How AI Could Revolutionize the $25 Billion Property Management Industry

Mar 8, 2024

https://www.theglobeandmail.com/investing/markets/markets-news/PressReach/24657238/how-ai-could-revolutionize-the-25-billion-property-management-industry/

Source: The Globe and Mail

As artificial intelligence (AI) quickly transforms entire sectors, one $25 billion industry is lagging behind.  

In a world where you can do almost everything with the tap of a button on your phone —order food, call an Uber, make dinner reservations, preheat your oven and even buy a car—the property management industry is stuck in the past and still relying heavily on paper-based transactions, cheque payments, manual amenity bookings, home walk-throughs with clipboard checklists and more.  

The lack of innovation is not only inefficient, it can be very costly. It also doesn’t fit in with shifting industry dynamics. 

More and more people are opting to rent instead of buy property and a record number of rental homes and communities are being built across the nation to meet rising demand., Clearly, the need for a streamlined approach that connects the industry from construction to leasing to property management is essential. 

AI can tap into data on properties, communities, tenants, and markets to tailor tools for property management-specific tasks, like screening tenants, maintenance calendars, collecting rent payments, managing common areas and writing listings. The implementation of AI can also lead to new ways for property managers and developers to make money.

According to McKinsey Global Institute, AI could create $110 billion to $180 billion in value for the industry. It could also help companies gain 10% or more in net operating income through more efficient operating models, tenant retention, stronger customer experience, smarter asset selection, and new revenue streams.

The problem is, it’s not just about plugging in a technology solution and expecting miracles. Property management companies are quickly learning that applying AI effectively requires a careful approach. It’s about aligning the technology closely with business goals to truly unlock its value. 

As AI development progresses, more tools are being developed that cater to the property management market. 

That’s where Tribe Property Technologies (TSXV:TRBE) (OTCQB:TRPTF)comes into play. 

Unlike other companies that offer piecemeal solutions, Tribe Property Technologies offers a full suite of tech-elevated property management solutions that cover everything from pre-construction to post-occupancy. 

One of these innovative solutions is an AI-powered reporting tool that provides property managers with enhanced reporting and benchmarking capabilities. Tribe simply needs to enter a building’s address and its historical maintenance documents, and its AI will generate a comprehensive report on the building’s past and present issues, insurance information, repair and maintenance expenses, and other details that can empower the condo boards, strata councils and community managers to better understand the operational and financial health of their building. The managers can then optimize forward-looking planning and work to reduce their property’s operational costs.

Tribe Makes it Easy to Build, Manage, and Live in Residential Communities

Tribe Property Technologies (TSXV:TRBE) (OTCQB:TRPTF) is offering one of the most comprehensive and innovative solutions to an industry in desperate need of change. Tribe offers a range of services and tools tailored to different stakeholders, including Stratas & HomeOwners Associations, (or HOAs), building developers, owners, landlords, and property managers. These tools include council voting tools, AI-powered building health reports, easy payment systems, and more, all aimed at improving efficiency and enhancing the overall living experience. This all-encompassing approach not only cuts customer acquisition costs and improves retention but also enables seamless integration of value-added products and services within the platform.

By offering end-to-end solutions for all community living stakeholders, TribeProperty Technologies has established multiple revenue streams. With a focus on market penetration, Tribe has achieved rapid revenue growth and a leading market position, ranking #45 in Canada on the Deloitte Technology Fast 50™ after achieving 361% revenue growth between 2019 and 2022.Backed by an experienced, multi-disciplinary management team, Tribe has a proven aggressive M&A strategy, with plans to expand in the Canadian and US markets.

In December, Tribe Property Technologies completed the acquisition of Meritus Group Management, a property management company specializing in tech-driven solutions for condominium and multi-family residential communities. The acquisition expands Tribe’s footprint in Ontario, adding over 5,000 additional homes under its management, and boosts its bottom line. Tribe now manages over 45,000 homes across Canada, with expansion plans into the United States.

But that’s just one of the deals in the company’s robust pipeline. Tribe Property has completed 12 acquisitions to date to improve profitability, with efforts focused on workflow optimizations, back-end service consolidation and other cost reduction initiatives.

The company plans to continue its M&A growth strategy, focusing on targets that expand its technology and introduce Tribe to new geographical markets.

Tribe‘s focus on profitability has led to a 34% year-over-year improvement in Adjusted EBITDA in the third quarter of 2023. The company remains dedicated to delivering value to its shareholders and is committed to achieving significant milestones that will solidify its financial stability and maximize shareholder value.

Tribe Property Technologies (TSXV:TRBE) (OTCQB:TRPTF) is well-positioned to disrupt the property management industry with its innovative approach, experienced team, and aggressive growth strategy.

For further information on Tribe Property‘s innovative solutions and projects, please visit https://tribetech.com/ 

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