Proptech for Sustainable Multifamily Properties

Leveraging Proptech for Better Sustainable Multifamily Properties

How to use Proptech to reduce your multifamily property’s environmental impact, save energy, and lower your operating costs, while also attracting eco-conscious renters.

What is Proptech?

Proptech, or property technology, is the application of technology, products and services in multifamily buildings that provides seamless and convenient experiences for residents, property managers and owners. Proptech reimagines how people live and work in buildings and leverages technology to improve those processes. It includes a wide array of tools and platforms aimed at streamlining property management, improving tenant experiences, and optimizing building operations.

Proptech leverages technologies such as IoT (Internet of Things), Artificial Intelligence, big data analytics, and cloud computing to revolutionize how multifamily properties are managed and operated. It can be integrated seamlessly into security measures to enhance resident living, including smart locks and credentials. In addition to the resident experience, the integration of Proptech has transformed traditional property management practices, leading to increased efficiency, cost savings, and improved environmental sustainability measures.

To learn more about the role of Proptech in multifamily properties, check out The Beginner’s Guide to Multifamily Proptech.

Market Demand for Sustainable Living

The increasing prioritization of sustainable living by renters has elevated the demand for multifamily properties with green building certifications, driving the need for environmentally conscious solutions and energy-efficient practices. According to the 2023 Renter Preference Survey by the National Multifamily Housing Council, 84% of millennials and 74% of baby boomers consider sustainability a crucial factor when choosing a rental property.

Renters are seeking personalized home surroundings that align with community preferences, environmental concerns, and cost-efficiency, creating opportunities for Proptech-enabled sustainability initiatives. By integrating environmentally friendly technology and practices in ways eco-conscious renters can interact with or directly benefit from, they may be drawn to properties that highlight those benefits.

Proptech Enables Energy Efficiency

With advancements in Proptech and its thoughtful applications, the multifamily industry is moving towards a greener and more sustainable future.

Green Building Certifications: Proptech can help attain and maintain green building certifications by enabling energy monitoring, resource optimization, and sustainable building practices, enhancing the overall environmental impact of multifamily properties.

IoT-Driven Energy Management: IoT-enabled devices and sensors allow for real-time energy monitoring, predictive analytics, and automated energy management, leading to reduced energy consumption, lower operational costs, and minimized environmental footprint. Smart building automation, including HVAC optimization, lighting controls, and occupancy sensors, also contribute to energy efficiency, occupant comfort, and operational sustainability.

Renewable Energy Integration: Proptech solutions support the integration of renewable energy sources such as solar panels, wind turbines, and energy storage systems, contributing to sustainable energy generation and reduced reliance on non-renewable resources.

Predictive Maintenance: Predictive maintenance capabilities offered by Proptech platforms help identify potential equipment failures, optimize maintenance schedules, and reduce waste, ensuring the efficient operation of building systems and minimizing environmental impact.

Tenant Engagement: Proptech fosters tenant engagement through smart building technologies, providing residents with energy usage insights, sustainability tips, and interactive platforms that promote environmental awareness and encourage eco-conscious behaviors.

Benefits and Implementation

Economic and Environmental Benefits

Proptech-driven energy efficiency measures lead to reduced expenses, operational costs, and maintenance overhead, contributing to long-term economic benefits for multifamily property owners and investor

One way property owners can reduce these expenses is by implementing wireless locks, like the Schlage® XE360™ Series Wireless Mortise Lock or Schlage® NDE Mobile Enabled Wireless Cylindrical Lock, which reduce installation time and costs, and enable real-time communication with access control systems. Plus, mobile-enabled access control systems use what residents already have—their phone! Remove the hassle of creating new physical credentials, like keys, fobs or cards—many of which use materials in ways that cannot be easily reused. And since electronic locks can use mobile credentials rather than traditional keys, there’s no need to replace a lock every time someone misplaces their key.

Proptech adoption also enhances the marketability and desirability of multifamily properties, attracting environmentally conscious tenants, increasing property value, and differentiating properties in a competitive market landscape. By staying up to date on market trends and technology, properties can attract residents who are willing to pay more for these amenities.

Implementation Strategies

First, property owners and managers should conduct comprehensive assessments of their properties to identify energy inefficiencies, sustainability opportunities, and Proptech integration requirements, followed by strategic planning for implementation. Not sure where to start? Allegion’s multifamily experts are ready to assist in assessing where your property is and opportunities for improvement.

Collaborating with Proptech providers, property stakeholders can seamlessly integrate energy management systems, IoT devices, and sustainability platforms, ensuring compatibility, scalability, and optimal performance. Allegion’s Beginner’s Guide to Multifamily Proptech is a great place to start to learn more about Proptech enhancements you can benefit from. If you’re ready to take a step further or partner with Allegion, contact a multifamily expert and browse our Proptech alliances.

Finally, effective implementation involves educating tenants about the benefits of Proptech-enabled sustainability initiatives, promoting resident engagement, and fostering a culture of environmental responsibility within multifamily communities. While it’s important to get your current and future residents excited about eco-friendly initiatives, be sure they understand how they are affected by changes throughout the property and how they can do their part to create an eco-friendlier environment.

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