Now that Starbucks has almost single-handedly put hot spots—those areas where anyone with a mobile device can gain wireless access to the Internet—firmly into the American lexicon, property management companies are beginning to explore just how to make a similar model work in their apartment communities.

Most companies are now mulling wireless technology, acknowledging that it is part of their future plans—generally either to provide wireless Internet access to residents in common areas, link computing resources in the front office, or “mobilize” maintenance staff and other employees. But they remain cautious. “We're putting a toe in the water,” says Greg McDonald, director of telecommunications at Camden Property Trust in Houston, who cautions against relying on wireless as the sole source of Internet service. Camden has added hot spots to some of its properties and is looking to expand as the technology evolves.

On the plus side, wireless access is relatively easy to set up. All that it is needed is a wireless router to create an access point (think of it as an on-ramp to the Internet), interface cards in mobile devices, and a high-speed Internet access through a carrier such as T-Mobile or Verizon Wireless. “You're talking about $100,” says D. Thomas Figert, director of information technology at BH Management in Dallas. Companies such as Cisco Systems' Linksys division offer “hot spot in a box” solutions that can be implemented very quickly.

But wireless is truly a “golly, gee-whiz” technology. Its Jetsonian features can seduce even the most conservative executive into forgetting about a real business proposition and the technology's remaining drawbacks. Or it scares them to death. Either way, they are struggling to get a clear perspective on what wireless may have to offer their organizations.

The Real Scoop

Wireless offers a bevy of potential benefits, such as greater flexibility among computing resources, true mobility of residents and staff, and increased efficiency and productivity among employees. That's particularly true for property maintenance workers, who can adapt the technology to their own work styles rather than vice-versa.

These advantages are too attractive for the industry to pass up. “It has become much more acceptable for owners to place wireless on a property, typically in hot-spot form,” says David Cardwell, vice president of capital markets and technology at the National Multi Housing Council in Washington, D.C.

A confluence of elements, too, has made wireless a more viable option today. Standards are maturing. WiFi, Bluetooth, and a bevy of wireless local area network technology has estabilized. Wireless networks have gotten faster: The 802.11b wireless standard dealt with analog offerings, but its more advanced sibling 802.11g offers connection speeds theoretically faster than DSL or cable modem. Microsoft's Service Pack 2 has made Windows much more wireless-friendly.

Finally, nearly every laptop computer today comes with an interface card that turns it into a wireless-capable device. “You would have to try hard to buy a computer without a card now,” says BH Management's Figert. “Devices alert you now, saying, ‘I've found a wireless connection. Would you like to connect?'”

What's more, the craving for broadband services in this country is seemingly insatiable, and wireless broadband is being seen both as an alternative and a complement to wired broadband access such as cable modems or DSL. Market research firm In-Stat/MDR of Newton, Mass., predicts that the number of residential subscriptions to fixed wireless broadband domestically will grow to 3.1 million by the end of 2006. That's up from the 338,000 subscribers reported in 2001.

Is Wireless Ready for Primetime?

Despite the great strides in wireless technology, some problems still persist. First and foremost, it is not practical for every residential community. Student residences and higher-end properties are showing the most interest in wireless solutions, explains Cardwell. Lower-income properties with residents who either don't have computers or rely on lower-cost PCs have a harder time justifying wireless high-speed access. And, the monthly cost of wireless broadband itself (generally between $20 and $40 per month, charged either to residents or properties) can be prohibitive.

And, while setting up wireless might be easy, implementation remains full of obstacles—literally. “We thought it would be simple,” says Greg Hardt, information systems coordinator, at ERC Properties in Fort Smith, Ark., of ERC's decision to go wireless in selected properties' management offices. “But a filing cabinet is one of the best [shields] against wireless.”

High-rise buildings and offices with dense walls will run up against the type of interference that may simply render a wireless solution impossible. Getting around those obstacles requires more access points and more powerful transmission capabilities,

Doubts about security have kept BH Management from putting its management offices on a wireless network. “I'm not going to [do that] until I feel better about security,” says Figert. “If you get a disgruntled resident, it could be a problem.”

Still, most executives believe that security has improved with better encryption and other security measures. One of the best safeguards against a network breach is also potentially the most straightforward: Keep corporate and residential networks separate. “You have to separate the two networks,” says Hardt.

Breaking Away

Those owner firms that already have cut the cord, even in a limited fashion, do seem satisfied so far. Although he remains wary of implementing a wireless strategy in the front office, Figert has gotten positive feedback from creating hot spots in common areas like the pool. “So far, it is a roaring success,” he says. “It is an unwritten amenity for the leasing agent to have a resident conveniently out at the pool with a notebook.”

And Hardt points out that a wireless front office offers greater flexibility to visiting executives. “They don't have to knock employees off their computers,” he explains. “They can just gain access through their own computers.” That's increasingly important, he says, as “more and more executives travel between properties.”

Whether you blame it on MTV, Starbucks, or, more fairly, on a fast-paced and increasingly mobile society, it seems like everyone these days is unplugged. With a whole new generation sprouting wireless devices such as iPods and cellular phones like electronic appendages, property management firms must understand how wireless solutions will fit into their future plans at residential communities. Today, wireless is an interesting musing, but tomorrow it may be a must-have. “When does an amenity turn into a utility?” asks Figert. “At what point is there an expectation of wireless access?”

– Teri Robinson is a freelance writer in New York.