How does governance work?
Token holders vote on all decisions of the properties they’re owners of. These decisions may include when to increase rents, when to sell the property, whether to evict a tenant or offer them cash for keys, and more. All co-owners must fill out a survey after their first investment specifying the decisions they’d like to make in certain situations.
The winning decision is decided by a 60% Supermajority vote and the winning vote is sent to the property manager who carries out the decision. Issues that aren't covered by this automated process will be put up for voting on our platform by owners of the property in question. We're continuously improving our governance protocol. Token holders are the owners of these properties, not Lofty––which is why token holders have full control and voting rights on all properties.
The only exception is that owners cannot vote on things that are illegal. For example, in many states, it's illegal to not fix problems in a property that's causing it to be unlivable when a tenant is leasing it. If a pipe broke and the house was flooded, the PM by law has to fix the problem at the earliest possible time. The membership cannot vote to save funds and not fix a problem like this.
In Q3 of 2022, we will launch our fully automated governance system at which point owners will be able to vote on property decisions in real time from within their dashboard.