Smart Tech, Wi-Fi Enabling Higher-Cost MDU Rentals, Parks Event Told
Always-on connections and smart home technology are delivering multiple and unexpected benefits for property managers, Vickie Rodgers, Cox Communities vice president, said at a virtual Parks Associates conference Wednesday. Parks data shows 70% of property managers have adopted smart home systems as a differentiator, primarily as a way to increase rent.
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Consumers want always-on internet connectivity in their apartments, and it helps property managers, too, said Rodgers. Some leasing agents are moving online for the renting process: showing properties, letting prospective renters schedule visits and providing digital access to apartments using a code so there’s no need for an on-site agent. Property managers were reticent about the all-digital process initially, thinking they wouldn’t be able to close as many leases without an agent on-site, but “the stats are actually better,” Rodgers said.
Renters, too, like having digital access vs. a physical key, Rodgers said, saying having guest access allows them to let in delivery people, dog walkers, housekeepers and friends without having to worry about a physical key that's easy to lose.
Energy management is appealing for renters, who can control temperature via connected thermostats, including from outside the apartment, Rodgers noted. Property managers who integrate thermostats into back-end systems can take over energy management for an apartment when a renter moves out so they can maintain temperatures for energy savings, she noted.
Leak detection from connected sensors is a “big line item” for property managers, said Rodgers, citing figures saying average cost of a water leak incident for properties is $11,000. Having leak detectors that notify renters and property managers of early trouble can save on damages and insurance costs, she said.
Cox research shows offering a technology amenity can produce a 10% rent uplift for one apartment over another, with all other factors being equal, said Rodgers. Renters want their internet access to follow them to pools and other common spaces where they congregate most, she said. Some survey respondents said they were willing to pay as much as 20% more in rent for apartments with automated features and common areas wired for high-speed internet.
Automation is helping property managers that don’t have enough maintenance staff during the current labor shortage, Rodgers said. Processes that can be managed from anywhere without someone on site lowers operating costs and improves efficiencies, she said. Automation also lowers the cost of flipping apartments between renters, she said.
Remote unlock is a highly requested feature from property managers and owners so they can grant access to an apartment for maintenance, prospective renters or locked-out renters without leaving the office, said Andy Schnack, Xfinity Communities at Comcast senior manager. Xfinity integrates its service with property management software, so when a unit is vacant, the property manager takes control. The manager can set scenes -- all lights go down and the thermostat goes up at 7 p.m., for example -- and then return control when the apartment gets rented. Digital door lock access also saves on re-keying costs, he said.