Hardware-as-a-Service (HaaS) is currently the hottest trend in the multifamily space. It's a market that is expected to grow to $116 billion, almost double what it was two years ago.

During cost tightening times, property owners might not be feeling the urgency to invest in upgrades to their properties. But investing in property tech now can provide benefits for both owners and tenants. Let's look at how HaaS can benefit both property owners and tenants, even in a turbulent economy.

Times are changing. Typically, owners purchase software in conjunction with a support contract. HaaS offers a different model to multifamily owners. An MSP (Managed Service Provider) procures, installs, deploys, and maintains the infrastructure through a service level agreement (SLA).

Maintaining high occupancy rates has never been more important during uncertain times. Prop tech can provide the security, energy efficiency, and convenience multifamily owners can use to attract and retain tenants. HaaS can also help owners reduce tenant turnover and the costs that come with it.

For the owner, HaaS removes the hassle of administrative overhead. These solutions make it easier to grow a portfolio should they jump from owning one property to three.

Under the HaaS model, owners can also eliminate any high upfront installation and maintenance costs, instead paying one predictable monthly operating cost. Rather than deal with large capital expenditures, this all-inclusive month-over-month amount gives owners greater budget flexibility.

When selecting a HaaS solution, you'll find that they can differ in what they offer the multifamily owner.  A good HaaS provider works to understand your business' challenges and objectives. They tailor your service level agreement to meet those goals within your budget. They won't require you to bundle devices you don't need. Your solution should address the specific needs of your tenants and accomplish your business objectives.

When doing your due diligence in finding a good provider, look for a company that provides a dedicated support team who can troubleshoot issues, recommend the right device upgrades, and assist in strategic planning. Finally, your HaaS provider should have good relationships with their manufacturers to reduce supply chain issues and allow for quick and consistent delivery of core products.

HaaS continues to grow in popularity as more business owners understand how much they could save by leasing versus the traditional outright purchasing model.

HaaS offers multifamily property owners an opportunity to attract tenants with high-tech amenities. It allows owners to reduce their upfront hardware and software costs, increase operational efficiency, reinforce IT security, and mitigate risk across assets. With these solutions in place, owners can reallocate capital for property improvements, increasing their long-term sustainability and net operating income (NOI). HaaS is quickly becoming more than a trend; it is an effective solution for properties today and for the future of the multifamily industry.