We at UK BtR warmly welcome back Muir Baxter of SmartRent who we sat down with to have a great conversation about the prop tech industry. Where it is today, where it’s heading and what exciting things are happening in the market.
Below is the Q+A layout of our conversation.
It’s safe to say that PropTech is currently having its moment – what is making technology within the sector so popular right now?
The short answer is the incontrovertible proof of the Return of Investment that can be clearly underwritten to guarantee technology integration as a profit generator. We mention this in our free whitepaper (available here). But specifically, we’re seeing platforms like SmartRent vastly and consistently decreasing operating costs across entire investment portfolios not just singular developments.
This coupled with the competitive nature of the BtR sector is driving investors and developers to move on installing the best proptech or risk their pipeline developments already being behind established stabilised assets in terms of operational management efficiency and tenant management and well-being before they even open.
What is your favourite PropTech innovation and what are you finding your existing clients are gravitating towards within the SmartRent offer?
That’s a bit like asking which of your children do you like most… SmartRent is a combination of hardware and software elements and they all bring a different benefit to the table. Collectively, they deliver a truly smart building. If I had to pick one element though, it would have to be the platform (or Community Manager as it’s known).
Community Manager makes the magic happen by pulling together the independent systems and devices within the building and combining them with the intelligence of SmartRent to automate tasks/processes and deliver the streamlined efficient operation to building operators and maintenance teams, while providing the head office ‘single pane of glass’ view across the entire property portfolio.
This ability to create an automated work order report means that within a SmartRent building, management doesn’t need to wait for a tenant maintenance issue to arise i.e batteries running out or maintenance required to a lift – the system will be aware of it and raise the order before the client even knows.
The dynamic and flexible platform continues to adapt to the building’s changing needs over time yet stands as the solid foundation for continuity within the organisation while ensuring maximum return on investment to the developer/operator by reducing staff hours on smaller tasks.
Where do you see the PropTech Sector going over the coming years?
The great thing about Proptech is that it is growing in all areas at such a fantastic pace. And this drives real innovation. SmartRent specifically is an integrator at the end of the day, and we pride ourselves in being at the forefront when it comes to identifying new features or technologies that keep our solution at the top.
We can make the efficient management of platforms a reality as SmartRent already synchronises all the platforms and individual management systems that a BtR operator uses on a day-to-day basis and brings them under one roof. This means when a new tenant moves in the management can hit the “move-in” button on the system and a series of personalised automations for that particular development will immediately take place e.g. Fob access through the building are loaded, WiFi access is granted etc. and the same can be said of off-boarding or during the move-out process where at a click of a button those credentials are removed and the tenant can no longer change the heating on the thermostat in an apartment they no longer live in.
And we can certainly expect further adoption of technology that reduces operating complexity while increasing the value proposition to the resident. Solutions that save money or time, or that provide greater security and convenience will be successful as will next-gen service provision such as parcel delivery management ‘into your apartment’ and building waste collections based on real-time capacity data.
If I’m an Investor and I want a system like SmartRent in my developments – when do I need to start talking to you?
You can install SmartRent at any time during a building’s life cycle – it is never a case of it being too late to install SmartRent, it merely affects the cost model. SmartRent can be installed to both new build and retrofit developments.
For new build, the earlier the better, as this enables us to coordinate with the MEP and operation teams to determine the most appropriate solution. For retrofit, we work directly with the owners and operators to upgrade their building.
How does the installed SmartRent tech get updated once it is installed?
Installing SmartRent ensures that future devices, technologies and updates can be adopted with ease. We continuously develop the platform and our list of approved hardware integrations to ensure our clients receive the optimal performance from our solution and it delivers in driving efficiency in their day-to-day operations.
Most upgrades are done ‘over the air’ but in instances where a physical update is required, we typically build this into our annual service activity to ensure maximum cover for the client with the least disruption to the residents.
What hardware do we need to install – start to finish? Do we need a server?
The devices integrated into SmartRent connect either wirelessly through our in-apartment hub (utility cupboard) or at cloud level. Devices such as leak detectors or window/door contact sensors feature long-life batteries and wire-free installation as this enables them to be sited in the most appropriate locations.
Our hub only requires power and an internet connection which is why most developers opt for the PoE model that delivers both power and the internet connection from the landlord’s building-wide infrastructure.
Most of the hardware that touches SmartRent is typically being installed already. A thermostat, access control, video door entry for example are already planned to be installed in most developments.
In these instances, we either already integrate with the selected system, or we offer an alternative product that delivers the same feature set but one that is supported by us. In both circumstances, this equates to a cost-neutral position for installing SmartRent.
You’ve now got some big names on board with SmartRent – what do you think it is about SmartRent specifically that is catching the attention of large UK BtR portfolio owners now?
SmartRent is built from the ground up by operators for operators and we have first-hand experience of the challenges in operating large portfolios that are distributed across the globe. Our solutions provide future-oriented lifestyles to the residents, but it is the benefit we deliver to owners and operators that is our key focus and ROI generator.
This, together with our ownership of the manufacturing process for our core and essential hardware ensures we are delivering solutions to clients that are market leading, competitively priced, and which guarantee performance, reliability, and relevance for the years ahead.
In contrast, other solutions on the market typically rely on third party manufacturers for their devices and this delivers considerable risk to clients in that these technologies could be retired overnight with little or no obligation or responsibility to the devices already installed.
Can you give us an example of the technology and proptech SmartRent is compatible with?
Our ecosphere of partnerships and integrations is constantly evolving with few limitations. From integrations with CRM systems and access control technologies that help the leasing teams, leak detection that provides maintenance teams with real time and automated work-order generation (not to mention reduced insurance premiums for the building owner) and air quality monitoring that provides residents and operators with information on the condition of their apartments and amenity spaces (something that has been widely adopted through COVID).
Our principle is to be agnostic yet loyal to those innovative solutions we already support. A couple of the systems we can integrate with, but are defiantly not limited to are;
- Parking solutions that remove the manual task from your onsite teams and monetise what is otherwise a burden. All revenue generated from parking goes to the developer/operator. https://smartrent.com/products/smart-parking-management/
- Property Management Systems – https://smartrent.com/news/smartrent-integrates-pms-yardi-realpage-entrata-resman/
Finally, how do SmartRent tailor their package offering to remain bespoke to the experience and needs of a specific development?
We appreciate one size does not fit all which is why SmartRent is built up of modules which can all be selected individually by the client. It may be that a client only wishes to deploy Self Guided Tours to help their leasing activities, and, in this instance, they do not need our SmartHome solutions in order to take advantage.
Again, to give you an example we can integrate any of the below – however this is only scratching the surface of how SmartRent can provide a better environment for the tenant, investor and management team.
- SmartRent SmartHome – Within this module, you also have the option to select which elements of smart technology you want to deploy in your building.
- SmartRent Self-Guided Tours
- Alloy Access – building-wide access control technology
- Alloy Parking – Parking management solutions
UK BtR closing remarks
Our conversation with Muir highlighted how there are currently few things on the market today that can automate such a vast number of management tasks to instantly improve a buildings Net Operating Income, improve the value of the tenant expertise through a multitude of the latest smart technologies and, as Muir hinted during our conversation, start to use the power of AI to collect the data of how your development is run and present solutions to income leakage you didn’t even know you had.
Developers and investors not already looking at systems like SmartRent should be scared of this technology – not because of its power but because it provides a clear, almost unfair advantage to gaining complete transparency of how to efficiently run your development – if you aren’t incorporating this within your pipeline developments now, your buildings will already be at a competitive disadvantage the day they open and not achieving their true potential NOI.
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