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An industry expert has emphasised the need for access to building data in the strata sector, and stated that the benefits would be felt by all stakeholders.
In a recent episode of Secrets of the Top 100 Agents, co-founder of proptech platform Cohabit, Thom Richards, discussed the complexities of the strata management sector, and how a shift towards a data-informed approach could benefit the broader real estate industry.
Describing the strata sector as a “contentious one at best”, Richards said that the problems within the industry can be best addressed by creating an air of transparency, and making it easier to access reliable data around strata buildings.
To drive this change, Richards co-founded the Cohabit platform in 2023, which uses AI technology to generate a “health score” for a strata building based on factors such as the financial aspects, liveability, and general condition of a property.
By providing transparent insights into the state of a strata building, Richards said that this process can help strata managers to simplify and overcome the logistical challenges within the sector.
“From the strata manager perspective, it’s pretty much a capacity issue,” Richards said.
“You’ve got ‘X’ number of buildings that you’re managing as a strata manger, and there’s only so many hours in the day, so it’s an efficiency thing,” he explained.
Richards stated that reducing the “administrative burden” of strata managers by providing easier access to data could decrease the time taken to retrieve necessary info for buyer enquiries and achieve better outcomes for all parties involved.
“The access to data will streamline the day-to-day efficiencies within that particular strata management office and then will free them up to solve some of the bigger-picture problems that they’ve got,” he said.
By understanding the unique nature of a building, Richards said that strata companies can tailor their service offerings and significantly benefit from the reduced costs.
“We want them to be able to know what a buyer is seeing when they do their due diligence on a building, but we actually want them to know about that before the buyer does the due diligence,” Richards said.
Additionally, Richards explained that insurance companies frequently do not have access to data on the financial performance, compliance and risk profile for a strata building, which can then result in insurance costs varying “dramatically” between buildings.
“There’s potential for better deals and lower interest rates, there’s potential for better insurance deals, there’s potential to have a look at where you could potentially save money in terms of just general operational costs,” he explained.
Richards also emphasised that agents must fully understand the pros and cons within an individual unit or greater strata building they are selling, as a failure to do may give prospective purchasers further “leverage to negotiate”.
“The health score and essentially the barometer of the building that we’ve built helps them achieve that,” Richards said.
“We’re looking to allow them to embed that into their software and their systems to further educate them, because we feel that will be of greater benefit to the consumer as well as throughout the sales process,” he concluded.
Listen to the full conversation with Thom Richards and Liam Garman here.
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