At the end of the day, businesses exist to generate revenue. Yet, one of the most challenging tasks for any organization is figuring out how to raise rates for their services without creating too much disruption or customer attrition. It's a delicate balance, but the path becomes easier to walk down when both the business and the customer can genuinely benefit—the elusive win-win scenario.
This is precisely what cutting-edge proptech is offering today for multifamily properties owners and managers. The usual approach applied for rent rate increases often leads to a win-lose dynamic between property managers and tenants, leaving tenants disgruntled and dissatisfied with the community. But today’s new, innovative proptech solutions enable us to reshape this connection with residents and turn it into a true win-win for both tenants and property managers.
Here are just a few proptech amenities a property might consider adding that could both increase NOI and take resident satisfaction through the roof:
In the past, many buildings relied solely on cable companies to provide individual internet connections to each apartment. We've all experienced this frustrating scenario: you move into a stunning new apartment, brimming with excitement for your fresh start, only to be met with a harsh reality. You make that dreaded call to the cable company, sign up for an expensive internet plan, they schedule a technician visit during your work hours when you're unavailable, and you find yourself trapped in a digital limbo, waiting for days, or sometimes even weeks, just to get connected. This 'internet black hole' is an exasperating ordeal that no new tenant should have to endure when moving into their next apartment.
But now, with modern managed WiFi solutions, residents experience a seamless transition into their new homes – instant connectivity awaits them! What's even more remarkable is that this internet connection doesn't stop at their unit's doorstep; it often extends throughout the entire property, providing an exceptional resident experience.
What's the cherry on top? This is a win-win solution for both residents and property managers. Traditionally, residents might have had to pay a hefty $100 per month directly to the cable company for their internet service. However, with managed WiFi, the property takes charge and negotiates a lower bulk rate with the Internet Service Provider (ISP), effectively undercutting the cable company. As a result, residents pay less for superior internet services, while the property secures an additional revenue stream, creating a mutually beneficial relationship that leaves everyone happy.
Electric Car Charging
Electric car charging stations have become a transformative addition to multifamily properties, with the power to attract high-end residents and set properties apart in a competitive market. For residents who own electric vehicles, the convenience of on-site charging is critical. It simplifies their daily routines, eliminating the need to seek off-site charging stations, reducing wait times, and ensuring their cars are always ready to hit the road. However, this added convenience isn't free.
The beauty of the win-win relationship lies in how property managers can monetize electric car charging stations, effectively turning them into profit centers. Residents are more than willing to pay for the privilege of charging their vehicles conveniently on-site. It's a win-win dynamic where residents get the convenience they desire, and property managers tap into a new revenue stream, all while enhancing the property's appeal in a competitive real estate landscape.
Unit Smart Lock
Once upon a time, granite countertops were the amenity on every renter's wish list. But today's renters are a more discerning bunch. While they may still expect stone countertops, they also crave something more - digital amenities. They want the convenience of opening doors with a simple tap on their smartphones, the ability to check who's been in their unit via an app, the option to grant guest access to friends and family, and even the luxury of remotely unlocking doors for the pizza delivery person. It's clear: residents are willing to pay a premium for these tech amenities made possible by smart locks.
The magic truly happens when we combine these tech-driven experiences with high-end amenities. Residents not only desire these features but also want to use them at their convenience. This means they're often more than happy to pay for private time on the rooftop deck, host exclusive parties in the lounge, or reserve the golf simulator for a night out on the 'links.'
But it's not just about the residents. Smart locks make life easier for property managers too. Gone are the days of dealing with the headaches of risky mechanical keys, manual logging of amenity usage, coordinating resident events, or the need to physically unlock doors.
The win-win dynamic in property management, particularly with the integration of proptech, extends beyond just financial benefits for the operator and new conveniences for the tenant. For most residents, this dynamic translates into a heightened sense of community, empowerment, and overall satisfaction with their living environment.
As stated, offering new proptech services and amenities can create healthy new revenue channels while also offering an array of potential community benefits. As you consider which offerings might be right for your communities, also consider what you want that resident benefit to be, that might include:
- Enhanced Community Engagement
With the integration of proptech solutions, residents often find themselves more connected to their community. For instance, some proptech platforms offer community forums or bulletin boards where residents can communicate, organize events, or even offer services. This fosters a sense of belonging and encourages community interaction.
- Empowerment through Choice
By offering various tech amenities, residents are given the power of choice. They can decide which amenities they want to use, how they want to use them, and when. This sense of autonomy enhances their living experience, making them feel more in control of their environment.
- Safety and Security
Proptech solutions often come with enhanced security features. Whether it's smart locks that allow them seamless access throughout the building or surveillance systems that can be monitored via smartphones, residents feel safer knowing that their homes are equipped with the latest security technology.
- Personalized Living Experience
Many proptech tools are designed to learn and adapt to the preferences of the user. For instance, smart thermostats can adjust to a resident's preferred temperature settings over time, or smart lighting systems can adapt to their daily routines. This personalization ensures that the resident's home truly feels like their own, tailored to their unique preferences.
- Sustainability and Eco-Friendliness
As the world becomes more environmentally conscious, residents appreciate properties that integrate green technologies. Whether it's energy-efficient appliances, solar panels, or water-saving fixtures, these features not only reduce the resident's carbon footprint but can also lead to savings on utility bills.
In essence, the win-win dynamic, when viewed from the resident's perspective, is not just about immediate conveniences, it’s about creating a holistic living experience where they feel valued, secure, and truly at home.