The Australian Build to Rent sector has a prosperous future ahead of it according to Rex Software’s Adam Ali. Richard Berridge speaks to Adam about his position at Rex and the comparisons that have been drawn against the UK Build to Rent market.
Not many people know that you have a law degree. It certainly came in handy when we worked at Howsy together! What made you choose real estate over law? How has that career path evolved?
During the final year of my law degree, I learned I had dyslexia which made me highly unsuitable for a career in law that requires precise accuracy of parties, cases, dates and laws that I couldn’t reliably provide. As a young grad, I had a single interview with a Real Estate franchise in Mayfair and from that moment I was hooked!
It’s been over a year since you accepted the role of Commercial Director at Rex Software and moved to Brisbane. Tell me a little about what Rex Software do and your role there.
Rex Software is an Australian-founded and based, 90-person digital product and service company with thousands of customers using our CRM, property management, and digital advertising solutions for the Real Estate industry in the UK, Australia and New Zealand.
The Rex platform enables agencies to manage their sales and rental business in a way that drives growth and delivers it by providing a better experience that nurtures customers throughout their entire property journey from tenant to buyer, landlord and vendor.
My role at Rex Software involves steering the organisation towards sustainable growth and profitability, focusing on customer-centric solutions, effective revenue generation, and overall commercial performance.
We have focus on new markets that have included the UK and Middle East, and new sectors that have included Build to Rent and Commercial Real Estate.
I know you are passionate about the power of data. What does Rex Software bring to the Build to Rent party?
All Rex Software products champion the concept of lifetime value for a customer. It helps Build to Rent operators understand the long-term worth of their tenants and customers, enabling them to make informed decisions about tenant retention and optimising rental yields.
One of the standout features offered is their Open API, which empowers Build to Rent operators to harness data from various sources. This seamless integration and communication with external systems and applications enable data-driven decision-making – and provides valuable insights to enhance business strategies.
Moreover, Rex Software champions the idea of never deleting contacts, emphasising the significance of maintaining a robust database. By keeping all contacts, Build to Rent operators can foster long-term relationships with prospects, tenants and business partners, leading to increased trust, better customer service, and potential future opportunities.
Rex firmly believes in the importance of data ownership. By encouraging Build to Rent operators to ‘own their data’, they advocate for data sovereignty and control. This ensures compliance with regulations and allows operators to use their data in ways that align with their business objectives, ultimately providing a competitive edge in a data-driven world.
In the quest to amplify their profile and reach without solely relying on property portals, Build to Rent operators can leverage products like Reach (formally Spoke). This solution empowers them to showcase their brand and increase visibility through marketing, advertising tools and social media integration.
It proactively targets prospective tenants using propensity data that includes their demographic data, psychographic data and last 30 days’ online searches and behaviours – to secure local and international renters earlier in their search for a new home.
Australia looks to be a tempting place to work for UK Build to Rent experts wanting a fresh experience. How was the move for you?
It was very easy, there is variation in Australian rental and real estate law. However, there is already State to State variation so you get a lot of leeway. Australia is 99% the same as the UK, in language, culture, and business practices so it has been very easy to slot in.
Plus, the weather is much better and you don’t have to worry about rail strikes, as rail travel is not a thing.
Do you think we shall see more familiar Build to Rent faces like Jennie Fojtik, who is joining Local Residential in Melbourne, moving to Australia? Will we see a ‘talent exodus’?
There is a hunger from Australian organisations to bring over UK talent from Build to Rent and the Private Rental Sector, which comes at an elevated cost for them when you factor in Visa and relocation costs. The reality is that the institutional Australian rental sector is behind the UK in practices and innovation.
So, it’s likely that more experienced Build to Rent operators like Jennie will be headhunted for roles here, much like how talent was recruited directly from the USA multifamily sector to the UK a decade ago.
At 26%, Australia has a higher percentage of private renters than the UK. Will Build to Rent improve the sector in the same way it has done in the UK?
Absolutely, 100%. Australia suffers from the same issues around quality, quantity and reliability of rental accommodation that the UK does, so anything that increases supply will be greatly welcomed.
To give the need for supply some context here in Brisbane where Rex Software is based, we only had a 0.8% rental vacancy rate in March this year. A similar crisis of supply has been experienced across all the major Australian cities of Sydney, Melbourne, Brisbane, Adelaide and Perth.
The volume of paperwork and lack of any common system for rental applications, referencing, and move-in schedules has many renters in despair here in Australia, and there is little need to improve or renovate as there is no better way available to tenants. Also, the number one renter complaint we see online is prospective renters turning up to group viewings (or inspections as we call them here), to learn the home is already leased and no agent has turned up to meet them.
So essentially, a little competition from Build to Rent to the private rented sector should trigger a similar lifting of standards across the industry, and innovations in technology, to bring the renting experience closer to the e-commerce experience enjoyed in other sectors.
Personally, I feel that UK Build to Rent has failed to gain a profile amongst renters, with many still needing to learn what it is. How do you think that might be addressed in Australia? Is this an opportunity for Rex Software?
Australia already has a high amenity concept in apartment blocks and estates. It is widespread for real estate agents to have buyers and renters who want a particular estate or neighbourhood for its amenities, connections and prestige.
So having renters actively seeking high-quality recommendations and recognising Build to Rent brands is very likely, as it already happens in the build-to-sell and private rented sector. The nascent Build to Rent sector in Australia will need to get the quality right from day one, as demand is very strong.
Rex Software has identified the opportunity in a unified Operator <> Agent <> Tenant tech ecosystem, where data flows to improve the experience for renters in real time, and educates operators and their agents on how to improve their service and the next Build to Rent scheme accordingly.
You know from our time at Howsy how passionate I am about single-family housing. How do you see this sub-sector of Build to Rent evolving in Australia?
Single-family housing is simply inevitable here in Australia, as it’s an even more fertile market.
Australians are used to more space, with urban areas having much greater lateral spread. For example, the urban area of greater Sydney – with a population of five million – exceeds the London/M25 orbital area, with double the population.
This combined with a greater number of renters who sit in the family and retirement demographics makes the race for rental space a constant battle when you factor in commutable travel times (of their much larger spread cities) and the battle to meet school catchment requirements.
Even within single-family homes, high-level amenities are expected with many build-to-sale property developments or neighbourhoods having extensive leaseholder/body corporate services. As an example, here in Australia, 13% of all households have access to a swimming pool either on their development or for their individual unit. So, amenities such as children’s play areas, tennis courts, barbecues, and entertainment spaces and security are already widespread and are expected.
Having rental accommodation with resident amenities is very common here, as is the concept of building your own home or buying off-plan and customising the build.
This construction commonly takes two to three years, so during this time they need to rent a place, and often want an estate that has facilities for the kids.
Finally, what do you miss about the UK, and what do you love about Australia?
- Not having to fly everywhere. You can’t make the snap decision to jump in the car and go anywhere in Australia – the scale of this country is massive.
- My cat.
- I will get in trouble for this as there is a lot of fantastic food here in Australia – especially their seafood and selection of far eastern cuisine – but the Indian food on offer so far has been lacklustre.
- The natural beauty that is always a car ride away. You can climb a mountain on Saturday, and then hit the beach on Sunday, and you swim in a waterfall in a national park after work – they are all perfectly possible.
- Brisbane has very strict opening hours so if you want to shop on a Sunday, tough luck! Most coffee shops are closed at 1pm and if your favourite restaurant or bar is not that busy, they will shut early. Now this may sound like a negative, however, I found it makes it much easier to relax as you know you can’t do that shopping or chore after work, so you just don’t, and learn to relax.
- And finally, the weather – although an Australian heat wave summer awaits me, so ask me again in six months if I still feel the same!
