Does Technology Bring In More Renters?

There is a push toward incorporating more technology in rental units, but does the technology actually result in better leasing velocity and fewer units turning over? It is pretty early in the game to say definitively, but Adrian Goldstein of CGI Strategies says that the firm has seen a positive response. CGI Strategies implemented technology tools and amenities at its Koreatown luxury apartment project KODO. The technology package starts on the website, making it easy for potential residents to view available units and make an appointment with the leasing office, and carries through to the unit interior, which is outfitted with all of the latest technology and a customized tablet to control it.

“The response has been very good, and people are naturally positive about it, and people are naturally curious and enthusiastic about it,” Goldstein, a co-founder at CGI Strategies, tells GlobeSt.com. “The response has been great. I don’t think people are leasing with us initially because the technology is there, it’s a combination of all things. But when you look at the whole technology package, it does leave an impression that maybe psychologically, a renter will say, ‘hey I like that KODO.’ They may not attribute it to the technology, but it left them with a good impression. Maybe more of an impression than a property without it.”

While it is hard to say if tenants are signing leases because of the technology package, Goldstein says that the technology and amenities are helping to get them in the door. “It’s an enhancement that helps lead them our way,” he says. “We put Smart TVs in all units. It used to be you had to bring you own refrigerator to an apartment. Today no one wants to get a U-Haul and schlep items to and from one unit to another. One of those items today is a 50-inch TV that you have to hang on the wall. Giving them an Apple TV, hanging it for them, that kind of technology enhances the customer experience and says to them we want to make things as easy as possible for you.”

Still, it is clear that tenants want technology and the industry is moving in that direction. Goldstein expects other developers will look at ways to incorporate more technology as a way to remain competitive. “I think that is changing, especially in better properties. The reason I think it is slow is that other developers are very price conscious, don’t know what to include and don’t know how to measure the return,” he says. “More developers have gone with green buildings than technology. They have also focused more on kitchens and bathrooms, focusing on how to create a really nice kitchen experience. Nice appliances, cabinets. Location is main reason for leasing, also your view out of the unit, than your kitchen, bathrooms and flooring and amenity package. Developers have added gyms and screening rooms. We are incorporating a lot of common area amenities and community experiences, doing it with more of a living room feel where folks can gather, talk, and where there’s wi-fi and technology integrated into the common areas. It’s a place with a good vibe where residents can come and hang out and be together. It’s almost a WeWork or Starbucks feel.”