Amenities are no longer enough to attract residents to BTR and multifamily properties. Nearly six in ten renters would prioritize smart home technology over traditional amenities like pools or gyms — especially if rent savings are offered. In fact, 65% say smart tech makes apartments more appealing, and 31% would choose tech-enabled units over comparable alternatives.*
Property managers need to find ways to incorporate smart building technology into their infrastructure and deliver tenants the modern experience they expect.
In this article, you’ll learn what smart buildings are, the top smart building tech, the key benefits of these solutions, challenges to look out for, and emerging trends to watch.
We also spoke with Freya Richard, Director of Operations & Leasing at Vertus, to examine how leading BTR and multifamily properties are implementing smart building technology to enhance resident experiences.
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Key takeaways
- Smart buildings use interconnected IoT devices and data-driven systems to create adaptive, automated environments that improve resident comfort and operational efficiency.
- Smart building technology used in BTR and multifamily properties includes intelligent access control, HVAC automation, lighting and occupancy sensors, and more.
- Modern residents increasingly expect digital convenience, including mobile app control, instant issue resolution, and flexible amenity management.
- For BTR and multifamily operators, smart building technology offers strong ROI through energy savings, predictive maintenance, and centralized control.
- Leading BTR properties like Vertus are leveraging smart building technology, such as keyless entry systems and ESG monitoring sensors, to provide a more engaging, connected experience to residents and reduce pressure on operations and maintenance staff.
- In the future, AI and predictive analytics will turn smart buildings into intelligent proactive ecosystems that can prevent issues before they happen and personalize resident experiences in real time.
What is a smart building?
It sounds like a futuristic concept, but smart buildings are already emerging as the norm in BTR and multifamily living. But what are smart buildings exactly?
These properties use interconnected systems and devices to create a more sustainable and comfortable living environment for residents. The key technology behind smart buildings are Internet of Things (IoT) devices like smart thermostats, occupancy sensors, and smart access control, as well as centralized building management platforms that bring all the data together.
The most important concept here is that smart buildings are both automated and connected. That means all these devices work in unison, speaking to each other and to data-driven systems to adjust resource allocation in real-time so it aligns with factors like external conditions and occupancy changes.
Traditional buildings may already use a few isolated IoT devices, like smart locks for resident access and air quality monitors. But the main difference between traditional and smart buildings is that with the latter, these devices speak to each other to create an intelligent ecosystem that’s able to adapt to the weather, resident behavior, and other variables.
The key benefits of smart building technology for BTR and multifamily operators
Developing an interconnected smart building system is a big investment, but it’s one that will pay for itself in cost savings and improved resident experience. Here are some of the key benefits of smart buildings that BTR and multifamily operators can expect.
1. Operational efficiency and cost savings
We’ll start with what everyone’s wondering: what’s the ROI on smart building infrastructure? The most obvious cost savings come from energy management. We’re talking smart HVAC, adaptive lighting, and interconnected usage meters that help you reduce utility costs while ensuring a comfortable resident experience.
What’s more, a smart building ecosystem has the predictive insights to flag when it’s time for maintenance on your devices, helping you improve asset lifecycle management without any additional burden for your maintenance team.
Vertus has seen this benefit firsthand with their humidity sensors. “It allows us to have triggers and warnings so that we can react to things that may prevent damage, costs, or issues in the long run,” Freya explains.
2. Sustainability and ESG
Smart connected buildings are also better for the environment. A network of interconnected IoT devices is able to pinpoint areas for energy optimization and carbon footprint reduction.
Perhaps you notice that residents crank the heat in certain units, but the room temperature isn’t significantly higher than in other apartments; this may indicate a sealing issue with your windows and pinpoint a quick fix that can reduce energy usage.
By reducing your building’s energy consumption and working towards a more sustainable living space, you also work towards achieving compliance with green building standards, such as ASHRAE, BREEAM, LEED, or Green Globes certifications. These certifications and ratings help set you apart for potential investors and prospective residents.
3. Enhanced resident experience
In addition to cost savings, smart building solutions help you offer more convenient, comfortable resident experiences. These devices, and their interconnected nature, make life easier for residents in a number of ways.
With smart access control, residents never have to worry about leaving their keys inside their apartment. And resident apps for smart living remove friction from visitor management and make it possible for them to switch off the lights or turn down the heat when they’re not home.
Smart building tech even goes as far as package management. Imagine this: a resident gets a package delivered while they’re not home and it’s deposited into their designated locker. When they return, they use their unique code to open their locker and retrieve their parcel. This also frees up your concierge to address more urgent issues or spend more time interacting with residents to build trusting, lasting relationships.
Beyond logistical conveniences, smart tech can foster stronger community ties — especially when platforms are designed to connect residents and support peer-to-peer engagement.
“The community factor is really important,” explains Freya. “Londoners are some of the loneliest people. You’ve got a lot of single occupants and a lot of people living on their own.” She notes that some Vertus residents are international, away from family, and the resident app helps them “meet other people that are like-minded” and can even help resolve issues collaboratively.
Freya notes that Vertus residents are often “time poor,” making app-based solutions particularly valuable. “If they’re running out the door and have an issue with their washing machine, they can quickly jump onto the app and log the issue. They can either get it resolved really quickly — because it might be user error — or have somebody come out and sort it out the next day.”
The community aspect also creates operational efficiencies beyond staff productivity. “Sometimes it’s not necessarily our teams that are solving problems,” Freya explains. “Tenants can resolve issues between themselves by putting something out on the app saying, ‘Oh, does anybody know how to fix this or do this?’ And the tenants self-triage and self-resolve issues among themselves.”
Top smart building technologies for multifamily buildings
Smart building connectivity relies on a number of different solutions working in unison to achieve a truly integrated ecosystem. But what is smart building technology?
Take a look at the distinct features of intelligent buildings that work together to create a better, more comfortable place to live while working towards cost savings and sustainability goals.
Solution |
How it works |
Examples of providers |
Smart access control solutions
|
Enable residents to access their building/unit using a code or an app, eliminating the need for (and risks associated with) physical keys. They also give property managers insights into who’s accessing their properties.
|
HandyTrac, RemoteLock
|
Smart thermostats
|
Allow residents to remotely control the temperature in their apartment and give property managers centralized monitoring of multiple units on one dashboard.
|
Utopi, INTEREL, PointCentral, resicentral
|
HVAC automation systems
|
Monitor heating and cooling performance in a building and send alerts to property managers and maintenance teams when there’s an issue.
|
Utopi, Motili, PointCentral
|
Leak detection and water management systems
|
Use IoT sensors to notify maintenance teams and property managers when unusual or alarming water usage is detected.
|
PointCentral, WaterSignal
|
Smart lighting and occupancy sensors
|
Detect the presence of people in a space, be it individual units or common areas, to turn off lights and conserve energy when they’re empty.
|
Caséta, Milesight
|
Package management solutions
|
Enable safe and automated package drop-offs and even offer temperature-controlled lockers for food delivery.
|
Package Concierge, Parcel Pending
|
Centralized building management platforms
|
Provide one source of truth for managing and automating key processes, from booking and leasing to marketing and operations.
|
Yardi, Entrata, Lavanda
|
Resident apps
|
Give tenants a more connected and engaged living experience and help them manage amenities and other needs.
|
Chainels, Elevated Living, Flamingo, SpaceFlow
|
Discover more smart building technology for BTR and multifamily properties in our Multifamily Technology Index Report 2024.
Smart building technology: Challenges and considerations
While it brings serious advantages, smart building automation requires thoughtful planning and investment. That’s not to say it isn’t worth the effort; you just need to know what potential challenges you face when getting started so you can mitigate them.
Here are a few things to keep in mind when planning to implement smart building solutions:
- Upfront costs and retrofitting: As you can imagine, smart building tech costs more than traditional alternatives (e.g., contactless access vs. lock and key door). This is true both when building a new property and retrofitting and updating an existing one.
- Integrations and connectivity: A building is only truly smart if its tech communicates seamlessly. That’s why it’s so important to put open APIs and integrations at the center of your strategy, as well as find a PMS that gives you centralized control and oversight.
- Data privacy and cybersecurity: Certain aspects of smart building technology present data breach risks. If they fall into the wrong hands, access codes or occupancy data can potentially jeopardize the security of your building.
- Staff training and tech adoption: Your team needs to be properly onboarded to your tools and systems to make the most of your tech. Adoption times can vary depending on your team’s prior familiarity with these kinds of solutions.
- Resident education and adoption: It takes time for residents to fully adopt the technology. Vertus is still in the early stages of rolling out Utopi’s ESG sensor technology across 1,300 apartments, with Freya noting they’re currently in “stage one”: having the technology installed and accessible to property managers. The next phases involve educating residents about the benefits and encouraging active engagement with the sustainability features.
Smart building technology case study: Vertus, Canary Wharf
Vertus operates three BTR properties in Canary Wharf with 1,300 units. According to Freya, when a resident chooses Vertus, they’re renting a lifestyle — and smart building technology is central to delivering that elevated experience.
The BTR operator’s approach demonstrates how strategic technology implementation can enhance both operational efficiency and community building.
For example, Vertus offers residents a Vertus Home app where they can log requests, find resolutions to their issues, and connect with the Vertus team from wherever they are. This constant connectivity gives tenants a frictionless living experience and makes it easier for the property management and maintenance teams to respond to requests.
Vertus’s tech stack centers around Yardi as their property management system, but extends to specialized solutions like Salto’s keyless entry system for convenience and security and Utopi’s ESG sensors for sustainability monitoring.
Recently, they switched from Spike Global to Dutch provider Chainels for their resident app, seeking improvements like automatic calendar integration for events and enhanced community marketplace features where residents can connect and help each other.
“The community element that the resident app feeds is really important,” Freya notes, highlighting features like a Facebook marketplace-style setup where residents can sell items, create pet groups, and self-resolve issues by helping each other.
Freya believes that while smart building technology has countless benefits, preserving the human touch is essential. As the lines between BTR and hospitality begin to blur, Vertus aims to maintain a balance between technology and personalized support (carried out by Vertus’s concierge team) to create engaging lifestyle experiences.
To learn more about how Vertus is shaping the future of build-to-rent living, listen to our podcast episode with Freya Richard.
The future of smart building technology in BTR and multifamily
Among proptech trends, smart building tech is one of the most prominent. The seamless, connected experience that a smart building ecosystem provides is no longer a plus: it’s becoming a tenant expectation.
And in terms of unique and innovative solutions, the industry is just getting started. “I think there’s still so much that can be done in the proptech space,” says Freya. “I don’t think anyone has quite nailed it yet.”
Upcoming innovations will be largely powered by AI systems. The technology is able to predict issues and anomalies, recognize patterns, and automate decision-making.
For example, while tools like HVAC automation systems can detect and flag maintenance issues, predictive analytics can take things a step further by estimating when repairs and upkeep will be required. This will allow buildings to move to a more proactive approach, rather than reacting as problems arise.
Additionally, AI will allow property managers to provide even more personalized resident experiences at scale. For example, this technology can:
- Detect historical patterns in resident behavior to automatically control climate and lighting in their unit
- Raise and lower blinds according to a tenant’s typical sleep schedule
- Provide location-based insights for shared spaces they frequent, for example, notifying when the gym is at low capacity or a coworking desk has become available
So while we can’t know exactly where the future of smart building tech will take BTR and multifamily properties, we can expect less friction and more personalization for residents, as well as smoother, more integrated operations for property managers.
Smart buildings make life easier for residents and property managers alike
Smart technology has become a key differentiator for BTR and multifamily properties. And the global market for smart apartments is just getting started: it’s projected to grow at a rate of 12.9% through 2029, with technology like integrated IoT devices and community engagement platforms leading the way.*
Now is perhaps the best time proptech companies have ever had to demonstrate the value of their products to BTR and multifamily operators.
If you’re a proptech company that wants to become an industry leader but needs help communicating your value to potential customers and investors, Abode can help. We don’t just know proptech: we live it. And we want to tell the world why you’re unique.
Your success is our success, and behind every great proptech brand is our expert team. We cut through public relations with maximum impact to help you make headlines, attract attention for all the right reasons, and bring in more business.
Want to learn how to elevate your visibility and build credibility in the proptech space? Let’s talk.
*2025 Smart Apartment Trends Report, Rently
