View
65
Download
0
Category
Preview:
Citation preview
Disruption at your doorstep beware of the coming hyperscale platform
Chris Mrakas CEO & Co-founder ALPPPS - property management leadership summit
2017 Gold Coast, Australia
It goes like this
• Beware of the coming hyperscale platform in property management it will bring disruption to your doorstep.
• The basic story plot goes something like this incumbents focused on perfecting what they do are stunned to find new entrants introducing a completely different way to make money
• Trying to reinvent property management might sound crazy but it is a huge opportunity to build the next industry hyper scaling platform.
• The prize is massive so no entrepreneur worth his or her salt will overlook this.
zRipe for Disruption Why property management?
High cost structures
landlords cross-subsidize others Charge for information that is free
buy a whole service package deal
landlord experience not the best
service delivery model is high touch
lots of redundant activities, many handovers and lots of repetitive manual mind-numbing work
Fees are are % on income
not because of ….
your margin
is my opportunity
zFee 7.6%, $160/month
zCost 4%, $70/month
zRevenue $210,000/FTE
because of ….
On a $420 per week rental property
through the use of technology the cost of property management services will eventually be reduced to near zero
radical hypothesis
00EVERYTHING
becomes FREE
SOFTWARE will eat the world
If the marginal cost of producing each additional item falls to almost zero
then eventually everything becomes free
Silicon Transistor
Circuit board
Mainframe
Workstation
PC
Internet
Mobile
Cloud
Messaging
Internet-of-Things
Robotics
Driverless
Things
AI
Chatbots
Machine Learning
software revolution means zero marginal cost
The Landlord
Minion
(aka Robotic Agent)
AI , Chat-bots with messaging can replace humans in doing most of what property managers do, including:- • General customer service response • Lease renewals and management • Maintenance procedures • Issue work-orders • Revenue protection • Collections and administration • Insurance claim preparation • Advertising
if all the above services are done by a Robotic Agent then with enough scale the cost of providing these services will be near zero marginal cost.
IoT will change the way things are done forever
New types of Revenue
Reduced cost
Enhanced Experience
IoT enables anything in a property to be monitored, controlled and monetised. It provides new ways to enhance revenue yield from an investment property. IoT will enhance the experience for landlords and tenants, reduce customer service requests, reduce capital expenditure and enhance revenue from investment properties and from the tenants perspective a better lifestyle unencumbered by issues of poor maintenance
z
IoT – react before the event
Reduce PM Fees to Landlord
More Landlords
Better Service
Experience
More “Better” Tenants More
doors
( growth )
Improved yields
Accelerated learning
More Instrumentation
More types of Property Revenue
IoT
Landlord Solar
AI Machine Learning
Deep Learning
Robot Agents Chat Bots Messaging
Matter Technology Ltd
The new Flywheel
z
what can happen in property
management ?
Fee 2.7%, $72/month Cost 1%, $18/month
Revenue $670,000/FTE
Everyone has a plan until they are punched in the mouth
Rent-Rolls worth 10% of todays market value
What is a hyperscaling
platform
Network effects – where the value of a product or service increases with the number of people using it.
The economics of zero marginal cost distribution increases the businesses monopoly power
The first revolution is when you change your mind
Its about a platform that monetizes jobs to vendors - $3b in Australia
Reduce PM Fees to Landlord
More Landlords
Better Service
Experience
More “Better” Tenants More
doors
( growth )
More Work Orders
More “Better” Suppliers
Better value for money
Improved yields
More Services
Accelerated learning
More Instrumentation
More types of Property Revenue
Finance Maintenance Improvements
Security Sales
IoT
Landlord Solar
AI Machine Learning
Deep Learning
Robot Agents Chat Bots Messaging
Matter Technology Ltd
The real Flywheel
Imagine a hyperscaling platform with 1,000,000
properties under management
where landlords don’t pay for
property management
Imagine issuing a job to be bid for on a platform where the job is …. • paint 100,000 homes • Replace windows on 20,000 homes
technology industry is usually
“winner-takes-all”
It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.
• Free property management services to Landlords • Rent-Rolls worth 10% of current market value • Best vendor prices for services • 24x7x365 service • Superior user experience • Scale that makes the largest property manager look tiny
Landlord Solar
Turning sunbeams into revenue streams Chris Mrakas, CEO & Co-founder Matter www.matter.solar
Recommended