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MDU Research

Q3 2024

Multiclient

Smart Properties: The Value of IoT for MDUs

Multifamily housing is in the midst of transformation, as owners and operators turn to technology to increase operational efficiencies, enable new use cases, attract and retain residents, and increase their revenues. This study examines adoption of IoT and smart apartment technology in multifamily properties. It compares top value propositions for smart apartment and IoT platforms and devices and quantifies the return on investment through operational efficiencies, increased rental rates, and decreased resident turnover. It also examines market dynamics, including trends in new builds versus retrofits.

This research provides insight on technology adoption and needs among multifamily property owners and operators, with a specific focus on connectivity, IoT devices, and services. It examines current and upcoming deployments in different contexts, including new builds and retrofits, identifies owners and operators’ preferences and priorities, and quantifies market opportunities.

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Survey Methodology and Definitions

Key Terms and Definitions

Executive Summary

Plans on Deploying, Upgrading, or Replacing Technology Within the Next Year

Average Reported Impact of Smart Building Deployments on Key Operating Metrics

Estimated Timeline of Making Purchasing Decisions

Scale of Rollout When Deploying Smart Building Technology Solutions

Reasons for Offering Bulk Internet

Factors Holding Company Back from Deploying Smart Solutions “We’re waiting for…”

Important Factors Evaluating Technology Solution Vendors

Connection Method for Intercoms, Buzzers, or Callboxes on Largest Property

Property Technology Adoption

Adoption of Property Technologies at Any Property Owned/Managed

Percentage of Multifamily Properties With Installed Solutions

Number of Solution Providers Across Properties

Challenge Managing Vendors

Impact of Smart Building Vendor Fragmentation on MDUs

Smart Building and Technology Fragmentation Management

Systems Integrated into Smart Building Platform/Aggregator

Brand of Smart Building Platform Used

Brand of Real Estate or Property Management System Used

Resident Amenities

Types of Amenities Offered to Residents

Devices Included in Smart Apartment Amenity Packages

NPS of Resident Amenities Solutions

Owner/Operator Perspectives: Safety and Security Solutions - “Why did you rate your properties’ … that way?”

Owner/Operator Perspectives: Water and Electricity - “Why did you rate your properties’ … that way?”

Type of Properties Offering EV Charging Stations

Location of EV Charging Stations

Type of Digital Tools Offered for Residents

Internet and Connectivity

Type of Wi-Fi Network Available on Properties

Cellular Signal Boosters Adoption

Satisfaction with Internet Service and Wi-Fi

Managed Wi-Fi Service Provider Adoption

Drivers for Managed Wi-Fi Deployments

Bulk Internet Adoption

Percentage of Properties Offering Bulk Internet

Exclusive Marketing Agreement with Internet Service Providers

Awareness of FCC Notice of Allowing Residents to Opt-out of Bulk Billing Arrangement for Internet Service

“What impact, if any, do the FCC’s proposed changes to bulk internet billing have on your company’s plans to deploy managed Wi-Fi and/or smart building technologies?”

Internet Wire Ownership

Satisfaction with Bulk Internet

Reasons for Offering Bulk Internet

Reasons for Not Offering Bulk Internet

Payment Option for Bulk Internet

Bulk Internet Service Providers

Drivers and Barriers of Technology Deployment

Impact of Smart Building Solutions on Select Metrics

Reasons for Deploying Electronic Access Control Systems

Method of Measuring Access Control Effectiveness

Reasons for Deploying Video Surveillance

Method of Measuring Video Surveillance Effectiveness

Reasons for Deploying Smart Thermostats

Method of Measuring Smart Thermostat Effectiveness

Reasons for Deploying EV Charging Stations

Method of Measuring EV Charger Effectiveness

Reasons for Deploying Smart Water Meters/Water Leak Detectors

Method of Measuring Leak Detector Effectiveness

Reasons for Deploying Smart Irrigation Controls

Reasons for Deploying Package Management Solution

Reasons for Deploying Maintenance Management Solution

Factors Holding Company Back from Deploying Smart Solutions

Future Roadmap

Plans on Deploying Technology in the Next Five Years

Estimated Timeline of Making Purchasing Decisions

Scale of Rollout When Deploying Smart Building Technology Solutions

Strategy Taken When Deploying a Smart Building Solution

Expected Timeline of Making Changes to Solutions

Important Factors Evaluating Technology Solution Vendors

New Construction and Dealmaking: Resident Amenities Solutions

Market Sizing – Largest Property

Age of Largest Property

Type of Residential Buildings on Largest Property

Number of Units in Largest Property

Classification of Largest Property

Technologies Installed on Largest Property

Technologies Installed on Largest Property by Property Type

Wi-Fi Access on Largest Property

Internet Access Points Installed on Largest Property

Bulk Internet Offered on Largest Property

Speed Package Offered to Residents via Bulk Internet Plans

Monthly Fee Charged for Bulk Internet at Largest Property

Smart Building Networking Solutions

Type of Meters Used on Largest Property

Smart Meters Used on Largest Property

Package Delivery Process in Largest Property

Respondent Overview

Qualifying respondents were engaged in a real estate, property management, COA, or HOA management company.

Company Type

Type of Properties Owned or Managed

Length of Ownership

Type of Housing Included in Company Portfolio

Type of Buildings Owned or Managed in Portfolio

Company Annual Revenue

Number of Multi-Unit, Residential Properties Owned/Managed

Total Number of Residential Units Owned/Managed

Size of Properties Included in Respondent Portfolio

Company Operating Regions

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