For 7 in 10 renters across the US, average rental costs are increasing at a faster pace than wages. McKinsey suggests these increases even outpacing inflation. Renting is still more affordable than owning a house, however, both are becoming increasingly unaffordable to the average person. When considering rising rent, high bills, and the increasing cost of living, it’s understandable how multifamily residents may be feeling uncertain.
On top of this, multifamily renewal rates have declined significantly, dropping to 52% by the end of last year. This indicates that demand is beginning to waver, creating greater competition in the market for property managers trying to achieve optimal occupancy levels. However, property managers can take advantage of installing and promoting the cost-saving potential of smart home technology to ease residents’ financial burden and boost renewal rates simultaneously.
Providing a five-star experience for your multifamily residents will also go a long way in encouraging renewals and attracting new residents. With this in mind, we’ve compiled a list of ways you can look after your multifamily residents for a seamless living experience and greater peace of mind.
Energy costs are a growing concern for multifamily residents in recent years. While the impact of inflation is out of your control, there are steps you can take to mitigate this issue and provide reassurance to your residents. One such step is the installation of automated smart tech, like Smart thermostats, that can help optimize heating and cooling. They not only follow schedules and regulate temperatures to optimize heating and cooling, but they can also have the capability to self-adjust to conserve energy when anomalies are detected, such as a window being left open.
Residents have full control over the temperature of their unit even when they’re not home, and geo-fencing takes this one step further by automatically turning heating/cooling on and off based on their proximity to the unit. These automated tech solutions offer residents unparalleled convenience, which is essential in today’s fast-paced world. Beyond energy savings, the use of such technology exemplifies the superior level of comfort and service that residents expect and pay for in multifamily living.
Adding this kind of technology to your multifamily tech stack can help residents save between 15-23% on energy bills — a powerful incentive when US electricity costs rose 14.3% last year.
Reducing interruptions, such as unexpected maintenance needs or HVAC breakdowns, is another way to ensure residents have a seamless living experience at your property. While you can’t avoid issues altogether, you can rely on tech solutions to minimize damage and inconvenience by alerting you as soon as problems arise.
An HVAC management system, for example, is connected via IoT to your property management software — keeping you up to date on the health of your system. Being aware of minor maintenance issues before they escalate enables you to not only stop problems in their tracks but arrange a convenient time with the resident to send workers into the rental, minimizing any disruption to their daily lives.
Additionally, having a streamlined communication system in place can also help reduce interruptions and improve resident satisfaction. By providing multiple channels for residents to report issues and receive updates on the status of repairs, you can ensure that all communication is clear and organized, and the residents are informed every step of the way.
For residents, a worst-case scenario is coming home to a water-damaged rental where belongings are ruined, a temporary move is required, and day-to-day routines are interrupted. When installing water management tech, you can provide residents with peace of mind that such issues will be contained quickly.
Water management technology combines hardware, such as stop water valves and sensors, with software that sends real-time alerts to detect hidden problems caused by leaks and reduce overall water consumption. The automated system is able to recognize when a pipe has burst or frozen and will immediately cut off the supply to reduce further property damage.
An added bonus is that residents will save up to 90 gallons of water a day when a small leak is caught early — helping to reduce bills.
To truly look after your residents, providing them with cost-saving opportunities and a quality living experience is just the beginning. Equally important is ensuring their safety, which can be achieved through smart locks. Keyless access solutions, powered by smart locks, ensure property managers have full control over who is in their buildings. Only residents, on-site employees, and visitors with passcodes will be able to access the property — ensuring maximum safety for residents.
Community access also makes multifamily living more convenient. The IoT-connected software gives residents visibility over the security of their rental, allowing them to lock or unlock the door even when away from the building. Residents are also able to provide access to visitors remotely with unique six-digit passcodes and keep track of passcode usage, further streamlining community access.
- Property managers can help residents combat the rising costs of living with energy-efficient technology.
- Automated software helps to boost the resident experience by minimizing maintenance interruptions.
- Access solutions provide convenience and next-level building security.
Property managers aiming to maximize occupancy and remain competitive must meet the demands of current and new residents. Offering solutions that address resident concerns — such as unaffordable bills, living experience, and safety — is the key to optimized renewal rates and attracting new tenants. By implementing modern technologies, multifamily property managers can ensure that their properties remain desirable, profitable, and safe for years to come.
Want to know more about how tech can elevate your multifamily business? Check out our blog on How to redesign your multifamily tech stack: the essentials.