Why building tech in-house is a nightmare for co-living companies?

The first lesson you get when you enter the co-living world is?'be Asset Light, not Asset Heavy’. It’s high time we apply that lesson to our tech game too. Why go all-in on being 'asset-heavy' in technology development when there are smarter, lighter solutions out there? Trust me, trying to build your entire tech universe while juggling the day-to-day chaos of real estate and hospitality is like asking for a headache. Instead, the wiser move is embracing the fantastic tech solutions that already exist out there.

Let's talk about being 'digital-savvy' rather than 'digital-heavy.' From my experience at YourShell(acquired by Stanza Living) , I know as an operator – you are always on the move, signing up new properties, keeping that occupancy rate sky-high, and making sure the residents are living their best lives. Now, imagine throwing your focus into building tech, something that's not the heart and soul of your business (real estate or hospitality). Trust me, not the best idea.

The money talk. Developing software in-house is a serious cash burn. A solid software project needs a squad of 2-3 developers grinding for 6-8 months, and that'll set you back a cool 20-25 lakhs. And that's just the start – add in ongoing maintenance costs, payment gateway fees, and messaging expenses, and you're looking at an additional 75,000-2,00,000 every month. Taking it from a SAAS company like Crib App: Property Management Software would be less than these ongoing payments and would not require any capital investment.

And let's not forget the scalability hurdle. When you're growing like crazy, signing up multiple properties every quarter, you need tech that can keep up. You need software that offers the flexibility you need to expand, explore new markets, or tweak your services based on the ever-changing industry vibes.

Beyond the cash and scalability, there's the expertise game. Crafting a tech masterpiece demands serious know-how and a tech team that's no joke. In-house software, cooked up with just a handful of engineers, won't stand a chance against the robust one made by a company that lives with the sole purpose of crafting top-notch coliving management software. They have a team of 15-20 engineers and product managers employed just to build world-class software for you.

In a nutshell, while building management software in-house might sound cool, the reality hits hard as you grow. It's a rollercoaster you might want to skip. So, why not take the smoother ride and opt for a company that offers this as a SAAS?