Providing market intelligence for more than 35 years

In The News

Multifamily Residences Turn to Tech for Tenant Appeal, Efficiency: Report

Fast, secure, reliable connectivity is now an expectation at multifamily residences, according to a report released Monday by market research and consulting company Parks Associates and Xfinity Communities.

Many multifamily properties are looking at different ways to deploy and adopt connectivity technologies, noted Parks analyst Kristen Hanich, but they’re also carefully considering the financial results they can expect by rolling them out.

“They want to know what the return on investment [ROI] will be on operations,” she told TechNewsWorld, “and if they’re a short-term kind of investment company, how much will be added to a property’s value by rolling out some of these technologies.”

Hanich explained that many new properties under construction for the last few years are about to hit the market. “When they do, we expect that a lot of existing properties are going to have to compete more tightly for renters and residents,” she said. “So we expect that a lot of existing properties, older properties, are going to look at what amenities they can offer folks and see what they can do when it comes to some of these connected solutions.”

However, according to the Parks report, a lack of suitable pre-existing networking infrastructure is a top barrier holding multiple dwelling units (MDUs) back from widely deploying IoT.

Parks researchers found that 82% of properties 10 years old or older that offer Wi-Fi have difficulty maintaining device connections on the network compared with just 13% of newer properties.

The Parks report maintained that connectivity services must connect residents to experiences they care about: entertainment, work, safety, and smart living.

Furthermore, it must be ready at move-in, it added. According to Parks’ research, the majority of MDU residents say having internet ready to go immediately after moving in is “very important” in their next home. That ranks third among 16 amenities rated by consumers in the research, just after good insulation, soundproofing, and low-cost internet.

Parks also noted that more and more MDU residents are using smart home tech acquired themselves and from their properties. It explained that 22% of apartment renters and 58% of condo owners use smart home devices today, and these residents need modern networking services to support them.

Citing information from TBM Multifamily, an insurance and risk management firm, Parks noted premiums have soared 10% to 40% for multifamily property owners.

There is a growing trend towards insurance discounts for properties with connected solutions, such as water leak detectors. However, Parks acknowledged that this is still at an early stage, and properties may need to negotiate rates or change providers to see the full benefits.

From the article, "Multifamily Residences Turn to Tech for Tenant Appeal, Efficiency: Report" by John P. Mello Jr.

Previously In The News

Research: Homeowners Would Switch Insurance to Those That Offer Smart Device Discounts

Parks Associates’ research study, Insurance Opportunities in the Smart Home, finds that one-third of U.S. internet households with homeowner’s/renter’s insurance would switch providers to acquire smar...

Is the Future of Smart TVs Ad-Supported?

As Elizabeth Parks, President and CMO of Parks Associates, details on a LinkedIn post mulling over the recent buyout of Vizio by Walmart: “For TV manufacturers and smart TV platform owners alike, t...

New Strategies For Growth: Insights From The PowerHouse Alliance

According to Parks Associates, smart home device adoption is increasing, with nearly 30% of U.S. internet households now having three or more smart home devices. Additionally, as we are seeing smart h...

Smart Technology for a superior customer experience

In a recent Parks Associates study, residents consistently provided higher ratings for properties that provided smart home devices versus those that didn’t. Roughly 74% of participants* rated energy s...