Incredible Benefits from Connectivity and IoT Solutions in Multifamily Real Estate Market

This is an excerpt from Scaling Connectivity for Multifamily Properties , written in partnership with Xfinity Communities.

Multifamily properties and MDUs are increasingly embracing transformative technologies and connected use cases to better meet the needs of their residents and to improve their own internal operations. These companies are investing in solutions that reduce the need for manual labor, cut costs associated with repairs or utility use, and introduce new amenities and experiences for residents, among other use cases. As connectivity is increasingly integrated into property management, it boosts operational efficiency while making properties more attractive to prospective and current residents.

Staffing

Virtual experience platforms enable properties to show units remotely to prospective residents. This reduces the need for staff to be present and addresses the widespread staffing shortages that resulted from COVID-19. Additionally, access control systems enable self-guided tours for properties. Digital applications can help streamline the entire resident turnover process, from managing lease terminations to preparing units for new residents. Automated systems can schedule cleanings, inspections, and repairs, reducing the downtime between tenants. Additionally, access control systems avoid the need to rekey locks or change codes during resident turnover.

By using connected devices and management platforms, maintenance requests can be prioritized and scheduled more efficiently, optimizing maintenance staff’s time to quickly address any urgent issues. These platforms also enable better package management, including notifying residents of package arrivals, storing them until pickup, and preventing theft.

Energy

Smart thermostats and smart appliances appeal to both residents and to properties, serving both as an amenity and as cost-cutting tools. For example, properties are using connectivity to control the thermostat and lighting in vacant units. Connectivity also helps save energy in common areas and helps residents save on energy with smart thermostats.

For full operational benefits, smart thermostats must be deployed in a managed WiFi or building wide WiFi scenario. Relying on resident networks for connectivity introduces operational difficulties such as needing to manually reset the thermostat during resident turnover.

Properties also incorporate connectivity to manage major energy-related systems: HVAC, solar/storage, generators, and EV charging. Total EV penetration in the US market is low, with 6% of MDU households reporting owning an EV. Even so, EV charger availability is on residents’ minds, with 36% claiming they are valuable in a prospective home. Many renters, particularly in urban areas, anticipate owning an EV in the coming years and are looking for apartments that can offer charging on-site if needed. This will become

Approximately 11 % of MDU residents use a smart thermostat according to Parks Associates        

In an increasingly important competitive factor for MDUs as EV adoption grows in the coming years. EV charger rollout represents an opportunity to upgrade property networks, deploying WiFi to parking lots and running conduit between buildings in garden-style communities.

Insurance

The multifamily market is struggling with skyrocketing insurance costs. According to TBM Multifamily, property insurance rates went up 10% to 40% for multifamily property owners. Properties are seeing the benefits in deploying risk mitigation solutions in order to reduce the damages caused by catastrophic events such as leaks and floods, which damage multiple units. These solutions are not typically resident facing but have a strong ROI when implemented on a large-scale, through reductions in insurance rate increases and preventing small leaks from becoming large incidents.

Water leak detectors with shut-off are an example of how smart building management can manage risk by also identifying leaks that drive up water consumption costs. Water leak detectors are being deployed on all property types, but they are particularly valuable in high and mid-rises, where leaks are capable of doing a greater degree of damage. There is a growing trend towards insurance discounts for properties with these solutions. However, this is still at an early stage, and properties may need to negotiate rates or change providers to see the full benefits.

Investment in a robust internet infrastructure is crucial for remaining competitive and appealing in the rental market. Existing properties can upgrade now, leveraging the infrastructure they have and see immediate benefits, particularly for property management operations.

To attract long-term residents, properties must be prepared to offer the amenities and features their tenants value—connected systems and solutions that deliver a premium living experience.

This is an excerpt from Scaling Connectivity for Multifamily Properties , written in partnership with Xfinity Communities.

This white paper highlights the demand for WiFi and smart living at multifamily communities and the ways in which property owners and managers are improving operations starting at the network. It explores methods by which existing properties can make the most out of their existing infrastructure to gain access to smart building benefits and highlights key considerations for scaling connectivity upgrades to become a smart property quickly and cost-efficiently.