The Canadian multifamily rental market is undergoing a revolution. To make informed decisions, staying updated on the latest trends and preferences is crucial. Unfortunately, most of our current industry data is outdated and limited, which can hinder effective planning and management for housing providers. This is why new, comprehensive data like the 2023/2024 Canadian Multi-Residential Marketing & Leasing Snap Shot Report, conducted by simplydbs, is an invaluable resource. This report encompasses data from two surveys, featuring responses from 20,000 tenants and housing providers representing 400,000 units across Canada. This report reveals significant disconnects between what renters want and what housing providers are offering. Bridging the online gap between renters and providers One of the most notable findings from the report is the gap between how renters and housing providers view online property listings. While the industry ranks internet listing services (ILS) as the top choice for marketing, prospective tenants overwhelmingly prefer property-specific websites (PSW). According to the report, 92 percent of tenants said that a PSW is essential or nice to have, making it their number one preferred online touchpoint. Up to 76 percent of tenants of tenants stated that ILS sites are still important for them during their rental process. Another critical area is response times. The report found that 87 percent of renters are comfortable with a response time of up to 24 hours for prospect inquiries. This timely communication influences their decision to select a unit or property and their desire to stay there. To effectively address this disparity, employing a 24/7 omni-channel chatbot on a website can significantly free up onsite staff, allowing them to focus on higher value tasks such as assisting with in-person tours and applications. Growing fraud concerns Fraudulent rental applications are a growing concern across Canada. Applicants providing false information, like fake references or altered income documents, contribute to this issue. The report reveals the most alarming consequence: bad debt from unpaid rent due to fraudulent applications. The rate itself is rising, with 41 percent of housing providers reporting a one to ten percent increase and 14 percent indicating an 11-30 percent lift. This emphasizes the need for robust identity verification processes to mitigate fraud risks before applications are even considered. Embracing digital solutions The digital transformation of the rental industry is well underway, with residents increasingly expecting digital applications and services. The report shows that 88 percent of tenants use their building app to create and track maintenance requests, and 72 percent want an app to receive package delivery notifications. Once these apps are available, residents actively use them, underscoring the value of integrating digital solutions into rental communities. Adopting mobile technology also benefits your staff, expedites rental turns, and elevates rental revenue. Understanding the disparity between renters and providers In an industry that relies heavily on accurate and timely information, having access to up-to-date data is critical for mitigating risk and ensuring long-term success. This is where simplydbs comes in. simplydbs specializes in collecting and analyzing real estate data to provide actionable insights that drive better decision-making for housing providers. Their expertise ensures that real estate professionals have access to the latest trends and preferences, enabling them to adapt to current market demands and enhance resident and employee satisfaction. Narrowing the gap The 2023/2024 Canadian Multi-Residential Marketing & Leasing Report exposes the disconnects between renter expectations and experiences. By addressing these gaps, housing providers can stand out from the competition and attract, convert and retain quality tenants, ultimately enhancing resident satisfaction and improving overall operational efficiency. For a deeper dive into these findings, download the snapshot report. When searching for solutions, consider a tech partner with a long-standing presence in the market. Solutions that streamline creating property-specific websites, enhance online communication, prevent fraud, offer tenant apps and manage reputations can be incredibly beneficial. These tools help landlords provide better services, improve tenant retention and ensure smooth operations. Let’s bridge...

Yardi Canada recently hosted its inaugural Executive Commercial Briefing at the W Montréal Hotel, setting the stage for an evening of insightful discussions and networking. This event left attendees inspired and eager for more conversations with industry experts. Keep reading to learn what you can expect at our future executive briefing.  A platform for industry insights and collaboration The Executive Briefing series is an invitation-only event that delves deep into property and program management topics. It provides industry leaders and our executives with the opportunity to discuss the latest challenges and technology solutions shaping the real estate and housing markets. These briefings offer a platform for sharing insights, best practices and innovative strategies directly from top experts and decision-makers in the field. Through exclusive networking opportunities, interactive sessions and presentations from leading analysts, participants can forget important connections and gain valuable knowledge. With the rapid evolution of the real estate market and its supporting technology, these briefings are essential for staying ahead of the curve. Key highlights from the briefiing Jason Chacko, senior account executive of Yardi, shared compelling insights into the Yardi Investment Management Suite. He highlighted the efficiency brought by automation, stating, “The example I like to quote is with on of our major clients. On a quarterly close, they were taking 21 days to calculate their waterfalls. They reduced that to a half-day process with Yardi.” By integrating accounting, performance measurement and reporting into one platform, real estate businesses can streamline investment management. This tool provides real-time insights, boosts efficiency and supports data-driven decisions, helping clients like Timber Creek reduce manual work and improve accuracy in financial operations. The client panel also provided valuable perspectives on digital transformation. Olivier Rocheleau, corporate controller of Groupe Petra, emphasized the necessity of a fully integrated solution, saying, “We were looking for a best-in-class solution and a strong partner to establish ourselves with a solid foundation. Once we identified the modules we needed, Yardi’s implementation team guided us through the process seamlessly.” Groupe Petra is a leading real estate investment and management firm known for its extensive portfolio of commercial properties across Québec. They focus on acquiring, developing and managing high-quality real estate assets, ensuring sustainable growth and value creation. By partnering with Yardi, Groupe Petra aims to enhance their operational efficiency and maintain their reputation for excellence in the real estate market. Michael Sutherland, vice president of Canderel, echoed this sentiment, reflecting on Yardi’s impact on their operations. “We saw Yardi facilitate our strategic direction to streamline our service lines. The savings were compelling when we eliminated ancillary software and replaced it with a single Yardi stack. It was a no-brainer for us.” Canderel is a prominent real estate investment, development and management company with a diverse portfolio spanning office, retail, industrial and residential properties across Canada. Known for their innovative approach and commitment to excellence, focusing on creating value through strategic acquisitions, developments and property management. By adopting our solutions, Canderel aims to streamline their operations, enhance efficiency and support their long-term growth objectives. Exploring the future of AI in real estate David Franklin, industry principal at Yardi, captivated the audience with a discussion on our advancements in artificial intelligence, particularly in lease abstraction. “This technology is exciting. We are going after the ability to abstract leases, cut time on accounts payable and give [clients] a built-in assistant using technology.” Virtuoso represents a significant leap forward in real estate technology. Virtuoso includes advanced features designed to enhance efficiency and accuracy, such as chatbots for improved customer interactions, smart AP for automating accounts payable processes, smart Lease for lease abstraction and an AI assistant for various operational tasks. By integrating these tools, Virtuoso provides seamless automation and intelligent assistance, helping Yardi clients streamline workflows, reduce manual errors and make more informed decisions. Looking ahead Yardi is dedicated to supporting and enhancing the real estate market in Québec. During the...

The Canadian Federation of Apartment Associations (CFAA) hosted its annual conference in May located in Toronto. This year’s theme, “Building Communities Together,” highlighted the urgent need for collaboration and innovation in the multifamily housing sector. As the industry grapples with longstanding status quo and historically low vacancy rates, stronger partnerships are essential to address Canada’s housing challenges. This event provided a crucial platform for fostering discussions on these pressing issues and exploring prospects for the multifamily housing industry. As a strategic partner and sponsor, Yardi played a pivotal role in the event, contributing to multiple sessions and sharing valuable expertise on various aspects of property management and technology integration. Day 1: Innovations in urban living & industry insights The conference kicked off with a series of building tours, including notable properties managed by Tricon Residential, Minto Apartments and Stackt Market. These tours highlighted new practices in real estate management and provided a practical understanding of how modern technology enhances building operations and resident satisfaction. One standout visit was to Stackt Market, a vibrant community space designed entirely using shipping containers. Stackt Market exemplifies how innovative design can create dynamic community spaces, fostering a sense of community while maximizing the use of urban space. Yardi’s own Parisa Vafaei, director of sales, led a session that delved into the findings of the latest Yardi Multifamily Report, highlighting the necessity for innovative ideas and new partnerships as more units are expected to come into the market to address Toronto’s low vacancy rates. “The vacancy rate in Toronto for Q1 2024 is 2.5 percent, indicating a tight rental market,” Vafaei noted. The report also revealed that Toronto has one of the lowest annual turnover percentages among Canadian census metropolitan areas (CMAs) at 11.6 percent and a lease-over-lease rent growth for new leases of 15.5 percent. These metrics show the critical need for strategic planning and collaboration to manage demand, improve housing availability and maintain affordability in the multifamily housing sector. Day 2: Thought leadership and technological innovations The second day featured key industry leaders, including the mayor of Toronto. Peter Altobelli, vice president of Yardi Canada, led a session on “Leading the Way: The Next Generation,” focusing on workforce management. This session reviewed aligning company values with new talent, fostering mentorship and offering structured career development. The panel discussion highlighted new expectations of the emerging workforce. “Today’s talent is entrepreneurial and ambitious,” one panelist noted. “They interview employers as much as we interview them. While they have technical skills, we seek soft skills. They want autonomy, decision-making roles and alignment with company values.” The discussion stressed the importance of providing broader perspectives, growth potential and dedicated time for succession and leadership planning. Innovative strategies to attract new Canadians were also highlighted, with Fritzrovia’s rotational program standing out for its unique approach. This program helps retain talent by moving individuals through various roles and departments over a set period of time. Emphasizing resident experience and partnering with firms that share ESG commitments were noted as crucial. “Transparency about these commitments is key to attracting talent,” added Courtney Chisholm, project manager at Fitzrovia. Structured onboarding and new technology were also highlighted as critical for maximizing talent contributions. Evolving property management One of the most anticipated sessions was “The Crystal Ball of AI: Leveraging Data & AI for Predictive Insights in Property Management,” moderated by Meherzad Bakht, senior sales manager for Yardi. This panel discussed the transformative impact of artificial intelligence (AI) and data analytics in the multifamily housing sector. Killam Apartment REIT covered the benefits of generative AI technologies, such as chatbots and automated crm systems, to streamline interactions with prospects and residents, enhancing efficiency and improving response times. QuadReal Property Group shared their use of biometrics to authenticate applicant identities before a tour as a new first step for fraud prevention. simplydbs’ survey of 20,000 Canadians revealed renters want their next unit to be...

Yardi strives to illuminate the efforts and results of philanthropic organizations that drive positive change in communities worldwide. Each of our offices selects several non-profits or NGOs to receive financial contributions each year. Yuppi Camping Motion Association is a local organization dedicated to offering effective recreational therapy to children with chronic illnesses in Cluj-Napoca, Romania, since 2011. This Yardi-supported nonprofit offers free-of-charge camps that are aimed at children and teenagers with cancer, diabetes or other autoimmune diseases and their families. “We are the first camp in Romania to use the revolutionary method of therapeutic recreation, which has a positive impact on many aspects, including children’s self-confidence and independence,” said Horváth Enikő, coordinator of the corporate fundraising department for Yuppi Camping Motion Association. The success of therapeutic recreation lies in the beneficiaries participating in activities where they can discover their skills and talents (rather than their limitations) to improve their self-confidence. Thus far, 1,722 children and parents from all over the country have participated in Yuppi Camps. Yuppi Camp offers three summer camps: Family Camp, Sibilings’ Camp, and Teenager Camp. In addition, Yuppi Camp offers a Family Weekend, which is provided for children with rarer chronic diseases. Yuppi Camp will also aim to increase the number of its inter-year events yearly to reach chronically ill children who cannot make the camps mainly due to the severity of their disease or because they are hospitalized. Yuppi Camp is there for those families to provide unforgettable memories filled with days without worrying about the illness so they can enjoy life and their childhood. Funding from Yardi helps the families of Yuppi Camp enjoy the camps freely since 50% of the children it hosts come from underserved communities. Every contribution is significant to Yuppi Camp so that its hosting, food and therapeutic services can be of the highest quality, brought together and coordinated by professionally trained volunteers and medical staff. “As we have learned during the years of our partnership, Yardi promises to take care of three major components: customers, colleagues and their community. These elements certainly form a great motto, but the support Yardi has given us—and continues to give us—backs up the promises with concrete actions, too,” said Enikő. He continued, “In 2023, before the camps, they not only answered our call for help with openness, but they have also become one of the main sponsors of our camp for teenagers with diabetes held in Șăulia between 28 August- 2 September 2023. As a result, together, we have managed to offer days without the worry of disease to over 50 young people with diabetes. On this occasion, we want to thank Yardi for all the support for making it possible!” Răzvan’s Story Răzvan had cancer for a long time, and he could not talk about it with anyone except his family. Recently, he shared very openly and honestly in a video what that period meant to him and how he had gained the courage to accept and talk about his illness. “Before, only my parents knew about my illness. But after my first camp, I started being more open about what has happened to me, as at Yuppi I met other children like me, whom I could talk to,” shared Răzvan. “And that is what happens at Yuppi Camps. For a week, you feel like you are capable of anything!” Now, Răzvan is a very proud member of the Yuppi family, returning year after year to the camps as a volunteer. As he claims, “Having an illness is not a shame, and if you have a community that encourages you, everything becomes easier!” Volunteer Opportunities “We warmly invite everyone to gather their colleagues, friends and family members and sign up for Yuppi summer camps as volunteers to experience the magic and healing aspect of our camps first-handily,” shared Enikő. Camp volunteers, AKA “Elves,” undergo professional training before the camps to be...

Yardi Canada Ltd. marked its 25-year anniversary in 2023 with a series of client events that celebrated the company’s growth, philanthropic efforts, and diverse staff in Canada. “It was wonderful to spend time with our valued clients in a social setting for the first time since the pandemic,” said Peter Altobelli, Vice President, and General Manager of Yardi Canada Ltd. “During our gathering, we had the pleasure of unveiling the forthcoming generation of Yardi products, which includes the highly anticipated Yardi Voyager 8 and Virtuoso. Additionally, we took this opportunity to provide an insightful update on the progress of our philanthropic endeavors in Canada. Altobelli has helmed Yardi Canada since the beginning and simultaneously celebrated his own silver jubilee anniversary at the company. In 1998, he could not have predicted where Yardi Canada would be today. “When we opened our Mississauga (Toronto) office in August 1998, we established a presence in Canada. The first set of employees were hired in October of that year. I could not have foreseen the remarkable journey from our humble beginnings to our current status as a market leader. It is truly beyond what I had ever dreamed possible,” Altobelli said. An expanded presence Today, Yardi Canada has approximately 500 staff members in three regional offices: Saskatoon, Vancouver, and Toronto. The Saskatoon and Vancouver offices were established as part of Yardi’s corporate acquisitions – of Point2 Technologies Inc. in 2010 (Saskatoon) and a division of EnerNOC in 2016 (Vancouver). Toronto-based Planimetron was also acquired in 2022. Each of our offices has dedicated teams that concentrate on different aspects of Yardi’s global real estate product and support functions. These are just a few examples of the diverse roles and responsibilities within our organization. We have much more to offer. ·Vancouver: Provides support for Yardi Pulse, Canadian residential and commercial clients along with product development for Yardi’s Home IQ ·Saskatoon: Focuses on product development for Yardi’s Home IQ, Matrix platform, Pulse and Machine Learning/AI initiatives as well as customer service for Yardi Breeze Premier and assistance with the management of our Cloud Services infrastructure. ·Toronto: Offers product support and sales for Canadian Breeze Premier and Voyager residential, condo/strata, social housing, commercial, senior living, and investment management clients. Yardi holds the majority of market share for both residential and commercial real estate software in Canada. Over the years, Yardi Canada has expanded its presence beyond being a preeminent tech supplier, becoming a true partner to many Canadian real estate organizations. Today, Yardi Canada continues to develop solutions that are utilized by Yardi clients worldwide. “We are now recognized as the leading expert. Our teams have the knowledge and experience to anticipate trends in the Canadian market,” Altobelli said. That includes the recently launched Canadian National Multifamily report, introduced in 2022. “It has become a prevalent report that the industry uses to understand the current state of the multifamily market, and to gain insights into each regional market across the country,” Altobelli said. (For additional information, download the report here.) Philanthropic contributions Caring for the communities in which our offices are located has been a part of Yardi’s corporate mission from the beginning, and that’s true for Yardi Canada as well. Dozens of non-profit organizations receive support through donations each year, and employees regularly gather for team volunteer outings. Canadian support is prioritized for organizations that combat hunger and homelessness, with an emphasis on building long-term relationships. “Our end goal is to make a difference in someone’s life,” Altobelli said. “We are dedicated to aiding families and individuals emerge from their unique challenges, fostering their ability to thrive and make their individual and valuable impact on society.” The environment is another area of philanthropic emphasis. In 2022, Yardi contributed to and closed the most significant conservation project in Canadian history—the Boreal Wildlands in northern Ontario. With Yardi’s help, the Nature Conservancy of Canada acquired the 145,000-hectare/350,000-acre property to...

Yardi Dubai supports Al Noor Training Centre for Persons with Disabilities as part of the company’s global program of philanthropic support for nonprofits and NGOs. Yardi Dubai is sponsoring education and training classes all year for Al Noor students, who include hundreds of children and young adults with physical and cognitive challenges. Yardi’s Dubai office participated in a 4K Run at a recent family charity-raising event. The theme was Superheroes for Inclusion. The team gathered to run or walk with Al Noor students and their families, with a focus on supporting the inclusion of “people of determination from all walks of life.” Established in 1981, the Al Noor Training Centre started with just 8 children. With a holistic approach to wellbeing and development, the centre has expanded and now provides high-quality professional training for people with disabilities in Dubai. The centre has specially designed programmes to suit each individuals’ needs, which includes children and young adults with various physical and cognitive challenges such as down syndrome, cerebral palsy and autism. They also employ Trans-Disciplinary Assessment and Intervention methods to ensure each child gets the precise help they need. Today, the Al Noor Training Centre has over 180 students with more than 28 nationalities. The goal of Al Noor’s Vocational Training Unit is to make students of determination skilled and productive members of the community. Training is offered in wood design technology, printing technology, fashion technology and bakery units. The centre includes a well-equipped gym, a large multi-purpose auditorium, a swimming pool and a shaded outdoor playground. If you would like to find out more about the services Al Noor Training Centre provides to their students with disabilities or explore employee engagement initiatives, visit Al Noor Training Centre. Editor’s note: Team Yardi UK marketing associate Sophie Swords contributed to this...

A future of instantaneous settlement and no intermediaries is possible with the right infrastructure. Alice Chen, Bernie Devine’s guest on the latest episode of Yardi’s Proptech Insights, is busy building that infrastructure. The world of digital assets is taking shape before our eyes. In December, Larry Fink, CEO of BlackRock – the world’s largest asset manager with around $8 trillion in assets under management – predicted blockchain technology would open the door to the “next generation for markets.” Tokenisation can provide liquidity to illiquid assets – and one recent estimate suggests tokenising just 0.5% of the total global property market between now and 2026 would create a $1.4 trillion market. Alice Chen, co-founder and COO at InvestaX, was a real estate lawyer for many years, dealing with complex transactions “with a lot of intermediaries, a lot of paperwork and a lack of trust.” “I knew, if we could build trust into the process, we could save a lot of money and a lot of time,” Chen told Devine, Yardi’s senior regional director for Asia Pacific. With this insight and a desire to “democratise the real estate investment process,” Chen established InvestaX in 2015. Today, she and her co-founder Julian Kwan oversee Singapore’s leading digital securities platform. Tokenisation is the process in which a digital representation of an asset is created on a blockchain, authenticating its transaction and ownership history. Any asset – from art to real estate to bonds to carbon credits – can be tokenised. “And anything that has value, once tokenised, becomes a digital asset,” Chen explained. Cryptocurrencies such as Bitcoin and Ethereum capture a lot of headlines and headspace, but they are quite distinct from digital securities. Cryptocurrencies are a decentralised medium of exchange that operate independently of central banks or governments. Digital securities, on the other hand, are investment products that are represented in digital form and can only be bought, sold and traded on regulated platforms. Metaverse investments and digital securities “have different characteristics, regulatory parameters and tax implications,” Chen emphasised. “I agree. The path to success with digitisation of assets is one that is compliant,” Devine added. “By digitising an asset you also make it easier for software to deal with it… You are not relying on an external third party to stamp a piece of paper.” InvestaX is taking the “slow and long road” – one which is building relationships and advocating changes to often antiquated laws. “The US test for what is a security is based on case law from 1946,” Chen explained. One of the biggest hurdles to real estate tokenisation is the stamp duty or transfer tax applied each time the asset changes hands. But Chen can clearly see a future of instantaneous settlement and no intermediaries. “We have the opportunity in the private markets to introduce an entirely new infrastructure because we don’t have legacy systems. We can facilitate instantaneous settlement… but we can only do this if we have digitally native currencies and digitally native securities. That’s how we think the future will be and that’s why we are rebuilding an entire infrastructure around it,” she said. How long will tokenisation take to transform real estate? Download the latest episode of Yardi’s Proptech Insights webinar series with InvestaX’s Alice Chen to find...

Next month, thousands of Yardi clients from around the world will join together in learning, fellowship and fun. The occasion is YASC Global, the fourth annual virtual Yardi Advanced Solutions Conference, which happens March 1-2. The conference, which is offered free with automatic registration for all Yardi clients, will showcase the company’s latest technology innovation updates through hundreds of new on-demand classes and spotlight sessions delivered on the company’s Yardi® Aspire platform.. Commercial, multifamily, senior living, affordable and real estate investment management are just some of the areas covered in the 250-plus class offerings. And, and always, YASC Global isn’t just about work – it also lets participants catch up with their industry peers, interact with Yardi solution specialists, and win daily prizes and big grand prizes at the end of the conference. In short, it’s a lot of fun! “YASC Global helps our clients enhance the value they gain from their software, discover new solutions they might not be aware of, and connect with their fellow software users and our product experts – all of which move their business forward,” said Kevin Yardi, the company’s vice president of global solutions. The most recent YASC Global in March 2022 drew more than 15,000 clients who collectively attended more than 100,000 classes over three days. Two other online events in 2020 and 2021 also drew tens of thousands of participants. After YASC Global, Yardi will continue its series of popular in-person YASCs in Asia, the Middle East, North America and Australia/New Zealand this year. See the...

Yardi is committed to supporting the community in every city where our offices are housed, worldwide. Each year, Yardi offices distribute philanthropic aid to organizations selected by regional employees. The India Sponsorship Committee (ISC) of Mumbai, Maharashtra is a Yardi-supported NGO founded in 1967 that supports the protection of children and gender-based rights. ISC also aids in learning enhancements for children from vulnerable communities. For the last 15 years, ISC has focused on the children of migrant labor groups living around the city of Pune, where Yardi’s India office is located. ISC will prioritize the following in the year to come: Program quality benchmarking Technologically enabled operations Collaborations and partnerships Organizational performance Real estate optimization and environmental sustainability Sustainability in fundraising “We have aligned and shared values with Yardi in terms of ensuring impact in the vulnerable communities through direct, consistent, and effective intervention, which need a continuous response to the changing environments, especially in learning and technology,” said Medha Oka, executive director of ISC. Yardi has been an ongoing supporter and advocate of the work of the India Sponsorship Committee. “Yardi’s commitment towards the children from migrant and vulnerable communities is inspiring and admirable. The team has always been collaborative towards ensuring greater impact with consistent discussion, inputs and innovative solutions,” Oka said. Advocating for education Most families working in the brick kilns of India are vulnerable migrant laborers. Almost 70 percent of the children frequently migrate with their families and don’t get access to formal education. ISC focuses on bridge classes, protection from child labor and other child rights violations, and providing daily nutrition for all children. “Of the 30 percent of children who can stay back in one brick kiln for longer, ISC successfully enrolled them in mainstream schools over the last eight years. Currently, over 140 children attend ISC learning centers; 46 among them attend primary and middle schools, while five attend high schools. These children are often first-generation schoolers breaking the cycle of generational illiteracy and exclusion,” shared Oka. ISC supports its ongoing education through consistent support classes, innovative learning aids, and dedicated delivery teams. The children’s academic journey would not have seen this change without the changing attitudes of the parents, who have, over time and through consistent engagement with ISC, understood the positive impact of formal education. As a result, they are now an active supporter and participants in their children’s lives. The nearby schools and local government bodies that once resisted school admission of these children due to biases and structural inequalities have now become advocates of the program. “We at ISC have a unique journey for our beneficiaries where the child is supported from the age of six until they are able, capable, contributing and responsible citizens of the society,” Oka said. Volunteering opportunities ISC has ongoing volunteer and employee engagement opportunities to work directly with children and provide skills to enhance program implementation. To explore more synergies and opportunities, please get in touch with them at [email protected]. Find future non-profit profiles...

Contraction in the proptech universe won’t be driven just by competition, consolidation or economic challenges, but also by compliance. That’s the top takeaway from a recent webinar hosted by Yardi’s Asia Pacific team. Bernie Devine, Yardi’s Senior Regional Director for Asia Pacific, sat down with Kevin Yardi, Vice President of Yardi, for the final installment of Proptech Insights for 2022. Kevin Yardi interfaces with some of the world’s largest real estate companies and has observed a shift in the proptech conversation as 2023 begins. The latest Metaprop Global PropTech Confidence Index, which has been a barometer of health for the burgeoning proptech industry since 2016, recorded its lowest investor confidence score to date. Confidence plummeted to 5.8 out of 10, down from its all time high of 9.3 just six months prior. While a “handful” of proptech companies are receiving “big cheques” a “long, long tail” is the recipient of far smaller investments, Kevin noted. Expect that long tail get much shorter, Kevin predicted, as the screws of regulation tighten over the next two or three years. Regulation is expected to ramp up across the Asia Pacific. Following a series of high-profile data breaches, the Australian Government is considering tougher financial penalties with fines up to AU$50 million. Japan’s laws governing the protection of data has been strengthened to match the gold standard of data protection regulation, the European Union’s GDPR. And China’s new data privacy legislation influences more than a billion internet users. Bernie suggested these moves signal a future model where consumers “containerise” their personal data and make it available on a “permission-only basis”. Real estate companies will be required to rethink every element of their business process, he warned. Kevin agreed. “You have to understand what data you have, why you are holding it, and how long you are holding it for. Those seem like straightforward questions. But if the data is sitting in all sorts of systems for reasons unknown it can be a challenging thing to start digging through.” Compliance is a “large, growing and challenging topic” for every company in the proptech ecosystem, but especially those operating at a small scale, Kevin added. “It is challenging for a small company to have the apparatus, the technical security teams, the folks who understand compliance and GDPR.” Real estate customers are reassessing their appetite to absorb the risk. Overlay that with the “operational technology data” collected by everything from “light switches and heat sensors” and “it gets pretty complex because your level of security needs to be much higher,” Bernie added. Yardi has been looking after client data for more than 22 years. Supporting more than two billion square meters of assets and US$6 trillion of assets under management, Yardi has a global footprint and products used in 80 countries. Even with a dedicated global compliance team to mitigate risk and enhance confidence, it’s “not always straight forward,” said Kevin. “Some regulatory bodies may be in conflict with each other. It takes vigilance and ongoing coordination.” So, what can we expect in 2023? The pair expect further aggregation to force companies to streamline their business operations and elevate their compliance processes. “Manual processes and Excel are really hard to scale and tend to be more and more error prone as a portfolio goes from 10 properties to 100 to 1,000 to 5,000,” Kevin concluded. Check out the previous episodes of Yardi’s Proptech Insights webinar...