Through 2025, more than 75% of new building construction will include IoT and smart technology. These newer buildings will run leaner and greener than older builds while delivering a better resident experience.
If you own or operate an older multifamily community, modernizing your property with smart technology may be essential for staying competitive. Today’s residents expect modern conveniences like smart thermostats, remote access control and automated amenities. Beyond improving resident satisfaction, these upgrades can boost your property’s market value while reducing operational costs.
Here’s how to know if you should consider retrofitting your community with smart technology.
1. Skyrocketing energy costs
Energy costs have climbed steadily for the past ten years, adding to overhead costs in multifamily communities across the U.S. Owners, operators and residents are all feeling the squeeze on their budgets. While there’s little you can do about inflation, upgrading your communities with efficient technology can help manage these rising costs.
How much can you save? Smart retrofits in the Empire State Building achieved a 38% reduction in energy consumption—saving $4.4 million annually. Your results, of course, will vary. But modern smart building technology can help achieve meaningful savings while advancing ESG (Environmental, Social and Governance) initiatives. In fact, retrofitting existing buildings instead of demolishing and rebuilding significantly reduces carbon emissions.
When evaluating energy-saving smart technology, consider these key components:
Smart thermostats that enable remote temperature management and proactive HVAC monitoring.
Automated lighting controls that prevent energy waste in vacant or model units.
Smart water monitoring systems that can detect leaks early, preventing both water waste and potential damage.
The benefits extend beyond operational savings. Today’s residents increasingly prioritize energy efficiency in their housing decisions. Recent market research shows strong demand for smart energy features:
Source: NMHC and Grace Hill Renter Preferences Survey 2024 Report
2. Access control challenges
Managing property access efficiently while maintaining security creates several common challenges for multifamily communities. Traditional key management often leads to significant time investment from staff—from handling routine lockouts to coordinating after-hours access for maintenance vendors. When keys are lost or stolen, the costs of rekeying multiple locks can quickly add up.
Modern access control technology offers solutions to these challenges. Digital credentials like key fobs or mobile access make it possible to:
Instantly grant or revoke access permissions
Create temporary access codes for vendors
Monitor and log access patterns
Reduce or eliminate physical key management
Market research indicates residents increasingly expect these modern access features:
Source: NMHC and Grace Hill Renter Preferences Survey 2024 Report
3. Evolving operational demands
Multifamily operations have transformed dramatically in recent years as properties adapt to changing resident expectations and market pressures. Forward-thinking owners are digitizing their operations to:
Replace manual processes with automated workflows
Gain actionable insights through connected property data
Improve team communication and response times
Enhance the resident experience through better service delivery
Consider Quinn Residences' experience: After retrofitting just 300 of their build-to-rent homes with smart technology, they saw significant operational improvements through centralized management and better monitoring capabilities. Their team could respond to issues more efficiently while maintaining better communication with owners and residents alike.
Recent research shows how management practices influence resident satisfaction and retention:
Source: NMHC and Grace Hill Renter Preferences Survey 2024 Report
What’s next?
If you’re like many owners and operators, you have questions about smart technology. Our comprehensive guide to smart home technology for apartments explores today’s most popular smart apartment technologies and breaks down their impact on both residents and property owners.
Still have questions? Schedule a demo and speak with one of our experts.