An innovative ASPhas been designed to help US apartment owners manage their often diverse assets. Helen Osborne looks at the details
Realeum.com is a US-based transaction management system for apartment owners and operators that Eileen Circo of PikeNet hails as “a promising real estate ASP model”.
Sponsored by three of the US’s largest apartment companies, Avalon Bay, United Dominion Realty and Post Properties, Realeum aims to combat the fragmentation and high operating costs in the industry.
Designed by “owner/operators for owner/operators”, Realeum claims its “inside-out” development to be in sharp contrast to products created by those with little industry expertise. The application service provider – a means of providing software over the internet – is aimed at addressing inefficiencies through core transactional systems, data management and business process automation.
The product is intended to deal with churn costs and cycle time, which has always been a big factor in profitability, due to the apartment industry’s average turnover rate of 45%, according to Circo, who adds that the US residential real estate market has seen large owners consolidate their assets into “mega” portfolios, in response to anticipated economies of scale.
