Six Ways to Simplify Centralization

Six Ways to Simplify Centralization

By Sandy Jack, Nomadix

Now more than ever, multi-dwelling unit operators are clamoring for ways to deliver on renter expectations to maximize occupancy while also reducing operating costs and increasing net operating income (NOI). Faced with rising insurance rates and labor shortages, along with a tough economy that makes raising rent less feasible, multi-dwelling unit property managers need to attract residents with affordable, high-value amenities while keeping operating expenses low.

Many multi-dwelling unit operators are looking to “smart” and automation/artificial intelligence (AI) technologies (Internet of Things solutions) to achieve both goals—and rightfully so. Automated property management technologies deliver the convenience and modern living residents expect, while giving owners and managers the potential to lower costs, save time, and alleviate staff shortages.

The problem is that all those connected solutions can create a networking nightmare if the connectivity infrastructure isn’t designed or equipped to handle the demand. In many cases, multi-dwelling unit operators roll out new technology piecemeal, lacking an overall integration strategy, which leads to a fragmented mess. With every system operating on separate networks or protocols, it creates a management quagmire that can nullify the purported time and cost-saving benefits of smart tech.

Centralizing technology on a property-wide network solves that problem and delivers on the promised value and simplicity by allowing operators to realize the full cost savings and efficiency potential of smart solutions. With a single, property-wide network to support all the Internet of Things solutions needs of today and tomorrow, multi-dwelling unit owners and managers have clearer visibility, more control and future-proof scalability to integrate new solutions seamlessly.

Here’s how:

1.    Smart technology compatibility. Just over one-third of property managers have connected devices installed in at least one property they manage, and more than 80% plan to install them in the next 12 months. Property-wide Wi-Fi supports the connection of a wide range of smart devices to the same network—from security cameras and digital door locks that eliminate the cost of keys to smart lighting and thermostats to lower energy consumption. A property-wide network allows property managers to access and control these devices where it makes sense (for example, turning off heating and air conditioning and lighting in unoccupied units) but also gives residents individual control over their own living environment.

2.    Utilization insights. With a centralized network, multi-dwelling unit operators can see how, when and where various amenities are used by residents based on their network traffic and behavior. This allows property management to adjust availability and access to amenities and operations accordingly. For example, if network connectivity and keyless entry data shows that no one is using the on-site fitness facility between midnight and 4:00 a.m., property management can adjust the heating and air conditioning, and lighting to save energy and lower costs, and possibly even consider closing it altogether during those hours.

3.    Risk reduction. A centralized Wi-Fi network allows for the deployment of equipment to detect maintenance issues and malfunctions to protect against property damage. Leak detectors on water and sewage systems and smart appliances can deliver alerts to maintenance teams to address issues early before major damage occurs. It can also notify maintenance staff of needs related to heating and air conditioning systems, which can help avoid costly repairs or failures. This kind of “smart” risk mitigation through technology may even help to lower insurance premiums for added cost savings. 

4.    Improve staff efficiency. The ability to monitor devices and equipment across the property saves staff time by prioritizing tasks based on demand. Maintenance, for example, can deploy a centralized ticketing system to manage work and use mobile devices to assign tasks, plus have easy access to plumbing/electrical schematics and equipment maintenance documentation right at their fingertips. There are even connected toilet paper rolls and smart trash cans that tell staff when they need to be changed out, which can reduce staff time and cost. In today’s economy, every little bit helps. 

5.    Better energy management. Nearly 75% of multi-dwelling unit managers and owners are concerned about residents wasting energy and Environmental Social and Governance (ESG) initiatives are a top priority for both operators and residents. Property-wide Wi-Fi allows for the use of smart lighting, thermostats, heating and air conditioning systems and even window blinds to help reduce energy consumption, save money and lower carbon footprint. In fact, nearly two-thirds of property managers and owners with smart devices in place expect to lower their operating expenses by 10%-20% annually. However, the success of those programs depends heavily on having the network in place to centralize connectivity, as well as to monitor and manage systems and smart devices.

6.    Simplified network management. A property-wide network consolidates access and connectivity onto a cohesive, uniform infrastructure that’s able to be monitored and managed from a single console. Rather than having multiple networks to maintain, a single network contains multiple gateways and access points across the property that all connect together to ensure ubiquitous access and complete property coverage. This not only makes network monitoring and management easy, but it also eliminates the need to manage and pay for multiple vendor contracts and reduces internal tech support demand. 

Despite the obvious benefits and clear savings potential for a centralized network, still less than one-third of property managers have deployed smart tech solutions, even though evidence overwhelming indicates residents are demanding—and willing to pay a premium for—these amenities. Many fear that upgrading their Wi-Fi infrastructure to support the demand will be overwhelming, too costly, and they just don’t have the staff capacity. But the truth is, they can’t afford not to. 

An upgrade to property wide Wi-Fi can deliver both immediate savings and long-term financial benefits: an aggregate 20% savings across energy, staff time, risk prevention and insurance cost combined for a property with $600,000 in annual revenue could cut operating expenses by $60,000 a year. For multi-dwelling unit operators, which means the message for property-wide connectivity and centralization is clear: not only is market demand making it non-negotiable, but economics also make it the fiscally responsible thing to do.

Sandy Jack is Director of Strategic Relations - Multifamily at Nomadix. With more than a decade of experience in multifamily housing, Sandy is a passionate and trusted advisor, helping leverage connectivity and property technology (proptech) solutions to help properties achieve their business goals.