The Next Big Thing in Property Management Innovation: Data and A.I.

The Next Big Thing in Property Management Innovation: Talking Data and A.I. with Home365

The Property Management Show is based in Silicon Valley, and the beauty of our location is that we get to meet entrepreneurs driving property management innovation. Today, our guest is Daniel Shaked, the founder of Home365. This is a company that sells maintenance end-to-end through technology, specifically using artificial intelligence (A.I.) and their own network of service providers for one flat fee.

Home365 and Property Maintenance

Traditional industries can be more efficient by leveraging cutting-edge technology, and that’s where Home365 comes in. They want to connect homeowners and property managers with service professionals, and they want to do it in a way that’s more reliable and more cost-effective.

There can be pain and friction between homeowners and maintenance service providers. There’s a low level of trust, and Home365 believes they can remove that pain and provide a better experience when you need maintenance on your property. They believe maintenance is one of the biggest components of property management, and it should be handled by professionals in a predictable and transparent way.

There’s a shortage of qualified contractors, vendors, and tradespeople all over the world. It’s a global pain.

But, the question you may be asking is – how does Home365 help property managers? It may sound like the business platform actually competes with them. After all, property managers are in business to solve maintenance issues for homeowners.    

The way Daniel sees it, a property management company’s main job should be to manage more doors and to do less manual work. Instead of focusing on logistics, a growing property management company needs to focus on winning more business. Remember, only 35 percent of rental properties in the U.S. are professionally managed. There’s a lot more business to go after. Do you want to spend your time going after that business or chasing down maintenance service professionals?

Daniel believes Home365 offers a real value proposition for property managers.

Leveraging Data and Evaluating Quality in Maintenance Professionals

Daniel says that Home365 can predict what will be spent on each property by leveraging the data they collect. Using A.I. and looking at a house and its address, the company can predict what the home will need in maintenance over the next five years. That allows them to build an insurance product where property owners pay a monthly premium, and then after that – they have no expenses when repairs are needed. It creates freedom and removes obstacles.   

There’s also an element of service assessment. Home365 also uses data to assess the quality of the work and the customer service that’s provided by vendors and contractors. The good companies are rewarded with additional work. It’s tech-based and works like a credit score. You don’t necessarily do anything to impact your credit score – you pay your bills and you create a financial footprint. This technology does the same thing. Service providers do their work, answer their calls, and make their repairs. Home365 aggregates how those tradespeople are dealing with incidents. They track how they communicate and what tenants think about the work. It allows them to quickly figure out who the best vendors are.

For example, a person who is always late for meetings will never finish the tenant’s turnover on time. A person with a habit of rescheduling when he gets a better job somewhere else will not always be reliable.

If technology can be used to sort out the reliable vendors, the fair prices, and the good workmanship, property managers can win, and so can their owners and tenants. 

Algorithms are used to match the service workers to the problem. The right people are going to the right projects and there’s more time and cost efficiency. The Home365 platform can find people who did similar jobs at similar properties for similar tenants.

Tenants and homeowners are guided in the description of the maintenance that’s needed. They get something that’s like a teleprompter on top of their screen, and they can explain the problem, record video, and share pictures. This structures the best solution. The full project description is sent to the vendor who seems to be the best match. The vendor gets to see the same description of the problem. Then, all parties get access to a messaging platform. They can video conference or chat, and that often reduces the need to travel and diagnose a problem.

This all happens in real-time communication with real-time technology.

How Can Property Managers Make this Service a Revenue Center?

This can be an interesting way for property managers to offer a new product to their customers.

Every property comes with a flat-rate price for maintenance. If your owners pay this flat rate every month instead of paying for maintenance issues as they happen, you no longer have to wait for their approval before fixing something.

With a modest markup, this can provide some additional recurring revenue. Instead of marking up every maintenance invoice 10 percent, you’ll have this regular income on a monthly basis.

Many property management companies lay out a three tier pricing plan. There’s a starter plan, a traditional plan, and the third plan or the premium plan might offer this all-inclusive maintenance model.

Artificial Intelligence and the Future of Property Management

A.I. can identify patterns in data. It’s clearly different than how we used to build software and systems. Especially in property management, we’ve always had to say IF this happens, THEN that will solve it.

With A.I. the data organizes itself, and the system learns and understands things that we humans simply cannot see. Pricing and maintenance events become predictable for a property. It’s possible to know how many garage doors won’t open next year in Palo Alto or how many toilets will be clogged in Las Vegas. If you can do that, you can reduce costs and increase efficiencies. That’s how the industry is changing around technology.

We often think that maintenance issues just happen.

Things break unexpectedly.

But, statistics are everywhere, and if we’re paying attention, nothing just happens.

Building something like this is hard. There are a lot of A.I. companies where the technology doesn’t work right. If you make a wrong decision with a car, that’s life or death. Netflix can make a mistake and there’s really no downside. If Home365 prices a maintenance event in the wrong way, they are taking the cost on that. They take on the risk, and that risk is built into their pricing model. With time, they expect to reduce that risk. The technology gets smarter with time, so a more precise and predictable model will emerge.

Future Predictions: What Can Property Managers do with this?

If you’re an average property management company with 300-500 doors, what should your next move be?

According to Daniel, you should be working on winning more homes, and with less people. Leverage the technology that’s available and be smart about the data. If you measure everything and you’re data-inclined, you can make smart decisions. It might mean firing a customer.

Aggregate and leverage technology. It’s the overarching concept for winning in next few years.

What is the future of the connected home?

The younger generation is driving innovation, and even older generations are using Facetime and smart phones. We have Alexa delivering food to our doors and turning on our lights. These are meaningful services that people need and appreciate. They’re powered by technology and by sensors.

In the future, every separate element will talk to all the other elements. Your fridge, locks, security system, vacuum cleaner and music will all talk to each other. That’s a connected home, and Daniel sees Home365 fitting in. The plumber can be delivered similar to the way Whole Foods delivers your grocery order.

This is the smart home investment. Most homeowners spend $5,000 or $6,000 a year to maintain their home. A leak detector under the water heater will tell you there’s trouble before it explodes. A small vibration detector on your air conditioning unit will tell you something isn’t working right. Your maintenance people can get there before the whole system fails. Microphones can track termites. You can listen to the noises of pests and not only will you know there’s a termite problem; you’ll know exactly what kind of termites they are. That allows you to address the problem the right way.

Distribution is required, so new properties need to be built to accommodate these things. The technology is available, and companies like Home365 are working to integrate the signal and the response. 

If you’re interested in learning more about technology like this, visit Home365.co.

We’ve never asked you this – but if you enjoy The Property Management Show and you listen to it regularly, please take a few minutes and go to iTunes to give us some comments and maybe some stars.

If you have any questions, get in touch with us at Fourandhalf.

Alex Osenenko

About Alex Osenenko

Alex’s professional mission in life is to help small businesses grow and thrive. Alex is the President and CEO of Fourandhalf.com and a Co-Founder of the PM Grow, Inc. His business philosophy is simple: Happy Customers are created by Happy Employees, which results in Happy Shareholders. Alex's deep commitment to entrepreneurship and improving the lives of small business owners everywhere empower him to host “The Property Management Show” bi-weekly Podcast and speak internationally on the subjects of Growth, Marketing, Sales, and Entrepreneurship.

Leave a Reply

Request a Free Website Consultation

Estimate ROI (Return On Investment)

Desired Growth (# of properties) :
Average Monthly Rent :
Annual Contract Value: $0
Customer Lifetime Value: $0
Estimated Annual Profit: $0
Estimated Lifetime Profit: $0
Estimated Portfolio Value Upon Sale: $0

How we got these numbers

• Annual Customer Value (8% of average rent multiplied by 12)
• Customer Lifetime Value (4 multiplied by ACV)
• Estimated Annual Profit (at 20% of ACV)
• Estimated Lifetime Profit (at 20% of LCV)
• Estimated Portfolio Value Upon Sale (1.2 times ACV)

WEBSITE CLIENT REVIEW

Experienced a 183% increase in website owner leads compared to previous site

“I love our OnePartner website and have seen a significant increase in engagement with our prospective clients. The leads are better quality and higher quantity which allows our business development manager to close more contracts.”


                            – Jock McNeill, Owner of Alliance Property Management

REQUEST A FREE CONSULTATION


  • This field is for validation purposes and should be left unchanged.
SCALE MARKETING CLIENT
“Fourandhalf has been the cornerstone of our marketing program. They are easy to work with and produce measurable results. Every marketing dollar is important to us and Fourandhalf makes our budget work for us.”
– Danielle Miner, Owner Oak Trust Property Management

FREE MARKETING CONSULTATION


  • This field is for validation purposes and should be left unchanged.
ONEPARTNER CLIENT REVIEW

Experienced a 190% increase in website owner leads compared to previous site

“We are only a few months in and the decision to switch to the OnePartner platform is already paying dividends. Our inbound leads have significantly increased and perhaps more importantly, we can now actually measure the effectiveness of our campaigns and 3rd party ads. I highly recommend the OnePartner team.”

                    – Andy Moore, Owner of Gulf Coast Property Management

REQUEST BUSINESS REVIEW


  • This field is for validation purposes and should be left unchanged.
Fill out my online form

Alex Osenenko
President and CEO

Alex’s professional mission in life is to help small businesses grow and thrive. He is the President and CEO of Fourandhalf.com and is serving his 5th year on the Board of Directors for CALNARPM.

After spending 9 years in the trenches with his property management clients, Alex draws on his experience to host “The Property Management Show” Podcast and co-authors a weekly Property Management Blog on Fourandhalf.com. Alex has extensive experience speaking for various NARPM events at the local, state, regional and national level.

Alex is a graduate of San Francisco State University with an Electronic Commerce Systems Degree. His business philosophy is simple: Happy Customers are created by Happy Employees, which results in Happy Shareholders. Alex serves on the Board of Directors of CALNARPM (California Chapter of National Association of Residential Property Managers) and hosts a Podcast “The Property Management Show“, available on iTunes.

 

John Bykowski
Chief Operating Officer

After graduating from the University of Michigan with a film degree, John proceeded to do everything but. During his career, John has specialized in operations and has developed processes for small companies in diverse industries, such as bleeding-edge marketing technology, social networking, trade shows and exhibitions, and cloud software. John and Alex had worked together previously, and when he needed someone to help take Fourandhalf to the next level and beyond, Alex brought in John as his first employee, and later, business partner.

In addition, now that he’s using his film school know-how to help property managers look their best in their blogs, his mom no longer feels his degree was a complete waste of time.

Danny Morris
Director of Account Management

Born in Australia and growing up in Israel, Danny has spent a lot of time traveling the world between those two places. After completing his military service in Israel, Danny began following his biggest passion, writing, which he discovered while backpacking South America and publishing his first book.

When it was time to unpack, he returned to Australia to complete his Journalism studies amongst the beaches of sunny Perth. Danny is a huge online fan and after working in a number of related jobs, he finally gets to combine his two favorite things, working with media and people.

Marina Osenenko
Product Manager

Marina draws upon her real estate, business operations and customer service expertise for Fourandhalf. Her favorite part of being with Fourandhalf is the opportunity she has to really get to know our clients, build professional customer relationships and truly be part of a team that assists in their success.

Her time away from work is happily spent watching her children grow up and attempting to keep up with them! Any spare moments beyond nurturing her children are filled with hiking, spending time with friends, exploring the Bay Area and squeezing in a non G-rated movie every now and then.

Marie Liamzon
Product and Marketing Manager

Before joining Fourandhalf, Marie worked for one of the largest banks in the world. She took on different roles, but couldn’t find what she was looking for. She pursued a variety of side projects until she finally decided it was time for a career change.

Marie is very passionate about helping people and learning new things. In her spare time, you might catch her exploring new places and taking far too many pictures.

Kyle McLean
Customer Success

Born in San Diego County, Kyle McLean has since migrated to the Oakland woods. A fan of tall trees and tall tales, he holds a bachelor’s degree from the creative writing program at the University of California, Riverside and is a licensed California Certified Shorthand Reporter.

After a few years as a freelance court reporter, Kyle has joined Fourandhalf for an opportunity in sales and digital marketing. In addition to reading and writing, his hobbies and interests include gardening, hiking, soccer, coffee brewing, and craft beers.

Karen Wyle
Account Management

Originally from the Philadelphia area, Karen moved eight times in seventeen years all over the East Coast and to the Midwest before settling here in Northern California six years ago. She is an alumna of Brandeis University with a BA in American Studies and earned a MBA in Marketing Management from Indiana University in Bloomington. Karen’s business career has been well-rounded, with experience including advertising, direct marketing, corporate retail, product management, new product development, and new customer generation. Beyond an office setting, she has been thrilled to volunteer her time giving back to the community with KPMG’s Family for Literacy, at her daughter’s school, and as a Girl Scout Troop Leader. Karen enjoys music, good food, traveling to new places, completing jigsaw puzzles, meeting people and making connections.

Karen became a part of Fourandhalf’s Account Management team in 2016, relaunching her marketing management career after a pause to raise her family. She is excited to rejoin the business world and to work with such a strong marketing management team.

Paige DeRuyter
Account Management

Paige graduated from Chico State University with a degree in Journalism. Her favorite part of working at Fourandhalf is helping clients create and produce educational blog content to grow their business. She is an avid sushi enthusiast who enjoys riding her bike and watching college football and in her free time.

Nissim Boozaglo
Web Hosting Support

After working as a Radioshack store manager, Nissim decided to change his career path and pursue his passion for music production by getting his B.A.S. from Expression College for the Digital Arts. Nissim has a beautiful 8-year-old girl and loves cooking delicious homemade food and going camping with her! At Fourandhalf, Nissim is responsible for the implementation of the clients’ Landing Pages and Google Adwords campaigns.

Theresa Barnes
Campaign Director

Theresa Barnes was born and raised in the Bay Area and graduated with her Bachelors Degree in Communications Studies at San Francisco State University. She worked in aviation at a private FBO for 3 years, and other industries, before joining the Fourandhalf team. She finds a balance between being a young mother, work, and living a healthy lifestyle outside of work by staying as active as possible. She is dedicated to customer satisfaction and having a great work ethic.

Brittany Stephens
Campaign Director

Brittany recently moved to the Bay area after graduating from California State University Chico with a degree in Business Marketing. She is known for her excellent communication, customer service skills, and shameless nerdyness. Her passions include: music, tabasco, Lord of the Rings, and the Golden State Warriors.

Logan Jones
Business Development

After graduating from CSU Chico with a Degree in Business Marketing, Logan moved back to the East Bay and pursued a career in sales. With an attention to detail and a relentless drive, he strives to improve himself and his passions each day. When not at work Logan enjoys playing guitar and writing songs, and occasionally performing around the Bay Area. He is an avid sports fan keeping up with everything SF Giants, 49ers, Cal Bears, and Golden State Warriors.

Hope Lumbley
Account Management

Hope recently moved to the Bay Area after graduating from Chico State University with a degree in Journalism. She is coffee crazed, dog obsessed and hopes to visit all National Parks. One of the greatest times in her life was when she lived abroad in Costa Rica and hopes to travel more of Central America in the future. She feels blessed to work for a company who supports her love for travel and the need to learn more about what the world has to offer.

Fill out my online form

Ebook Download

Top