Property Management Platform

MARKET

Property Management Market Growth:

• This global property management market size to grow from USD 14.47 billion in 2018 to USD 22.04 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 8.8% during the forecast period. North America to hold the largest market size, and Asia Pacific to grow at the highest rate during the forecast period.

• Property Management remains a fragmented industry spread across close to 250,000 businesses, most of which are quite small. According to Fortune, 95% of rental properties are run by “small businesses with less than $20 million in revenue and fewer than 10 employees.”

Property Management Software Market Growth:

• The global property management software market is expected to reach a value of US$ 1,838.5 Million by 2026 on account of the high rate of property development across the world. The market is projected to expand at a CAGR of 7.2% during the forecast period from 2018 to 2026. North America is anticipated to be a rapidly expanding region of the market, followed by Europe and Asia Pacific during the forecast period.

PRODUCT

Traditional Approach:

• Hire third-party property managers or manage their property themselves, which requires high time and manpower investment.

Software Advantages: cloud-based software adoption

• Services: financial reporting, online maintenance requests & tracking, online document storage & sharing, accounting capabilities, electronic lease agreements, and integrated banking among other applications.

• Ability to eliminate communication gaps, tracing finances, storing leasing documents and contracts, and facilitating rent collection processes.

• Extended functions: tenant placement, maintenance and repairs, and the ongoing administration of properties.

User Adoption:

• Although average property manager is 58 years old (CRE.tech LIVE event), a survey found that 88% of residential property managers have already adopted “dedicated cloud-based property management software.”

EXISTING COMPETITORS

Current Property Management Software in the market:

AppFolio (NYSE: APPF):

• biggest company on the list, current market value of $870.75 million (close to unicorn)

• Launched in 2007, IPO in 2015

• Pricing: $.80 to $1.50 per unit per month, depending on property type with a $250 monthly minimum.

Buildium:

• 12,500 customers as of 2016 with “one million residential units in 46 countries worldwide.”

• Launched in 2004

• Pricing: Sliding scale beginning at $45 per month.

• Attracted interests from many pre-IPO funds

Cozy:

• freemium model with upgrade options for landlords as they grow

• Launched in 2015;

• targeting “independent landlords and small property management companies.”

• Pricing: Free for landlord. (The company monetizes through paid credit checks and a 2.75% credit card fee.)

• Raised $18.4 million in four rounds from 13 investors.