Smart-home features are becoming a “must-have” item for many of today’s tech-savvy renters who are looking for increased convenience and comfort in their homes.
That’s why Phoenix-based Alliance Residential has partnered with leading tech companies to address residents’ desires, with its Alliance SmartHome package, which the company is introducing in more than 25,000 luxury apartments across the country.
The Alliance SmartHome package includes a Nest Learning Thermostat and a Google Home Mini with a Google Assistant built in, as well as smart locks, light switches, and connected wall outlets.
The company conducted a six-month pilot program, testing 6,000 units with seven different vendors, looking for specific performance indicators that would determine what residents were looking for in smart-home technology. Google, Dwelo, and Nest emerged as strong vendors to whose products residents responded to well.
“What we really tried to accomplish was creating a system of devices that would talk to each other. There’s a number of independent, singular technology pieces that are great, but if they’re not actually communicating with each other it makes it hard to have a smart-home system that’s working in unison,” says Brad Cribbins, president of Alliance’s management division.
Control of all devices is centralized through Dwelo's platform, which property managers can control via the Alliance SmartHome dashboard application. The Dwelo platform was created specifically for the multifamily industry, so it not only provides a useful smartphone interface for residents in their unit, but also offers a number of added benefits for management firms, as well.
“We're able to do things like give digital credentials to staff contractors, visitors, and site personnel to make their access more convenient while working,” says Cribbins. “There’s also unit management done that we need to leverage at a fairly large scale, and the platform allows us to reduce lockouts or prevent damage.”
Alliance says it expects the package will increase ROI in the form of rent premiums of up to $75 once implementation is complete.
“Of course, we're trying to monetize the package, but in a way that’s responsible and thoughtful,” says Cribbins. “Yes, residents will pay more for these features, but the increases are tied to how they actually matter to the consumer. There are things they expect in return for the service, like stability, products that actually work, and a seamless experience.”
Alliance also saw indications in the pilot phase of cost savings on utilities, as the automated vacant-unit management feature saves an average of $38 per unit per month, and smart-meter alerts catch water leaks early, saving on costly repairs and wasted water.
Through the platform, property managers will be alerted to and able to monitor and control things like lights left on in a model after a showing or AC units left on after turning a unit or painting, which Cribbins says could save up to $9,000 per year for a 250-unit building, based on early indicators.
Cribbins says Dwelo will also help the company scale and expand its smart-home offerings in the future as technology evolves.
“It’s a big question: ‘How do you stay agile in a scenario where new things are always coming into play?’ " Cribbins says. “We want to be responsive to things that are developing out in the open market, and I think that’s one of the things we’re really trying to gear the platform for, and Dwelo’s platform is compatible with a large number of IoT [Internet of Things] devices.”
Cribbins adds that as we move forward in the industry, there’s no doubt smart-home technology will become part of the core design in multifamily properties.
“Technology is transforming the way we work, buy things, and spend our free time,” he says. “The challenge will come with anticipating the needs, compatibility, the accelerating advancement of technology, and in figuring out how to offer it to residents in a way that provides a service and doesn’t add more disruption than is productive.”
