As smart apartment technology and connected living has become today’s standard, multifamily housing operators must be aware of cybersecurity risks that weren’t even on the radar just a few years ago. Smart devices now access everything from entry systems to laundry rooms, and digital security has become just as critical as physical access controls. Multifamily owners and operators now oversee an ecosystem where everyday conveniences rely on connected technology, and every connection introduces potential exposure.
Yet many properties aren’t fully equipped for this shift. Without clear policies, dedicated expertise, or the right safeguards, they can be left exposed to cyber threats that carry real financial and reputational consequences. To provide residents with the convenience of smart living while minimizing risk, MDU operators need a proactive and comprehensive approach to security and mitigation.
More Technology, More Exposure
Smart apartment technology, particularly IoT (Internet of Things) devices, is becoming standard in MDU living, with renters expecting a certain level of tech-forward amenities. And there are advantages for owners as well: smart tech has proven to deliver significant operational savings, reducing energy and water costs by nearly 20%, lowering labor costs and delivering other efficiencies.
But while these devices bring convenience and amenities, they also introduce vulnerabilities if not managed properly. In fact, attacks leveraging smart home devices have shot up nearly 125%, and a compromised security camera, HVAC system, or connected appliance is more than just an annoyance—it can serve as an entry point into more critical systems.
Weak Links in the Infrastructure Chain
The MDU environment is home to many shared systems, including Wi-Fi networks, access control and building management systems. Some of those may be entirely under the property owner’s control, but many are managed or accessible by third parties like contractors, vendors or service providers, which creates risk.
It could be as simple as a resident giving out door or gate codes to a cleaning service, or third-party contractors who require network or device access for troubleshooting. Most MDU property managers have no way of knowing who actually has that access or if their credentials are ever revoked, which means risk that lingers long after the physical access to those assets has ended. In addition, vendor systems like billing or property management software (PMS) may leverage cloud resources or rely on payment processors, creating an additional risk surface.
Redundancy That Protects Uptime
With so many devices, processes and people relying on connectivity for their smart apartment technology, a resilient network is essential. But resiliency means it should do more than just work under normal conditions.
What happens if a switch, router, or primary network node fails? Is there built-in failover like a mesh network or backup device that takes over? And if that backup is activated, is someone alerted? Without proper monitoring and fault detection, the backup can remain in operation until it fails and only then is the primary fault discovered.
A network or power failure can also compromise physical security and resident safety. Critical systems like access control, gates and emergency alert systems must have resilient infrastructure to ensure safe continuity of operation.
Know Your Assets, Know Your Risks
You can’t defend something that you don’t know exists. The proliferation of digital infrastructure means many MDU properties have a multitude of devices, platforms and connections being added weekly or even daily. Before you know it, the connected smart apartment technology landscape—and associated risk—is vast.
Get a handle on it by creating and maintaining an up-to-date inventory of all connected devices and infrastructure: who owns it, who maintains it, its firmware and software update status and whether the hardware is even still supported. Too often, organizations find that no one is managing things and they’re woefully out of date.
Take the same approach with vendor and contractor management. Record and maintain inventory on who has access to what and enforce vendor security protocols, including background checks, the use of strong credentials and revocation policies when the contract or employment ends. Make sure software vendors have security best practices in place, including notification policies and liability insurance in the event they suffer a breach.
Preparedness Is Your Best Defense
It’s a well-established cybersecurity mantra that it’s not a matter of if an organization will have a breach, but when, so having an incident response plan is essential. Every property should have a written set of instructions—an actual printed paper copy, not one kept on a device or server because it could be inaccessible or compromised—for what to do in a suspected incident.
The plan must include who is to be notified, what steps to take, who is responsible and how to communicate both internally and externally in the event of a breach. And don’t forget to clearly delineate lines of responsibility between property management, IT, corporate and vendors. Once again, too often, everyone thinks someone else is handling it, when in reality no one is.
Empowering People to Reduce Risk
Even the best systems fail if staff, vendors or residents aren’t aware of the risks. Provide education and set policies to make sure everyone knows the rules, their role, and what to watch out for both digitally and physically.
Conduct regular audits and network monitoring to spot unusual activity, ensure backup systems are fully functional, and all property-owned and -managed devices are up to date.
A Strategic Approach to Risk Reduction for Smart Apartment Technology
For many MDU operators, cybersecurity is uncharted territory, but the risks are increasingly unavoidable and cannot be ignored. Aside from the financial implications (including the cost of remediation and potential insurance premium increases), the regulatory/legal and reputational risk can be just as damaging.
On the other hand, residents are also increasingly aware of the risk, and offering tech-savvy living backed by a strong cybersecurity program can serve as a competitive differentiator. Data from Parks Associates shows that security features increase NPS scores for properties with cameras, controlled access and smart locks among some of the top desired security features. Smart apartment technology is the way of the future.
By pairing secure technology like gateways with embedded firewalls and secure access protocols with smart operational strategy, investing in cybersecurity will pay off in resilience, trust and peace of mind for your organization and residents. And at Nomadix, we’re here to help with all MDU connectivity needs. Don’t hesitate to reach out with any questions.
Dr. Chris Spencer is a seasoned security expert with over two decades of experience in the dynamic realm of technology. He’s played a pivotal role in designing and fortifying some of the world’s largest and most secure Wi-Fi networks and technologies, including Next Generation Hotspots (NGH) Passpoint, OpenRoaming and CAPPORT API.
Spencer serves as Director & Head of Product Security, overseeing the security and operations of ASSA ABLOY’s hospitality division. In his concurrent role as CISO of Nomadix and GlobalReach, Chris leads security operations across the brands, securing critical infrastructure and achieving internationally recognized certifications, including Cyber Essentials and ISO 27001. He is also a trusted member of the Cybersecurity Information Sharing Partnership and is involved in initiatives such as the National Technical Assistance Centre and Agile Retained Data System.
This article orginally appeared on Mulitfamily Insiders.