Scaling Your Property Game: Why You Need Workflow Automation in PropTech
All about workflow automation in PropTech, why it matters, and how it empowers high-volume, low-cost models to succeed – complete with real estate industry insights
Building a PropTech venture? Here’s why workflow automation is essential.
In the PropTech industry, many startups rely on a high-volume, low-cost model to stay competitive. This often means managing a large number of transactions at narrow profit margins – making it critical to keep operational costs low and maximise efficiency.
To enable this type of model, workflow automation in PropTech offers a powerful solution, allowing startups to streamline processes, minimise manual intervention, and maintain consistent quality as they scale.
For one South African PropTech startup, workflow automation meant the difference between thriving and stagnating…
First: What is Workflow Automation in PropTech?
Workflow automation in PropTech refers to the use of software to independently handle tasks and processes according to predefined business rules, often following a series of “if-then” sequences. This setup is ideal for PropTech’s high-volume model, where efficiency and accuracy are paramount.
In practical terms, automation reduces the need for repetitive manual work and enables PropTech startups to manage large volumes of leases, claims, and data processing without a corresponding increase in administrative costs – vital to making the low-margin model viable.
Why You Need Workflow Automation in PropTech: The LeaseSurance Example
LeaseSurance, a PropTech startup based in South Africa, provides a clear case study on how workflow automation can transform a business model in this industry. LeaseSurance developed an innovative product allowing landlords to skip traditional rental deposits in favour of a small monthly coverage fee that offers better protection against damages.
This model attracted more tenants and landlords, expanding LeaseSurance’s client base quickly.
However, as LeaseSurance grew, the limitations of their original system became evident. Built without scalability in mind, their tech setup couldn’t support the high-volume, low-cost model they needed to succeed.
They encountered significant issues, including:
Lack of Real-Time Data: Monthly data exports meant LeaseSurance couldn’t access current data for risk profiling and premium calculations – both essential to their business model.
Performance and Reliability Problems: Using manual, Excel-based processes led to lags, data inconsistencies, and reliability issues. A single failure in the monthly data export could lead to widespread data accuracy issues, putting their business at risk.
While this setup might have worked in the initial stages, it quickly became clear that it couldn’t scale, posing a direct threat to LeaseSurance’s business model.
How Octoco Introduced Workflow Automation to LeaseSurance’s Product
To solve these issues, Octoco implemented workflow automation for LeaseSurance, rebuilding their system to handle high volumes with reliability and speed. Octoco replaced the Excel-based imports with a robust API integration that pulled real-time data directly into LeaseSurance’s database, using AWS Lambda and SQS for scalable, serverless data processing.
This transformation involved several key changes:
Data Mapping and Endpoint Selection: Octoco ensured that data flowed accurately into LeaseSurance’s system in real-time, eliminating manual errors.
Automated Data Retrieval: Scheduled data pulls replaced manual exports, providing LeaseSurance with the up-to-date information needed for risk calculations.
A Dedicated Claims Portal: Octoco built a unique claims portal for LeaseSurance, streamlining the claims management process and enhancing user experience.
These changes meant LeaseSurance could continue growing its business without increasing overhead, achieving a scalable solution that maintained quality and client satisfaction.
See the entire LeaseSurance case study here.
And get the Octoco team to do the same for your tech venture with next-level CTO support, hardware and software engineering.
The Benefits of Workflow Automation in PropTech
1. Lower Operational Costs
Automation reduces the need for large administrative teams, allowing PropTech startups to operate at lower costs while handling high transaction volumes.
2. Improved Data Accuracy and Risk Profiling
Workflow automation enables PropTech companies to access real-time data, which is crucial for accurate risk profiling and premium calculations in models like LeaseSurance’s.
3. Enhanced Client Experience
By automating workflows, PropTech companies can respond to client needs more quickly and consistently, building trust and satisfaction in high-volume environments.
4. Scalability of Operations
As PropTech companies grow, workflow automation in PropTech allows them to handle a larger volume of transactions without sacrificing quality, supporting smooth scaling.
5. Streamlined Claims and Maintenance Management
Workflow automation improves claims and maintenance workflows, allowing PropTech startups to provide a seamless experience to both landlords and tenants.
Key Areas to Automate in PropTech
In PropTech, automation has a major impact when applied to the right areas. Here are some processes where workflow automation in PropTech can drive efficiency:
Lease and Rent Management: Automate rent collection, reminders, and documentation to reduce manual oversight.
Claims Processing: Use automated workflows to process claims efficiently and track status in real-time, ensuring a smooth experience.
Tenant Onboarding: Streamline the onboarding process with automated documentation and approval workflows.
Data Analytics and Reporting: Automate data updates to provide real-time analytics and track key performance metrics accurately.
Avoiding the Pitfalls of Premature Workflow Automation in PropTech
Jumping into automation without first optimising core workflows is a common pitfall in PropTech. Premature automation can introduce inefficiencies, making it harder to deliver quality at scale. To avoid this, PropTech companies should first focus on simplifying their workflows before implementing workflow automation in PropTech.
By following a structured approach – like Octoco’s 5-step process for building better, more scalable products – automation can support, rather than hinder, growth.
How to Get Started with Workflow Automation in PropTech
After refining core workflows, identify high-impact areas to automate, choose PropTech-compatible tools, and implement changes iteratively. Start small, test thoroughly, and refine for the best outcomes.
Ready to implement workflow automation in PropTech? Book a strategy session with Octoco’s expert team for customised CTO support and engineering solutions.
