Owners Delivering Greater Value Through Tech-Enabled Resident Apps
The modern renter finds value rooted in experiences and seeks greater convenience, connectivity, and self-service when it comes to day-to-day living.
The landscape of what prospective tenants look for in their buildings is constantly shifting. While the demand for residential amenities has consistently grown in recent years, those amenities themselves evolve with the times.
As emerging technology continues to play a more central role in everyday life, smart building technology is rapidly becoming the source of some of today’s most valued amenities for residents looking for their next living space. For property owners and managers, staying up to date on tech-enabled amenities is essential to increase their property values and make their buildings more attractive to prospective residents.
Fortune Business Insights states that the global smart building market size was $57.3 billion as of 2020, with a Component report forecasting that this market may more than double to $127.09 billion by 2027. This tremendous growth has sparked great interest and demand for smart building technology in residents. In fact, a PR Newswire survey found that over 75% of residents would pay a premium for apartments that featured some of today’s most sought-after smart home amenities. Further, 57% claimed that these services would be worth a modest increase in monthly rent.
However, smart building technology is not simply a shortcut to raising rents; rather, these smart amenities are valuable tools that can be used to greatly enhance resident experience and provide a quality of life that is unmatched in the industry. This focus on resident experience cannot be understated; as Vista Equity Partners Operating Managing Director Dirk Wakeham explained in a recent article, “the modern renter finds value rooted in experiences and seeks greater convenience, connectivity, and self-service when it comes to day-to-day living.” This point is particularly poignant today as Millennials and Gen Z now make up two-thirds of residents.
With today’s rental population becoming increasingly sophisticated, we see the opportunity to highlight both human- and tech-powered solutions that have practical uses outside of simple automated functions. For example, Alfred’s Resident Experience solution includes personalized living experiences, such as the ability for residents to schedule a hospitality-trained home management professional to shop for and deliver groceries, maintain one’s living space, manage pet and car care, receive packages directly to their unit’s door, RSVP to curated events and several other tasks managed within the AlfredOS app.
As smart building technology becomes more prevalent, it will only become more crucial to identify methods of meeting demand while also being distinct. Adopting this strategy early will be a major deciding factor for owners who wish to provide greater value to today’s tenants and make long-term investments that will raise their own properties’ values as well.