In today’s increasingly competitive multifamily housing market property owners and builders have found significantly positive returns in upgrading their properties with an array of smart technologies and Internet of Things (IoT) devices, according to a new survey of 151 industry leaders conducted by Cox Communications and Multifamily Dive’s studio ID. Notably, nearly three out of four multifamily owners and operators who have adopted advanced technologies in their communities report increasing rents by 6% or more to help offset their investment.

“Today’s property owners need operational efficiencies more than ever,” says Vickie Rodgers, SVP of Cox Communities. “With the challenges of maintaining maintenance and leasing staff, automated solutions for controlling energy in vacant apartments and remotely managing access for crews or securing the property at night are essential. These technologies not only provide convenience but also critical support in managing properties effectively."

Overall, the survey revealed five key themes:

• High-tech multifamily properties can charge higher rents. Nearly every respondent (99%) reported increasing rent in exchange for offering smart technologies or IoT devices on their properties: 26% of owners raised rents by 1 to 5%, while 57% of owners raised rents by 6 to 10% and 16% of owners raised rents by 11 to 15%.
• Adopting smart technology helps multifamily properties recruit and retain residents and staff. Among the biggest headaches for multifamily owners and operators are finding and keeping residents, as well as recruiting and retaining on-site personnel. By implementing digital amenities and services, 97% of multifamily owners reported increases both in resident satisfaction and in attracting new residents, while 90% and 85% said the same for staff satisfaction and recruitment, respectively.
• Smart technology and IoT devices add value to multifamily properties. An overwhelming majority of Property Decision Makers stated that the technologies they implemented have been well worth the upfront investment. This positive reaction was true for all 16 smart technologies and IoT devices individually asked about by the survey. The five highest-rated items were smart thermostats (according to 95% of adoptees); smart locks/keyless entry (93%); smart appliances (92%); smart lighting or light bulbs (91%); and secure package delivery/smart lockers (90%).
• Adopting smart technologies and IoT devices comes with a few, but not many, bumps. Change is rarely a smooth process, but multifamily owners and operators seemed largely unfazed by the hiccups encountered in implementing new technology. Only half or fewer of the Property Decision Makers reported experiencing the potential issues queried by the survey frequently—i.e., more than expected due to normal use. The three most common issues encountered were equipment malfunction (reported by 50% of respondents); installation issues (46%); and troubleshooting requests from residents (38%).
• The question is not if to adopt a smart technology or IoT device for their communities, but when. In their bid to attract and retain residents who are willing to pay higher rents for access to high-tech amenities, multifamily owners and operators have left no stone unturned. The top five products and services that Property Decision Makers had adopted or were in the process of adopting in their communities are smart appliances (100% of respondents); managed Wi-Fi in common areas (99%); smart doorbell cameras (98%); water leak detectors (98%); and smart locks/keyless entry (94%). Interestingly, nearly every respondent—97% and upwards—had adopted, was in the process of adopting or was considering adopting each of the 16 technologies individually queried by the survey.

“Connectivity is essential to operational efficiency,” says Rodgers. “As the survey makes clear, forward-thinking multifamily owners are adopting smart technologies to streamline their operations. From automated energy management to remote access control, these digital upgrades are no longer optional but necessary. If you haven’t started this process yet, now is the time to begin."

For more details and findings on the complete list of smart technologies and IoT devices covered by the survey, download the report 5 findings from multifamily leaders who have leveled up their properties’ on-site technology on www.cox.com/communities.