If you’ve spent any time in the real estate industry at all, you’ve likely heard all about smart technology and how it is being incorporated into today’s multifamily housing. From smart locks and smart lockers to smart lights and smart speakers, today’s smart home technologies seem endless — and they’re improving the rental experience for both tenants and property managers. But how?
From an operational perspective, smart apartment features help to reduce costs, improve security, and increase the overall marketability of units. And for tenants, it means not only a reduced environmental footprint but also an easier and more convenient lifestyle.
Reducing their overall environmental footprint is especially important to Gen Zers, the United States’ youngest group of renters. These individuals are part of the up and coming generation of socially and climate-conscious individuals, and their preferences and priorities are driving their consumption habits — right down to the apartments they choose to rent.
For this important group of renters, smart technology is increasingly important in their home, especially smart thermostats. These thermostats allow tenants to set their own custom temperature schedule, leading to improved energy consumption and less usage when they are not at home — without sacrificing any comfort once they return.
And while property managers are also likely happy to cut down on overall energy use whenever and wherever they can, there are also other benefits to implementing smart apartment technology into your community. Let’s take a closer look.
Benefits are seen by multifamily communities after implementing smart apartment technology
On the surface, implementing smart technology into your community may just seem like a fun way to add some extra “bells and whistles” to your units. But as anyone who has already made the jump to smart apartment technology will tell you, it is so much more than that. The benefits extend far beyond the immediate “wow factor” that these features add to your units.
Here are some of the benefits you can expect to see:
You can charge a higher rent — that residents will happily pay. Smart apartment technology isn’t just about added convenience for everyone — it also opens up new revenue opportunities for property managers. Recently, a property management company offered their residents an optional smart apartment technology package that included smart lights, smart locks, and a smart thermostat, and more than 80 percent of their residents chose to pay an additional rent premium to receive the package. Implementing smart technology into your units allows you to charge higher rent prices or a rent premium for packages. According to the National Apartment Association’s 2019 Apartmentalize study, these increased rent premiums can generate an additional $25 to $40 per unit per month, depending on your market.
You will minimize unexpected and costly repair charges using preventative maintenance. Smart apartment technology allows you to more effectively implement proper preventative maintenance, allowing you to avoid unexpected and costly repair costs in your units and common areas. Sensors on smart devices are designed to alert you to potential problems such as mold, leaks, or faulty HVAC units. Residents also appreciate this feature, since issues are able to be fixed before there is a problem and they don’t have to deal with the inconvenience of something not working or having to put in a maintenance request.
You’ll see more efficiency with turnover and vacant units. Utilizing smart technology also allows for more efficiency when it comes to turnovers. For instance, smart locks allow you to avoid the costs associated with rekeying doors. And smart thermostats allow property managers to operate the units efficiently while empty, while remotely programming the units to kick on to a comfortable temperature before a tour.
As you can see, smart apartment technology is about so much more than just added convenience for your tenants. Property managers are increasingly relying on this type of technology to help cut down on operating costs and drive revenue. To learn more about the latest developments in commercial real estate, be sure to follow the CBC Worldwide blog.