The multifamily market isstrong. This year, investment volumes grew alongside substantialnationwide rent growth and renter demand. With such strong naturalgrowth, what is the incentive for property management companies toinvest in new technology that promises to boost efficiencies? Thatwas the chief question posed at the Innovative Investment &Facilities Management through Technologies panel at RealShareApartments yesterday in Los Angeles. The answer unanimously fromthe panelists—which included Amy McGrath, directorat Goulston & Storrs; MikeBallard, partner at Ascent MultifamilyAccounting; Ron Rossi, VP of businessdevelopment of investor management services; and GaryKao, general manager at Dealpath—was thattechnology adoption is imperative for future, sustained growth.

The millennial demographic is one reason why property managersneed to integrate technology into an apartment complex. “We areseeing a demographic shift with millennials that are usingtechnology for everything, and they want to manage theirinvestments online,” Rossi said on the panel. “That is pushingfirms to adopt technology.” This is a major driver of technologyadoption, and both Ballard and Kao said that the millennialdemographic is demanding more technology, but not only as renters.Millennials are also working in the property management field, andwant to use technology platforms to manage properties. “Youngindividuals want to work with companies that are using newtechnologies,” added Rossi.

Technology integration isn't the only hurdle. Managementcompanies also need to make the most of the technology that theyhave. “We see a lot of clients don't use half of the technologythat the system enables them to do,” said Ballard. “So, companiesshould push employees to get the most out of their existingsystems, because you are already paying for it.” Firms are alsoadopting new technologies from industry hires. Ballard adds thatemployees moving to new companies has been a good way to spreadtechnology adoption.