“When considering details while developing an apartment community, smart-home technology has vaulted to the top of the conversation. But just how it fits into the blueprint is an inexact proposition.
Multifamily developers have been analyzing their spend on the available technologies, knowing some residents aren’t willing to pay more—or much more—for technology packages. However, the rise of millennial renters is driving the desire for smart technologies and the propensity to pay a premium for it. If the developer doesn’t provide a solution, many residents consider installing their own smart devices, which creates a challenge for apartment operators who want operational control of certain devices and don’t want residents making changes to electrical wiring.
Smart-home technology is here to stay and has become a regular desire among residents at Class A communities. A recent Entrata survey indicated that a basic technology package (high-speed internet, cable TV, etc.) is the number one thing residents are willing to pay a premium for, and smart-home features (smart thermostats, keyless entry, etc.) ranked sixth. Eighty-four percent indicated they are willing to pay a premium for smart-home features, but of those, only 8%would pay more than a $45 monthly premium.”
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