by Doug Pike

Rental housing operators and renters alike are seeking property technologies that increase efficiency and convenience at their communities. While a myriad of solutions exist to address industry pain points, integration and incorporation into an IoT (Internet of Things) network takes tech adoption and ROI to the next level.

During the CONNECTIONS Summit at CES 2025, hosted by Parks Associates earlier this month in Las Vegas, industry leaders discussed the value of IoT and its applications in multifamily. SmartRent Vice President of Product Management, Braeden Scheer, was among the esteemed panelists leading the session Navigating the Multifamily IoT Markets.

“The level of detail this industry pays to the most minute operational things on site is honestly impressive,” Scheer said. “These little metrics are being exposed not just at a property level but at a regional level. We have customers that look at their entire field structure and track the time it takes to just rekey a lock on move out. They’re tracking that across potentially 120,000 apartment homes. Why do they track that? It goes back to this position they’re in, trying to compete in a local market where maybe there’s brand new supply. Rents are stagnant, so the way they’re looking at the underwriting and the performance of the smart technology boils down to NOI. It’s going to come back to how much time and efficiency are we creating through these programs.”

Today’s renter demographics are driving the demand not just for in-home technology but IoT systems that function to simplify and automate many aspects of the resident experience.

“On average, there are 22 connected devices in the customer’s home. If you think about who’s really drawn to multifamily, it’s going to be a consumer who skews a bit younger and those younger consumers are going to be looking for the latest and greatest in technology,” said Hagan Kappler, co-founder and CEO at Daisy. “But they’re typically going to be a do-it-for-me type of consumer. They’re not really used to installing technology themselves. They kind of came out of the womb with the technology working for them, so there’s human-centric technology that’s at play here.” 

As renters become more discriminant of technology offerings, so must operators.

“The scrutiny on technologies to gain adoption in multifamily is going to continue to increase,” Scheer said. “The barrier to entry that you have for the first one to two to three properties is going to be higher because they’re [operators] trying to sort of put you in different environments. Maybe they will test you at a mid-rise, looking at different problem statements there. They’ll expose you to that high-rise property, or in different parts of the country. The reason why they want to do that is to see the versatility of your solution, how you work from an integration standpoint with your partners and how well you can meet their needs from a market perspective. Once they can feel confident that this is a scalable solution, then the shrink happens. Now they’re making an underwriting decision at the corporate level to say, ‘Let’s bring this at a broader adoption point.’” 

Panelists emphasized that the ability of suppliers to demonstrate the value of their proptech, as well as its compatibility with existing solutions, is essential to gain implementation and compete in an increasingly saturated tech marketplace. Suppliers must also offer comprehensive training programs, so operators can convey the value of their deployed solutions to renters to both attract and retain residents.

“We need to be able to justify rents in these multifamily units, given that there are so many out there right now,” said Eric Harnischfeger, Senior Product Manager, Multifamily Electronics, at Kwikset/ASSA ABLOY. “So, renovations are definitely increasing. The focus is on ease of use and understanding how it meets the market and meets our customers on the property management side. On the resident side, we need to kind of show how it fits their life.”

Scheer said operators will be assessing their technology partners, the value and data they provide, and whether they have the right investment thesis at each property as well as across their entire portfolio. Customization and ease of use are crucial factors in the selection process.

“You absolutely have to meet the customer where they’re at. It’s community by community, and when you think about it in those terms what we ultimately want to create is optionality,” Scheer said. “If you have that versatility, then it comes down to the experience for the end user. At the end of the day, all of this technology is just an enabler to the software experiences you create for the resident, for the site team.”

As more management companies adopt smart solutions and IoT networks, Scheer said suppliers have a real opportunity to impact operations on a larger scale.

“As we turn the corner in 2025, smart technology is no longer a novelty or an amenity. It is becoming core infrastructure at communities,” Scheer said. “What I’m really looking forward to seeing is the underlying value that smart technology can deliver. We need to understand what is happening around energy, behavior and usage across multifamily communities, and in individual units and how we can make sure to influence that in a positive manner.”

The session, moderated by Kristen Hanich, Director of Research at Parks Associates, also featured John Butrim, Vice President of Multifamily at ADT Multifamily, and Greg Mora, Executive Director of Business Development at Johnson Controls.

To watch the full panel discussion,visit: Navigating the Multifamily IoT Markets