According to the National Apartment Association (NAA), approximately one-half of MDU residents with smart home devices use these devices every day, suggesting the devices provide value to daily living. It’s no wonder that multifamily properties are investing in smart technology to meet these needs as well as increase efficiencies in their operations and thus improve their overall products and services.
Residents Understand the Value
In a recent Parks Associates study, residents consistently provided higher ratings for properties that provided smart home devices versus those that didn’t. Roughly 74% of participants* rated energy savings from the ability to remotely control appliances and being able to monitor their homes as “High Value” and were willing to pay more for it.
Elevating the property management experience
The benefits of smart technology to property managers and owners come as no surprise. From increased resident retention to additional revenue streams from residents willing to pay premiums for smart home technology (34% are willing to pay 15% more for apartments with smart technology*) and operational efficiencies.
In addition to increasing ROI, properties are also looking to smart technology to elevate the level of services they offer to residents but face the challenges of fragmentation in their technologies and the frustrations that can accompany that. Integration remains a crucial concern for property managers and owners as fragmentation in technology presents the risks of frustrating user experiences for residents and staff, which often leads to diminishing levels of service.
Some property managers fear smart home devices will create technical problems, resulting in higher support costs (68% rate a vendor's ability to serve all the company’s properties as very important**).
The way forward
While 84% of property managers showed intent to install internet-connected devices within the next 12 months**, the ability to integrate with their management systems, ease of use, and reliability remain key concerns for their decision to invest in smart technology.
In a fragmented space full of fast followers, companies continue to seek solutions “that work” but also providers that are trusted and well-established.
Parks Associates identified top vendors in the MDU market, leaning on conversations with MDU owners, operators, and property managers to learn what they are looking for in their partners. This includes features but also leans on additional factors, including integration, reputation, and customer service.
They look to strong brands and reputations that speak to a company’s staying power, customer service, and the ability to scale to meet their vision for their business and how they want to be perceived in the market.
ADT is the #1 smart home security provider in the U.S.†, with nearly 150 years of protecting your community. We fully integrate with top property management software companies, putting control in the hands of on-site staff without having to learn a new system. Our solutions improve operational efficiency, deliver NOI, and improve retention.
*What Residents Want: Demand for Tech in Multifamily," Parks Associates, 2022
**What Property Managers Want: Opportunities for Tech in Multifamily," Parks Associates, 2022
†Strategy Analytics, 2023