Recently, The National Multifamily Housing Council (NMHC) published their Technology Benchmark Report, providing valuable insights from technology leaders within the multifamily space. Reading through the report, there are a few key patterns that show up in the data. First, there’s the need for technology solutions that provide a rent increase for community revenue growth.
Increased Rent
Let’s face it, the cost of living is only going to continue to increase. Renters are becoming frustrated with the consistent rent hikes year-over-year, but what if those rent hikes came with updated technology?
Smart home automation technology provides an elevated resident experience, while lowering other costs like electric and utility bills. Smart thermostats and lighting allow users to optimize their temperature and light settings to maximize cost savings. Suddenly, the rent increase is a little less frustrating.
Based on the Technology Benchmark Report from NMHC, 56% of properties report that the largest IT problem is leveraging technology to increase tenant rent. However, creating a smart community is a luxury amenity for residents, not only justifying the rent increase, but keeping residents satisfied with up-to-date technology. It’s a win-win for communities and their residents.
Thinking Ahead
When asked, what is the most important topic for your industry to explore in the next 3-5 years, 69% of people reported, “leveraging technology to increase revenue” as the most important topic.
In order to justify rent increases, properties should consider investing in technology that serves the residents, but also can provide an ROI for the communities themselves. Smart solutions, like smart parking management can create ancillary revenue opportunities, while also enabling property management to assign parking spots, report on real-time parking inventory and manage parking enforcement.
In addition to increasing revenue, there is a significant cost savings to having asset protection devices within units. Leak sensors, for example, provide properties and residents with peace of mind that they will be alerted at the first sign of a water leak. This allows properties to act quickly and avoid costly damage. The average water damage claim can cost $15,000, but with leak detection software, these costs can be largely avoided, saving communities thousands of dollars each year. Many insurance companies will even offer properties discounts off their premiums for having leak detection devices installed.
If you’re not thinking about the future of rental management, you’re already behind. Investing in smart home technology now, can set your community apart from the competition. As smart home solutions become more popular, they will become a must-have feature in most apartment buildings, thus it benefits those who are ahead of the curve. Additionally, if your units have a standard smart home set-up, it’s easier to add on new features and solutions as they develop and become available.
Efficiency
Another point that was abundantly clear from the NMHC Technology Benchmark Report was the need for technology that increases efficiency and plays nicely together. While resident satisfaction is key, property owners and operators are in search of one streamlined platform that can do it all. From access control, to parking management, smart home automation and integrations with the major players in the market, the amount of time and energy that operators will save using one platform speaks for itself.
Integrated Technology
Those surveyed indicated ‘integration with other applications’ as the most pressing challenge they’ve experienced with the four most popular property management systems.
Integrations are a large part of solving IT pain points because a seamless experience allows management teams to increase efficiency and avoid wasting time switching between various applications. SmartRent offers a slough of integrations with property management systems, CRMs, software and hardware partners; all in an effort to empower owners and operators with a strong, robust platform that can do it all.
What Next?
In the end, smart home technology can solve today's most pressing IT problems in providing the solutions that technology leaders are looking for. Whether it’s a way to increase revenue, efficiency or finding technology that integrates well, smart home automation is a great solution for your IT needs.