Multifamily property owners and operators are now benefiting from a growing range of advanced leak detection technologies, offering more effective ways to prevent the costly and disruptive consequences of water damage. These innovations address longstanding challenges, such as affordability, ease of use, and tenant satisfaction, marking a significant shift in how water damage is managed in multifamily buildings.
Water damage has long been a major issue for all types of properties, with residential homes historically having access to advanced leak detection systems that alert owners and automatically shut off valves to prevent flooding. However, multifamily properties have lagged behind in adopting these solutions due to high costs and user-unfriendly features. For instance, older systems often relied on loud alarms that disturbed residents.
Nadav Schnall, CEO and co-founder of ProSentry, a water and gas leak detection company, highlights another key barrier: return on investment. “Cost is always a substantial issue for buildings,” Schnall explains. “If it doesn’t help their bottom line — and repairs are already budgeted — the ROI isn’t compelling enough for large companies.” Yet, the financial impact of water damage cannot be ignored. According to ThisOldHouse.com, the average insurance claim for water damage or freezing in single-family homes is nearly $14,000 per incident. In multifamily properties, the scale of potential damage is exponentially larger, with one leak potentially affecting 15 to 20 units.
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Beyond direct repair costs, water leaks can lead to tenant displacement lasting months and tarnish a building’s reputation. Schnall compares the current shift toward leak detection technology to the adoption of centralized smoke detection systems decades ago. “Connectivity made it substantially easier,” he notes, emphasizing that modern networks like LoRaWAN (a low-power, long-range communication protocol) now enable cost-effective monitoring across entire buildings. These systems reduce reliance on Wi-Fi while supporting other Internet of Things (IoT) devices for HVAC and energy management.
ProSentry’s approach involves installing gateway devices every three to four floors and deploying sensors priced between $50 and $90 each. These sensors monitor not only water leaks but also temperature and humidity — critical factors in regions like Florida where high humidity poses additional risks. For example, during a cold snap, ProSentry detected an open window in an apartment when temperatures dropped below 50 degrees Fahrenheit, allowing timely intervention.
Comprehensive protection often requires multiple sensors per unit — covering sinks, dishwashers, washing machines, and other high-risk areas. The results speak for themselves: “In 2024 alone, our company reported 3,610 leaks across various buildings,” says Schnall. “None resulted in false alarms or insurance claims.”
Insurers are also beginning to recognize the value of these systems by offering discounts or incentives for their use.
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