Apartment Buildings: How New Technology Has Made Them Safer & More Profitable
New technology has made apartment buildings safer places to live while creating better yields for multifamily investors.
Check out just seven of the ways that new tech has made this sector even more attractive for smart investors…
- Online Rental Payments
While perhaps one of the most basic developments in this sector, the ability to collect rents online is alone a major center for improving net property performance. It makes it easier for tenants to stay on top of their rent. It reduces the risk of fraud, physical injury or lawsuits stemming from rent collection efforts, and lowers rent collection costs.
- The Virtual Doorman
A variety of technologies and devices are helping to fill this gap, reducing operating costs, while improving security. This includes smart locks, automatic package acceptance facilities, and video surveillance.
- Property Monitoring Technology
Smart utility meters help apartment building operators quickly identify areas of waste, loss, and leakage to both prevent property damage and unnecessary bills.
- Greener Building Materials
From flooring to wall coverings and everything else, there have been many improvements in healthy building materials. This is primarily a great thing for residents who can enjoy living in safer spaces. Though healthy, high performing tenants also mean more consistent renters and incomes for landlords.
- Detailed Mobile Inspections
Now with a tablet or phone and online storage, employees can instantly document and pass along important information to central management. That can speed up unit turnarounds, keep contractors honest and working faster while avoiding unnecessary costs.
- Remote Work
The new remote workplace means a lot of the internal work required can be done remotely by better talent, with a lower risk of liability and cost to employers. This applies to both investment firms and management companies, creating more layers of savings for end investors.
- Financial Reporting Technology
New online reporting dashboards make it easier to stay on top of your investments and performance while investing in the best locations. This efficiency in reporting for syndicators means more profitability that can be passed onto passive investors instead of being eaten up in administration costs.
Yes, interest rates are going up. Yes, asset values are likely to keep going up with rents. While this could compress cap rates, apartment buildings have become safer for residents, healthier places to live, and more profitable for investors thanks to these new developments in technology. Expect to see even more leaps in the next few years as the internet of things moves even deeper into our homes and lives.
ABOUT THE AUTHOR
Bill Zahller is the Managing Partner of Park Capital Partners, LLC and resides in Asheville, NC. As a Multifamily Real Estate Investor and Syndicator, he founded Park Capital Partners, LLC in 2016 after 14 years involvement in real estate investment. He works with accredited investors and professionals who are interested in real estate investment, diversification, and financial freedom.
Bill has been flying since high school. His father was a Naval Aviator and Captain for TWA. Bill has been flying professionally for over 25 years, 23 of those at his current company. He has accumulated over 12,000 hours and 7 Jet type ratings. He has also held Instructor, IOE Instructor and NRFO pilot positions with a large fractional flight company. He is currently flying the Global 6000 in a long range mission capacity. This keeps it interesting – one week its Beijing or Sydney; the next Rio or Rome.
Bill is also the founder of the Asheville Multifamily Investor Club. Visit www.ParkCapitalPartnersLLC.com for more information.