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Dennis Smillie, president of Multifamily Solutions Inc., an Ambler, Pa.-based technology consulting firm, discussed how technology will change the multi-housing landscape over the next few years with MHN`s senior editor, Maria Siakavellas.
MHN: What are the top two trends occurring today on the multi-housing tech front?
Smillie: The most significant trend is the continuing and accelerating consolidations of technology companies and the entry of larger-market capitalization companies into the multifamily sector. If we look at applicant screening as a prime example, that sector has evolved over the last 10 years from small and regional players to three major national players. The consolidation process has changed the rules and capital investment required for these companies to remain competitive.
Second, over the next 12 to 24 months, most owners will migrate to Web-based property management systems. This migration, if done with the right enterprise technology partner, will bring new operating capabilities and performance [improvements] for owners.
MHN: How have owners` and managers` expectations changed in terms of the benefits offered by technology?
Smillie: Owners are beginning to realize three key messages regarding the adoption of new technology. The first message is that technology brings change and that change, if not planned and well executed, can easily negate the value that the technology brings.
The second point is in terms of how owners approach software customization. Instead of trying to customize the software to meet their current business practices--and, as a result, losing the incremental advantages inherent in the software--owners are now beginning to understand that it makes more sense and creates more long term value to modify current business practices to take advantage of the new technology.
The third point is you ultimately get what you negotiate for. The technology industry has struggled with quality implementation and roll-out processes over the last five years. In many cases, it is because technology [providers], after having negotiated their deals with owners, don`t have enough ROI to be able to apply the appropriate resources to do the job effectively. So the owner may be successful in the negotiations regarding price and services, but ultimately negotiate so effectively that the provider cannot deliver based on the amount of money they are going to gain from the transaction.
MHN: What areas of the industry will technology most impact over the coming months?
Smillie: There are many: Online leasing and the ability for customers to conduct apartment transactions online. Acquisition due diligence and the ability to leverage technology and data to better make decisions on buying and selling properties. The ability of technology to enable effective renters insurance programs. The advent and use of centralized leasing centers supported by technology.
Also, electronic, end-to-end spend management systems that allow owners to control the purchasing practices of their communities. And automated customer satisfaction research tied into property management systems that allows owners to effectively and automatically poll their residents about service performance.
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