The multifamily real estate market has traditionally been known as a ‘late to the game’ adopter of technology. Twelve months past and we’re seeing an industry that is brushing aside this stereotype. A primary and insidious driver….the COVID-19 pandemic. 

We know what has happened. Social distancing, remote work, remote from home mandates – all driving new technological demands that have created a ‘new normal’ in everything humans do. This includes a ‘new normal’ in the way people research and rent properties AND a ‘new normal’ in what they expect to see in the features and amenities they get in the properties they rent.

The multifamily real estate industry is seeing more and more owners and operators embracing emerging technologies to meet growing consumer demand for safer search and leasing processes, advanced technologies cross-property and within amenities, and smart technology-enabled homes. From PropTech that helps to acquire and secure responsible, high-quality residents and provide advanced and safer cross-property amenities, to smart home tech solutions that allow residents to digitally manage everything from locks to lights to temperature and more.

Here we share top smart tech and property tech (PropTech) investments for multifamily property owners and owners looking to drive financial and operational success.

Smart Home Technology

Smart home technology includes any suite of devices, appliances, or systems that connect into a common network that can be independently and remotely controlled. It is a one-of-a kind way for tenants and apartment owners to manage everything within a unit, including locks, lighting, sound, security, climate and unit temperatures, leak detection, CCTV security, etc. — all from the convenience of a cell phone, iPad or other Internet-connected device. Smart home technologies offer a breadth of value to not only residents, but also to multi-family owners and operators. It maximizes property and unit security; saves on energy costs; adds comfort, ease, safety and convenience; while also addling a level of sophistication and upsell economic opportunity for property owners.

Broadband Internet Services

Smart home technology is useless if it is not supported by a dependable, always-on, and secure broadband Internet service. Offering Wi-Fi across the community, in public spaces, and in all units is a significant competitive differentiator for multiproperty owners and operators. With this, tenants can log in to one network regardless of where they are on the property and be assured of fast speeds that support both work and recreational needs. Property owners and operators benefit by passing along savings to tenants while also increasing net operating income.

Technology Add-Ons

Regarding in-unit smart technology, add-ons are extremely attractive to tech-savvy renters and an excellent way for multifamily properties to stand-out above the competition. This includes a collection of smart appliances—such as smart thermostats that assess unit usage to reduce unnecessary heating and cooling, smart lighting that tenants can control remotely; and built-in Bluetooth speakers that are compatible with smart televisions and Amazon Alexa, Google’s Assistant, and Apple Siri—to higher security options like smart locks that control not only unit access but also access to all public areas within the multifamily community, these amenities add convenience, security, and peace of mind.

Property Technology (a.k.a. “PropTech)

Property Technology, a.k.a. “PropTech,” has taken over the real estate industry by storm. Relatively new to the industry, PropTech provides multifamily owners and operators with the ability to digitally “makeover” how potential residents research, tour and select a property and unit. It also helps managers streamline and simplify the way they market, lease and manage units and the property. About 58% of real estate and property companies use at least one or two PropTech tools in their properties and day to day operations. These digital technologies advance all operational functions including sales, operations, customer relations and property management.  Some of the most common in multifamily real estate today include:

• Property Search Solutions

Property search technologies help property owners and operators communicate and connect with in-market tenants. These solutions help the management of property listings, streamline marketing and advertising to engage potential new tenants and enable augmented reality for unit staging.

• Tenant On-Boarding and Management Solutions

Resident on-boarding and management consumes a PropTech category all of its own. Central in supporting new tenant acquisition and management of existing renters, this category of PropTech supports:

• Leasing management
• Background checks
• Fraud detection
• Finance management
• Document management
• Among others…

• Property Management Tech

Property management technologies focus on all aspects of property management, including smart building solutions that make properties more secure, eco-friendly and most of all, safe for residents, vendors and owners and operators alike. Within this tech category are portfolio management applications that handle the property portfolio data, contract management solutions, and solutions that support property and tenant security and safety.

With a brighter outlook ahead, multifamily operators and owners have a greenfield opportunity to advance and differentiate their properties through smart technology and PropTech investments. Operators who remain open to change—embracing innovative technology and tools streamline and innovate—will be the industry leaders of tomorrow.

This has played out massively during the COVID-19 pandemic, as apartment communities with tech features ranging from keyless access control and smart-home technology to lightning-fast connectivity, community-wide Wi-Fi and self-guided touring options were able to adapt quicker to operation constraints related to stay-at-home orders and social distancing requirements.

In the post-pandemic world, multifamily's embrace of intelligent building technology is the new normal, according to industry experts. However, getting to the new normal requires more than just shifting our thinking around property operations and embracing new smart technology and enhanced digital connectivity. It requires laying the groundwork in buildings and communities by creating the proper digital infrastructure.