For mid-market multifamily owners and operators, adopting smart technology is no longer a question of if—it’s when. However, large-scale tech implementation can be overwhelming, costly and disruptive. A phased approach—starting with targeted pilots and expanding based on measurable results—is the key to mitigating risk, maximizing ROI and ensuring seamless adoption.
The necessity of staged implementation
Unlike large REITs with extensive capital resources, mid-market owners and operators must balance budget constraints with the need to remain competitive. A "big bang" approach—where technology is implemented across an entire portfolio at once—can lead to operational bottlenecks, resident resistance and unforeseen technical issues. Instead, a structured, step-by-step rollout provides flexibility, allowing owners and operators to refine strategies, measure success and adapt as needed.
A staged approach also ensures that investments align with actual property needs. By testing technology in select locations first, operators can identify the most impactful solutions, ensuring expansion efforts are data-driven rather than speculative. Additionally, this approach reduces disruption to residents and site teams, helping maintain a positive living environment throughout the transition.
Phase 1: Defining the pilot stage (the "why" and "where")
Before deploying smart technology, it’s crucial to assess property-specific pain points and set clear pilot objectives.
Identifying key pain points
Every property has unique challenges, whether high energy costs, inefficient maintenance workflows or outdated access systems. Smart technology should be targeted toward areas with the greatest potential to improve efficiency and enhance the resident experience.
Strategic property selection
Not all properties are equal candidates for a smart tech rollout. Operators should consider:
Demographics: Tech-savvy residents may be more receptive to smart home solutions.
Property age and infrastructure: Older buildings may require additional upgrades for compatibility.
Operational complexity: Properties with recurring maintenance challenges can benefit from IoT-enabled automation.
Setting clear pilot objectives
A successful pilot must have specific and measurable goals. This might include goals such as:
Reducing maintenance requests by 20% through proactive monitoring.
Increasing resident satisfaction scores by 15% via smart access and automation.
Cutting energy costs by 10% with intelligent climate control.
Enhancing staff productivity by 25% through automated workflows and real-time alerts.
Phase 2: Implementing and evaluating the pilot (the "how" and "what")
Once a property is selected and objectives are established, the focus shifts to execution and performance tracking.
Focused technology deployment
Rather than overwhelming staff and residents with a full suite of solutions, the pilot should focus on a few high-impact technologies, such as:
Smart locks: Enhancing convenience and eliminating lost key issues.
Leak sensors: Detecting water damage at the onset.
Smart thermostats: Reducing energy waste and lowering costs.
Automated lighting: Enhancing energy efficiency and improving safety in common areas.
Data collection and analysis
Throughout the pilot, owners and operators must track real-time data to gauge effectiveness. Key performance indicators (KPIs) should be established to measure success, such as:
Reduction in maintenance response times.
Changes in energy consumption.
Resident engagement with new smart features.
Number of work orders completed without manual intervention.
Gathering resident and site team feedback
Technology is only successful if it enhances the resident and site team experience. Regular surveys and engagement touchpoints should be used to:
Measure resident adoption and satisfaction.
Identify usability issues or points of friction.
Assess resident willingness to pay for premium smart home features.
Collect testimonials that can help drive broader adoption within the community.
Phase 3: Scaling and expanding (the "when" and "next steps")
A successful pilot provides a roadmap for broader implementation. However, scaling should be done strategically to ensure sustainability and long-term success.
Evaluating pilot success
Before expanding, owners and operators should assess whether the pilot met its initial objectives. If results are inconclusive, refining the approach or extending the pilot may be necessary before scaling portfolio-wide.
Gradual portfolio expansion
Rather than expanding all at once, a staggered rollout allows for adjustments based on learnings from the initial implementation. Operators should:
Prioritize properties with similar needs and infrastructure to the pilot site.
Adjust rollout pacing based on available budget and staff readiness.
Continue monitoring key metrics to validate ongoing success.
Incorporate additional smart technologies as needs evolve, such as predictive maintenance systems or enhanced security features.
Continuous improvement
Technology evolves rapidly, and resident expectations shift just as quickly. A long-term smart tech strategy should include:
Regularly updating and upgrading systems to stay ahead of trends.
Training staff and residents on new features to improve adoption.
Keeping an open feedback loop to adapt to evolving operational challenges.
Benchmarking performance against industry standards to maintain a competitive edge.
The path forward: Smarter, scalable tech adoption
Smart technology adoption doesn’t have to be all-or-nothing for mid-market multifamily operators. A phased, data-driven approach enables gradual and strategic implementation, minimizing risk while maximizing operational efficiency and resident satisfaction.
Operators can ensure a smooth transition and long-term value by focusing on high-impact areas first and scaling based on proven success.
Ready to take the first step in implementing smart tech at your property? Download this free checklist to assess if your community has the smart features residents are looking for.