Information Management Network (IMN)’s Post

Transcript

I'm Gamo Salazar, I'm the CEO and founder of ICX. We are a Tele maintenance software solution. We allow home operators to be able to resolve problems remotely rather than on the truck. It's, it's kind of interesting right now like we're releasing a convergence of of different approaches to solving kind of conventional problems. You take a look at the Sr. and the and the multifamily business, both of them are feeling a lot of probably an onslaught of technology coming at them and so using. I would say that the the to solve operational approaches, taking a look at other industries and how they're solving operational models and bringing that into the multifamily or this or this SFR industry are going to be a great way to get started in terms of battle tested solutions that are working to solve other problems. And you know, multifamily industry is still family industry has been really successful for quite a long time and a good long run. And now with interest rates and with the compression of things with respect to net operating incomes, you're starting to see. A bit of doubt with respect to optimism and on the I'm exceptionally optimistic that we're going to see a a comeuppance of technology to solve all of these operational problems in this market. I think it's going to be really interesting to watch and again, borrowing from other industries where you've seen operationally excellent manufacturers, auto manufacturing and example and then move to and then have them adopting resident customer facing experiences like you take a look at. Other industries where you have recurring revenue models, which is, is the rental business and they're focused on the resident experience and being customer focused and customer oriented is not a new way of doing things. And you put that resident in. When you put that resident in the middle of the, of the process flow and how you're going to execute your operations, you can really start to find ways to say capital and save cash and doing things that are for the resident first. So it's, it is a bit of a, a, a demand side way of thinking of things, but really operationalizing. Around the resident first is a great way to start being more capital efficient and understanding where the amount of waste is going on inside the inside the operations of the version. I think we're gonna start seeing again like around this resident experience and operators. Now what's really interesting right now is that the the fee schedule for operators is getting very compressed. And so they're looking at ways to kind of like you know, retain retain revenue that's out there and not lose it and and they've got to compete in different ways so whereas. Previously, they may have competed on just being the best in the market, but now that's not really good enough because the floor is raised so, so high or come down depending on how you look at it. The ceilings come down depending on look at it. And so they're competing on ways to innovate on behalf of their clients. So I expect that we'll see. I'm exceptionally optimistic in this as well that operators are going to have to become the innovators in the space and they are going to have to be driven to be more concerned about their customers being the owners. NOI interests more so than ever before. So I do expect that we're going to see some innovative pricing models from an operator perspective where it kind of the traditional fee manager pricing model might start to get to lose pricing power and that should be very interesting to see. So I think one thing that's really beneficial right now is that because we have seen such a move to centralization with leasing and property admin, it's there's a playbook out there that's working. For a symbolization motion and with centralization, you can start activating automation. It's very, very difficult to have automation without having that centralized specialized motion because it's just not, you know, you're, you're, you typically don't have the data that you need to be able to do it. And so I think that what I hope to see is that the leasing playbook or the centralized leasing playbook that's been used by, you know, in multifamily is going to start moving towards other parts of the business. And so you'll see service. Move towards centralized model just like in other industries, like what's, what's really remarkable around multifamily and single family is there's this, this belief that, you know, you've got to be on site to solve the problem. And that's just not true any longer. And so that adoption of technology, the, the playbook that exists from the centralized leasing perspective and then bringing in new ideas from other industries is, is, is typically how we're going to how these problems are going to be solved. It is interesting to take a look. The different models that are being that are being that are surfaced, being surfaced with respect to, you know, trying to capitalize the rank model. So if we look at an apartment complex right now that might have, you know, let's say 85% occupancy at 85% occupancy, this 15, you know, it's called 100 units since you've got 15 units that are open, you know, those are starting to kind of emerge and you've already seen it in cities like Austin where they're they're available for short term rental, they're available for Airbnb and those kind of things are starting to kind of really populate. And it'll be very interesting to see how we move from this kind of fixed resonant model to a flexible model in order to maximize on revenue. And so that's kind of like that'll be interesting to see. And then it will also be interesting to see who drives that. So is it going to be the, you know, as I said earlier, is it going to be the owners that are driving that or is it going to be the operators that drive that? And I'm, I'm optimistic that the, I'm more optimistic that the owners are going to drive that kind of behavior because the ones that are feeling the pinch. Below the line, below the NOI line with respect to interest rates going up in insurance going up. And so they're gonna have to find that cash somehow. And so I, I hope to see more utilization of available rental space in ways like short term rental and and an apartment style rentals. So it is interesting to take a look at some of the pricing that we experience in our regular life, like I mean, booking hotels and booking airlines is a great example of, of dynamic pricing models, right. And so we've already seen obviously with the, the, some of the lawsuits that have sprung up. In the last few months around pricing models that that are starting to kind of maximize revenue, I don't think it's going to go away. I really do believe that dynamic pricing models is something that we need to have kind of like understand and that's going to be something that's going to explore itself. And I don't know how far it is in, in the SFR space, but certainly, I mean it's, it's in the news on the multifamily side. And, and I think a lot of people just heard about it for the very first time. They're not in the business that learned that there's actually dynamic pricing that's going on out there. So we take a look at how we can. Assume things like just general consumption, you know, Uber has enterprising airlines, enterprising hotels, enterprises, even ski resorts have done our pricing. So as consumers were ready to pay to be in front of the line and I expect that's going to be even more so part of the way that we consume rental properties. It is interesting to take a look at like we need to even at this conference right now there's discussions around the TR side of things, right? So BTR, you know, you know, as I understand it emerged as a solution to. The scattered site problem for single family rental and then we take a look at what that did is that you begin to, you know, optimize for operations, but it created inflexibility and exits and capital, capital allocations. So I think it's going to be interesting to watch and see how how it all plays out because you're seeing some of the major operators and owners in SFR and we see that through like you know, through Zillow and starting to kind of like reposition all of their assets. And so you see the. Kind of like 10%, ten percent, 10% sale so to speak as we try to kind of focus on their core operating areas and that that could be something that we start to see more and more often is this. Capital allocation and operating allocation are going to work together to create a more optimized use of, I mean obviously use of capital. And so we'll see, you know, a divestitures happening in kind of non core areas and acquisitions happening in, you know, more core areas depending on the operator of the owner. And then what we'll see after that is kind of more optimizing around the operations of those of those assets. Certainly. So certainly connected, collaborative and very curious audience. There's been some. Incredible discussions that we've had in the last two days so far with with a very open to listening audience. This has been a part of the best conference of the year for for our company and certainly had a lot of collaborative curious and conversations that have been happening over and over again. So this has been excellent show.