In today’s competitive rental market, multifamily operators and property managers are constantly seeking ways to attract and retain residents and improve operational efficiency. Smart home technology—think smart locks, thermostats, lighting, and building access control systems—has emerged as a potential game-changer.
But is it worth the investment?
According to the Multifamily Forward podcast, smart home tech is well worth the investment. As one of Mark-Taylor Residential‘s mottos, “Innovate today for a better tomorrow” is one they live and work by. Take a minute to listen to the special podcast below, “Is Smart Tech Worth Your Money.”
Resident Demand and Market Appeal
Modern renters, especially Millennials and Gen Z, expect smart home features. According to industry studies, properties with smart technology often experience higher occupancy rates and increased resident satisfaction. Offering conveniences like keyless entry and remote-controlled climate settings can be a strong selling point.
Operational Efficiency and Cost Savings
Smart thermostats and lighting systems can significantly reduce energy costs. Automated maintenance alerts for leaks or HVAC issues can prevent costly repairs. Additionally, smart locks simplify access control for leasing agents, maintenance teams, and residents, reducing key management hassles.
Beyond cost savings, intelligent automation allows property teams to work more efficiently. For example, a typical 300-unit multifamily community that leverages smart automation and self-guided tours can average 1,300 hours back to teams and 26% lower energy usage with smart thermostats. This means fewer hours spent coordinating in-person showings, managing physical keys, and responding to unnecessary maintenance calls. Leasing agents can focus on higher-value tasks, such as resident engagement, while maintenance teams can proactively address issues flagged by smart sensors rather than chasing work orders.
Smart Apartments Solution Impact on 348 Unit Community in Phoenix, AZ
* Based in $1,800 monthly lease, ** Based on $40 / hr. wage, *** Based on avg. 9.2% vacancy rate. Avg. $150 utility bill for a vacant unit. **** Based on $150 avg. monthly utility bill
Increased Revenue Potential
Many property owners can charge premium rents for smart home-equipped units. A moderate increase in rent can quickly offset initial installation costs, providing a strong return on investment over time. Plus, properties with smart features often see higher renewal rates.
Implementation Challenges
Upfront costs and integration with existing systems can be barriers. For instance, IoT connectivity often comes with a hefty price tag of up to $350,000 for a managed Wi-Fi solution. However, if your smart home platform provider includes connectivity, such as iApartments, you can enjoy leading-edge, always-on LTE-M connectivity for smart locks, smart sensors, smart lighting, and more, all without managed Wi-Fi.
Additionally, Operators must consider compatibility, security concerns, and potential tech support needs. Choosing scalable, future-proof solutions is key to maximizing long-term benefits.
Final Verdict
While smart home tech requires an initial investment, the long-term advantages—enhanced resident experience, operational efficiencies, and potential revenue growth—often outweigh the costs. Multifamily operators who strategically implement smart home features can gain a competitive edge in the rental market.
Are you considering smart home technology for your communities?
Reach out with our contact form below.
Learn More About iApartments Solutions