Contxto – Picture yourself living in a condominium for years, only to be notified that it’s now up for sale for allegedly not paying the building. Adding salt to the wounds is the fact that the landowner didn’t even notify the tenant. This is a reality for many Brazilians in a country where the real estate market is far from transparent or updated.
Realizing this, LAR.app is a Brazilian proptech providing efficient, fast and clear services to condominium owners. Recently, it closed a seed investment round priced at R$4 million reales (approximately US$1.9 million) to continue improving real estate in Brazil.
Global Founders Capital led the round accompanied by angel investors Brian Requarth from VivaReal and GrupoZAP, as well as Bruno Nardon from Rappi Brazil.
As of today, LAR.app manages 20 condominiums in São Paulo as well as Curitiba. Future plans include reaching 120 by the middle of 2020. Additionally, it aspires to launch a condominium service and product marketplace. Picture Bed, Bath and Beyond paired with business classifieds.
Under this scheme, potential clients could purchase everything from cleaning products to elevator technician assistance.
Brazilian real estate issues
Many Brazilians are justifiably fed up with paying expensive rent, only to receive deplorable services in return. Using the latest technology, LAR.app seeks to foster long-term partnerships with customers as a modern condominium management platform.
What LAR.app offers is processes, optimized management, and fewer burdens for Brazilian tenants, not to mention building management.
Perhaps one of the most prevalent issues in the Brazilian real estate market is its saturation. Today, the country has over 200,000 condominiums that a multitude of administrators handle.
Not even the largest three companies have a 3 percent market share, according to the Brazil Journal. These include Lello, Apsa, in addition to Building Help.
To fix this, LAR has devised an effective financial system that not only automates but monitors the entire process. Meaning, there is no room for interpretation whether or not you paid your rent. Laying at the center of the dilemma is generally bad misconduct.
“In this sector, there is corruption from end to end,” said Rafael Lauand, founder of LAR.app. “From the manager earning a percentage of all services contracted by the condominium to wrong practices in reserve fund management.”
Based on the solution, tenants don’t have to worry about accruing any hidden costs. All the same, the condominium company can increase revenue while improving protocols. This way, the condominium can more like a well-oiled machine instead of a headache waiting to happen.