Multifamily Landlords: IoT Programs Are a Must

Technology is becoming a staple in the multifamily market, and while it will likely have a huge impact on multifamily development in the future, landlords are already adopting technologies that are creating efficiencies in multifamily management and operations. Experts on multifamily operations—including Michael Beckerman, CEO or CREtech; Scott Wesson, SVP and chief information at UDR; David Seiler, VP at Trinity Property Consultants; Louis Schotsky, VP at Equity Residential; and Peter Chmielewsk, SVP of development at LMC—are weighing in on the impact of technology at RealShare Apartments next week on October 29 and 30 in Los Angeles.

While landlords are among the leaders in adopting new technology, IoT programs are in the highest demand by renters. “Consumers seem to be demanding IoT programs the most in their apartments followed by any features that aid in security and enhanced property communications with management,” Beckerman tells GlobeSt.com. “From the landlord side, predictive maintenance is a hot category followed by tools that aid in marketing and data aggregation.”

While some technologies are necessary for renters, technology in general is becoming ubiquitous in multifamily, and landlords that don’t evolve will be left behind. “We are clearly seeing that landlords that do not embrace the basic tenant tech expectations are at a real competitive disadvantage in the marketplace,” explains Beckerman. “It’s getting the point where not being a “tech-enabled” property is resulting in landlords having to make rent concessions. On the other hand, being on the leading edge of innovation clearly gives landlords an edge in marketing, branding but also in their ability to potentially charge more in rent and offer less in concessions.”

Beckerman says that Lennar, Avalon Bay, Equity Residential, Cortland, Hines, Berkadia have been the pioneers of integrating new technologies in multifamily. In general, however, multifamily owners have been quick to adopt and integrate new technologies. “There are many reasons why the multifamily sector is such a leader in embracing tech such as forward-thinking nature of the landlord community,” explains Beckerman. “But clearly demographics and consumer, patterns are also profound drivers as well as the shifts in consumer sentiment towards renting and the booming Millennial population are also demanding that their living environments are tech-enabled. Everything from building access to amenities are driving the shift towards homes that are not just smarter, but more environmentally and cost efficient.”

While technology has become integral to the success of an apartment complex, keeping up with changing technologies can be difficult. Beckerman says that many landlords lack a clearly defined plan. “Many landlords I talk to have not positioned themselves yet to make the commitment to embracing tech, and it will cost them. And it will come faster than they realize,” he says. “In my opinion, technology is the new “clubhouse”. Meaning, if you don’t have it, you look like you are behind the times. Any landlord that does not have even the most basic “smart home” features, is seen as being old school. And the ones that are embracing tech are positioning themselves as being on the leading edge. Consumers today value tech more than they value the common areas and physical amenities.”

Multifamily:

For more information on multifamily news, join us at RealShare APARTMENTS in Los Angeles, CA from October 29-30, 2018. This event attracts more than 1,000 of the industry’s top owners, investors, developers, brokers and financiers as they gather for THE MULTIFAMILY EVENT OF THE YEAR! This conference is powered by GlobeSt.com, the go-to-source for multifamily news and analysis. To register for RealShare APARTMENTS visit: https://www.eiseverywhere.com/ehome/302312/653773/.