Technology revolutionising the strata industry
Date published: 19 April 2021, updated 3 October 2024
The past decade has seen technology advance at a rate like never before, this coupled with upheaval due to COVID-19 has seen the way we go about our daily lives undeniably changed forever. Technology has changed the way we communicate, work, consume television, music and media, how we bank, pay bills and even date.
The rate of change has drastic impacts on all industries. It has manifested itself as new business models while upending old ones, it has disrupted business strategy and increased customer demand. Today, customers demand change, they expect simple, transparent products and services as we adopt and embrace technology; and the strata industry is no different.
Therefore, raising the question, how is technology changing the strata landscape, and what does the future hold for the strata industry?
1. Making our buildings smarter and more secure
Undoubtedly, prevention is better than a cure. Through the application of networked and smart devices in buildings, we could achieve protection of both people and property.
There is an array of devices available in the market:
- Smart locks, thermostats and lighting – all of which can be controlled remotely on phones and devices
- Water leak detectors - sending alerts and notifications to you and your building manager before a major issue occurs
- Smart home energy - enabling the control of appliances remotely and also providing recommendations to obtain better energy efficiency and lower utility costs
- Smart garage door devices – being able to open your garage door by a fob or an app on your phone and importantly allowing you to close it remotely in case you have forgotten
In addition to the added security and convenience provided by these devices, adopting such technology reduces energy consumption and lowers a strata building's carbon footprint. For strata owners, this not only appeals to more eco-conscious tenants and buyers (potentially increasing property value), but it can also lead to significant savings through lower energy bills.
2. Switching to solar and LED
As we become ever more energy conscious, society strives for environmentally sustainable and renewable sources of energy. Such demand has created revolutionary markets, initially with solar and battery storage, through to the creation of electric cars, pushing down emissions and minimising our fossil fuel footprint.
Small and simple changes can revolutionise the way we utilise energy, such as solar panels affixed to buildings to power our homes. This could be then coupled with the installation of battery charging stations to power electric and hybrid cars. Or very simply switching to LED light bulbs in common spaces and within owner’s properties.
Adopting technology like solar panels and smart energy systems transforms strata properties into greener, more sustainable living environments. These simple upgrades make a huge impact on reducing the environmental footprint by minimising energy consumption and over-reliance on non-renewable resources.
As more properties incorporate these technologies, they pave the way for communities and developers to prioritise eco-friendly practices in construction and management.
Such simple steps can help reduce our carbon emission output and associated energy costs which is a win for the environment and a win for the finances.
3. Adopting Virtual Reality
The phenomenon of virtual reality (VR) captivated audiences worldwide through the smartphone game Pokémon Go back in 2016. Now, VR technology is shifting the way the strata industry operates. VR can simplify the sometimes repetitive and time consuming questions needed to obtain necessary building details, as the underwriter can place themselves at the scene. This is even more impressive when it comes to accident resolution. One example of this is CHU Inspect. CHU Inspect offers a whole new level of innovation when it comes to building management, strata building insurance, maintenance, and repair services.
Utilising advanced technology, CHU Inspect can map out the internal and external measurements of a building with precision and intricate detail. It provides a wealth of data that can be utilised by multiple experts to report on damage, defects or assist in decisions on maintenance and repair of buildings.
They can also expedite the claim process and reduce the pain felt during a stressful situation.
4. An intelligent automated building
Like most of us, a daily routine is commonplace in our lives. From the moment we wake, to the morning shower, our breakfast habits, the work ritual and the evening’s cooking and entertainment. Within this routine, we utilise a multitude of devices that could be both efficiently and effectively managed.
Through the collection of sensory data, our repetitive patterns can optimise the use of applications. The application of sensors to buildings that would turn off the light that you mistakenly left on or adjust the temperature accordingly. Moreover, we could ensure that the power supply is disabled when you’re not home through to locking both doors and windows as you exit your home.
Such sensory application can only serve to reduce accidents and unnecessary costs while increasing both your security property and comfort.
While some of the technologies may seem a distant future, some are already being used in strata properties. The momentum for change is growing and strata industry will soon be receiving the benefits.
5. Resident engagement tools
For strata properties, clear communication between management and tenants is vital. From raising concerns to chasing up payments and scheduling maintenance, effective communication ensures all facets of a strata property run smoothly and efficiently.
Resident engagement tools like digital platforms and apps are integrative and interactive solutions for strata managers looking to streamline communications and day-to-day management.
For example, residential communication software, ResVu, is a platform that enhances the way strata managers engage with residents. The automation tool facilitates feedback forms, surveys, and organising social gatherings and community events all while providing integrated SMS and email for prompt communication.
These tools are beneficial because it fosters a sense of community and enhances resident satisfaction. Any concerns can be addressed quickly and efficiently, and daily management tasks can be streamlined for a more harmonious living environment.
6. Cost-benefit analysis
Adopting smart building technologies for strata properties involves upfront costs but they are quickly offset by the long-term savings on energy bills and reduced replacement/maintenance costs.
There are various financing options and Government incentives available to support the construction of a smart strata building or the addition of smart technologies in an existing property. For example, the Victorian initiative, Solar for Apartments, offers qualified applicants funding of up to $2,800 per apartment, or a total of up to $140,000 for buildings with up to 50 apartments, to install solar panels on their rooftops.
Up to 60% of energy consumption in large buildings like apartments come from common areas while around 25% of the administrative fund is spent on utility bills. Implementing energy-efficient solutions for strata buildings can potentially reduce common property energy consumption by up to 40%.
The cost of installing these technologies is outweighed by long-term savings, along with the environmental benefit of reduced carbon emissions. Additionally, these enhancements can increase the strata property's value and, most importantly, contribute to the health and wellbeing of residents by providing a more comfortable and efficient living environment.
This article was supplied by CHU Underwriting Agencies
Important note: CHU Underwriting Agencies Pty Ltd (ABN 18 001 580 070, AFS Licence No: 243261) acts under a binding authority as agent of the insurer QBE Insurance (Australia) Limited (ABN 78 003 191 035, AFS Licence No: 239545). Any advice in this article is general advice only and has been prepared without taking into account your objectives, financial situation or needs. Please read and consider the relevant Product Disclosure Statement (PDS) before you make any decisions about this product. A copy of the relevant PDS is available at www.chu.com.au.
