Multifamily residences turn to technology for tenant appeal, efficiency

Fast, secure, reliable connectivity is now an expectation in multi-family residences, according to a report released Monday by a market research and consulting firm. Park Associates and Xfinity communities

Residents need access to high-speed Internet services to perform, attend classes and stream videos and games, among other high-bandwidth activities, it explained, while properties need connectivity solutions to better manage their operations, reduce costs and risk. Helps reduce An era of skyrocketing insurance costs.

“By adopting connectivity, IoT, and wireless technologies, property owners can not only improve their performance and cost-effectiveness but also increase tenant satisfaction and retention, which ultimately leads to increased profitability and long-term asset value,” Jeff Barney, President TP-Link SystemA global provider of networking devices and accessories, headquartered in Irvine, Calif., told TechNewsWorld.

“Property owners can generate revenue by providing IoT and on-property Wi-Fi services to tenants,” he added.

Parks analyst Kristen Hanich noted that many multifamily properties are looking at different ways to deploy and adopt connectivity technologies, but they’re also carefully considering the financial results they can expect from rolling them out.

“They want to know what the return on investment (ROI) will be in operations,” he told TechNewsWorld, “and if they’re a short-term type of investment company, how much will some of this technology add to the asset value by rolling it out.”

Gaining a competitive edge

The multifamily real estate market is embracing connectivity and IoT to enhance the tenant experience and attract tech-savvy tenants, explains Mark N. Vena, President and Chief Analyst SmartTech Research In Las Vegas.

“Smart building technologies such as automatic lighting, temperature control and security systems improve operational efficiency and lower maintenance costs for property managers,” he told TechNewsWorld. “Additionally, connected devices enable better energy management, reduce utility costs and promote sustainability.”

“As tenants increasingly expect seamless connectivity and smart living solutions, properties that offer these amenities gain a competitive edge in the market,” he added.

Hanich explained that many new properties under construction have been coming to market over the past few years. “When they do, we expect a lot of existing properties to compete more strongly for tenants and residents,” he said. “So we hope that a lot of the existing features, the old features, will look at what benefits they can offer people and see what they can do when some of these connected solutions come along.”

However, according to the Parks report, lack of appropriate pre-existing networking infrastructure is a top barrier holding back multiple residential units (MDUs) from widespread IoT deployment.

Many existing properties were built without proper wiring or infrastructure to run new wiring, it continued. Additionally, many properties do not own the wiring infrastructure, making new connections neither expensive nor feasible. As a result, older properties are much less likely to offer smart amenities and have a worse experience with their existing infrastructure.

Park’s researchers found that 82% of properties 10 years or older that offer Wi-Fi had difficulty maintaining device connections to the network, compared to only 13% of newer properties.

Internet must be available immediately

Poor connections have been a chronic problem in wireless environments due to the increasing congestion and proliferation of wireless devices, Barney noted, but the introduction of Wi-Fi 7 promises to address these issues with more stable connections.

Additionally, multi-Gig Ethernet is available. “With multi-Gig Ethernet, more and more bands are becoming available and features are being deployed to help people connect,” Barney said.

Infrastructure issues aren’t the only challenges facing technology in the multifamily residential market. “There’s a lack of understanding of what these technologies can and can’t do, and a lack of expertise on how to set them up so they work as intended and provide a better return on investment,” said Rob Enderle, president and chief analyst. Enderle GroupAn advisory services firm in Bend, Ore. told TechNewsWorld.

Parks’ report states that connectivity services must connect residents to the experiences they need: entertainment, work, security and smart living.

Furthermore, it should be move-in ready, it added. According to Parks’ research, most MDU residents say it’s “very important” to be ready to turn on the Internet as soon as they move in next door. It ranked third among 16 benefits rated by consumers in the study, after good insulation, soundproofing and low-cost internet.

Parks also noted that more and more MDU residents are using smart home technology acquired by themselves and their properties. It explained that 22% of apartment renters and 58% of condo owners use smart home devices today, and these residents need modern networking services to support them.

In fact, it added, many properties are offering smart home devices as a differentiator to attract and retain residents — a differentiator that seems popular, as 79% of MDU residents are satisfied with property-provided smart home devices and services.

Reduce insurance costs

Connected technology could affect another concern in the multifamily residential market: insurance. Citing data from TBM Multifamily, an insurance and risk management firm, Parks noted that premiums for multifamily property owners have risen 10% to 40%.

The report explains that properties are seeing the benefits of deploying risk-mitigation technology solutions to reduce losses due to catastrophic events such as leaks and floods, which damage multiple units. These solutions are typically not residential-oriented but have strong ROI when implemented on a large scale by reducing insurance rate increases and preventing small leaks from becoming major incidents.

There is a growing trend towards insurance discounts for properties with connected solutions such as water leak detectors However, the parks acknowledge that it’s still in the early stages, and properties may need to negotiate rates or change providers to see the full benefits.

“Without question, connectivity and IoT in the multifamily market provide significant benefits by increasing tenant satisfaction, streamlining property management and improving operational efficiency,” Vena said.

“These technologies contribute to sustainability efforts through better energy management and resource optimization. As smart living becomes more prevalent, connectivity and IoT adoption can help properties make their offerings competitive and future-proof.”