Common Challenges of Implementing Robotic Process Automation in Real Estate

Historically, the real estate industry has been relatively slow to adopt new technologies compared to other sectors. Fortunately, this is slowly changing as real estate businesses and property management companies are beginning to understand the tremendous potential that certain technologies offer. One of those solutions is Robotic Process Automation (RPA).

RPA is a technology that uses software robots ("bots") to complete time-consuming and repetitive tasks, allowing human workers to focus their energies on higher-value tasks. There is a growing interest in RPA in the real estate sector, where it is typically used for functions such as data entry, customer relationship management, document management, invoice processing, compliance monitoring, maintenance management, tenant onboarding, and more.

In its basic form, RPA is a rules-based system. This means it mimics human actions based on rules and protocols you configure it to follow. However, it can also be combined with machine learning capabilities to allow it to learn, adapt, improve, and make decisions.

Despite the significant advantages it can afford property managers and real estate businesses, implementing RPA also comes with some challenges. In this post, we will highlight some of the most common hurdles real estate agencies face when they begin using robotic process automation and share some tips on overcoming them.

The Key Challenges in Implementing RPA in Real Estate and Property Management

Adopting RPA technology offers tremendous potential and numerous benefits. From eliminating the potential for human error to saving time, reducing labor costs, and allowing for more effective and timely data manipulation, investing in robotic process automation as part of your digital transformation can completely overhaul your operational efficiency.

Some real estate professionals are put off by what they perceive as a high cost of entry and steep learning curve to begin using automation technologies. However, this need not be the case.

With sufficient planning and a little knowledge, you can begin increasing efficiency, reducing costs, and drawing more value from your property portfolio by automating repetitive tasks in as little as a few weeks.

Read on to learn about some of the main challenges real estate companies face when using RPA and how you can plan for and solve them.

Lack of Process Standardization

Many real estate processes are manual, requiring human actions by default. They also vary tremendously across the industry and between offices of the same real estate business. This lack of standardization can lead to difficulty in identifying which tasks and business processes are best suited to automation.

We suggest beginning with robust process mapping, visually outlining and documenting all the routine tasks that make up your business. This will allow you to identify which processes are suitable for automation and begin automating tasks with an RPA solution. Repetitive, time-consuming tasks are usually the best to outsource to RPA bots.

Do not try to do everything at once. Instead, start by automating just one or two tasks. This will allow you to get to know your RPA solutions better before you begin to scale them.

Integration with Legacy Systems

Real estate businesses often use outdated property management or customer relationship management (CRM) software systems. Many of our clients still use Excel to manage their daily real estate operations.

It can be challenging to integrate RPA solutions with these legacy systems. For example, connecting RPA bots to tools without an application programming interface (API) can be difficult.

Ultimately, it may be worth investing in a comprehensive suite of real estate or property management software to manage all your business processes. However, if this is not within your budget, you can still begin implementing RPA bots and reaping the time and cost savings they offer.

Working with a consulting partner like REdirect allows you to overcome this challenge. Our team members have extensive experience integrating RPA with numerous legacy systems and creating bespoke solutions for real estate firms of all sizes.

Resistance to Change

Employees may mistrust automation technologies when you begin to implement them. This is understandable; they might fear job displacement or assume you intend to replace them with RPA bots. This can lead to significant cultural challenges in adopting robotic process automation or other new technologies.

Fortunately, this can be overcome with strong management and stakeholder engagement. Communicate with your team members at every stage of the process, seeking their input and reassuring them that they are not at risk of job loss.

When used correctly, RPA solutions should not replace human workers but make their jobs easier and more efficient. By automating manual tasks, they are free to perform client outreach, customer engagement, and other functions that require a human touch. For example, your RPA bots can send automated reminders to tenants when their rent is due, assist with document processing, and perform basic facilities management tasks, which would have previously required human intervention.

Data Privacy and Security Concerns

Real estate businesses handle vast amounts of sensitive and complex data. From tenants' personal and investors' financial data to employee performance management data, it is essential to handle data correctly.

Mishandling tenant or client data presents a serious reputational risk for real estate businesses. It can also put your regulatory compliance with laws such as GDPR at risk if you are in a jurisdiction where these laws apply.

However, when used correctly, RPA solutions can enhance data security for the real estate sector. Ensure that your RPA tools are correctly configured for security, that your data is encrypted, and that your company's firewalls and antivirus software are up to date. If in doubt, consult a data protection and privacy expert with experience of RPA in real estate.

High Initial Investment and ROI Uncertainty

Many business owners and property managers perceive that implementing RPA in real estate comes at a very high upfront cost. Smaller firms may also find it difficult to understand the potential return on investment (ROI) of RPA technology, making them reluctant to take the plunge.

While there is a cost associated with RPA implementation, the cost savings it offers can also be significant, making it a great investment for real estate companies in the long run.

If budget is a concern, we recommend starting small and scaling strategically. Begin by automating your most-performed time-consuming tasks, such as data entry, data extraction, or tenant onboarding, then gradually add more tasks as you get used to robotic process automation and begin enjoying its benefits.

Maintenance and Scalability

RPA bots generally have relatively low maintenance requirements once you have set them up, but they are not a set-and-forget technology. Bots require occasional maintenance and updates as your processes and systems evolve. This can be challenging for real estate and property management businesses without an in-house RPA expert.

A consulting firm with real estate industry expertise can help you keep your RPA technology updated and scale beyond your initial pilot projects. At REdirect, our comprehensive real estate service is designed to help businesses across the industry implement robotic process automation successfully and continue reaping its benefits for the long haul.

Lack of In-House Expertise Within Real Estate Businesses

There is a shortage of knowledge of RPA in real estate teams, meaning that business owners may not feel equipped to implement and use RPA correctly. This leads to a dependence on external vendors or consultants.

There are two main options for companies experiencing this problem: upskilling their internal staff or outsourcing. Both have pros and cons. For example, outsourcing to an external provider can allow for salary savings in-house, but you may need to wait slightly longer for a response when you open a support ticket. You will need to decide which is right for you based on factors such as your budget, team size, and existing skill levels.

Automate Business Processes, Enhance Portfolio Management, and Start Your Digital Transformation with REdirect, Your Trusted Consulting Partner

Robotic process automation (RPA) in real estate offers numerous advantages. It allows companies to save time on manual tasks by outsourcing such tasks to RPA bots. Good use of RPA can lead to stronger property and portfolio management, greater customer satisfaction, and, ultimately, greater profitability.

However, using RPA also requires thought, planning, and a well-defined strategy to be a success. It is important to plan your technological transformation around industry-specific and company-specific needs.

REdirect offers flexible and comprehensive support services for real estate industry businesses looking to begin using RPA, scale their RPA usage, or get more from their RPA solutions.