The world has gone digital. Technological advancements continue to transform our everyday lives. We pay bills, buy groceries and even see doctors online. To keep pace with consumer demands, all industries must undergo digital transformation — insurance and real estate are no exception.
One area ripe for innovation — renting. More than a third of Americans rent homes. Homeownership costs more than renting in nearly all cities, so rental demand will likely grow. At the same time, multifamily construction is surging, meaning property owners face more competition for renters.
The rental demographic is also changing. By 2026, the number of Gen Z renters will begin surpassing millennial renters. This generation has lived their entire lives with smartphones — they expect digital experiences. To attract this growing segment, property owners and insurance providers must create convenient and accessible processes. Owners still use software designed decades ago and conduct the same manual checks they did in the 1970s. With so many new tech tools and capabilities, there’s no reason to stick with outdated practices.
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Digitally transforming the rental process
People renting a home must complete a complex, time-consuming gauntlet of tasks, many of which could easily be automated. That automation also benefits property owners, who often get bogged down with paperwork.
Consider the impact of technology on each step of the rental process.
Application
When applying for a rental, prospective renters must provide personal information, employment verification and proof of income, among other details. Often, these forms are physical, requiring a visit to the rental office, a complicated fax or an old-fashioned mailing process, all of which delay approval and generate extra work for renters and managers.
At the same time, property owners must review all the written forms, call for employment verification and conduct a credit check. The lengthy manual workflow creates bottlenecks and headaches for everyone involved.
Converting to a rental portal allows renters to complete documentation online from anywhere. Owners receive the documents faster and can use AI-powered software to organize, analyze and store the information. Rather than searching for paperwork, property managers have the info at their fingertips for the lease’s duration. The streamlined process allows tenants to move in faster and reduces the time properties sit empty.
Security deposit
Renting a home involves steep upfront costs. Property owners usually require new tenants to make a security deposit of the first and last month’s rent and other fees. Then, they must navigate escrows and government regulations to manage the money. Returning a deposit at the end of the lease requires yet more time-consuming paperwork.
Why not automate this process? Technology can handle deposits from payment through return, reducing workloads and owners’ stress. A digital portal also offers residents additional payment methods.
With rental prices surging, security deposits can add up to thousands of dollars, making renting inaccessible to many. Rental deposit insurance enabled by technology eases this burden. Renters can pay a small monthly fee instead of a large one-time payment, while property owners receive the same protection against damages. The smaller payments also reduce administrative tasks.
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Renters insurance
Acquiring renters insurance is another hoop to jump through. New tenants must research coverage options and obtain quotes before moving into a new home. A digital platform can provide renters with customized options based on information provided at application. The offering streamlines the process, which benefits the renter and the property owner.
A digital platform can also provide digital insurance cards and file the information for easy access for claims or verification.
Rent payments
Today’s renters don’t want to mail or drop off a physical check. They want paying rent to work like every other bill — online. Technology makes that process possible while also eliminating hassles for property managers. The money appears in the account with no sorting or trips to the bank.
An added benefit — digital solutions offer alternative payment options. Renters can break rent into smaller monthly payments, with no additional work for the property manager. They can also pay by credit card. Modern renters want these choices, and providing them will make rental properties more attractive.
Many property managers and insurance providers may hesitate to embrace technology due to significant investments in legacy systems or concerns about risk. Still, the current approach is untenable long term. Digital transformation removes friction from the entire rental process. Residents enjoy a seamless experience, while property managers benefit from increased operational efficiency. Everyone wins.
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