Industry Issues

Industry Issues pulls together some of the most interesting and important themes in the strata industry over the past few months.  

AI in Strata

The integration of artificial intelligence (AI) in the strata industry is revolutionising property management. AI is increasingly being used to automate and optimise various tasks, such as streamlining Annual General Meeting (AGM) preparations by automating scheduling, sending reminders, and generating minutes and action items during the meeting. This not only saves time but also ensures greater accuracy in these important processes.

AI can also forecast maintenance needs, allowing for a proactive approach rather than reactive one. This can help prevent costly repairs, and it’s not uncommon for AI to analyse data from building sensors to predict when equipment like elevators or HVAC systems might fail, enabling timely maintenance.

Additionally, tasks such as invoicing and financial tracking are being outsourced to AI, ensuring error-free accounting and timely invoicing. These tools can also analyse financial data, providing insights into spending patterns and suggest budget optimisations for better financial budget management.

While there are of course a myriad of considerations and challenges with AI integration, there is great potential for AI to improve outcomes for strata communities.

Building Defects

Building defects remain a significant issue in the strata industry, particularly in buildings constructed during the early 2000s. These defects range from minor issues, such as poor paintwork, to major structural problems including water ingress and faulty cladding. The financial impact of addressing these defects can be substantial, costing strata communities time, money and hardship.

Governments have introduced initiatives such as building bonds and cladding replacement programs to address these issues, however low take-up rates in some jurisdictions and difficulty navigating programs remain as challenges. With many buildings still requiring remediation, legal actions against builders and developers have become more common, and their rulings may provide clearer pathways for consumers to pursue claims.

Strata managers and committees must remain vigilant in identifying and addressing building defects. Regular inspections and proactive maintenance are essential to mitigate the risks. As the industry continues to navigate these challenges, ensuring the safety and financial wellbeing of strata owners and residents remains the top priority.