Thom Richards, a driving force behind the real estate tech venture Cohabit, recently appeared on a top industry podcast to unpack the often-overlooked intricacies of managing shared properties. He pointed to outdated systems and limited visibility as barriers holding the sector back, hinting that smarter digital infrastructure could unlock serious improvements not just in strata, but across real estate as a whole.
Rather than sugar-coating the situation, Richards described the landscape as riddled with friction and mistrust. He stressed that boosting access to trustworthy property data—and putting it into the hands of those who need it—might be the key to untangling some of the persistent gridlock in this niche yet crucial corner of the industry.
In an effort to spark real progress, Thom Richards launched Cohabit in 2023—a digital platform that harnesses artificial intelligence to evaluate and score the overall state of a strata property. The system examines elements like financial stability, resident experience, and physical upkeep to produce a comprehensive “building health” rating.
Richards believes that access to this kind of clear, actionable data can lift much of the administrative burden that strata managers face. With better visibility into a building’s real-world performance, they can make faster, more confident decisions and avoid costly surprises.
For professionals tasked with managing strata properties, the challenge often comes down to being stretched too thin. Thom Richards noted that managing a portfolio of buildings with limited time creates a bottleneck that slows down even the most experienced operators. The underlying issue, he implied, isn’t just volume—it’s the strain on their capacity to deliver at scale.
He pointed out that improving access to building data is a key solution. If strata managers can quickly retrieve the necessary information for inquiries, they could avoid delays, speeding up the process and delivering better service for buyers and residents alike. Richards believes this adjustment could significantly ease the workload while improving overall outcomes.
Sources indicate that access to information will enhance the regular operational effectiveness within that specific property management firm, consequently enabling them to dedicate more effort to resolving significant overarching challenges they encounter. This improved understanding of a building’s distinct characteristics, according to Richards, will allow property management companies to customize their suite of services and gain considerably from the lowered overhead.
Richards also conveyed the desire for these firms to ascertain the observations of a prospective buyer during their investigative assessment of a property. Furthermore, he emphasized the advantage of this knowledge being available to the management prior to the buyer’s thorough examination. This proactive insight would empower the strata companies to address potential concerns and present a more informed perspective.
In a third-party report, Richards noted the frequent absence of data concerning a strata building’s financial health, regulatory adherence, and risk assessment among insurance providers. This information gap, he contended, often leads to significant discrepancies in insurance expenses from one building to another. The expert suggested that a clearer understanding of these elements could pave the way for more advantageous agreements and reduced financing costs.
Furthermore, Richards conveyed the opinion that a comprehensive evaluation of a strata’s operational standing could unlock opportunities for improved contractual terms and diminished interest obligations. He also pointed out the possibility of securing more favorable insurance arrangements. Beyond these financial aspects, Richards indicated the potential to identify areas where general operating expenditures could be decreased through diligent examination.
It was emphasized that for agents to effectively sell a strata property, they must have an in-depth understanding of both the advantages and disadvantages of the building. Without this knowledge, buyers can leverage any gaps in the agent’s expertise to negotiate better terms, potentially affecting the sale.
The health score system was introduced as a solution to this issue, offering a comprehensive evaluation of a building’s condition. The goal is to integrate this tool into agents’ existing systems, enabling them to enhance their knowledge and, by extension, deliver a smoother, more transparent experience for both buyers and sellers throughout the transaction process.
