Introduction 

It is widely recognized that the future of property management lies in digitization and automation. So why does our industry lag behind others, such as banking, insurance, and online retail? What are the key obstacles preventing the widespread adoption of technology in property management, and what needs to change to overcome these barriers? 

The property management industry remains highly fragmented, with thousands of small and medium-sized firms operating alongside a few large players. While big companies have the resources to implement some technological advancements, smaller and mid-sized firms often struggle to keep up. Based on our experience, here are the primary reasons for this stagnation: 

1. Lack of Profitability 

Many property management firms operate with low-profit margins, making it difficult to invest in new technologies. The industry standard for management fees is around 4% of property revenues, which requires companies to be highly efficient to remain profitable. Without the necessary financial support, small and medium-sized firms simply cannot  allocate resources for digital transformation, leaving them reliant on outdated, manual processes. 

2. Lack of Knowledge, Vision, and Motivation 

Digitization and automation require technical expertise that many property management firms simply do not possess. Implementing new software solutions, AI-driven automation, and data analytics tools demands knowledge and training that usually do not exist. Additionally, unlike industries that have been forced to innovate due to competitive pressure, property management has traditionally been slow to adapt. Many companies are comfortable with their existing workflows and see no immediate need to change. Without a strong leadership vision driving digital transformation, there is little motivation to adopt new tools and systems, leaving firms at risk of falling behind in an increasingly digital world. 

3. Conservatism in the Industry 

The property management sector is often risk-averse, with many firms hesitant to adopt new technologies due to concerns about security, costs, and disruption to existing operations. Many property owners and stakeholders prefer familiar, traditional processes over digital alternatives, creating additional resistance to change.  

How We Broke This Pattern and Automated Dinvest 

Recognizing the need to innovate while understanding the barriers, we decided to seek a strategic partner to help drive our transformation. In 2022, we initiated discussions with Kobella Holdings, a Swiss real estate investment company. What set Kobella apart was that its owners had built their careers in international tech companies, bringing valuable expertise in digital transformation. 

In 2023, Kobella Holdings invested in Dinvest and became co-owners, with the vision of utilizing both the investment capital and the technological expertise of its management team to drive the digital transformation of our operations. 

At the beginning of 2023, following Kobella's investment, we appointed Idan Cohen as Dinvest’s Chief Technology Officer. Idan Cohen brings with him 20 years of entrepreneurial experience in the tech industry. He is the founder of Excelando, an IT consulting company with 120 advisors and engineers, which was later acquired by Elad Systems in Israel. Idan’s expertise lies in data analytics, process automation, and artificial intelligence (AI). 

Idan Cohen, Dinvest's CTO

Under Idan’s leadership, Dinvest has been defining and executing a technology-driven vision and strategy, revolutionizing our property management approach. By leveraging cutting-edge automation and AI-powered insights, we are shaping the future of property management, ensuring efficiency, transparency, and superior service delivery.