With mortgages agreed and keys handed over, homeowners will often think that their purchase is a case of job done. Unfortunately, the reality of homeownership is often quite different, with Homeowners Associations (HOAs), city ordinances, land management and hidden taxes creating a serious headache. The results can be deadly; the collapse of the Miami Champlain Towers South Condominium has, in part at least, been attributed to property mismanagement, according to USA Today. But, the good news is, RegTech is providing a clear alternative to the management systems of the past and allowing homeowners and stakeholders to communicate on a level.
Tackling and enforcing rules
HOAs are a great example of where conflict can come into play as a result of regulatory mismanagement. HOAs aren’t a bad thing in essence. They act as a function to help improve house prices in the local area, provide a central point of contact for a community and its grievances, and actively work to help beautify the area. HOAs are also infamous for mismanagement, however, with the issuance and enforcement of rules often lopsided and reliant on certain big personalities within the estate. RegTech can come in to help with this, having a single platform to provide sight of the rules at all times and help to protect homeowners. It also means that new rules can be brought in quickly. This easy access is important for home improvement; PV-Magazine notes that recent rules enacted in Indiana prevent HOAs from banning solar panels, for instance, but it’s the work of RegTech platforms that will ensure these rules are in place for homeowners to take advantage of.
Keeping providers in check
Just as RegTech can help independent HOAs to manage rules and clearly show violations, so can it help property providers and managers to stick to their own rules. A collaborative approach to compliance with rules that allows both tenants and property owners to view and report violations of breaches related to their own responsibilities is an important power to have. Once again, it enables both sides of the divide to know what to expect of their counterpart and is an objective source of information to relate back to.
New property licensing
RegTech also provies a clear way for property owners, whether as property managers or independent tenants, to look for and apply for new licenses on properties. This information helps with navigating the process of purchasing in a new area or converting a property into a rental. According to UKTech, a London startup has created tools to help property owners navigate the complexities of licensing and local law in their individual state or region. This, in turn, means that all regulatory demands are met and will continue to be met throughout the course of the purchasing or rental process.
Having this level of assurance is invaluable for property owners – regardless of their status or intentions for that property. The sheer bulk of laws and regulations present in even a county-to-county basis makes it difficult to operate easily in the property market. RegTech is changing that.