Multi-dwelling unit (MDU) property managers today face a range of daunting scenarios as the combination of rocketing costs, rising insurance rates and staff shortages persist. Moreover, managers must attract and retain residents with high-end amenities while reducing operating costs. This becomes even more challenging with the need to maximize occupancy and boost net operating income (NOI). So, it’s not surprising to find many property managers turning to prop tech as the answer to these problems.
Prop tech solutions and the adoption of a property technology plan, can revolutionize many aspects of property management. Its benefits are twofold: managers profit from reduced costs and optimized operations while residents gain peace of mind and empowerment. However, although prop technologies are the way ahead, the process is not without its difficulties. Many properties have attempted IOT, rolling out disparate systems that lack central integration. Such a hodgepodge of services can ultimately negate any savings on cost or time as operators struggle with issues of management, compatibility and data access.
The best way ahead is to centralize prop technology on a property-wide network; this creates a unified approach,which delivers both operational efficiencies and cost savings while ensuring future scalability.
Here are the steps:
1. Prop tech integration. Just over one-third of property managers have connected devices installed in at least one property they manage, and more than 80% plan to install them in the next 12 months. Property-wide Wi-Fi supports the connection of a wide range of smart devices to the same network—from security cameras and digital door locks that eliminate the cost of keys to smart lighting and thermostats to lower energy consumption. A property-wide network allows property managers to access and control these devices where it makes sense (for example, turning off HVAC and lighting in unoccupied units) but also gives residents individual control over their own living environment.
2. User metrics. With a centralized network, MDU operators can see how, when and where various amenities are used by residents based on their network traffic and behavior. This allows property management to adjust availability and access to amenities and operations accordingly. For example, if network connectivity and keyless entry data shows that no one is using the on-site fitness facility between midnight and 4 a.m., property management can adjust the HVAC and lighting to save energy and lower costs, and possibly even consider closing it altogether during those hours.
3. Smart alerts. A centralized Wi-Fi network allows for the deployment of equipment to detect maintenance issues and malfunctions to protect against property damage. Leak detectors on water and sewage systems and smart appliances can deliver alerts to maintenance teams to address issues early before major damage occurs. It can also notify maintenance staff of needs related to HVAC systems, which can help avoid costly repairs or failures. This kind of “smart” risk mitigation through technology may even help to lower insurance premiums for added cost savings.
4. Employee efficiency. The ability to monitor devices and equipment across the property saves staff time by prioritizing tasks based on demand. Maintenance, for example, can deploy a centralized ticketing system to manage work and use mobile devices to assign tasks, plus have easy access to plumbing/electrical schematics and equipment maintenance documentation right at their fingertips. There are even connected toilet paper rolls and smart trash cans that tell staff when they need to be changed out, which can reduce staff time and cost. In today’s economy, every little bit helps. Staff safety is also an important priority, and smart badges can safeguard vulnerable lone workers.
5. Conserve energy. Nearly 75% of MDU managers and owners are concerned about residents wasting energy and Environmental Social and Governance (ESG) initiatives are a top priority for both operators and residents. Property-wide Wi-Fi allows for the use of smart lighting, thermostats, HVAC systems and even window blinds to help reduce energy consumption, save money and lower carbon footprint. In fact, nearly two-thirds of property managers and owners with smart devices in place expect to lower their opex by 10-20% annually. However, the success of those programs depends heavily on having the network in place to centralize connectivity, as well as to monitor and manage systems and smart devices.
6. Simpler systems. A property-wide network consolidates access and connectivity onto a cohesive, uniform infrastructure that’s able to be monitored and managed from a single console. Rather than having multiple networks to maintain, a single network contains multiple gateways and access points across the property that all connect together to ensure ubiquitous access and complete property coverage. This not only makes network monitoring and management easy, but it also eliminates the need to manage and pay for multiple vendor contracts and reduces internal tech support demand.
A centralized network results in lower costs and streamlines operations, benefiting MDU property managers. Yet, while residents expect and are more than happy to pay extra for such services, fewer than one-third of property owners have actually deployed them. They have many varied reasons why – they’re frightened it’s too costly, the technology is difficult and they just don’t have the staff. However, the truth is, they can’t afford not to. If they don’t invest, they will be left behind.
The adoption of prop tech is the way ahead for MDU owners as it enhances property values, satisfies resident demand and delivers bottom line savings. Centralization is an investment for the future.
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This article originally appeared in Units magazine.
Sandy Jack is director of strategic relations, multifamily, at Nomadix, an ASSA ABLOY company. With over a decade of experience in the multifamily industry, she is a passionate and trusted adviser, helping leverage connectivity and proptech solutions to help properties achieve their business goals.