Almost two-thirds of prospective multi-dwelling unit (MDU) residents report that pre-installation of smart home devices is an important factor when selecting a new home, according to consultancy Parks Associate.

Its whitepaper Doing IoT Right: Top Practices for Multi-Dwelling Units reports that 34% of MDU property managers offer internet-connected or smart home devices to residents in at least one property they manage.

The whitepaper, developed in partnership with Cox Communities, a provider of internet and property management automation, addresses emerging smart apartment trends across the USA and lays out a roadmap for MDUs to evaluate these technologies.

Parks Associates defines smart apartments as MDUs that include IoT technology in residential units and across the property. They include various smart amenities and features aimed at residents, staff and owners.

“Smart apartment device offerings are emerging as a key differentiator for properties in attracting and retaining residents,” said Kristen Hanich, research director at Parks Associates. “An increasing percentage of properties – both new construction and existing properties – are looking to deploy new smart apartment and automation solutions, frequently paired with high-speed internet.”

The research revealed that smart MDUs are growing in popularity, with 57% of MDU managers having a lighting control system in their largest property, 26% an energy management and monitoring system, and 13% a smart home device or IoT platform or hub. And 44% of properties with energy management systems incorporate internet-connected devices such as smart thermostats and smart lighting into the system for remote monitoring and control.

The use of smart apartment technology in residential units is worthwhile as it helps attract desirable tenants and allows MDUs to raise rates and increase ARPU. Over half of MDU renters are willing to pay 15% higher rates for apartments with smart capabilities and amenities.

“Automation is a big deal to folks when they move,” said Vickie Rodgers, vice president at Cox Communities. “So what are they looking for when they move? They want it to be easy. They want things to be pre-enabled, so they don’t have the hassle and wait. And it’s starting to become table stakes for renters.”

Parks Associates is a woman-owned and woman-led market research and consulting company specialising in emerging technologies serving the consumer and small to medium business markets.