Silicon Valley may be the technology hub of the United States, but there are exciting things happening in tech around the country as well, including several real estate startups cropping up in New York that could have national implications.
With CBRE’s acquisition of Floored in January, I noted that real estate startups are beginning to reach a maturation point, showing that technology is set to make substantial waves in the industry. That interest extends to all areas, from property management to fintech. CB Insights recently released a report with real estate crowdfunding platform RealtyShares and five other real estate startups making the list of top fintech startups receiving venture capital funding in 2016.
From New York to Michigan to Palo Alto, these companies span the country, with even more of these intriguing startups on the way. Metaprop, the most influential incubator for disruptive real estate technology, has fostered dozens of new ideas and companies looking to take exciting leaps forward in technology. As an unofficial feeder league for the growing PropTech scene, their 2016 Accelerator Class recently presented in both the Bay Area and the Big Apple, showing how quickly innovative ideas can grab a foothold in the archaic real estate industry. Here’s a look at six such up-and-coming startups putting those ideas into action.
Bowery
If you have ever bought or sold a property, you know that the appraisal is a key step in obtaining funding. Lenders understandably need to know a property’s objective value before handing over a check for hundreds of thousands of dollars, if not millions.
Bowery is taking a new approach to appraisals that may completely change how this long-practiced real estate function is performed. They have created a proprietary appraisal platform for commercial real estate that utilizes the power of big data to make appraisals faster and more accurate than ever before. Using public records, comparables and other metrics, Bowery creates custom, data-driven reports that offer in-depth information to find the most accurate property appraisal value possible.
Flip
In cities like New York, Los Angeles and San Francisco, finding a legal, affordable sublet can be a serious challenge. And if you're on a lease and you need to leave town for a while, subletting your space without stress is just as difficult. Flip aims to make managing or finding subleases a breeze.
Think of Flip like Airbnb, but for much longer stays. Flip allows users to list properties and create detailed profiles so you have better information than what’s on Craigslist when dealing with other renters. View credit scores, verified income and history of paying rent on time. Payments between renters are guaranteed, taking the risk out of the subleasing experience. For landlords, Flip brings trust and transparency to a behavior that tenants are already doing.
Ravti
Heating, ventilation and air conditioning, commonly known as HVAC, is the largest maintenance and repair cost for property owners and large-property managers (32 percent is dedicated to HVAC, nearly two times that of any other trade). Checking the condition of HVAC systems when buying or running a property is a big hassle. In most cases, it even involves dispatching staff or third-party vendors onto roofs and into mechanical rooms for manual inspections and manual reports.
The Ravti team is providing a better solution to HVAC management. Ravti, a Y-Combinator-backed startup, brings intelligent software to building owners and operators reducing costs by 18 to 30 percent on capital replacements through direct procurement. Ravti boasts clients from three asset classes (office, retail and industrial) and some of their clients have saved in the seven figures on their HVAC operations within a year. Ravti currently serves both owners and property managers.
OnTarget
Construction delays are often costly and inconvenient for property developers. Sometimes those costs can balloon out of control and sink an otherwise great project. Knowing the status of each contractor and vendor in real time is nearly impossible. But OnTarget thinks that shouldn’t be the case.
OnTarget helps construction projects wrap up successfully and on schedule. The cloud-based app allows property investors, managers, contractors and other vendors to connect through an online dashboard. This gives managers a simple and effective option to ensure everything is on track and information to respond appropriately when delays put the project schedule at risk. Agents with a focus on property development can see their lives getting a little easier with the OnTarget app in their pocket.
Enertiv
We already discussed a company that provides a solution for HVAC systems, which can be a major cost due to their energy consumption, but what about overall energy use?
Enertiv is focused on giving property owners and managers access to real-time energy use information around the clock. Through its proprietary platform, clients can view energy use by location with live data and prior period comparisons. Its weather overlay shows how a change in temperature translates to an increase or decrease in usage, letting you know instantly if you need to make money-saving adjustments.
hOM
Today’s tenants are demanding and have a high bar for amenities. As a result, older multi-unit buildings often struggle with high turnover in competitive markets.
The team at hOM is working to bring amenities to existing spaces with a creative approach. As an event management option, the company turns a boring apartment building into a bustling lifestyle center. With fitness classes like yoga, pilates and fitness bootcamps, and a mix of social and professional events, hOM communities see a 15 percent higher tenant retention rate than the national average. Property managers and agents can use hOM to reduce turnover and related costs, helping owners improve overall profitability without overspending on gyms, pools, hot tubs and other amenities.
Real Estate tech is just getting started, and these startups in New York and across the country are lowering transaction costs, creating new apps and technologies, and bringing a wave of innovation to the world of residential and commercial real estate.
