Amid the specter of COVID-19, a variety of technology is being applied to reduce operating costs while improving resident health and wellness.

The rental housing industry has rarely been accused of being quick to embrace technology, but that was beginning to change in the years prior to the onset of the COVID-19 pandemic, which is only accelerating the adoption of new solutions and services.

So said panelists during the APTvirtual session, “Technology, COVID-19 and a Return to Normalcy: What’s Disrupting Residential Real Estate?”

“We’re in a real moment of change,” said James Scott, Lead Researcher at the MIT Real Estate Innovation Lab.

The quickening adoption of technology is the result of a confluence of several factors, Scott noted.

First, things like artificial intelligence (AI) and machine learning have advanced to a point where they have real-life applications in real estate. Secondly, firms like Fifth Wall, JLL Spark and others have invested more than $10 billion in practical real estate technology during the past several years. Additionally, the pandemic has forced operators to rethink how they conduct many aspects of their businesses.

Pre-pandemic, operators typically viewed technology through a lens of top-line revenue: How it helped serve residents, added convenience and identifying value-adds for which residents were willing to pay.

Safety, efficiency and protecting assets are the main drivers of technological innovation in real estate today, according to the panelists. Owners and operators are evaluating virtual leasing tours, a variety of access control systems, and even cameras even cameras for sensing traffic patterns and monitoring compliance with social-distancing protocols.

What Has Traction?

Technologies that help operators promote health and safety and that maintain building wellness will have staying power in the apartment industry, the panelists said.

For instance, operators will embrace solutions that optimize HVAC performance. They also will continue to adopt self-guided tours and technologies that promote other operational efficiencies.

Principles of health and safety are also driving interest in keyless work orders—instead of going into an office, checking out and handling keys, a code or app can be utilized instead. In reality, the “touchless” concept will continue to be of great interest and investment long into the future.

Chatbots, cutting-edge air ventilation and air purification systems and remote payment systems for residents also are among the technologies that will be in demand, according to Scott.

Creating a Technology Friendly Culture

To start, it’s important for apartment executives to educate themselves, at least in general terms about the emerging technological landscape, according to Scott.

“I’m not going to say you’ve got to go and become a data scientist,” he said. “But what I would say is make sure you educate yourself on what these terms are within the industry so that you just feel very comfortable with all of these new systems that come in. Understand terminology like API or edge computing or big data. Really try to figure out what those things mean so that you have an idea when they come up in conversation.”

Operators that are beginning to embrace new technologies were advised to first do so in a small-scale way and work forward from there. It allows for organizations to better understand the ROI they’re generating from their investments because it’s more measurable and demonstrable within the company and to outside stakeholders. 

The panelists also said operators, when researching suppliers of new technologies, must be on the lookout for more than just a vendor.

“You can’t look at anyone just being a vendor anymore,” said moderator Denise Froemming, CEO and Executive Vice President of the Institute of Real Estate Management (IREM). “They have to be a true partner and you both have to have the same goals in mind.”

Given the rapid rate of change with technology and outside investment seeing great opportunity to both innovate—and disrupt—rental housing, it’s critical for owners and operators to ensure that technological champions within the organization select a partner, not a vendor. A vendor is simply trying to sell you something. A partner wants to ensure a return on the investment.

Stephen Ursery is a Content Manager for LinnellTaylor Marketing.