There are many benefits to using proptech. But did you know that you can also use it to combat rising operational costs? Thanks to challenging economic conditions, we’re witnessing increases in everything from energy tariffs and labor to raw materials. Although inflation seems to be slowing, prices are expected to remain high and there’s the possibility that a recession is around the corner. Unfortunately for multifamily property managers, all of these increases will affect your bottom line, making it harder to maintain your revenue.
The good news is that you can prepare yourself for the upcoming hurdles with proptech. With the right tools in your back pocket, property managers can protect and even improve their bottom line. Here are three top tech tools to get you started…
3 tech tools for combating rising operational costs
For multifamily property managers who have buildings with hundreds if not thousands of units, even a small increase in energy prices will majorly affect your earning potential. So, with energy prices at an all time high, why not combat these costs with tech designed to improve energy efficiency?
Smart thermostats and HVAC management systems are two powerful tech tools that you can use to reduce your consumption. A smart thermostat allows property managers to set temperature limits, control remotely, and automate heating and cooling for optimum efficiency. When connected to an HVAC system – which uses sensors to alert you of faults before costly damage occurs – you’ll see savings of up to 23%!
How does it work? Imagine your multifamily building has a couple of vacant units, units where the residents will be moving out soon, and many other occupied units. Smart thermostats use geo-fencing technology to heat/cool a rental only when the resident is nearby/in the unit. This means no wasted energy on vacant units, automatic shut-off when residents move out, and optimized usage for residents coming and going throughout the day. These energy efficient home improvements could be the difference between a loss and a profit in the coming months.
Water sensors work similarly to those in an HVAC management system. The technology is constantly monitoring your water usage, creating data you can access to spot areas of improvement. This data also enables the tech to spot inefficiencies when they first occur. So, if your pipes have started leaking, you’ll know well in advance and be able to fix the issue before you pour your hard earned money down the drain.
How does it work? When the tech spots an anomaly in a unit’s water usage, it shuts off the supply using the IoT-connected hardware valves. This stops overconsumption caused by a leak or a tap that’s been left on. The system will then notify you, allowing you to organize for the maintenance team to assess the issue. In more serious cases, such as a burst pipe, this preventative action can save you hundreds of dollars in repair costs by stopping the damage in its tracks.
And don’t worry – the intelligent system recognizes habits and usage, so it won’t turn off the supply while your resident is having a long shower.
It’s even more vital to streamline your employees’ workload now that labor costs are high. Access control tech automates menial and repetitive tasks, so you can reassign your team to other areas of the business and make the most of their time.
How does this work? With smart locks installed in your properties on building entrances, common rooms, and unit doors, you and your team gain increased awareness and control of the property. So, for example, when maintenance teams, cleaning crews, or prospective tenants need access to the property, you’ll be able to grant this remotely by supplying temporary passcodes. This means onsite staff can dedicate their time to other tasks. What’s more, you’ll also receive updates every time these codes are used – so you’ll know when work orders or self-guided tours are completed – increasing the security of your property.
Proptech streamlines your operations for optimized efficiency. A well curated tech stack enables multifamily property managers to combat increased energy and labor costs, and even prevent costly damages from occurring in rental units to keep outgoings down.
After steep inflation and uncertainty, now might be the perfect time for property managers to take the leap and install proptech. Tools such as a smart thermostat, HVAC management and water sensors, and smart locks help reduce inefficiencies to minimize time spent and costs.
Want to find out more? Read our whitepaper on How Asset Owners Can Make Smart Investments In Property Automation Technology.