DGS 319: Protect, Prevent, Perform: Smart Leak Detection For Modern Property Managers Property Management Growth With DoorGrow podcast

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DGS 319: Protect, Prevent, Perform: Smart Leak Detection for Modern Property Managers

4d ago 27:35

MP3•Episode home

How much money has water damage cost your owners? How much time and money could you save if you were able to detect issues within a property before they became a larger problem?

In this episode of the #DoorGrowShow, property management growth expert Jason Hull sits down with Nadav Schnall to explore how innovative water and gas leak detection systems are transforming residential property management and to share how these technologies can prevent costly damage, protect tenants, and streamline maintenance operations for property managers.

You'll Learn

[1:14] Nadav Schnall's Background in Property Management

[05:06] Innovative Solutions for Leak Detection

[11:07] Understanding the Technology Behind Pro Sentry

[17:25] Implementing Smart Detection Systems

Quotables

"If something goes unchecked, somebody's out of town, there's a water leak, I mean, it can just do massive damage."

"The responsibility of a property manager is to make sure the building is operating properly, to make sure it's operating efficiently, to mitigate damages, to mitigate risks."

"Time is of the essence when something like this happens."

Resources

DoorGrow and Scale Mastermind

Transcript

Nadav Schnall (00:00)

No need for displacement, no need to wake up in the middle of the night, come back to a flooded home. So we can solve all that

Jason Hull (00:05)

All right. Welcome everybody. I am Jason Hull, the founder and CEO of DoorGrow, the world's leading and most comprehensive coaching and consulting firm for long-term residential property management entrepreneurs. For over a decade and a half, we have brought innovative strategies and optimization to the property management industry. We have spoken to thousands of property management business owners, coached, consulted, and cleaned up hundreds of businesses.

helping them add doors, improve pricing, increase profits, simplify operations. And we run the leading property management mastermind with more video testimonials and reviews than any other coach or consultant in the industry. At DoorGrow, we believe that good property managers can change the world and that property management is the ultimate high trust gateway to real estate deals, relationships, and residual income. We are on a mission to transform property management business owners and their businesses. We want to transform the industry.

eliminate the BS, build awareness, change perception, expand the market, and help the best property management entrepreneurs win. Now, let's get into the show. Today, my guest is Nadav Schnall. Welcome, Nadav

Nadav Schnall (01:14)

Thank you for having me, Jason.

Jason Hull (01:15)

All right, so your company is called ProSentry. We're going to be getting into that. But before we chat about our topic today, which is protect, prevent, perform smart leak detection for modern property managers, tell us a little bit about your background, how you got into entrepreneurism and what finally led you.

Nadav Schnall (01:33)

Sure, happy to provide some background. So my background is actually in property management. I was a property manager for about a decade for First Service Residential in New York City. I had their kind of luxury.

group or luxury division. So I did a lot of consulting for developers and lot of property management, opening buildings, know, placing staff, making sure buildings kind of transition from construction to operation. So that was really the lion's share of my background as it relates to property management. Then I went into and opened another company that had to do with the service industry, kind of fire suppression systems, mechanicals, kind of the

the heart of a building, so to speak. And that led me to connect with my co-founder and business partner, John Russ, who is a builder in New York City. I've known him for probably about 15 years. And we came together to do this idea. So really very much so kind of experiencing firsthand.

what we are trying to solve and that's kind how I got into the world of entrepreneurship and into the world of ProSentry

Jason Hull (02:35)

Got it. All right. Thanks for the background. So you're an expert. This is your bio, an expert in smart building monitoring. We're going to chat about exploring how innovative water and gas leak detection systems are transforming residential property management and maybe share how these technologies can prevent costly damage, protect tenants, streamline maintenance operations for property managers from boosting safety to increasing operational efficiency.

And in today's episode, you'll get to learn how smart monitoring is reshaping the way you care for your properties and your bottom line. So cool. I'm excited to get into this. So, so now, Nadav, where, where do we start?

Nadav Schnall (03:15)

Well, we can probably start in property management. And I can tell you how many times I would wake up in the morning and I'd be checking my phone and then find that I have emails from last night that there was a leak in the building or my super calling me at two o'clock in the morning saying, hey, we had a flood or someone, there was a construction going on and someone left a window open and some pipe froze.

Jason Hull (03:19)

Okay.

Nadav Schnall (03:42)

And so that's kind of where it started for me, kind of really looking into these operational issues, which in today's day and age with technology, you are able to solve. And so that's where the journey started for me is really trying to look at properties and saying, how can we help common day-to-day occurrences? More so you look at the insurance industries and that's one of the...

biggest pluses that we try to bring to the table is trying to helping buildings with insurance. Water leaks are non-weather related water leaks are typically the top three causes for insurance claims.

And many times it's the number one reason for insurance claims. And so you look at these things and you're saying, there is technology out there. There is ways to substantially reduce that. How do we do that, improve the day-to-day work of property managers?

reduce insurance claims for buildings, reduce insurance rates and premiums, and also improve the life of the residents and tenants that live within. No need for displacement, no need to wake up in the middle of the night, come back to a flooded home. So we can solve all that and we focus in the multifamily. That's kind of our main focus.

Jason Hull (04:53)

Yeah, Yeah, I mean, if something goes unchecked, somebody's out of town, there's a water leak, I mean, it can just do massive damage. Yeah, so how do we mitigate that?

Nadav Schnall (05:04)

Yeah, so I can tell you a little bit about the technology and what we do and how we do it. first of all, traditional systems that existed so far were really based on Wi-Fi, which is a big difference. And they were more geared towards maybe something that you would do for your house or maybe something you would do for your apartment.

But how do you resolve that in a multifamily world, right? Where even if I am the most responsible resident in the building and I put water leak detection and temperature and humidity and maybe gas, you put all detection technologies in your apartment, you can still get leaked on from your apartment above. Something can still happen. And you just said it, right? A resident that may be away. And we have this actually. is an actual...

know, claim that we were able to avoid. In a building, someone, you know, it was a vacant apartment, a realtor came in to show the apartment, walked out to the terrace. It was a classic wintery day. Didn't close the door all the way.

Realtor left, came in, blew the apartment door open and the temperatures started going down and going down and going down. Luckily that building had ProSentry and that building was notified when the temperatures hit about 50 degrees and the resident manager of that building got the notification today that doesn't sound right. Of course, checked the records, found out there was a vacant apartment, ran upstairs, saw that the door was open, was able to close the door, turn on the heat before frozen pipes. But otherwise you would have had frozen pipe and that could have easily knocked out 10 apartments

insurance claims and so on and so forth. So I think that's kind of one of the biggest areas where we can save. And the nice part about that is insurance carriers are starting to recognize us and starting to recognize that we are actually reducing claims inside buildings. We're doing that across the board. We recently did a study across 18 months. We took a bunch of properties and we wanted to see what happened in those properties across an 18 month period.

we alerted those properties to over 6,000 different types of water events, right? Whether it's water or, you know, could be some, some of it can be just be drizzling. Some of could be, you know, a condensate drain and an HVAC unit overflowing, right? So different types of leaks. And then we followed up with the properties. Not one of those buildings and any of those water events resulted in an insured claim.

And so we were able to actually prove to the insurance world that this is a risk mitigative tool and actually the service that we provide, we like to call it risk mitigation as a service. ⁓ And by doing that, we've been able to help several buildings either move from kind of E &S, Excessive Surplus insurance policies over to admitted carriers, which of course are substantially cheaper.

Jason Hull (07:27)

Yeah.

Nadav Schnall (07:41)

or just simply being able to reduce insurance rates, right? You presented a certain risk before, now you present this risk. And so it can help properties both on the operation side, the maintenance side, but also on the insurance side. And I know I said a lot.

Jason Hull (07:53)

Yeah.

No, that's, no, that sounds very fascinating. So I can see how this would be very important. So if the insurance companies are not having to do anything on these claims, then you would think they would be very incentivized to get people to implement this.

Nadav Schnall (08:10)

That's 100%. So in New York State, for example, where we have a lot of presidents, especially in New York City, we work with a number of carriers that provide anywhere from, this is on the homeowner side, but anywhere from 3 % up all the way up to 12 % premium reductions.

year over year on your homeowners insurance policy. So if you have a building and let's say there's 100 apartments, if you happen to be insured with one of these insurance carriers, you will receive a discount on your premium year over year. their ROI is right there. And then of course we can help on the underlying building insurance policy as well.

Jason Hull (08:50)

Got it, okay. So what are the benefits for the, that's obviously a benefit for the property owner, right? What are the benefits for the property manager?

Nadav Schnall (09:00)

So, I mean, the obvious would be peace of mind, right? Because at the end of the day, the responsibility of a property manager is to make sure the building is operating properly, to make sure it's operating efficiently, to mitigate damages, to mitigate risks.

And so the advantages of property managerial, first of all, you're able to see what happens in your entire building. So you'll have a dashboard. You'll be able to see each one of our sensing technologies. And I think we've heavily focused so far on water leak detection and maybe temperature detection, which is really, you know, these are one of our biggest sellers, but we do anything from water to gas to oil leaks, to mechanical malfunctions, environmental issues, even rodents. So we have a lot.

know, thermostat. So we have different types of technologies all surrounded under our platform. And so the property manager will be able to see all these sensing, all these sensors across this entire building on one, on one dashboard. It will substantially reduce damages, right? So from a...

to do share responsibility to the building. is very important, but more so it also gives peace of mind, right? That you know that this apartment or this building or this area, because a lot of our installations are mechanical equipment, right? We have a building that had a couple of leaks coming from the mechanical systems. Every time there was a leak there, it leaked into the elevators. The elevators went out, had to call the elevator company out, had to file another insurance claim. And every time that's there, the amount of time the property managers have to spend

to deal with an incident like this, right? It doesn't only start with mitigating the damage itself. You gotta mitigate the damage, you gotta communicate with all the apartment owners, you gotta let them know what's going on. Then they have repairs, they have to coordinate with contractors, they have to file insurance claims, they have to file reports, they have to talk to their boards or their building owners. So there's a lot there. By installing a system like this, it gives you lot of peace of mind and saves you a lot of time.

Jason Hull (10:46)

So less damage, less work for the property manager, less stress in having to deal with frustrated owners, frustrated tenants. Yeah, so win-win all the way around. So you had mentioned a few things that this equipment can send for.

So could you go over all those for us?

Nadav Schnall (11:04)

Yeah, sure. It's 100%.

So we have, you maybe I started off a little bit in the beginning, we talked about Wi-Fi, but I really complete that thought. So I can start high level. So.

First of all, what we use is use a technology called LoRaWAN. LoRaWAN stands for long range wide area network. So it's very similar to Wi-Fi in the sense that it is a wireless technology that we can communicate over this wireless network that it creates. But indifferent than Wi-Fi, has a couple of major differences, which is huge for buildings, huge for properties, right? Especially existing buildings where you're trying to retrofit a system, which of course you're very sensitive to, right? Because if you're...

You know, if you're doing property management in a multifamily residential building and you have to access every single apartment, no one wants to like start running electricity or opening walls. It has to be really easy to deploy. You come in and come out under 10 minutes. That's what you're looking to do. So this technology, LoRaWAN, what it does is it is a very strong frequency. So the advantage is it can penetrate brick, mortar, you know.

concrete, steel, whatever, whatever inside a building. And you can use one of these gateways. Gateways are similar to what we would call in the Wi-Fi world as like a router. So you would install one of those every maybe three to six floors, I would say, as opposed to a traditional router where you put it in an apartment, you have one for the entire apartment. The downside to it is that you can stream a lot of data on it.

So it's great for the world of IoT and the world of sensors because you don't have to put on that. You just need to say, what is the temperature? I having a leak? Do I have this or do I have something else? So that is a very, very important advantage that this technology has over traditional systems, which rely on Wi-Fi. The other big thing it has is that it's extremely energy efficient. So each one of our sensors will last for about 10 years on battery life. Whereas traditional Wi-Fi systems, probably have to replace the battery once a year, once every two years, depending on the system.

As far as our offering, so we have different liquid sensing technology, so oil and water. We also have gas detection. And for example, in New York City, they passed a law which was now tabled again, but they passed a law called Local Law 157. Every, you know,

apartment or building in New York City that had gas, had to have gas detection. So we were able to help those buildings as well. And so buildings that already had our system had to now comply with a new law, easily just put it on the system, no problem. Temperature humidity, we spoke about. We have rodents. We have different types of sensing. For example, if you want to see the levels of different tanks. So for example, you have a big water storage tank or you want to know what the capacity is of trash or different. So we have devices that can sense distance.

different sensors for different types of mechanical equipment to see where they go, what the status is, are they operating, are they not, are they in movement? Steam traps, we can tell you if a stream trap open. So there's a lot of stuff there. And I think one of the unique parts about ProSentry is that both me and my business partner, John, really come from the world.

And so we meet with supers, we meet with property managers and they say, hey, you know, I really want to understand how I can better see this or how I can do that. And that's what we developed. And so we go out and we figure out what sensing to cloud booth exists for the world and we customize them for the buildings themselves.

Jason Hull (14:15)

Got it. Is this system also tie into some of the other sort of catastrophes besides water, like fire, smoke? ⁓

Nadav Schnall (14:23)

we have a smoke and vape detector, but it is not what you would call your traditional carbon-fiber monoxide type of sensor. And that is because, first of all, it's a very saturated market. There's a lot of companies out there that provide. We have the ability to interface into it. It was just a conscious choice not to get into that yet.

Jason Hull (14:38)

Yeah.

Nadav Schnall (14:47)

Just because you know, it's more of a niche market and that's more of a very wide market. There's also a lot of regular

Jason Hull (14:52)

Figure out smoking and

vaping is another thing. Like, maybe four terms, stuff like this.

Nadav Schnall (14:55)

Yeah.

So that we do have on the property, on the platform. that is a great sensing technology, especially for like rental buildings or buildings that have passed no smoking laws in the building. So it can do vaping, it could do marijuana, it could do cigarette smoke. And so we've had that. actually, one of the reasons we developed it, again, speaking to property managers and building owners,

This is a West Coast property owner. he said, you know, one of my main reasons for non renewing leases in my building is because people smoke and people don't want to renew. And so that was one of the reasons we went out. came out with this, with a sensing technology and it can, you know, it kind of tattles on the smokers, but it works with that kind of building. Right. So if you sign into a building, which is a non-smoking building, you should have that same with hotels, et cetera, et cetera.

Jason Hull (15:45)

Cool. So I'm going to read a word from our sponsor and then I some more questions we'll get into. So this episode is sponsored by Vendoroo So many of you tell me that maintenance is probably the least enjoyable part of the property manager and definitely the most time consuming. But what if you could cut that workload by up to 85 %? That's exactly what Vendoroo has achieved. They've leveraged cutting edge AI technology to handle nearly all your maintenance tasks from initiating work orders and troubleshooting to coordinating with vendors and reporting.

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conference signed up with Vendoroo right then and there after hearing about it. A year later, they're not just satisfied. They're raving about how Vendoroo has transformed their business. Don't let maintenance drag you down. Step up your property management game with Vendoroo Visit vendero.ai. That's V-E-N-D-O-R-O-O.ai slash door grow today and make this the last maintenance hire you'll ever need. All right, cool. So back to...

Back to what you were talking about, Nadeav. I'm curious, this sounds like a no-brainer. Is this expensive to get set up? Can this be turned into a profit center for property managers in some way? How does this typically work for property managers?

Nadav Schnall (17:20)

Yeah, sure.

So, excellent questions. As far as the cost goes, it is very competitive in the marketplace. Sensors start at about $70 a sensor, depending on what it is. There is a cost for the network, but again, it is not a significant cost. The costs kind of vary based on the size of the building, and obviously there's volume discounts. But, you know, I think it, you know, from a

Profit center, it's an interesting question, right? Because I don't know if you're actively going to make money from the building, from activating the system. However, you will get a return on your investment because again, you're able to, first of all, reduce repair costs. There's no question about that, right? we have...

Examples examples examples of buildings that have installed our system and have caught dozens of water leaks some of which may have turned into Small things or maybe you and an overflowing club, but you caught that and you mopped that up But others are like these slow leaks behind walls and all kinds of areas like that that you otherwise would have not noticed and before it became mold and stuff so hundred percent you save money on that from a repair across perspective and

Jason Hull (18:09)

Yeah.

Nadav Schnall (18:24)

on insurance front, is really one of our biggest areas that we're focused on is trying to help buildings reduce insurance costs. And so in that sense, it does turn into a profit center, maybe not the traditional profit center as a fee for it, but you do save on other repairs on insurance costs. So in that sense, yes, you do make money on that.

Jason Hull (18:42)

So, Nadav, a question. So you've mentioned multifamily. There are a lot of people that listen to this podcast that also do single-family residential, or maybe they do individual condos, or they do short-term rentals or Airbnbs. Do you find that this makes sense for those scenarios as well?

Nadav Schnall (19:03)

100 % it does. We focus...

only on multi-dwelling, in other words, we're a B2B company in that sense, unless maybe there's a situation where there's someone who manages multiple individual condos, let's say, right? Or multiple Airbnbs and they want everything on kind of a dashboard and maybe that would make sense. There are solutions out there that focus on the single-family world, that are Wi-Fi based and they're meant for that. We are really more of a commercial grade.

solution, right? And that's kind of how we set ourselves up. And that is really the big differentiator with us is that we're really focused on whole building solutions. We have automatic border shutoff valves, for example, which I haven't even mentioned before. But for example, we have a commercial building.

where the building owners have no one at the building over the weekend and actually no one in the building after I think it's 7 or 8 p.m. till they come back at like 6 or 7 in the morning. So they proactively shut the water to the building when they leave and no one's there. So they don't even want to take the risk. Of course all of our sensors can connect to the automatic shutoff app and say hey if there is a leak we'll shut that off, we'll shut the water off. They just want to they just put it on a schedule and proactively shut it. So in that sense if you

have single family or Airbnb managers, cetera, et cetera, you can all control it even from the app. You don't even have to be at the property. And you can just shut the valve off and shut the property. So if you're going to go away and let's say you want to winterize the property and shut the water off for a prolonged amount of time because you're not going to be there going on vacation. So you can do that with the system quite easily.

Jason Hull (20:35)

Interesting. for somebody that's like an Airbnb and they wanted to get this set up, and they wanted like maybe water, auto water shut off, some gas detection, you know, a couple of the most obvious important ones, what would it roughly cost for them to get that property outfit?

Nadav Schnall (20:53)

I mean, if it's a, if let's say we're talking about a single apartment, maybe like a one or two bedroom, you're probably talking about a one time cost of anywhere between 300 to $500. If you're in, if you're in that kind of situation, if it's slightly bigger, it all depends on the number of sensors. But again, if it's about $70 a sensor, how many points of water do you have in your, in your apartment? And then that's how you do the math.

Jason Hull (21:18)

Got it. So typically sensor per maybe bathroom or water.

Nadav Schnall (21:22)

Yeah, you'd put

one to two per bathroom, right? Depending on how many, if you have a tub or a shower, we typically catch that with another sensor that would be placed nearby, maybe behind a toilet. Sensors are very sleek, non-invasive. They don't actually, many of them, this is actually a sensor. They don't even look that way. So it's good. They're discreet. They go behind toilets, under sinks and so on and so forth. And so it's very easy to deploy them as well.

Jason Hull (21:48)

Got it. And these don't have cameras on them, right?

Nadav Schnall (21:51)

cameras. And as I mentioned, because we use LoRaWAN and it is unable to communicate or transmit large packets of data, it is impossible for me to record someone because the data packets are so small. The amount of data that would need to be transmitted just to record a sentence would take days and days and days. So it is impossible for us to do that.

Jason Hull (22:04)

Hmm.

Got it.

Got it. Okay, very cool. Well, what else should people know about this solution or whatever questions that people ask, maybe about ProSentry and then how can people get in touch with you?

Nadav Schnall (22:29)

So first of all, think the most important thing is, you know, we were built by real estate professionals. And so we really understand the industry and we're happy to consult.

and speak to anyone who has any questions. There's no strings of ties. There's no cost for that. We're happy to give proposals. And every building is unique and every building has their unique set of challenges. And so I think it's important for your listeners to know that that's the world that we come from and we actually enjoy having conversations with real estate professionals. And so if anyone has any questions or wants to discuss, just feel free to reach out. Our website, which is www.prosentry.com.

prosentry.com. Contact us or request a proposal. Very easy to get in touch with us. Or also info at prosentry.com.

Jason Hull (23:14)

Very cool. So one last question. If somebody goes to your website, they decide they want to get some of this stuff set up for the property, who actually comes out and gets all this stuff set up and installed? Do they have to get a contractor to do it? How does that work?

Nadav Schnall (23:27)

No, so it is extremely, extremely simple. So we have designed the system so that it is easy to be deployed by the building itself. And while we can provide recommendations for installers, 100%, I think there's one, I wouldn't say 100, I think 99%, I think it's one property that actually hired someone to do that. All of our properties, and I'm talking about hundreds of buildings, have installed the system by themselves. It is extremely easy. The system comes pre-configured.

So the gateways are the only component that gets plugged in. Those are the routers, right? So you start by plugging those into the wall into regular outlet. They turn on in about a minute or so and start communicating. They automatically connect to cellular antennas. They automatically...

create this internal private network only to that building. So there's no configuration, nothing else to do. And then you take the devices, the sensors themselves, you download our app, you scan a QR code on the device and all you do is you have a drop down menu and you say, I am in apartment 22B, it's already pre-configured, we'll configure the apartment, everything will be there. And you'll say, I'm placing it by the kitchen sink. That's it. That's all you gotta do. It automatically connects, the sensors automatically connect. And so,

We do speak to some buildings and they're like, yeah, we don't want to take on. so I call it deployment because it's not even installation. It's not invasive. There's no drilling. There's nothing to do there. So we say, OK, we can give you a proposal for installation or connect you with someone who can do it for you. But then once they understand how they get a little bit of a demo and see how it's done, go, oh, this is it. It's very, very easy to install.

one of the features that I neglected to, to, to, to mention, I think is important is we offer, live operator calls to buildings. And so a lot of providers out there will send you like an app notification or maybe an email or a text message, right. say, Hey, but again, property managers, right. We realize that at two o'clock in the morning, no one's looking at their phone to see if you got a text message. So we use an underwriter, laboratory certified call center with live people, not some robo call.

Jason Hull (25:19)

and

Nadav Schnall (25:33)

and they will actually call you and say, Jason, you have a leak in apartment 22 B in the kitchen.

under the dishwasher, right? And if you happen not to be answering, we will call the next person online. We can have multiple people. And so we'll call the front desk. Front desk doesn't answer. Maybe the handyman, handyman doesn't answer. The resident manager, the property manager, the hotline, the board president, whoever you need. We can put that all under the platform. So that is an important feature and a differentiator, by the way, because there are not many companies that do that. But we do recognize that because time is of the essence when something like this happens, you need to make sure you can get in touch with

Jason Hull (26:01)

Mm.

Nadav Schnall (26:09)

someone before damage becomes something very small into something really big. ⁓

Jason Hull (26:13)

Yeah,

well, it sounds like a no brainer. Sounds very cool. And yeah, I recommend everybody check it out at prosentry.com. cool. Well, Nadav, thanks for coming and hanging out with us here on the DoorGrow show. Yeah, I appreciate it. So for those of you that maybe felt stuck or stagnant in your property management business, you want to take it to the next level, reach out to us at doorgrow.com. We can help.

Nadav Schnall (26:27)

Thanks for having me, Jason. This was fun.

Jason Hull (26:40)

And for a free training on how to get unlimited leads for free for your property management business, text the word leads to 512-648-4608. That's the word leads to 512-648-4608. Also be sure to join our free Facebook community just for property management business owners at doorgrowclub.com. And if you would like to get the best ideas in property management, you can join our newsletter.

at doorgrow.com slash subscribe. And if you found this episode even a little bit helpful, don't forget to subscribe and leave us a review on whatever platform you saw this on. We'd really appreciate it. And until next time, remember the slowest path to growth is to do it alone. So let's grow together. Bye everyone.

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