SmartRent and D2 Demand Solutions have worked together to produce a guide detailing the benefits of investing in smart home technology and five ways you can capitalize on your investment with the highest possible rate of return. SmartRent’s smart home solutions can help provide return on investment from improved productivity, asset protection, ancillary revenue and reduced utility bills.
Increased Operational Efficiencies
Being able to remotely control smart devices will undoubtedly save owners and operators valuable time. Beyond the smart device benefits, an investment in self-guided tours is where property management will experience the most time added back into their day. Leasing agents and property staff can focus their time and energy on keeping their communities running, while prospects complete tours simultaneously.
Adoption of Self-Guided Tours
D2 reports a large increase in the multifamily industry’s adoption rate of self-guided tours in the last year (based on interviews with senior multifamily operators). While many will attribute this increase to the Covid-19 outbreak and the need for limited interaction, in a post-covid world, self-guided tours will absolutely still be a vital solution for multifamily operators. Being able to offer prospects extended touring hours and the privacy of unaccompanied showings is a unique selling factor that will continue to increase revenue and occupancy rates.
Another source of ROI, is the ancillary revenue earned from smart home solutions. According to a survey within the 2017 NMHC-Kingsley report, of the 250,000 apartment residents survey, the majority agreed they would pay $30 per month for smart devices. Whether you decide to install a parking management system, or just an increase in rent premiums that comes along with providing the convenience of smart apartments, ancillary revenue is not only possible, but a very viable option when it comes to earning back on your investment.
With leak detection devices in place, extensive damage is largely avoidable. Leak sensors notify staff and residents at the first sign of an incident, allowing them to act quickly and intervene against large damage. If a major leak is detected before it affects the floors below, $50,000 per year could be saved for every 250 units. This is a huge money saver for properties and also allows for less disruption or displacement for residents.
Utility Cost Savings
Vacant units often cost properties significant electricity costs when they are unoccupied for months at a time. However, smart home devices can lower these costs considerably because property managers can set units to “vacant mode,” which leads to an estimated 20-30% savings in utility bills. A large organization can easily spend an average of $3-4 million on vacant unit utilities across their properties. Investing in smart home technology could equate to a savings of $1 million or more.
An Era of App Fatigue
Apps have only grown in popularity; allowing users to have everything we need instantaneously. However, as smartphones get crowded with so many apps, it can be difficult to keep track of them all. To simplify this, SmartRent offers one centralized app for all of your smart home needs. Whether you are an owner, operator or resident, all of your smart home solutions live in one platform, even your property management systems are able to be integrated.
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Smart Building Technology in Multifamily Housing: A Guide to Smart Building Technology Investments and How To Underwrite Them