Custom Software Development for Real Estate Industry: Challenges & Solutions

Technologies have changed many industries for the better in recent years, and real estate is no exception. Real estate software development enabled numerous companies, landlords, homeowners, and tenants to streamline many processes and automate routine tasks.

If you plan to start a custom real estate software development process, this article will help you to better understand types of real estate software solutions, their key benefits, and their most common features.

Also, you will learn about the main challenges companies encounter during the software development cycle and about trends shaping up the real estate software development landscape today. 

Types of real estate software

Before hiring a real estate software development company or building a custom solution with an in-house team, it is crucial to cover the basics. You must start by determining which kind of real estate app you need. Let's look at the most common types of software used in the real estate industry today. 

• Customer relationship management (CRM) systems. Real estate CRM software enables industry professionals to process client interactions and other information efficiently, track sales data, and automate sales and marketing activities. 
• Property management software (PMS). This type of solution allows property management companies and landlords to streamline various operations, including rent collection, scheduling maintenance, and keeping track of tenants' information. There are several types of PMS for residential property management and commercial property management. 
• Lead generation tools. The main focus here is gathering potential customer leads through different channels and managing the data to convert it into sales. 
• Virtual tours software. Using AR/VR technologies, this type of software enables real estate professionals to offer prospective buyers virtual tours of properties online. 
• Listing platforms. This software is beneficial for listing properties for sale or rent and provides tools for managing property listings, photos and videos, and property details. One kind of listing platform, multiple listing services, is especially popular in the modern real estate industry, as it provides a centralized system and ensures highly standardized property information. 
• Market analysis software. These solutions offer data analysis and reporting features that allow industry professionals to understand market trends better, evaluate property values, and make informed decisions. 
• Transaction management tools. To streamline the process of buying, selling, and renting properties, this software provides document management features and secure communication tools. 
• ERP software for real estate. Real estate ERP software doesn't focus on specific aspects of business, but covers a wide range of tasks. ERP systems often include property management, HR, CRM, analytics, and reporting features. Also, they are sometimes used as inventory management and real estate project management software. 

Each type of digital solutions for real estate can be customized to include unique features that align with your business needs. Custom software development process will heavily depend on the type of solution you choose. 

Benefits of custom real estate software solutions

Why do you need to develop your own custom software and not go with one of the off-the-shelf real estate apps? Let's take a look at the key benefits of tailored digital solutions for your business. 

• Higher efficiency. Custom software allows companies to automate numerous operations, minimizing the risk of errors, speeding up processes, and freeing up employees’ time for different tasks. Also, tailored solutions enable you to track specific metrics and better identify issues, both present and potential. 
• Increased scalability. As your real estate business grows, custom software can be easily scaled to avoid technical issues and downtime. Scalable apps can accommodate increasing numbers of users, properties, and transactions. 
• Seamless integration. One of the main reasons for hiring real estate software development services for building a custom solution is the ability to seamlessly integrate it with existing systems and software. Custom app and financial management tools, CRM systems, and property management platforms can create a powerful ecosystem that benefits your business. 
• Data security and compliance. Real estate companies often handle sensitive customer data, and robust security measures are necessary to protect it. Tailored solutions allow you to implement cutting-edge cyber defense measures and techniques, conduct regular audits, review code, and ensure adherence to industry regulations and standards. 
• Cost-effective in the long run. Hiring real estate software developers or assembling an in-house tech team can be quite expensive. However, over time, custom applications can be more cost-effective due to the absence of licensing fees, subscription costs, and expenses related to aligning off-the-shelf solutions to specific business needs. 

Investments in custom software development enable real estate companies to align their tech tools with business needs, optimize day-to-day operations, and gain competitive advantage. If you decide to build your own real estate app, let's figure out what features it needs to include. 

Key features of modern real estate software solutions

One of the main advantages of custom applications is the ability to choose what features they include based on your business requirements, target audience, and product vision. Here are some of the most common features present in modern real estate software development solutions. 

• Mobile compatibility. A majority of users access real estate solutions using smartphones, so more and more companies focus on mobile app development. Mobile-friendly interfaces and design enable users to access and manage real estate processes from any place with an internet connection, increasing productivity and accessibility. 
• Listing management. Modern custom software provides powerful tools for creating, managing, and distributing property listing using different channels. MLS software development services also offer users capabilities for easily adding photos and videos and robust search functionalities for navigating large databases and filtering properties based on preferences and requirements. 
• Documentation management. Real estate applications offer a centralized hub for creating, storing, and managing documents related to property management and transactions. Also, the majority of modern real estate apps provide e-signature capabilities that help to make transactions faster and more efficient. 
• Analytics and reporting. Today, real estate software offers impressive analytics and reporting capabilities. These features allow industry professionals to gain valuable market insights, analyze business performance, and track user behavior. Also, advanced analytics is helpful in analyzing potential risks, especially in software for property developers.    
• Financial management. To access these features it is not necessary to invest in development of real estate accounting software. Modern custom applications usually include features that allow companies to manage budgets, expenses, invoices, and generate financial reports. 
• Automation tools. Today, real estate software includes numerous tools for automating day-to-day tasks, such as data entry, appointment scheduling, or rent collection.  
• Integration capabilities. Custom real estate applications need to support integrations with other tools and software, like email marketing software, social media channels, or e-payment solutions. It allows companies to streamline business operations and increase efficiency. 

It is not a complete list of features, and there is no strict set of functionalities your app must have. Analyze your needs and requirements to determine which features real estate software developers need to include in your solution. Based on this, you can decide on the real estate development team structure, tech stack, and budget. 

Challenges in custom software development for real estate industry

Building custom real estate software from scratch requires expertise and experience in this industry and in software development. Here are the main challenges companies encounter during the real estate software development process. 

• Understanding of real estate industry specifics. Real estate is a dynamic and complex industry with specific workflows, regulations, and market dynamics. Development team needs to understand real estate intricacies to create a digital solution that will meet unique industry demands and align with the company's business needs. 
• Data security and compliance. While working on software for real estate, developers need to remember about sensitive user data and financial transactions. App has to comply with industry-wide regulations and standards. Also, custom real estate solutions need to feature robust security protocols and measures to avoid data leaks with severe repercussions. 
• Integration with existing systems. Real estate companies often use many third-party tools, API integrations, off-the-shelf ERP and CRM systems, and other digital tools in their work. Integrating new applications into this complex ecosystem can be very challenging. Custom software development allows developers to plan seamless integration from day one and ensure that everything will go smoothly. 
• Scalability and flexibility. The real estate market can change very quickly, and software solutions need to be scalable enough to adapt to these changes as soon as possible. Tailored applications can be more flexible and future-proof due to a scalable software architecture and tech stack. 
• User experience and accessibility. Many real estate applications are used by real estate agents, landlords, property managers, homeowners, tenants, and administrative staff. You need to create an intuitive and accessible user interface that will cater to all user needs. Without extensive experience in software development of real estate solutions it can be a difficult task. 
• Ongoing maintenance and support. Ensuring constant maintenance, support, and timely updates for a custom app requires a lot of resources and can be challenging for an in-house tech team. Partnering up with a product development company can be a solution to this problem. 

Building custom software for your real estate business can lead to many difficulties and setbacks. Partnering up with a team of experienced software developers for real estate software projects can help you to overcome an absolute majority of these challenges. 

Software development trends in real estate

No matter what type of solution you want to build, it is incredibly important to keep up with the latest trends in the real estate software development industry. Let's take a look at the most prominent trends we witnessed in recent years. 

• Artificial Intelligence and Machine Learning (AI/ML). AI and ML technologies are used in almost any type of app today, from real estate development analysis software to chatbot integrations in CRM systems. Artificial Intelligence and Machine Learning enable real estate professionals to automate numerous tasks, improve user experience, quickly analyze vast datasets, and accurately predict market trends. In the coming years, we will likely see even more AI/ML integrations in custom software solutions. 
• Virtual and Augmented Reality (VR/AR). VR and AR technologies have revolutionized property showings. Today, using software for real estate developers or property management tools customers can tour properties from any place on the planet and even visualize potential changes. In the near future, virtual tours will become even more immersive and realistic due to technological advancements, especially in mobile AR development. 
• Internet of Things (IoT). IoT devices play a crucial role in management of commercial and industrial properties. They allow administrative staff and owners to monitor energy usage, maintenance needs, and security systems in real time without visiting property. IoT integrations enhance efficiency and increase cost-effectiveness, so we can expect these devices installed on more properties. 
• Cloud computing. Widespread adoption of SaaS and other cloud-based solutions led to the rise of cloud services. Today, many of the top software development services for real estate focus on cloud-based solutions due to increased scalability, flexibility, accessibility, and cost-efficiency. 
• CRM and marketing automation. Advanced CRM systems and marketing tools play a key role in managing customer relationships, automating communication, and streamlining the sales process. Today, more and more companies invest in custom real estate CRM software development and martech tools to enhance customer engagement levels and retention rates. 
• Blockchain implementation. Blockchain technology provides real estate companies with a secure and transparent way to handle transactions. Blockchain implementation allows for the reduction of fraud, speeds up processes by getting rid of intermediaries, and enables smart contacts for lease agreements and payment automation. 

A good understanding of current and future trends enables you to make informed decisions and assist in the development of the best real estate software possible. Staying one step ahead of the competition and implementing cutting-edge technologies will help you bring your real estate business to new heights. 

Final Words On Software Development for Real Estate

There are numerous off-the-shelf solutions available today, but custom real estate software offers unique benefits and can be tailored according to your specific needs and requirements.

Building a custom application, especially with no previous experience, can be very challenging, but with the basics we covered in this article, you can come up with a vision of your future product, create a list of core features, and start the development process with a strong foundation. 

Software Development for Real Estate – FAQs

1. Why do real estate businesses need custom software?

Real estate businesses face unique challenges that often cannot be adequately addressed by off-the-shelf software solutions. Custom software allows for the integration of various functions such as sales, marketing, property management, and finance into a single streamlined platform, improving data accuracy and decision-making.

2. What are the common challenges faced in developing custom software for real estate?

Challenges include high development costs, managing software integration with existing systems, ensuring data security, and adapting to evolving industry regulations. Scalability can also be an issue as businesses grow and their software needs evolve.

3. What solutions are effective in overcoming challenges in real estate software development?

Effective solutions include adopting agile development practices, which allow for flexibility and scalability. Engaging experienced developers who understand the real estate market can also help. Additionally, implementing robust cybersecurity measures and ensuring the software is compliant with industry regulations are crucial steps.

4. How long does it typically take to develop custom software for real estate?

The development time can vary widely depending on the complexity of the software and the specific needs of the business. A simple application might be developed in a few months, while a more complex system could take over a year to fully implement.