In an era where multifamily operating expenses have surged by nearly 40% since 2019, owners are increasingly turning to technology to protect their margins, said the new white paper, “Modernizing Multifamily: Retrofitting Smart Technology for Efficiency and Competitiveness,” from Parks Associates, in partnership with RealPage.
The white paper is based on primary interviews of 10 multifamily owners and operators. Parks Associates, in partnership with RealPage, conducted these virtual interviews to explore the strategic drivers behind the smart technology retrofit wave and the highest-impact opportunities across connectivity, risk reduction and resident experience.
Owners are facing intense pressure to find sustainable ways to protect their margins. Technologies such as water leak detectors, modernized access control systems and smart utility solutions are “low-hanging fruit” that offer the greatest returns. Leading owners or operators who have already implemented these solutions report either an immediate ROI or one within a five-year payback period.
By targeting solutions like water leak detectors, smart access control and smart thermostats, operators can mitigate these rising costs while simultaneously boosting asset value.
“Utilizing smart technology in multifamily properties is a win-win for the residents and owners,” said Dennis Kyle, senior vice president, smart building at RealPage. “The research done in conjunction with Parks Associates shows that a strategic approach to retrofitting properties ensures they are carrying the properties into the future while making residents’ lives easier.”
According to the survey, water leak detectors can cut 25% of water-related maintenance tickets and save $20,000 to $30,000 per prevented incident. Nearly half (48%) of apartment residents feel that the ability to unlock doors or gates by tapping a phone or watch is “important” when looking for a new home. Resident amenity fees for packages may range from $45 to $60 per month or be included in base rent, depending on local market.
“Smart technology retrofitting will increasingly determine asset performance as the market shifts, with technology resetting cost and profitability expectations,” said Elizabeth Parks, president and CMO, Parks Associates. “Increasingly, properties are turning to smart technologies to keep up with competitors. As a result, retrofits are shifting from optional upgrades to strategic requirements.”
