The Evolution of Amenities in Multifamily Housing
Amenities hold significant importance in multifamily housing, often determining the distinction between a good property and a great one. In markets characterized by fierce competition, features like swimming pools, fitness centers, and community rooms can greatly influence rental pricing and profitability. However, the cost associated with amenity construction and maintenance often poses a challenge for property owners, as the investment must align with resident usage to ensure a satisfactory return on investment (ROI).
The Gamble of Amenities
Every amenity installed represents a strategic gamble for property managers. Investment not only includes the financial burden of creating these spaces but also the potential loss of rental income from units occupied by such amenities. Unfortunately, some admired facilities, like swimming pools and communal clubhouses, see limited use, complicating the justification for their ongoing costs.
The Rise of Resident Experience Apps
The advent of smartphones revolutionized resident interaction within multifamily buildings through the introduction of resident experience apps. These applications became instrumental for residents, enabling them to pay rent, initiate maintenance requests, and engage with their community, all from their mobile devices. As these tools gained traction—first among luxury apartments and subsequently across various property tiers—they began shaping how buildings are designed and constructed.
K. David Meit, Principal at Oculus Realty, emphasizes the integral role of these applications in modern property management. He notes, “Younger generations are tech-savvy, and they want to interact through their phones; you have to meet them where they live.” This shift allows multifamily housing to enhance the resident experience, turning a traditional living environment into a more connected community.
Data-Driven Insights
With the use of resident experience apps, property managers can now gather crucial data about resident preferences and amenity utilization. Meit states, “If you have a layer that can track what is going on, that is invaluable.” This level of insight helps managers determine effective use of resources, illuminating the actual ROI for various amenities.
Redefining Targeted Amenities
One notable example highlighted by Meit is the golf simulator—often requested yet rarely utilized. Such observations lead managers to reconsider their approaches to amenity investments, favoring generic “blank canvas” spaces over highly specialized options. For instance, instead of a full gym setup, properties may offer adaptable workout rooms that can host yoga sessions, fitness classes, or circuit training.
Facilitating Community Interaction
Moreover, resident experience apps facilitate community engagement, enabling residents to suggest, organize, and reserve classes or events. This participatory approach fosters a sense of ownership and community among residents, enhancing overall satisfaction. “We used to have a resident service director, but now you don’t need that person,” Meit explains. Engagement and requests from residents drive the interaction with amenities.
Maximizing Flexibility and Cost-Effectiveness
The capabilities of these digital platforms can enhance cost management significantly. Instructor-led fitness classes could transition to streaming formats, reducing expenses while maintaining quality. By utilizing digital solutions, multifamily properties can adapt their amenity offerings to meet diverse resident needs without overextending their budgets.
Understanding Market Preferences
Collecting and analyzing data on renter preferences provides the opportunity for properties to cater to niche markets. Whether targeting those with a keen interest in active lifestyles or social gatherings, a tailored approach can create experiences that stand out in a crowded market. Enhanced engagement metrics from the apps lead to improved decision-making regarding amenities and community events, boosting renewal rates and referrals.
The Future of Multifamily Management
As the digital revolution in multifamily management continues, it is anticipated that additional technological tools will emerge, further transforming how property managers and residents interact. This evolution will contribute to a more personalized living experience while allowing properties to minimize costs associated with unused amenities. Flexibility in amenity design—fueled by data-driven insights—positions multifamily properties to adapt and thrive in an increasingly tech-focused landscape.
