How the Multifamily Sector is Responding to Tenant Expectations in the Digital Era
As multifamily housing becomes a long-term choice for people of all ages and incomes, innovative, stand-out amenities are increasingly a key differentiator and a key component to the success of individual assets. Amenities play an important role in both attracting and retaining tenants. Not only can they improve a resident’s quality of life, but they can also create a greater sense of connectivity between the community’s social infrastructure and the people who occupy it. As a result of the ongoing amenity war, multifamily amenity innovation is more critical than ever before to the overall success and competitive advantage of multifamily properties.
As multifamily housing becomes a long-term choice for people of all ages and incomes, innovative, stand-out amenities are increasingly a key differentiator and a key component to the success of individual assets. Amenities play an important role in both attracting and retaining tenants. Not only can they improve a resident’s quality of life, but they can also create a greater sense of connectivity between the community’s social infrastructure and the people who occupy it. As a result of the ongoing amenity war, multifamily amenity innovation is more critical than ever before to the overall success and competitive advantage of multifamily properties.
As the world becomes more heavily focused on technology and tenant expectations shift, integrating digital technologies throughout the multifamily property is becoming a requirement to attract modern-day tenants.
Read ahead to learn more about how the multifamily sector is adapting in today’s digital era.
Creating Virtual Amenities
With many Americans spending more time in their apartments and condos due to social distancing, multifamily property managers have gotten creative and started to offer new amenities, such as virtual wine tastings, online cooking classes, streamed workouts, virtual meditation, and online classroom workshops for children. These new amenities create opportunities for residents to socialize and communicate with their neighbors from the comfort of their own homes. Additionally, virtual amenities allow multifamily owners to provide a wider variety of community programs that can also be tailored to residents’ personal interests.
Providing Smart Apartment Technologies
The technological disruption of commercial real estate has had a profound impact on the multifamily sector. One outcome in particular is the development of smart apartments, which have seen an increase in demand by tenants of all ages. Smart apartments are the combination of smart amenities, community management, and building automation systems (such as HVAC and Access Control) into one fully connected system. This connectivity provides property managers with important data from the entire building, helping them run the community more efficiently and effectively. This seamless connectivity among devices, building systems, residents, and management, represent a fundamental shift in how today’s present and future tenants desire to live.
The tech-enabled amenities provided by smart apartments offer an innovative edge that modern tenants desire. Smart apartment technologies such as smart locks and keyless entry, smart security systems, and smart thermostats, lighting, and appliances are amongst those that are the most attractive to tenants. These types of amenities have become so in demand that, according to Schlage and Wakefield Research, 86% of Millennials are willing to pay 1/5 more for a smart apartment than they are for traditional units. Additionally, 65% of Baby Boomers are reportedly willing to pay more for smart apartments with updated tech features.
Enabling Strong WiFi Connectivity
In today’s “share it or it didn’t happen” era, 24/7 internet connection is extremely important to most residents. As a result, WiFi and cellular strength have become deciding factors for many renters when searching for a new apartment. In turn, more and more properties are prioritizing digital solutions and ensuring that residents can easily integrate their digital lifestyles into their living experiences.
Because modern-day residents would rather eliminate the hassle of bundled packages, contractual commitments, and appointment-based installations, a strong built-in WiFi presence is becoming a requirement throughout the multifamily sector. In fact, 93% of renters rank high-speed internet as a top priority and 78% will not rent at a property that does not have a reliable cellular reception throughout the entire campus – at the gym, in the parking deck, within the unit itself, and so on.
The present and future of modern apartment living is heavily influenced by the advancement of digital technologies. As the digital era reshapes the way properties are managed and the expectations and experiences of tenants, the multifamily era will continue to be impacted by continuous change. The adoption of new technology can improve many areas of tenants’ daily lives while creating comfortable and sustainable living experiences. Ultimately in this digital era connectivity and technology will be key to attracting and retaining tenants.
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