What Can Automation Achieve in an Apartment Building?

The world is changing. Over the next decade, the on-demand economy and reliance on ecommerce is going to double, according to Cyrus Claffey, founder of ButterflyMX, and that is going to mean more package delivery and more in-person services for building operators to manage on behalf of tenants. Claffey gave a spotlight presentation at the GlobeSt.com Multifamily conference earlier this year about how automation can help to manage these challenges and drive operational efficiency.

Today’s average renter is consuming online services. Some of that results in an avalanche of package deliveries. This has become a problem for operators have every level. Large operators with 24-hour onsite staff are able to collect packages, but storing them has become cumbersome. For smaller owners or owners of class-B or class-C assets, which typically don’t have an onsite staff, the package problem is an even greater challenge. But, according to Claffey, it isn’t only online shopping. Renters are also using services, from dog walking to in-home massages and food delivery, all of which require that non-residents access the building and sometimes the unit.

Automation is the solution to these problems. “It can drive favorable economic and drive favorable NOI,” said Claffey in his presentation. “It helps the staff do higher value tasks.” Smart locks give service workers access to the building, and automated package deliver systems can help owners manage packages.

These are the services that tenants are demanding today, and owners that are able to provide them are seeing better rents and retention. Ultimately, automation is a positive influence on NOI.

In addition to automated package delivery, automated reservation systems and smart entry systems, the leasing process, maintenance requests, energy and bulk Wi-Fi can also be managed through automation, enhancing building amenities and enhancing efficiency at the property.

While automation has been available to owners for several years, few have adopted technology at the property level. That is starting to change. According to Claffey, prices for these tools have come down, making it more feasible for owners. And, of course, there is plenty of demand.