— By Mike Branam, director of multifamily, PointCentral
Renters increasingly desire smart technology features and personalized automation that can save time, money and improve property security. A 2022 survey from Rent.com reported that a staggering 82 percent of renters wanted at least one smart device in their home.
This has encouraged property owners and operators to invest in technology as part of a wider strategy to both attract and retain a resident base that is a good fit for their communities.
Technological advancements such as artificial intelligence (AI), as well as high operational costs and environmental pressures, have brought efficiency to the forefront for many owner-operators. For a growing number of property owner-operators, unifying technology to create a whole building solution and streamlining operations is a priority.
Meanwhile, the growing consumer trend towards greener vehicles opens up an interesting opportunity for property managers who can provide or adapt the required infrastructure.
Smart Technology Streamlines Operations
The development and adoption of smart technology has continued to accelerate through the years. Many apartments now offer ‘in-unit’ technology features. However, smart technology now has the capacity to encompass entire buildings.
This advancement in technology will result in disparate solutions, that owners and operators are currently trying to manage individually, unifying. ‘In unit’ smart technology — including energy management and smart water solutions — and external tech — such as perimeter and video security — will be increasingly consolidated into one complete solution.
Some models of smart property technology (prop tech) allow property managers to control all the technology in the building via one enterprise-level platform. Staff can use the system’s interface to manage all of the unit’s devices, such as setting up rules for video management, organizing self-guided tours and receiving alerts of potential maintenance issues.
Property managers can automatically generate PIN access codes so maintenance staff can enter a unit after a resident submits a work order. Occupancy-based thermostat rules can be set so that the temperature will automatically adjust when a property is vacant. Door sensors can alert property managers if they are left unlocked, and water management sensors can alert the system if there is unexpected water activity.
This unification of technology streamlines the property management’s workload by giving staff complete control across their properties in one system. A holistic approach to smart prop tech also enables all of the technology features at a community to work together more cohesively.
DR Programs Save Energy at Smart Communities
Another potential area of development in the multifamily industry is the prospect of Demand Response (DR) integration within smart communities.
DR is an energy management program that aims to balance the demand on power grids. By enrolling, customers grant utility companies limited control of their thermostats. During periods of peak demand, the company will increase or decrease the thermostat setpoint by a couple of degrees. This reduces energy consumption.
Utility companies have already begun to integrate DR in owner-occupied or single-family homes. For multifamily property owners, energy efficiency upgrades such as DR can work in tandem with smart property technology to add value to buildings, decrease maintenance costs and increase resident satisfaction through lower energy costs.
To enroll multifamily units into a DR program, property managers must first confirm that their provider offers the program. If the answer is yes, the property manager can install a wireless, Z-Wave smart thermostat in each residence. These thermostats can be remotely controlled by the resident, property staff and the utility company.
Integrating a smart thermostat into properties and taking advantage of the energy-saving potential of DR integration can save owner-operators money on energy bills at their assets, which makes the initial investment in the thermostat technology potentially well worth it.
AI Personalizes and Optimizes the Renter Experience
There has been an increased use of Artificial Intelligence (AI) across all industries, and the multifamily sector is no different. However, the question of how AI-integrated technology will affect property managers continues to be a hot topic.
AI technology can already connect many residents with their homes. AI in smart thermostats can automatically adjust temperature settings based on residents’ routines and daily habits. This optimizes energy use and gives residents a more personalized experience while saving money, without compromising their comfort.
For prospective residents, virtual tours that use AI algorithms can personalize the viewing by showing areas of the property it knows are important to them. Machine learning algorithms analyze user behavior during the tour and discern what features prospective tenants spend the most time around or engaged with. Future tours can then be tailored to highlight similar features, creating a more personalized experience.
AI will also streamline tasks for property staff. The ability to automate routine tasks such as maintenance requests and rent collection will free up time for more meaningful tasks, for example. AI also allows the process of marketing communities to be even more customer-centric, making it easier for managers to find new residents.
Additionally, AI within smart prop tech will be able to ‘self-maintain’ by alerting residents to simple problems within the unit. The AI technology can then automatically offer guidance or a solution to solve the problem, preventing unnecessary callouts from maintenance teams.
Finally, operators are increasingly adopting generative AI to boost resident engagement by personalizing all communications and automating the entire multifamily leasing cycle. AI systems will be able to automatically identify any red flags concerning resident satisfaction — resulting in a potential decrease in negative reviews.
EV Charging is an Opportunity to Monetize
It is expected that the trend for Electric Vehicles (EV) will continue to grow among consumers as states aim to reach ambitious environmental targets. Renters are no exception to the rule. As EVs become increasingly popular among prospective residents, property managers will need to consider how best facilitate this shift.
Many multifamily assets have not been built with the infrastructure required to facilitate EVs. Property managers at these communities will have to consider factors such as providing the required space for EV chargers and selecting suitable parking spaces around their buildings that can carry the excess weight of an electric car.
On the other hand, buildings that already have the capacity for EVs provide owner-operators with an opportunity to rent out spaces or the chargers themselves for a fee.
In order to retain residents, operate as efficiently as possible and identify new opportunities, it’s important for multifamily operators to keep on top of emerging and developing trends. Integrating smart prop tech features at a community not only improves the resident’s overall experience, but can also be an effective tool to streamline property manager’s workload and boost the value of a community.
Mike Branam is director of multifamily sales at PointCentral, a subsidiary of Alarm.com. PointCentral provides short and long-term residential property managers with an automation platform that monitors and controls smart home technology across all properties in their inventory.