By 2030, the Smart Apartment market will grow to $13 billion. And why not? Multifamily owners and operators are finding that smart IoT devices, property management and work management solutions are saving them money, streamlining workflows and improving the resident experience.
With their growing use of technology, apartment communities are bolstering their bottom lines—and producing a ton of data. Every time a smart lock opens, a thermostat adjusts itself and a work order is completed, property managers gain data points. All that information represents even more potential for smart apartment technology to transform your communities.
But only if you use it wisely.
The challenges of owning and using all this data range from onboarding to privacy and cybersecurity concerns to data storage to efficient data analytics so you can fully leverage it.
There aren’t a lot of smart apartment reviews and resources out there to help you handle all your smart apartment data. Here’s how to do that and why it’s important.
What data is available for discovering smart apartment insights?
Smart apartment data includes any data point produced when you use IoT devices (like smart locks, sensors and thermostats) or the software that connects to those devices (like your PMS, work management solution, resident app or self-guided tours solution). It’s data collected from your entire smart apartment ecosystem when you, your staff or your residents use smart technology.
Smart apartment data is generated by:
Smart locks
HVAC systems with smart thermostats
Security cameras and sensors
Water leak sensors
Intercom and access control systems
Your PMS (when it relates to delivering access credentials to residents)
Your work management solution
Your resident app (regarding smart device management and communication about smart devices)
Self-guided tours (as prospects use your devices to explore your communities)
Once created, smart apartment data is generally stored on cloud-based platforms so it's accessible wherever it’s needed and updated in real-time. Then, it’s analyzed, usually with the help of AI, and delivered to where it can be actionable, like your PMS.
Some types of smart apartment data include:
Energy usage data: Tells you which units use the most energy, when they use energy and how to save on energy costs.
Occupancy and motion data: Tells you when people are in a unit, common space or amenity area.
Access control data: Tells you who accesses which areas and when.
Maintenance and system health data: Tells you how often devices require maintenance, how much maintenance time and money you save with smart devices and how your technicians are performing.
Resident behavior data: Tells you which amenities they use, how they communicate with staff and how they use their devices.
Data-driven insights, driven by smart apartments, enhance operational efficiency, reduce costs and improve resident satisfaction.
Some surprising insights from smart apartment data
Before smart apartment devices became popular, it was harder to collect data about energy efficiency, operational costs and resident behavior. But now that property managers have the data, some game-changing insights are revealed. Some align with what property managers already know from years of experience, but other insights are surprising. Here’s what we’ve learned so far.
Residents don’t always use smart features as expected
According to the 2024 NMHC Grace Hill Renter Preferences Survey Report, 72% of renters what smart thermostats, 65% of renters want video doorbells and 67% want a smart security system. However, some residents are slow to embrace these devices in their everyday lives, or they might use them in ways property managers wouldn’t have predicted. Rather than using automated temperature schedules, for example, they might simply adjust the temperature remotely as they head home from the office each evening. Meanwhile, a doorbell camera might be used to keep an eye on packages instead of people.
Smart access control data helps predict lease renewals
Access control data helps give you peace of mind because you know who’s entered which areas and when. But it can also help you forecast lease renewals. That is, if your amenities have smart access control.
According to Grace Hill, 76% of renters want a swimming pool, 73% want a fitness center, and 47% want a clubhouse or party room.
Understanding how residents interact with your amenities provides valuable insights into their preferences and priorities. If every resident has to swipe a card or enter a unique PIN code to access an amenity area, you can track how often each resident uses each amenity. With that data, you might be able to predict whether they'll renew their lease or identify the kinds of incentives that will encourage them to stay.
Energy savings are greater in unoccupied units than in occupied ones
Residents love smart thermostats because it helps them keep their energy bills low. But property managers actually see more savings than residents do.
The US Department of Energy estimates that people can save an average of 10% on their heating and cooling costs by adjusting the temperature between seven and ten degrees Fahrenheit for eight hours each day. That’s around the time most people are at work all day or sleeping at night. But as a property manager managing the climate for vacant units, you can keep temperatures moderate around the clock until someone tours the unit. That magnifies your savings.
Predictive maintenance reduces costs more than reactive repairs
Your maintenance team already knows that things are better when they spend more time on proactive maintenance than reactive maintenance. But did you know that the data from your smart apartment devices can help you predict maintenance issues before they happen?
Studies show that implementing predictive maintenance in multifamily communities leads to an 18–25% reduction in overall maintenance costs and up to 50% less unplanned downtime (McKinsey & Company, 2020).
Smart water sensors detect when there’s a leak, even if it’s a small one that would otherwise go unnoticed. When it does, the system alerts you, your residents and your maintenance team so the water can be shut off immediately, preventing expensive water damage and mold growth.
Meanwhile, temperature sensors that come with smart thermostats can notice problems with your HVAC system. If the thermometer has been pumping air into a unit for hours without much change in temperature, there’s likely a problem with your air conditioner.
Security cameras and smart locks increase resident retention
According to Grace Hill, residents don’t just want smart apartment amenities, they’re willing to pay more for them. How much depends on the amenity:
Smart alarm system: $51.85 per month
Keyless smart locks: $50.03 per month
Video doorbell at the unit: $49.07 per month
Similar to amenity access data, usage patterns from smart security devices can provide insights into which residents are actively engaging with these features, potentially indicating a higher likelihood of lease renewal.
Challenges and considerations in smart apartment data
Harnessing the powerful insights available through smart apartment data involves a strategic approach to its collection, management, and utilization. This necessitates addressing fundamental aspects such as sufficient cloud storage, consistent device connectivity, and the crucial elements of cybersecurity and data privacy.
Data privacy and resident concerns
Some residents will be wary of any data you collect about them. They’ll want to know what you have, who can see it and what you use it for. Make sure you outline your privacy policy and be transparent. Choose providers that are trustworthy, too.
Cybersecurity risks and potential data breaches
When you store more data, there are more risks of data breaches. Depending on the kind of data you store, the consequences of a breach can be life-changing for individuals and legally entangling for your business. Consider how you’ll prevent data breaches—and how you’d handle them if they occur. Share that with residents too, so they feel confident about their privacy.
Integration challenges with existing systems
Many providers advertise compatibility with other proptech solutions, but some are more deeply integrated than others. Look for solutions that share data between platforms and ask questions about what workflows between them look like. If your staff has to input data to multiple solutions, you’ll miss out on efficiencies and staff will hesitate to adopt new solutions.
High implementation and maintenance costs
Implementing new systems and software always comes with costs, but the savings and efficiencies a solution provides should far outweigh them. Find out how long it typically takes a community to adopt the solutions you’re considering and ask the vendor how they support onboarding and troubleshooting.
Potential for data overload and misinterpretation
Having data at your fingertips can help you and your staff make smarter decisions—but only if that data is easy to interpret. Giant spreadsheets aren’t easy to work with, so have a plan for turning that data into graphs, statistics and other actionable insights.
Legal and compliance complexities
Depending on where your community is located and what kind of housing you provide, you may be subject to legal rules about how you collect, store, share and use resident data. Check with your legal team and IT department to ensure you’re always in compliance.
Resident adoption and resistance
Privacy concerns are one reason some residents resist smart technology, but there are others. Many simply don’t want to learn a new system. Help them understand how collecting their smart apartment data helps them (like by improving their living experience or lowering their energy costs). Additionally, provide training and resources so learning the new system is easy.
Dependence on reliable internet and network stability
The more digital technology you use (including smart apartment data), the more your community will rely on a reliable internet connection and network stability. To keep collecting data, your devices need a constant internet connection. You’ll need a stable connection when you access that data, too. Consider Community WiFi to stay in control over your internet connection and ensure residents have service as soon as they move in.
The future of smart apartment data
Numerous technological advancements are driving the rapid evolution of smart apartment data, which is in turn shifting the multifamily industry. Property managers are implementing new solutions wherever they can. When residents experience the benefits of smart devices, they fuel demand, too.
As more communities harness the power of smart apartments, data-driven decisions will become even more important to improve operational efficiency, sustainability and resident satisfaction. Here’s what to expect in the coming years.
AI and predictive analytics will drive smarter decision-making
Which amenities make the most impact on the resident experience? How can your team turn and fill vacant units faster? What do prospects look for when they tour your community, and are they finding it?
These are critical questions for managing your community successfully, and when you have the answers, you can make better decisions for investing your CapEx, cutting your OpEx and improving your marketing. But they’ve also been some of the hardest questions to answer.
Smart apartment data has the answers, but you’ll have to sort through the data to find them. Fortunately, AI is excellent at parsing information, noticing trends, predicting outcomes and summarizing data for you. As AI becomes more ubiquitous in proptech, it’ll make data-based decision-making faster and easier.
Enhanced IoT integration for real-time monitoring and automation
IoT integration will be critical for smart apartment data moving forward. As businesses create and connect more IoT solutions, you’ll have an easier time setting up real-time monitoring and automating your workflows. As devices like smart locks, lighting, HVAC, water sensors and security cameras share fresh data in real-time, you can pivot quickly to capture new opportunities and prevent larger problems.
Sustainability and energy efficiency will be prioritized
More and more renters are demanding sustainability or energy efficiency features from their communities, and smart apartment data can help you deliver them. Smart thermostats lower energy use and costs, but that’s just the beginning. Water sensors help prevent water waste from undetected leaks, door and window sensors help keep warm or cold air out and smart package rooms help minimize the carbon footprint of last-mile delivery.
Increased focus on data privacy and cybersecurity
As more communities use smart apartment data, concerns about data security, compliance and resident privacy will grow. While some solutions have solid privacy and cybersecurity practices already, future solutions will focus on stronger encryption, decentralized storage and user-controlled data sharing. We’ll also see more privacy-first solutions hit the market.
Meanwhile, state laws and regulations like CCPA (in California) and GDPR (in the European Union) will evolve too. Proptech providers and community managers will need to keep up with new rules and guidelines.
Seamless integration with property management platforms
Just as more devices will integrate together, smart apartments will integrate with other proptech solutions too, especially your PMS. These integrations will eliminate manual data entry and fragmented systems that cause your staff to duplicate work across separate systems.
In the future, property managers won’t use separate platforms for work orders, leasing, maintenance and resident communication—everything will be streamlined into one unified dashboard that’s quick to use and easy to share with your team.
Personalization and resident-centric experiences
AI-driven personalization will shape the future of leasing, amenities and community engagement. Meanwhile, residents will be able to customize their own experiences, allowing them to tailor their living environment through data-driven recommendations.
With more data, you get more ways to understand the needs of your residents. You can look at overall patterns to see where to invest the most in the resident experience, but you can also better understand what might have the greatest impact on a single resident. You can deliver personalized communications, amenity packages and concessions that will genuinely entice someone because you’ll know what matters most to them.
SmartRent, smart data
Smart apartment technology is collecting useful data constantly, and we’re seeing some surprising trends. These insights will be critical for staying competitive in the multifamily housing industry, but harnessing smart apartment data comes with its own challenges. Privacy, cybersecurity, storage and onboarding concerns can slow down adoption and add to your costs.
Providers as a whole will get better at accommodating these needs for property managers. For now, talk with the experts at SmartRent to find out how you can implement Smart Apartments to maximize efficiency, security and resident satisfaction—and how we help you protect and leverage your smart apartment data.