Property management refers to the management of commercial, residential, or industrial real estate, including houses, apartments, and shopping centers. It is basically the management of the property which is owned by another party or person. Property Management may also include searching for people who are looking for a space to live, collecting rent every month, and taking care of the property afterward. There are basically four terms that fall under 'property'.
Offices or buildings which are generally built to produce such as hotels, offices, shopping malls, etc. are commercial properties.
Personal house, resale homes or newly constructed homes are referred to as a residential real estate.
Working farms, idle farms, or dairy farms are listed under this type of property.
Warehouses or manufacturing buildings are placed under industrial property. This type of property is generally used for storage, production, or distribution of goods.
Property management is not an easy and straightforward task for buyers, landlords, sellers, and agents as it seems to be. It holds rent collections, repair, maintenance, tenant selection, renovation, and legal procedure. So it is clear that property management is quite a difficult task.
Although classical property management is used, there are some issues and problems with traditional property management.
- Lack of transparency
- High fees
- Not open to everyone
- Slow Payment
But all these problems can be reduced with the help of blockchain technology. This technology allows users to transfer funds or rent digitally without involving any third party or middleman. This results in reduced fees and faster transactions.
All the transactions done via blockchain are permanently and publically documented, which increases security, privacy, and accuracy. If we talk about first blockchain technology, then cryptocurrency has already taken the market on to new heights.
According to some reports, blockchain is best suited for property management and trade finance business. With blockchain, the property-based transactions will be more secure and real-time through web and mobile apps. Blockchain offers trust, efficiency, and transparency in property transactions, which increases good control and reduces the figure of property-related legal proceedings. Choosing a solution with an integrated database is less costly but it would offer less security and improvements over current processes. There is no other technology that offers a trustworthy solution verifying, enacting, securing digital contracts.
The outlook of Real Estate Industry with Blockchain
- A digital record of all individuals and corporations which contains all the details and information with their credit history
- Recording and balancing every transaction automatically with a self-controlled accounting system to avoid the chance of anyone making changes in between the system.
- 100% secure and electronic property sale without the need for any paper deeds to reduce the chances of fraud and cheating.
- Automatic withdrawal of rent payments and service charges from tenants' account with no error in cost.
In the future, it may be possible for tenants to buy a home by clicking and completing the sale through a shopping cart of a website. Blockchain will make sure that the seller gets the cash amount in the form of cryptocurrency and the buyer gets the deed. With blockchain, the deed will also be documented for future use. The following are the three major advantages of blockchain.
All the information and data stored in the blockchain can be viewed by everyone who is part of that network.
Since all the data inside the blockchain is in the form off cryptographic hash functions, it is not possible to tamper the data.
all the data and information contained in the blockchain is managed and owned by multiple entities.
A token is s digital deception of real-world services or function and the mechanism of implementing token is called Tokenization. The token does not have any exploitable value. Tokenization will enhance property management and will help in selling or buying property without involving any third person.
Benefits of tokenization
- Programmable Securities
- Lower Investor Barrier
- Immutability and Security
The industrialists have now realized that the blockchain integrated property management is the future of real estate dealings. Smart contracts will provide more secure and enhanced property sales and rental transactions. It will also potentially transform the core real estate operations like property transactions.
Benefits of Smart Contracts
- Safety from Fraud
- Enhanced Transaction Speed
- No Involvement of Middleman
Working of Blockchain-Based Property Registry
- The ownership of the real estate, details of transaction processes, and mortgage deeds will be represented in the form of a digital file to all the persons involved in the deal. These files can also be stored locally or on the cloud for remote access.
- Blockchain will secure the ownership confirmation file, the signatures, the process of the authenticity, etc. as well as the same data will also be accessed and validated by other actors involved. It can also be used by third parties for verifying authorization.
- Based on privacy laws, the landowner can select which information part of the information will be publically available and which will be set confidential.
- The security of ID can be improved by including stricter identification methods like biometric identification, various signatures, physical ID or document photo, etc.
Verifiability, irreplicability, and immutability are the three major features that are offered by Blockchain. Before blockchain, it was difficult to find these properties in property management. These features help in the prevention of fraud, corruption, and usurpation.
The current real estate management system and processes are siloed due to which stored information is consequently dispersed. This lack of information exchange creates data redundancy and opaqueness. Blockchain will open new opportunities for potential investors from all around the world to try their hands in the real estate business. If executed successfully, it will increase the real-life importance of token which will bring a huge benefit for crypto space as well.
Real Estate Areas Being Transformed by Blockchain
Payment and Financing System
The current systems of property transactions and financing are slow, opaque, and expensive due to the requirement of various documents and the involvement of mediators. These problems are actually faced during international transactions or when the property is financed through a mortgage. With blockchain, this process can be made more transparent and simplified.
As many stakeholders including owners, tenants, vendors are included in property management, it is a highly complex task. Currently, most of the properties are managed either offline through paperwork or by some software that generally does not operate properly. With blockchain, the complete property management from signing the lease to cash management will be managed by a single decentralized application more transparently and securely.
Currently, vendors, buyers, and tenants usually search for property on a third-party platform which demands high fees based on subscription. Also, the data is fragmented on various listing platforms which results in data to be incomplete or inaccurate. Blockchain allows storing property data and information to exist on a single centralized database. This will help the vendors to have control over the data.
The property management solutions integrated with blockchain will allow you to effectively manage all your real estate operations. In addition to this, these solutions will provide some flexible tools to enhance property management.
Benefits of on-demand solutions
- Management of all your commercial or residential properties with the help of one complete and enhanced system.
- Access all your property data anytime or anywhere using web-based property management solutions.
- Online portals for simplified tenant and residence experience to increase more customer management.
- Frequent data backup and regular real-time threat protection.
At Nimble AppGenie we are working to develop best and highly scalable solutions to make your selling, buying, and renting experience better. The following features are offered by our solutions.
- Instant selling and buying of properties
- Affordable Ownership
- Secure and Safe Transactions
- Digital Payment and collection of rent
We are working to make the buying and selling an easy task for buyers as well as vendors by integrating blockchain technology in property management. Our main focus is to provide solutions that can offer secure, fast, and transparent payment experience.
Jermaine Trotman is the co-founder of Nimble AppGenie, a company renowned for its bespoke mobile app development and web development in e-wallet app development and fintech development.