How Proptech Enables Better Multifamily Living Experiences
Property technology—or Proptech—is transforming how multifamily buildings are managed and experienced. Popular solutions include managed Wi-Fi, rent payments, leasing software, mobile access control and smart door locks, and smart thermostats, all which can attract and retain renters. Not only are people used to technology, but recently they have started to expect tech-enabled experiences where they live, work, and shop. Just think about your everyday interactions—we manage our finances from an app, pay for groceries with our smartphone Wallet, and in some cases, use our phone to access home or work.
While the benefits of Proptech are becoming more widely understood, it can be daunting to implement new solutions. Building owners and managers can get stuck in a “paralysis by analysis” mode, either thinking that the access control is much too expensive, or that there are too many options out there. It’s important to treat it as a stair-stepping process with a strategic approach and short and long-term visions in mind.
Determine Your Budget and Ideal Timing
A clear understanding of your financial capacity—across internal budgets, loans, and investor funding—is a crucial place to start on your Proptech journey. Many solutions are scalable, so you can begin with a smaller investment and grow it over time, while still realizing benefits.
Understanding where your property is in the maturity spectrum can also be helpful. The chart below helps show some of the different levels, from simple key upgrades to fully equipped new construction buildings.
The next step is to create a financial plan inclusive of the anticipated costs of hardware, software, installation, and ongoing maintenance. Be as detailed as possible and include a buffer to cover any unexpected costs or delays throughout the project. When evaluating solutions keep the lifetime cost in mind, while some software options will entice buildings with free trial offers, annual fees should be taken into consideration.
As with all projects, a timeline is essential to keep the implementation on track and to assess progress against key milestones. It should include deadlines for key progress points across planning, procurement, installation, testing, training, and ongoing adoption.
This is where new construction projects can differ from renovations. New construction can usually tie in everything prior to opening. Upgrades to existing buildings might have more flexibility. For example, buildings may opt to add perimeter access first and then upgrade the units per floor as budget allows. Working within a time-based budget or monthly allocation may also steer how the system is built.
Assess Existing Smart Devices and Software in the Building
Whether you are starting from zero, or if the building has some Proptech in place, it’s important to understand the technologies on hand and how they are being used. This will identify solution gaps and highlight any tools that are not being fully utilized.
Check if different systems can communicate and work together seamlessly. For example, a common complaint from residents is having to carry multiple credentials or download several apps. Determine if amenities can be streamlined into a single FOB, app, or credential to provide a better user experience.
Understand Your Current Needs and Processes
Once you have a handle on Proptech, it’s time to evaluate the building more holistically—including current infrastructure, operational processes, and resident and management needs.
Wiring, internet connectivity, and network capabilities are the foundation for seamless integration. Identify any limitations and assess if upgrades are necessary to support the new technologies. Assess the building itself for things like Wi-Fi access and signal reach, historic building considerations and limitations, and existing equipment like elevators and perimeter security.
Last, but not least, get an idea of what your residents want. This can be done through conversations or a resident survey. People living in student housing, senior living, workforce housing, or downtown condominiums all have unique preferences. Understanding residents’ needs is key to selecting an appropriate tech-stack that will provide a strong ROI.
Define Project Goals
Set goals that are well-defined, realistic, and have clear metrics for tracking progress. These should contribute to your long-term vision for Proptech with emerging trends like AI and centralization in consideration. Examples of long-term visions include implementing AI-supported property management or leveraging an integrated smart building ecosystem.
Implementation Strategies for Proptech
The most successful implementations leverage a collaborative approach with all key stakeholders. Engaging property managers, maintenance staff, and residents from the outset will help facilitate a smooth transition and foster acceptance of new technologies. On new construction projects, including the Proptech information during the design phase can help the architect integrate the appropriate design and avoid change orders.
Property managers must have a clear understanding of the benefits and functions of the new systems. Equip them with comprehensive training sessions and accessible resources to help them realize the value from the technologies.
Maintenance staff are often the first to encounter technical or operational issues. It’s important to ensure they receive adequate training on the new systems to reduce downtime and ensure quick resolutions. Their familiarity with the technology is instrumental in a seamless transition.
As the primary users of many Proptech solutions, resident engagement is crucial. Keep them informed throughout the implementation journey so they are not caught off-guard by changes. Providing clear communication, instructional materials, and ongoing support will help residents adapt, and increase the number of users and engagement. The greatest system in the world can be pointless if the residents and staff don’t know how to use it.
Pilot programs allow for real world testing of the technologies, helping to identify any potential issues and collect user feedback prior to a full-scale rollout. Be intentional about the areas or units within the building you use as testing grounds so that findings are relevant to the broader property context. This feedback will highlight any challenges and inform necessary adjustments prior to a full roll out.
Equipped with the right strategies, teams can bring Proptech to life—enhancing resident experience, improving operational efficiency, and staying competitive in the multifamily market.
