insights there for the For the private property family to read and also just really know, you know for all categories of Of players in the industry. It's really important for us to stay informed and know what's happening Thank you so much Chad for joining us tonight and have a good evening Thanks to me And that is about it for tonight's episode Thank you so much if you joined us on the twitter spaces right here on facebook We really really appreciate you always I'm staying right till the end of the episode so that you can not miss out on a single gem Thank you so much for joining us and have an absolutely splendid evening