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4 Reasons Owners & Operators Should More Rapidly Invest in Smart Home Tech for MDUs

Brilliant Editorial Team • January 22, 2025

The future of apartment living lies in smart home technology. Owners and operators of multifamily buildings (MDUs) increasingly recognize the transformational potential of integrating smart solutions into their properties. From enhancing tenant satisfaction to boosting operational efficiency, smart home tech is no longer just a luxury—it’s a strategic necessity. 

If you’re still undecided about investing in smart home technology for your MDU, here are four compelling reasons why it’s time to act fast.

1. Enhance Tenant Experience—and Retention

Investing in smart home technology is a direct investment in tenant satisfaction. Renters today expect the convenience and modern functionality of smart living, and properties equipped with these solutions have a distinct appeal over those that do not. 

Key Smart Features Tenants Love:

  • Smart thermostats for personalized climate control and energy savings 

  • Keyless smart locks offering conveniences like smartphone entry or digital codes 

  • Centralized in-wall control panels allowing tenants to manage everything from lighting to music 

When tenants walk into a connected living space, it enhances their lifestyle. And for property owners, happier tenants mean higher retention rates, reducing the costly churn associated with frequent move-outs. 

Example: Studies show that amenities like smart home features can justify premium rents, making your property more attractive in competitive rental markets. 

Pro Tip: By enabling tenants to integrate their personal smart devices (such as a Sonos system or smart shades), you not only meet but exceed their expectations. 

2. Maximize Energy Efficiency and Cost Savings

Energy costs are a significant pain point for multifamily property operators—but smart home technology offers a solution. Automated energy management systems streamline energy use across all units, improving efficiency and reducing waste. 

Smart Energy Features That Deliver Savings:

  • Smart thermostats reduce energy costs by up to 20% by automating climate control in vacant units. 

  • Automated lighting systems ensure electricity isn’t wasted in common areas or unoccupied apartments. 

  • Alerts for HVAC overuse or extreme temperatures provide early warnings to cut down on unnecessary energy expenses. 

For example, property managers using Brilliant NextGen’s Command Center can remotely monitor and adjust energy settings across multiple units. This level of automation significantly lowers operational costs and helps properties adhere to sustainability initiatives. 

Insider Fact: A 300-unit building with savings of $50/month on unoccupied energy costs can save more than $10,000 annually—savings that directly contribute to your bottom line.

3. Improve Asset Protection and Minimize Risks

Water leaks, HVAC damage, and improperly secured units can be costly disasters for apartment owners—but they’re also preventable with smart technology. 

Game-Changing Features for Risk Mitigation:

  • Smart leak detectors immediately alert property managers to water-related issues, reducing the cost of repair by up to 75%. 

  • Water shutoff valves prevent extensive damage by stopping leaks before they escalate. 

  • Real-time alerts on device diagnostics improve proactive maintenance, ensuring no minor issues turn into major ones. 

Asset protection doesn’t just safeguard your building—it also enhances tenant satisfaction by preventing disruptions to their lives. These features can even help reduce insurance premiums, delivering a win-win for operators. 

Did You Know? The average cost of a major water damage incident is $12,000 per unit. Early detection systems eliminate this risk by catching leaks before they spiral out of control.

4. Streamline Operations and Boost NOI (Net Operating Income)

Smart home tech is a secret weapon for unlocking operational efficiency. By automating repetitive tasks and providing remote access to building systems, property managers reclaim time to focus on high-value activities. 

Operational Efficiency in Action:

  • Remote control of devices across units via a centralized platform 

  • Automated tenant turnover protocols, such as resetting access codes or device settings without needing manual intervention 

  • Fleet management of smart devices for seamless maintenance across the property 

For MDU owners, these efficiencies translate directly into improved Net Operating Income. With reduced repair costs, lower energy bills, and greater employee productivity, smart home automation helps operators save money while managing growing tenant expectations. 

Real-Life Example: The Brilliant Multifamily Platform enables property managers to oversee device settings, track maintenance alerts, and even monitor vacant units without stepping foot on-site. Combined with managed WiFi solutions, properties can generate additional revenue streams while reducing tech-related hassles. 

Key ROI Insight:

For a 300-unit property charging tenants a $75/month smart home fee (while incurring only $27/unit in fees), operators can generate an additional $13,050 in monthly NOI—that’s over $150,000 annually.

Stay Ahead with Smart-Enhanced Properties 

Multifamily properties equipped with smart technology are no longer confined to the luxury market. Today’s scalable solutions make these upgrades accessible for properties of all types and classes. By investing in cutting-edge tech now, you position your property to not only meet but exceed rising tenant demands. 

Whether you’re retrofitting older buildings or integrating solutions into new developments, platforms like Brilliant NextGen can help you transform the tenant experience while driving NOI. 

Next Steps:

Curious about how smart home tech can work for your MDU? Contact Brilliant NextGen to schedule a demo or explore customized installation solutions. Together, we’ll elevate your property to meet the future of multifamily living. 

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