Exploring the Process and Strategy for the Prop Co of the Future
The AIM Conference began an ongoing series of in-person and virtual meetings among interested conference attendees wanting to discuss the property management company (or, Prop Co) of the future.
It began in May at the AIM Conference in Huntington Beach, Calif., and continued through online meetings to discuss “process” and “strategy.”
Heather Wallace, Managing Director, Bozzuto; and JaJa Jackson, SVP of Investments, I CONIQ Capital, are leading both groups and they shared information from May and looked ahead for the groups in this discussion.
Wallace said the process group is exploring where friction lies in property management and how property management software can integrate with other tools necessary to run businesses. It includes finding ways to get to “truly open” API.
Organizing Resources Around a ‘Relevant Vision’
Jackson said real estate has always used a combination of people, capital and property and services organized around a relevant vision.
“If any of those four components is missing, it causes a problem,” he said. “All of this has existed across real estate for years, but now, it’s much “tighter” now. The group finds consensus that an expansion of the partnership of tradition al owners and management groups is the necessary prescription.”
He said there are a lot of stresses that go with operations, and they are more important now. For example, the cost of insurance, people and energy and interest rates are up. is up.
“By focusing on the top line, it could be a way to deal with this,” he said. “But if it’s not aligned, it will be tough to produce strong top-line results.”
Moderator Carol Enoch, title, company, said, “The industry needs to come together in an elegant way.”
Jackson said that how apartment operators structure their relationships with service partners is what can lead to greater innovation.
Reacting to Data Daily, Not Monthly
Jackson said the industry has come a long way in how it manages data, including making it visible to the company and investors.
“There used to be a lag,” Wallace said. “Before, we reacted to it monthly. Now, it’s more like a daily basis. We can act sooner on what needs attention.”
Said Jackson, “Having more access to more and better information, and more quickly, creates a greater respect and bond, further creating incentive to have a deeper partnership because [service partners] are creating more value through information.
”Most companies cannot do this on a proprietary basis, he said.
Here’s What’s Trending
The panel also discussed the merits of trending technology.
It agreed that distractors would include cryptocurrency and NFPs.
It agreed that what is valuable and “here to stay,” if executed properly, are AI leasing tools and “digital human”; virtual tours; short-term fully furnished rentals; co-living; We Work and office share; centralized leasing, operations and maintenance.
With centralization, it works best for operators with scale in one geographic area.
Here is the replay: