There’s a great misconception that providing smart tech for your multifamily assets can only be done with ease on new developments and lease-ups.
Multifamily owners and operators think the learning curve is to high for staff, the startup and maintenance costs will be too high, smart tech only belongs in Class A multifamily properties, installation is a burden and you’re already understaffed, and there are too many providers without a single-source for cross-app integrations.
The list is long. The list is wrong.
Most multifamily owners and operators are thinking about the cost of utilizing smart tech rather than the cost of not utilizing smart tech.
Consider the cell phone in your pocket or on your desk right now. Remember how big and clunky they were in the 90s? Remember having to hit the buttons multiple times to scroll through the alphabet and numbers? They were a commodity. Something for rich people (remember when you had to pay per text?).
Look at where we are now. The sheer computing power of the modern mobile phone has grown exponentially year over year.
According to Pew Research Center, 97% of Americans own a cell phone now and that is because it has become a deflationary asset. As technology advances, cell phones become smarter, more powerful, and more affordable.
Our research partner and client, Arize, states that by “2023, 53.9% of homes across the United States will feature smart tech (that’s 20% more smart homes than in 2019).”
Do you see that? That’s over half of all the homes in America that will be using smart tech.
Whether you like it or not, these smart devices are now a dealmaker or dealbreaker for your residents.
In fact, residents are expecting multifamily properties to have these features for security and cost-efficiency and will go as far as to rent an apartment based solely on those amenities.
Not only are residents choosing the smart apartment, they are staying longer and paying more for it.
According to Arize, “91% of renters believe home intelligence is a necessity, and 66% of current renters are willing to pay at least an extra $20/month for a smart device package.”
Certain smart technologies have the ability to perform climate control activities and avoid wasteful utility usage through water leak detection and other services.
This allows properties to distinguish where they are losing money on unnecessary expenses while giving them a tool to prevent this all together.
All of the sudden, those objections to smart tech in apartment communities become obsolete because of the necessity for this technology.
Additionally, smart tech is a deflationary asset that is now benefiting stabilized properties. Most owners and operators think it is too expensive, but companies like Arize are coming up with innovative ways for operators to fund and get smart tech into existing apartments.
Arize believes that by providing a personalized experience along with unique services like competitive payment plans and customization, they are making it possible for all properties to have smart technology in their portfolio without breaking the bank.
Those multifamily owners and operators who choose to provide smart tech for their communities will scale faster, stay competitive, retain residents, and thrive through any impending real estate bubble pop.
Download the Report
This report on Smart Apartment Tech Trends will explain the statistics behind smart home technology and how increasing demand has moved beyond solely Class A properties.