I just got back from the 2018 edition of MTEC, the Multifamily Technology Entrepreneur’s Conference, and I must say I was unusually impressed with the quality of the content. Here are a few of my key takeaways:

1. The MFH tech ecosystem is getting stronger. 
MTEC set record attendance with more than 160 attendees. Given the somewhat lagging nature of tech in MFH, this bodes well for the future. There was a wide range of tech companies from both an “area of focus” and a “maturity of business” perspective. One of the highlights each year is the “Shark Tank”-style presentation of new businesses. In past years, I confess to feeling that some (even half) of the presenters simply did not have a compelling enough business proposition to be worth my time listening. This year, there were 10 presenters and each held my attention as I could see a need for all of them.

2. Data, data, data!
Two of the three “medalists” (as voted by the three-judge panel) were heavy data plays, and several of the other presenters were data-driven as well. More importantly, they’re not merely sharing data but are also making judgments about what they think will happen and what they think multi-family operators ought to do. More and more, there are true predictive analytics capabilities that can be bought rather than spending “sweat and treasure” to build that capability in-house. I still have questions about data sourcing, data cleansing and the quality of the models presented, but those are execution issues. The strategy is clearly focused on leveraging data. If you don’t have a data strategy yourself, the best you can hope for is to ride a rising tide. If you want to be a leader, you need to leverage your data.

3. We’ve not yet begun to scratch the surface on AI opportunities. 
While there were many data plays, there was little to no application of artificial intelligence. As I’ve written before, this is the next “big thing” and the first “home run” potential in technology since the mid-00s brought us revenue management, internet marketing and resident portals. I believe we’ll see AI plays as soon as next year’s MTEC.

4. Short Term Rentals (STR) are starting to normalize. 
The conversation on STRs was more about how to leverage this demand than how to prevent it. There will always be a small set of resisters, but the clear momentum is towards how to minimize the risk while maximizing the revenue, and that’s what business should be about. Smart operators now need to understand the different vendors’ business models and pick the ones to team up with (notice I used the plural, as these not all mutually exclusive). Some vendors focus on managing and monetizing resident use of STRs; some enable operators to rent out STRs on their own; others rent apartments to re-rent as STRs; while others aren’t really STRs, they’re disintermediating corporate providers. All have a legitimate place in the market and deserve your attention.

5. Tech start-ups continue to have a disproportionate focus on urban communities. 
Perhaps this is because many start-ups are founded by young people who see gaps in their own rental experience and/or perhaps it’s because short-term rentals are disproportionately more valuable in urban locations. Whatever the cause(s), urban operators would be wise to leverage the focus on their challenges to implement technology that will improve their NOI. I’m particularly intrigued by two tech platforms that make it easier for people to afford urban living (disclosure statement: I serve on the Advisory Committees of both of these companies). Homeshare rents 2-bedroom units, adds a portable wall and then leases out to three roommates through a roommate matching portal. Pillow Homes, known for its platform to manage residents’ use of AirBnB and provide a revenue share to operators, is using its data to guarantee residents a minimum income provided they offer their homes for a certain minimum number of nights. Both of these present opportunities to expand the demand pool and reduce pressure on calls for rent control.

In summary, the health of our tech ecosystem is improving. And kudos to Stephen Lefkovits, Dennis Cogbill and Keely Drever (all of Joshua Tree Conference Group) for a great show!