In today’s rental housing market, owners and operators share the same dilemma of how to boost property value and operational efficiency. The goal is to simplify business functions without passing on additional costs to residents.
Rents have plateaued in many markets and neighborhoods, and new regulations keep piling on the pressure. That is where technology steps in and has become the backbone of smart operations and one of the most effective ways to drive returns on investment (ROI). Some of the more impactful tools are access control systems and energy management systems, but the real game changer is when these tools talk to each other.
The Value Driver
For years, access control systems were viewed strictly as security necessities and as a function that kept doors locked and properties safe. But the rise of smart locks and integrated digital platforms has changed this perception. The shift isn’t just conceptual — it is backed by tangible financial benefits.
Consider the cost of replacing a lost or stolen key, which can cost up to three times a month’s rent when you factor in locksmith fees, hardware replacement and administrative hours. Smart locks erase that burden entirely, allowing property managers to reset access credentials with a single click.
The financial upside extends further. According to Parks Associates’ SmartRent white paper, 85 percent of property owners with smart-equipped units report they can command 10 to 30 percent higher rents. Today’s renters don’t just want convenience, they expect it.
Seamless living is the new standard, and residents today order groceries, schedule dog walkers and receive packages. The properties that offer secure, frictionless access for both tenants and their trusted vendors are the ones positioned as forward-thinking communities. In fact, 43 percent of multifamily residents already use at least one smart-home device, according to the white paper, surpassing adoption rates in single-family homes.
Beyond convenience, smart access control also delivers the value of traceability. Owners can have real-time visibility regarding who accessed a unit, when and why. It also allows for accountability so maintenance teams and third-party vendors can operate with greater transparency and protect both physical assets as well as the residents’ peace of mind.
Energy Management Systems (EMS) and ROI
If access control improves efficiency and security, EMS deliver some of the most measurable returns in multifamily operations, with studies showing that properties can achieve up to 20 percent operational expenditure (OPEX) savings.
Aside from the security benefits, EMS gives owners and managers a building-wide strategy for monitoring, controlling and optimizing energy use. This includes adjusting temperatures in hallways, vacant units and common areas. For property managers, EMS solves multiple challenges.
Many cities, like New York, for example, now require 25 percent reductions in energy usage by 2030. EMS provides both the data as well as the control to hit those types of regulatory targets. Energy is also one of the largest line items in a budget, so shaving off even 10 percent of monthly costs can create meaningful annual savings.
The impact can be dramatic. Consider the example of a vacant Arizona apartment, where, after painting, the contractor left the AC running with windows open. Without EMS, the unit hemorrhaged energy for an entire month. With EMS, managers could have received an alert, locked the system down remotely and saved thousands of dollars. Multiply this by dozens of units across a portfolio, and the savings become transformative.
How Integration Creates a Multiplier Effect
Individually, access control and EMS are powerful tools. However, when integrated with shared data through a unified platform, they have the ability to directly link energy consumption with occupancy patterns.
Take this scenario: Access logs indicate a resident has left for the day. Instantly, the EMS dials back HVAC settings to avoid cooling or heating an empty space. Or consider a maintenance vendor entering a vacant unit and managers now see both the access event and the corresponding energy spike, eliminating waste while holding vendors accountable. Both scenarios help streamline operations, provide accountability and insight into building performance, and move these systems beyond being siloed platforms.
Deployment Roadmap
Not every property can afford to install a full suite of smart technology at once, but the good news is that investments and deployment of those investments can come in stages. The first stage is to start with smart locks and access controls to deliver immediate savings on turnovers as well as to enhance security in units and common areas. Installing these devices also helps to integrate self-guided tour capability.
The second step is to add EMS. Starting with smart thermostats and HVAC control is an ideal place as it has proven ROI and growing regulatory mandates. After that comes building toward integration by consolidating controls through a managed Wi-Fi network in order to capitalize on EMS, smart locks and other proptech investments. Doing so will create efficiencies and provide savings on lighting control, leak detection and more. This reduces risk and enhances overall property value.
Owners should also prioritize working with technology partners and vendors who have a proven track record and the ability to scale. According to the Parks Associates white paper, 58 percent of owners and managers with smart-enabled properties say they are “very likely” to switch vendors in the next six months, so picking trusted partners is key to making sure these enhancements last long-term and that they can adapt and be reliable.
Integrating access control with energy management is about protecting two critical assets: the building and the people who live in it. Access control and EMS separately do provide strong ROI, but together they form a technical core that reduces OPEX, improves resident satisfaction and elevates property value without relying solely on rent growth.
Sandy Jack is vice president of strategic relations – multifamily for ASSA ABLOY cos., including Nomadix and Vingcard. To reach Sandy, email [email protected].