Why Connectivity Drives Smart Tech ROI

What sets smart apartment providers apart? One key differentiator is connectivity.

A lot of multifamily owners and operators assume that smart device connectivity is the same as internet connectivity — that as long as you have an internet connection, your smart devices will be ‘connected.’

But the reality is that smart device connectivity is separate from your broadband network.

That’s why you need to carefully assess a platform’s connectivity solutions before investing. Ultimately, your goal is to find one provider that will work across every property in your portfolio, whether it’s new construction or a retrofit.

The status quo of adding smart devices to multifamily communities is to have a hub in every unit that runs on property-wide WiFi, cellular, and/or resident internet.

Ultimately, a hard-wired ethernet connection is the most reliable way to provide consistent connectivity. But when that’s not available, establishing a new connection in every unit can be expensive and challenging, especially in retrofits.

To ensure cost-effective and reliable connectivity at every community — both retrofits and new builds — you need a solution that doesn’t require capital-intensive infrastructure overhauls or disruptive installations.

The right solution will maximize cost-efficiency, increase staff efficiency, and drive a positive resident experience.

The most cost-effective connectivity solution varies from building to building.

What’s most cost-effective in a high-rise or mid-rise might not be most cost-effective for a garden-style, townhome, or BTR property. You need multiple options tailored to each building in your portfolio.

Say you’re retrofitting a high-rise with 250 units. If there’s not already an ethernet connection in every unit, it could cost upwards of $1,000/unit to establish that new connection. What’s more, you’d be left ripping apart walls to lay wiring, which would significantly disrupt the community. Add the cost of installing a hub in every unit and you’ve got a hefty installation bill.

In this scenario, a building-wide mesh network can dramatically reduce capital expenditure and simplify installation. Rather than paying for and installing a hub in every unit, a mesh network only requires bridges that are small enough to plug into any wall outlet. These bridges create an intelligent, self-optimizing network that ensures reliable connectivity across the building. No wires required, and no need to drill holes or spend hours disrupting occupied units.

Reliable connectivity is core to extracting value from your technology investment.

There are lots of smart tech vendors out there, and most generally offer the same types of devices: smart locks, thermostats, leak sensors, etc.

So what sets one provider apart from another? Connectivity.

The most impactful difference between providers is the cost-effectiveness and performance of their connectivity infrastructure — in other words, whether residents can successfully and consistently use their smart devices, and staff can count on automations to work reliably.

Recently, smart tech providers have increasingly started developing devices enabled by LoRaWAN, a novel networking protocol.

While LoRaWAN is a hot topic of discussion, it’s not a future-proof technology. Protocols like Thread are where most major technology players — including leaders at companies like Google, Apple, and Amazon — are focusing their attention, establishing its place as the networking protocol of the future.

Keep in mind that LoRaWAN is still a novel connectivity method, so it can’t guarantee adequate coverage in all scenarios. In fact, LoRaWAN largely depends on helium servers, which aren’t widely present outside of major metropolitan areas.