Can proptech help rent an apartment faster?

Several realty websites have started using technology-driven solutions to expedite deal closures for rentals and even for apartment sales.

The number of proptech startups has increased to over 1,400 in 2022, from just two in 2016. As of May 2023, proptech firms accounted for 6 percent of the startups in the country, according to real estate consultant Anarock.

Several realty websites have started using technology-driven solutions to expedite deal closures for rentals and even for apartment sales.

Tech solutions

Real estate portal MagicBricks has come up with the Know Your Tenant (KYT) solution, that can help reduce the time required for closing the rental process. KYT uses a chat-integrated feature that enables tenants and landlords to connect and close the deal, eliminating the need for personal visits.

NoBroker, a property sales and rental site, told Moneycontrol that the portal uses databases created by the company, along with government databases, to give prospective tenants a better idea of rentals in an area. It has also rolled out Rentometer, which allows prospective tenants to see the rentals in different parts of Bengaluru and estimate the fair value of their transaction.

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Sub Editor|Moneycontrol

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Does the technology add value?

Several tenants told Moneycontrol that they would prefer to use technology only if it provides value, or saves time.

Following the rental frenzy in Bengaluru, Anwesha Ray's landlord increased the rental by 40 percent, forcing her to hunt for a new apartment. She said, "I would not prefer to use such technologies because I like to visit the apartment in person before making a decision."

However, another tenant who recently moved to Bengaluru said that features like KYT work out mostly for prospective tenants who are moving from another city, or someone who’s hard pressed for time.

Several landlords Moneycontrol spoke to preferred to meet the tenant in person before closing the deal.

Ashwin Jacob (name changed) said, "We spend more than a month’s rent to repaint the apartments. Even if I am meeting my tenants online, I would meet them in person before renting out my apartment to have a certain comfort level."

Though the technology may solve some problems, much more needs to be done to add value to both landlords and tenants, he added.

The article has been updated on June 7 at 5:10 PM.