New AI tool to read and simplify strata reports

As interest in units and townhouses continues to grow across the country, understanding strata reports has become increasingly important to ensure the quality of the dwellings before purchase.

According to Cohabit CEO Thom Richards, strata reports reveal a property’s financial health, maintenance history, and potential risks.

He said the reports were often dense and technical, and difficult for buyers to interpret.

“The biggest mistake I see is assuming a report is comprehensive; information is more often than not missed, unavailable, or intentionally withheld.”

Richard said AI will help buyers by analysing all strata report information before purchase, as inspectors would otherwise have to manually review thousands of records, risking missing key details within a limited time.

He said Instant Intelligence translated strata reports into clear, actionable insights, with automated analysis identifying risks such as special levies, building defects and low reserve funds.

“Instant Intelligence translates the complex language and strata-specific terminology into clear, structured plain English, with tooltips to unpack jargon, benchmarking to provide real-world context and AI-driven insights, and access to experts so users can get clarity when they need it,” Richard said.

With increasing scrutiny of building quality, rising prices, and concerns about information reliability, Richard said the tool would also adapt to differences in the accuracy of strata reports across the country.

“Instant intelligence analyses the report's findings and every attached document to ensure it captures all our expected data points.”

“We also combine historical data with third-party information to identify missing data, which the system then automatically collects for the buyer to ensure they have all the information required to make a sound decision.”

In addition to being necessary for the sale, Richard said that buyers should understand that building health and value were closely linked and could impact portfolio growth.

He said that building issues and defects can lead to ongoing special levies and higher long-term costs such as insurance, maintenance and capital works contributions, while works can cause disruptions, resulting in lost rent or higher tenant turnover for investors.

“If the building is not managed correctly, the result is often a toxic living environment.”

“Buyers and renters consider all these factors when determining if they want to live in the building and how much they are prepared to pay,” he concluded.