How Technology Can Solve Multifamily Operations Challenges

With so many companies looking to technology this year to bring automation to processes that help them solve staffing shortfalls or to be more efficient, Tama Huang, Chief Innovation Officer, CohnReznick, offers a basic rule-of-thumb for this decision-making.

“If it’s something that can be done with your eyes and fingers only, automate it,” she said. “If it’s something that must be handled by using what’s between your ears, have a person take care of it.”

Huang moderated a discussion with panelists Joanna Zabriskie, President & CEO, BH Management; Eric Flohr, General Manager, Head of Digital Client Solutions, Berkadia; and Steve Boyack, COO, CA-Student Living; at NMHC’s 2022 Apartment Strategies Conference on Tuesday in Orlando.

The Technology Decision Process

BH Management, one of the largest multifamily operators in the country, owns all of its data and is using it to make decisions on “everything,” Zabriskie said. It invested in a venture capital firm and is having it serve as its technology review partner.

“They look at everything out there, how it works, and how it might benefit us and makes recommendations,” Zabriskie said. “When we choose technology, it’s like we undergo an organ transplant in our portfolio. So, we get our entire executive team involved to determine the best-in-breed product. It’s a long process. Whatever we choose, it must be able to protect our data and it must come from a company that we know will be around for at least another five years.”

Zabriskie said change management skills play a crucial role in implementation, because if the technology is not introduced properly, to the site staff, “it’s just one more thing” as part of their busy work days.

Boyack said that companies should first identify problems and then look to see if technology is there to solve them.

He said it’s critical for companies to focus on their technology “nerve systems” to make sure that whatever technology they are bringing in, can attach to that system properly. “There can be a frustration at the site level when technology is brought in and it is not properly integrated,” he said.

He said at the company level, generally speaking, once a new technology is introduced, someone at the company needs to “own it.” Boyack said he’s seen too many times when the group of employees who recommended the technology forgets about it once it’s brought on board, and they just move their focus onto the next new, shiny technology they want to explore.”

How to ‘Test’ New Technology

Boyack said companies can give newer technology companies a test when they first meet with them. “Are they listening to you?” he said. “Do they hear your concerns and questions? To find out, call a second meeting with them six months later to see if they incorporated any of your guidance.”

Flohr said his company’s 400 employees are focused on bringing in technology to create a frictionless transactional process. “We want to use technology to determine and provide data that gives investors actionable insights.”

The panel said that smaller companies should not shy away from trying new technologies, citing the use of pilot programs and that smaller companies are better positioned to try something on a smaller scale and break it to learn from it.

Some ‘Smart’ Ideas

Zabriskie said her company is using technology (water-saving devices) in all of its homes and conserved about 2 million gallons of water across its portfolio last year. 

She is installing electric vehicle stations and smart-homes technology, as well. “We’re even seeing some of our ‘B’ residents willing to pay for smart-home features,” she said.