What’s the value proposition?
Yes, what is the value proposition of Smart Apartments? Investors, developers, and property managers are actively trying to understand costs, NOI, ROI, operational savings, and more before integrating smart devices and software into their properties. The lack of solid historical data is not holding back Smart Apartment growth which has seen explosive growth and interest from the builder and developer front, leading to an influx of service providers in this space.
Who is the best? What do I need? Do I need what they say I need? Can they do what they say? How will my decision impact the value of my property? Thus, confusion abounds.
There are incredibly important questions to ask yourself as a real estate developer or investor before jumping into this space. Will you be hardware focused or software focused…both? Proprietary technology or open source and collaborative? Connecting or fully integrating? Automation or app control (or both)? Property control capabilities? Amazon Echo or Google Home? Data….can I collect it? If so, what can I do with this and how will it impact my property and portfolio? How will renters respond? Do they want this? I can go on, but I won’t.
As the IoT (Internet of Things) space evolves and the real estate industry community continue diving into what the “Internet of Things” actually is, can do, and will do, the real estate industry and their properties will slowly evolve into data mining centers if they choose the correct path.
Yet, defining the Smart Apartment is difficult. Everyone has an opinion of how they define this, so until the industry executes across markets and natively into their properties, gauging the value of data, software stack, integration capabilities amongst devices and short/long term valuation will be a couple years off.
So, what are those who are implementing this transition of their properties into smart properties saying about what they’re finding? Well, you’ll find a varied response from dozens of properties who have begun the smart apartment rush.
Thankfully, you don’t have to wait long to hear from them directly.
SHAMELESS PLUG: Sce Pike, CEO of IOTAS, will be moderating a panel at NAA Maximize in Austin on October 3 with panelists from Hunt, JP Morgan and UDR to share exactly what they’re seeing and how they’re valuating.
They’ll be discussing what a smart home entails, outside of merely listing the hardware devices inside the home and your property. How exploring the data behind a truly smart portfolio will generate substantial newly found revenues outside of rent for properties. They’ll also be asking how they are gauging costs, ROI, NOI and utilizing specific marketing strategies with smart home investment within their properties.
No, I don’t usually self-promote our own moderated panel at an upcoming conference, but I also believe this is very important with how fast the industry is moving and evolving. If you’re curious, plan on attending, or are even working with another provider (i.e. not working with yours truly), this will be great information.
The one significant deficiency in this market is consistency of messaging. The importance of nailing down the definition of a smart apartment is imperative, not only for everyone in the market to understand what they’re buying and valuating, but how that messaging permeates to the most important people….your future tenants.
To your continued success,
Matt Greene – VP Sales & Marketing @ IOTAS
Here’s the Panel description and link to Maximize to Register
As the smart home mantra permeates across the real estate industry, questions abound regarding cost, integration, hardware, software, market differentiation and potential ROI. The vastly different definitions of what a smart home actually is today impacts these decisions. Learn from innovators in the smart home space and with communities implementing smart home technology as they define and discuss their findings and whether they believe this platform will give you the return necessary to justify the capital expenditure associated with implementing the technology.