Everything to Know About Proptech Companies
Property technology affects your life more than you likely realize. This booming industry, also known as “proptech,” is responsible for the technology used in the real estate and hospitality industries. Several different types of proptech companies come together to form this expansive sector of technology, all working in distinct ways to improve and innovate every aspect of real estate and hospitality.
As a large, expansive area of technology, there are many different types of proptech companies working to create new software and processes for this industry. You might be familiar with some of the top proptech companies known today (such as Airbnb or WeWork), but there are likely hundreds of other businesses in the proptech industry you have yet to discover. Furthermore, the proptech market is constantly evolving, meaning there’s plenty of new information to learn.
That’s why our team of hospitality professionals wrote this definitive guide to proptech companies. In this article, we’ll cover what a proptech company is, the various types of proptech companies, and how the proptech business sector is expected to grow and evolve.
We’ll also share information on how members of the hospitality industry can benefit from proptech businesses, as well as guidance on how property groups and hotel brands can pick the best proptech company for their team.
Keep reading for everything you need to know about proptech companies.
What is a proptech company?
A proptech company is a business that creates or provides innovative, technological solutions to businesses that work with property, from real estate to hospitality.
The proptech industry is filled with various types of proptech software, but the most innovative proptech companies are those who know their users well—including their biggest pain points and areas of opportunity—and provide helpful solutions.
The definition of a proptech company or proptech business will likely continue to shift as the industry evolves. What is considered a top proptech company today, for instance, will likely be different from the best proptech companies 20 years from now.
When did proptech companies start to form?
Because the proptech industry is relatively young (in comparison to, say, the automobile industry), many proptech businesses are also comparatively new. According to Forbes, early forms of proptech software were introduced as early as the 1980s, but in the early 2000s’ dot-com boom, a slew of new proptech companies hit the market, such as Trulia and Zillow.
Since then, proptech companies have continued to advance and multiply. Today, there are “hundreds, if not thousands of startups, that are excitedly trying to disrupt this slow-moving industry,” shared Andrew Baum, a visiting professor of management practice at the University of Oxford’s Saïd Business School, in a video posted by the school. That proptech industry and proptech company growth is expected to continue.
How are proptech companies expected to grow and evolve?
The proptech market is constantly evolving and shifting to the needs of today’s consumers—and with it, so are proptech businesses.
Take Zillow as an example. Created in 2004, founder Rich Barton believed that technology could transform the way people buy homes and the real estate industry. While it would have seemed unthinkable to search for a new house online just a decade or two prior, the company—among other similar businesses like Redfin and Realtor.com—changed the way people search for a place to live.
Airbnb is another popular example of how the proptech market has changed throughout the years. Prior to being founded in 2008, the idea of staying in a stranger’s home during a trip or vacation—or, in the inverse, hosting a stranger in your house or apartment—felt unimaginable.
“Everyone thought that they were completely crazy; no one thought this was a good idea,” said Leigh Gallagher, assistant managing editor at Fortune magazine, in an interview with Knowledge at Wharton. And yet, this proptech company disrupted the industry.
These are only two well-known examples of how the focus of proptech companies have shifted throughout the years. The proptech industry is expected to experience continuous growth, with a report from Future Market Insights forecasting the proptech market to grow to $86.5 billion by 2032.
What’s more, the real estate industry and hospitality industry—two core sectors of business that rely heavily on various types of proptech software—are also expected to grow. According to data from Statista, the real estate industry is projected to grow to $412.6 billion by 2026. Meanwhile, hotel segment revenue is expected to reach a $483.4 billion market volume by 2027, showing a compound annual growth rate of 4.28% over the next four years, per Statista.
In short, you can expect the proptech industry—and thus, proptech companies—to continue to grow and evolve over the coming years.
What are the different types of proptech companies?
Within the proptech industry, there are several different types of proptech companies, each with their own distinct focus and innovative solutions that they provide.
Some proptech businesses are B2C-focused companies (aka business-to-consumer), while others take a B2B (business-to-business) approach. As the names suggest, B2C proptech apps are systems built for individual consumers as the end users, while B2B proptech apps are designed for use by other businesses. Opendoor is an example of a B2C proptech company, which was designed to help individuals buy and sell their homes. Meanwhile, a proptech company such as Goodlord, which helps agencies and landlords manage their tenancies, has a B2B focus.
Beyond target end users, there are many different sectors of proptech business, from real estate proptech solutions to hospitality-focused platforms. Here are some of the various types of proptech companies:
1) Real Estate Proptech Companies
Many of the best proptech companies today provide tech solutions designed for the real estate industry, often referred to as real estate proptech. These companies provide a wide array of real estate proptech solutions that help landlords, agents, and even tenants streamline processes and tasks. From organizing listings to signing leases to managing tenant requests, these companies are designed to improve the real estate industry in a variety of ways.
2) Property Management Software Companies
Property management software (PMS) is a popular type of proptech, used by hoteliers and landlords alike. This type of proptech for property management allows teams to keep operations running smoothly and teams organized. Property management software often comes with automation tools that help teams save time and money.
Some proptech for property management tools also include proptech facility management tools that help you manage maintenance requests in your building or housekeeping schedules in your hotel. Common proptech for property management examples include Cloudbeds, Hostaway, and ThinkReservations.
3) Proptech Asset Management Companies
If you’re an asset owner or property operator hoping to better manage your portfolio of properties, the best proptech companies to keep in mind will be those that come with proptech asset management capabilities.
For instance, in the hospitality industry, there are hardly any tools readily available that allow corporate leaders to get a high-level overview of all the properties in their portfolio in one place. But with platforms designed to increase visibility at both a portfolio and property level, teams can better manage their businesses.
4) Sharing Economy Proptech Apps
Some proptech companies fall under the sharing economy, which is an economic model that enables consumers to share goods and services with one another, usually through a digital community or platform that makes it possible.
Some of the most innovative proptech companies of today fall under this category, such as WeWork or Airbnb, which allow consumers to share work spaces and homes to stay in respectively. Outside of the proptech industry, Uber and Lyft are two other popular examples of the sharing economy, which allow consumers to get a ride from an individual driver, matched through the app.
5) Proptech Data and Analytics Companies
Some companies are dedicated to providing proptech analytics to their users through data they gather. Many of these data-centric businesses can provide key insights through AI-powered platforms, allowing its users to work smarter.
Take Reonomy as an example. This property technology business uses artificial intelligence to provide brokerages, financial institutions, and commercial services providers with corporate real estate insights, data, and solutions, enabling organizations and individuals to gain a deeper understanding of the market and discover new real estate opportunities.
Beyond Reonomy, there are several other companies that provide helpful proptech analytics as well, from SEO-focused services to IT consulting to revenue insights.
6) Financial Proptech Companies
Some proptech companies focus on streamlining a business’s or user’s financial processes, from financing a home to optimizing payments. Proptech payment software allows businesses in the hospitality and real estate industries to bring their financial operations up-to-speed with the expectations of today’s customer. Plus, proptech payment software can enable your team to become more efficient while saving valuable time.
One example of proptech payment software is RentRedi. While RentRedi describes itself as an “all-in-one property management software for landlords,” this property technology business has several helpful financial functionalities as well. The app allows tenants to pay their rent digitally, while landlords can keep track of everyone’s rent, late fees, and more from one dashboard.
In addition to RentRedi, there are several proptech payment software options available for the hospitality and real estate industries, each with their own unique focuses and solutions.
7) Proptech Marketing Software
Proptech marketing software allows hospitality brands and real estate teams to convert more qualified prospects into clients. Some proptech platforms provide effective marketing support for your business, from social media support to curated editorial content to search engine optimization consulting. This marketing support often allows your team to drive increased conversions and boost revenue.
Of course, there are other, more niche areas of proptech beyond the list of proptech companies above. And several platforms may fall into a few different types of the above categories—for example, you could describe WeWork as both real estate proptech and a sharing economy proptech company.
In addition to the list of proptech company types above, there are several businesses in the financial technology and construction technology (often referred to as “fintech” and “contech,” respectively) sectors that share similarities to these proptech business types.
What are some of the top proptech companies?
As you learn more about property technology, it can be helpful to look at a list of proptech companies in order to find helpful examples. Here are some of the best known and most innovative proptech companies to keep on your radar:
Of course, there are hundreds (if not thousands) of other great proptech companies not included on this list as well, but it can help to keep some of the best names in mind as you do more research.
Common traits of the best proptech companies
While there are an array of unique proptech businesses in the world, the best proptech companies share a few common traits with one another. Here are some of the top characteristics that the top proptech companies share:
- Simple for teams to learn and use
- Integrates with other software
- Provides a positive return on investment or good value for money
- Responsive and helpful customer service
- Intuitive functionality and helpful features
- Customizable to the user’s needs
- Helpful reporting functionality
- Accessible from any device, anywhere
- Provides multiple functions (and thus, multiple benefits)
Of course, some traits may vary by industry—the shared similarities of proptech marketing tools may be slightly different than the common characteristics of proptech asset management software, for example. But the traits listed above are always good considerations to keep in mind when you’re considering
How to choose the best proptech company to work with
When you work in hospitality or real estate, it can feel overwhelming trying to narrow down the best proptech companies that can help increase your property’s bottom line or optimize your team’s operations and processes. There are so many different types of proptech apps to consider, and the list of proptech companies to choose from can feel never-ending.
Take a look at some of the top considerations to keep in mind when you’re researching the best proptech company for your team:
- Think about what you’re hoping this company will solve. Before you start researching the top proptech companies to work with, think about the outcomes you want from the partnership. Are you hoping to increase the amount of qualified leads who pick your hotel for an event or meeting? Then consider a company that offers proptech marketing capabilities in order to put your property in front of more prospective clients. Are you hoping to better understand how your portfolio of properties is performing? Then prioritize a company who provides proptech data solutions to help you easily digest information from property to property. Ultimately, consider your biggest pain points and areas of opportunity, and keep those as your true north when researching the best proptech companies to partner with.
- Chat with team members about who will work with the proptech company of choice. It’s key to consider which members of your team will be working with the proptech company on a daily basis, and what their needs are. For example, if you’re a director of sales at a hotel hoping to streamline and improve your sales process with the help of proptech, think about whether or not the property’s finance team and catering sales team will use the proptech software as well. The most innovative proptech companies will work well for everyone who uses their software, boosting collaboration for your entire team property-wide.
- Consider whether or not the proptech company is designed for your industry. While some proptech apps are designed to work across an array of industries, others are designed with specific industries in mind. If you work in real estate hoping to streamline how you list new homes and interact with clients, ensure that any company you’re considering working with offers real estate proptech solutions designed to fit those needs. Or, if you work in hospitality and are hoping to convert more clients and streamline your invoice and contracting process, confirm that any proptech businesses you’re considering have experience working with similar hospitality clients.
- Think about how simple it’ll be to start working with the company. Once you have a few of the top proptech companies in mind that you’d like to work with, narrow down the list by researching how easy it’ll be to implement that company’s product into your existing workflows and software. Are there any core systems in your tech stack that your team relies on on a regular basis that you can’t picture your property without? Then ensure any company you’re considering integrates with that software. Is your team feeling short on time or staff members? Then prioritize a partner that has a simple onboarding process and an intuitive platform to get everyone up to speed quickly.
- Consider what traits the top proptech companies you’re researching have in common. Have you narrowed down your top proptech companies, but still aren’t sure which one to go with? Do a quick comparative analysis to determine which features and benefits each company provides. Think about how important which of those tools would be to you and your team, then use that information to whittle down your list.
- Research whether or not the company can grow and evolve with your business’s goals. If you’re a small team now but hoping to grow over the next few years or decades, then make sure any proptech companies you’re considering have the ability to scale with you. Some proptech companies are designed for smaller teams or properties, others are made for enterprise brands, and some can handle any level of business. Either way, it’s important to keep the future in mind when you’re debating a new platform.
This list of considerations might appear long, but often, you can address all of these considerations during a simple consultation or demo with the proptech company in mind. That way, you can ask any questions specific to your property and your team and how well any given proptech company will fit within your existing processes.
Benefits of ROH’s proptech company
After you’ve taken the time to think about your company’s biggest considerations and requirements for working with a property technology company, it’s time to finalize which platforms you want to partner with.
ROH is one of the top proptech companies to consider. Our platform allows the top hospitality brands and property groups to drive increased revenue, conversions, and collaboration with a wide array of purpose-built features. As a result, our partners experience an average 4.5x return on investment (ROI), with a 15% increase in revenue managed through ROH.
Take a look into ROH’s top features, as well as how they benefit your hospitality brand or portfolio:
- Branded, mobile-friendly invoices and contracts: Use ROH to create digital invoices and contracts for any custom quote at your property, whether that be for a group sale or a social event. Guests can sign and pay from seconds, all from their phones—no more physical checks and clunky PDFs required.
- Flexible customer payment options: With ROH, customers can pay how they’d like (with card, ACH, or e-check, via phone or laptop). Plus, they can choose to pay all at once or in four interest-free installments. Either way, ROH pays your property the full amount upfront in an easy-to-reconcile invoice payment.
- A centralized admin dashboard: Streamline collaboration between teams with a universally accessible dashboard. Whether you’re on the finance, sales, or catering sales team, you can log in to ROH and get all the information you need in one place, from invoice updates to payment schedules.
- Cloud-based access: Easily access ROH from anywhere, whether you’re traveling and on your phone or sitting at your desktop computer.
- High-level data and insights: Access at-a-glance insights across your property or your entire portfolio with ROH. From invoice statuses to recent payment volumes, our platform makes it easy to see what’s going on.
- Detailed financial reporting: Finally, gain a deeper understanding of how your hospitality property or portfolio is performing with comprehensive financial reporting, from payment volumes to active invoices.
- Simple integrations with other software: There’s no need to flip your entire tech stack when you partner with ROH. Our platform works with your existing processes and systems to make the setup process simple.
- Real-time notifications and reminders: Stay on track (even when you’re swamped or short-staffed) with ROH’s real-time updates. Our platform sends team members notifications when customers have paid invoices, signed contracts, and more. ROH also sends you reminders when you need to follow up on a payment or countersign a contract. Plus, our property technology company automates invoice follow-up, saving your team even more time.
- Card on file functionality: With ROH, you can store a customer’s credit card information in the same system you use to process payments, which makes repeat business or any additional charges simple. Rest easy knowing that ROH is a PCI DSS Level 1 Compliant provider, so all sensitive payment information stays secure in our system.
- Ability to offload payment headaches: Payment hassles like cancellations, chargebacks, and refunds can be a major burden to your team, taking up lots of time and energy. ROH’s team of experts takes these headaches off of your team’s plate, allowing your team to get back to what they love most about hospitality instead.
- Exclusive marketing support: When you partner with ROH, you gain access to exclusive marketing support from Carats & Cake. If your property hosts any social events, you’ll benefit from curated marketing campaigns on your behalf spotlighted to the Carats & Cake community, which garners tens of millions of social impressions each month.
From mobile-friendly invoices to secure card on file functionality, all of these benefits come together to make a real impact at your property or portfolio. Plus, our pain-free onboarding process and round-the-cloud customer support means that ROH is an easy “yes” for your hospitality brand.
Want to learn more about how ROH’s platform can drive conversions, revenue, and collaboration for your hospitality brand, just like we’ve already done with our partners? Book a free demo to learn more about how ROH can transform your business.
How to find more information about proptech companies
The list of proptech companies is large, and there’s plenty to learn about the proptech market. To learn more information, you can check out industry-specific publications that cover the latest proptech company news. For instance, Proptech Outlook is a business and technology magazine that reports on the most innovative proptech companies, the latest industry trends, and much more.
Larger publishers also report on proptech businesses, such as The New York Times, Forbes, Business Insider, and TechCrunch, among others. Several universities and business schools also publish thought leadership articles, insightful resources, educational reports, and other materials that can help you learn more about the world of proptech business. Meanwhile, market research sites like Statista or the Pew Research Center and government resources like the U.S. Bureau of Labor can help you learn about statistics related to proptech data and proptech analytics at large.
And of course, you can schedule a free demo with a member of ROH’s team to learn more about our proptech company. Our team would be happy to demonstrate how our proptech software can help your property group or hospitality brand drive increased revenue, conversions, and collaboration.