Digital tools — electronic contracts, tenant apps, smart locks — are increasingly being used in property management as well. Here's an overview of how each one works and what's worth keeping in mind when adopting them.
- The digitalization of property management is progressing across several areas — contract procedures, tenant response, and key management among them.
- Electronic contracts remove the hassle of stamping and mailing documents, and speed up the contracting process.
- Tenant apps can let inquiries, repair requests, and rent confirmation be handled entirely online.
- Smart locks are used to make viewings and key handovers more efficient.
- When pushing ahead with digitalization, it's also worth keeping in mind that not every tenant will be able to keep up.
Why Property Management Is Going Digital
Against a backdrop of the hassle involved in stamping and exchanging paper documents, and growing demand for procedures that don't require being there in person, digital tools are increasingly being adopted in property management. This is about more than making a management company's operations more efficient — it can also improve convenience for tenants. For owners who live far from their property, it also has the benefit of making it easier to keep track of things remotely.
How Electronic Contracts Work, and Their Advantages
An electronic contract is a system where you sign a contract electronically instead of stamping and mailing paper documents. Beyond speeding up the time it takes to finalize a contract, it also makes storing and managing documents in digital form easier. It's worth checking the service used and its retention requirements. Reducing the risk of losing a contract altogether is another practical advantage.
What a Tenant App Can Do
A tenant app can let residents submit repair requests, check their rent payment status, and reach out to the property management company online. Compared to handling things by phone or on paper, it also has the advantage of leaving a record that's easier to keep track of, which helps prevent things from falling through the cracks. If the app lets tenants attach photos to a repair request, it's also easier to grasp the situation.
Where Smart Locks Are Used
Smart locks are used to enable self-guided viewings (serufu naiken), where prospective tenants can view a unit without a key being handed over in person, and to make key management for tenants more efficient. Reducing the hassle around lost keys and making duplicate keys is another operational advantage. For more on making viewings more efficient as part of vacancy countermeasures, see our separate article, How to Handle Property Viewings: Key Management, Smart Locks, and Self-Guided Viewings.
Points to Keep in Mind When Digitalizing
Digital tools are effective for improving efficiency, but not every tenant will be able to keep up. For elderly tenants or those unfamiliar with digital devices, flexible operation is called for — keeping the traditional way of doing things available alongside the new tools, for instance. Inquiries can increase right after a new tool is introduced, so it's worth checking what support arrangements are in place as well.
Choosing a Management Company Based on Its Digital Capability
When choosing a property management company, how far it has adopted digital tools is worth comparing alongside fees and track record. If you want to reduce your own workload as an owner, it's worth checking whether the company offers online reporting and digital handling of inquiries. Taking stock of how far your current management company has gone with digitalization can also be a good starting point for reconsidering the relationship.
Frequently Asked Questions
Are electronic contracts legally valid?
An electronic contract that meets certain requirements is considered legally valid. That said, treatment can differ depending on the contract's content and subject matter, so we recommend confirming the details with a professional or the service you plan to use.
Can digitalization accommodate elderly tenants too?
Since some tenants are unfamiliar with digital tools, it's best to keep the traditional phone- and paper-based options available alongside them.
How much does digitalization cost?
It varies depending on the tools and services you adopt. It may already be included in the services a property management company provides, so it's worth checking on a case-by-case basis.
Summary
Digital tools such as electronic contracts, tenant apps, and smart locks help make property management more efficient. At the same time, since not every tenant will be able to keep up, it's worth aiming for flexible operation.