Real Estate Portfolio Analytics Software | PropTech Startup Ideas

This 1001 startup idea from YoStartups.com is to establish a Real Estate Portfolio Analytics Software software having a complete dashboard with insights to manage the real estate investment portfolio. The dashboard will change the way portfolio managers look at the data currently and will help them make better and informed decisions about higher profitability.

 

Market Definition for 1001 Startup Ideas – Real Estate Portfolio Analytics Software

As per Technavio’s research report, the global property management software market is estimated to grow steadily at a CAGR of 5% by 2021. One of the primary drivers for this market is the rise in the demand for accurate documentation and better collaboration between the teams. The demand for property management software will grow among enterprises, agents and brokers.

The traditional process involved a lot of paperwork and repetition of tasks and required lot of time and storage space. The adoption of property management software eliminates the clutter, and all the operations are digitized for ease of work and precision.

 

Competitor Analysis for 1001 Startup Ideas – Real Estate Portfolio Analytics Software

With the advancement of technology in Real Estate, we already see that the supply and demand side of the market is electronically mapped. Now the companies are working to provide platforms and software to harness the power of the available data to empower brokers and portfolio managers.

One such company is New York-based, VTS that has developed a tool to streamline and expedite the leasing process through its data and analytics. Another company is SaFo-based Rentlytics, which delivers the information and necessary tools to make sustainable, high return portfolio decisions in the increasingly complex Real Estate market.

 

Pain Point & Target Audience for 1001 Startup Ideas – Real Estate Portfolio Analytics Software

The target customer for this software are Real Estate portfolio managers, investors and property owners owning/managing multiple assets.

The portfolio managers and property owners spend a lot of time in repetitive manual tasks. There is a lack of collaboration between their teams as there is no centralized data center and dashboard across the teams.

 

Value Proposition for 1001 Startup Ideas – Real Estate Portfolio Analytics Software

This tool will upgrade portfolio managers from old days way of using pen and paper or static spreadsheets for storing data, and will help in accessing real-time information in cloud-hosted databases and collaborate more efficiently with the team. The tool will remove the time-taking mundane labour off the portfolio managers, and they will be better equipped to make data driven complex decisions.

 

Business Model for 1001 Startup Ideas – Real Estate Portfolio Analytics Software

The startup will work on the B2B subscription model where Real Estate enterprise will be its customer. The end user of the tool would be portfolio managers or agents, and in the case of small enterprise, it would be the owner of multifamily assets.

The startup can have different levels of subscription available depending on users’ detailed analysis requirement. For a small enterprise, macro-level details should be sufficient with the protected asset performance in the long run. For larger enterprises, the tool will include individual asset level performance analysis. It would also need to include team workflow automation functionality to create better collaboration in their team.

 

Way to market for 1001 Startup Ideas – Real Estate Portfolio Analytics Software

The first step would be to create a sleek team collaboration platform where team members of an enterprise can collaborate and store all their data on the cloud rather than their individual systems or spreadsheets. Then the startup should work on understanding and developing features to forecast short and long term performance at the macro-level, post which the startup should start offering the product to small enterprises for beta testing.

Once the product is tested and it is stable at macro level forecasting, the startup should start incorporating micro level details. Some of the features that the startup can consider are Occupancy rate, Lease term analysis, budgeting, and delinquency.

 

Milestones for 1001 Startup Ideas – Real Estate Portfolio Analytics Software

The startup should target to get the macro level forecasting product ready in 3-4 months and then test it with at least five small enterprises before incorporating micro level features. In first 12 months, the startup should target ten small enterprises and at least two large enterprises.

 

Investment Needed For Prototype for 1001 Startup Ideas – Real Estate Portfolio Analytics Software

For testing & building the prototype, pitch for raising 200K USD from angel investors or incubators. One could apply to Inhab accelerator in Hong Kong (focussing on real estate tech startups) which has its applications open for its first batch of real estate startups. There should be no office rentals or salary payout; the entire budget should be apportioned for customer acquisition and technology.

 

Team Capability for 1001 Startup Ideas – Real Estate Portfolio Analytics Software

You will need a full stack developer with your core team to lead the product development. It is also very important to have someone with years of experience with Asset Management in Real Estate for the product management.

Again as it will be B2B sales for the startup, you would need your team members to be seasoned in solution sales.

Investors / Expert Take for 1001 Startup Ideas – Real Estate Portfolio Analytics Software

Even though being the largest industry, Real Estate has lagged in innovation due to slow adoption of new technologies. The industry is still considered to be standing on the pillars of human relationships and networks. What we not realize is that the industry also has a huge flow of data which can further supplement the network to improve the overall profitability.

Just in Q1 2017, the industry attracted $3 billion in total investments. Though we still see bulk of this investments going to non-tech RE startups as they have matured and are raising late stage bigger rounds. It is very encouraging to see startups like PropTiger, Placester,redifi which are spearheading the inclusion of technology in the industry.


This 1001 startup idea article is from Yostartups, YoStartups is a Pre Accelerator and it empowers entrepreneurs to propel their business ideas into successful ventures. Yostartups’ core mission is to take the message of entrepreneurship to 1 billion people globally by 2020.

In case you are looking at scaling or launching a venture on similar lines, you can apply for our virtual acceleration program Excelrate on our website, Yostartups.com, Yostartups’ Excelrate program will help you in streamlining and structuring your startup idea. We have limited scholarships and discount packs for deserving startups, depending on the strength of your application, you may qualify for a discount.

*Any information given in the article does not constitute any warranty of marketability or fitness for a particular business idea for any market or industry segment. It is the readers’ sole responsibility to further research and assess the market opportunity.
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