The multi-family vertical is full of unique solutions for unique needs — and it’s growing. Michael Rooney, director, business development, multifamily, ASSA ABLOY, New Haven, Conn., points to a recent study from Dodge Construction Network. “They recently forecasted a 54 percent increase in new multi-family apartment units by 2029, according to their 2024 Construction Market Forecasting Service Residential Building Outlook,” he says.

In Rooney’s opinion, this increase in construction translates to a new opportunity for offering simplified access control systems that improve both security and quality-of-life for users. “This growth in demand and construction activity means higher expectations for aesthetic surroundings, more amenities, and special attention to security and safety,” he says. “This includes technology and features for controlling access to various openings, whether for the parking garage, perimeter entrances, or resident units.

Larry Green, director, residential solutions, Traka, Orlando, Fla., says he sees the vertical branching into two clear paths with distinct needs. “It seems the market is almost dividing into two approaches — more luxury/features for market appeal and more basic living spaces focused on affordability (not specifically ‘affordable housing’),” Green says. “Affordable housing is a top priority for all involved in the industry — economic conditions are mandating a shift in thought. Build-to-Rent (BTR) — single family home communities built specifically for rental vs. purchase — has become another sub-vertical and there are many national players jumping on board.”

Beyond Apartments

Top of mind when considering multi-family are dwellings like apartment complexes, but there are other niches inside of the vertical. “There are so many different versions of multi-family,” says Jason Newland, multifamily specialist, electronics team lead, Allegion, Carmel, Ind. “We don’t want to put a square peg into a round hole. What we would have for something like a development downtown is going to be completely different from senior living, which is going to be completely different from student housing.”

Often, modern multi-family developments will include amenities like gyms and other common areas — expanding the buildings uses beyond that of just living. “Wellness focused buildings are becoming more popular,” says Rebecca Sole, territory manager, 1Valet, Gatineau, Québec. “A building that provides specific amenities to those who are interested in health and fitness creates a community within a building.” And these additional amenities require special access control considerations. 

Once you’re in with a property, chances are the ownership owns multiple properties. And if you can prove that you can offer both operational efficiency and improved resident experience, more than likely you’re going to get every building in that portfolio.

Newland’s analogy of a square peg in a round hole is an apt one, as each of these customers have unique needs that the integrator can address. “Each one of those customer bases is going to have a different set of needs and wants,” Newland continues. “Some of these are gonna be more tech savvy, some are gonna be tech-resistant. Which of these are going to want amenities? The overarching umbrella is that we are leaning into an access control, tech-focused world.”

What End Users Consider Home & What They Expect From It

Generally, technology evolves rapidly and with it, users’ expectations. The same can be said for societal associations and definitions. “The house with the white picket fence — the American dream — is starting to shift,” Newland says. “People are starting to think of a rental unit as their home, so they are starting to expect more of those amenities. Out of that tech stack, which ones are preferred, which ones are demanded, which ones are worth paying a little bit more in that rental payment?”

End users are shifting their relationship with apartments to be longer-term. The temporary solution before moving onto the “white picket fence” is now not so temporary — and end users will pay more for improved quality-of-life offers in multi-family. “If there are two different properties across the street from each other, and one of them has the technology — even if it’s a higher monthly rent payment — that's going to attract those types of renters,” Newland says.

Newland offers the following anecdote: “As technology evolved, we went from keys to credentials and then from credentials to phones. Recently, I spoke with somebody [who was] upset that they had to open their phone and hit a button to unlock an app to get in their door. They wanted to be able to use their wearable. People have demands and they’re willing to pay for them.”

As a cost saving alternative, Newland offers the offline lock solution. “Offline locks are significantly less expensive, especially in the retrofit world,” he says. “These locks are ‘plug-and-play,’ they’re offline and they can give users 90 percent of the features that they’d get if they had something hardwired, but for a fraction of the cost.”

The “All-in-One” Opportunity

This is one of the most important elements of multi-family — offering an all-in-one property management platform that can handle security as well as the necessities of day-to-day business. “Understanding the ecosystem of property management is crucial; this means recognizing the benefits of a holistic solution that merges controlling access with everyday resident needs,” says Darren Weinstein, senior manager of sales, multihousing, dormakaba, Indianapolis.

Sole agrees, “End users are tired of using multiple platforms and apps to have a positive building experience,” she says. “One for digital access, one for conversations with management, one to pay rent, one to submit maintenance requests, one for parking… it becomes too much. As a renter, their expectations are that it will be as seamless for them as possible throughout their tenancy to enjoy their building.”

The integration of technology also allows the integrator to add additional tangential security solutions. “There’s a movement away from managing multiple systems to do the same task … a single system that has the ability to add locks and then tie into the property management software systems,” says Robert Gaulden, go-to-market director, Zentra Access Solutions, Allegion, Carmel, Ind. “Then to that, you can start to add additional things like VMS systems — especially around the common area gates and parking solutions — visitor management solutions.”

Open Platforms & RMR

When it comes to addressing the vertical tech stack, and being able to provide the property management tools as well as expanding into other related security solutions, there’s one major piece of advice: “open solutions.” Preston Grutzmacher, residential business leader, Salto, Norcross, Ga., says, “It’s common to hear about properties that have chosen different unit locks, video entry panels, and third-party access control platforms. While these solutions might integrate into a common platform, changes in brands, partnerships, and product discontinuations can pose challenges. Therefore, it’s crucial to opt for open platforms with a wide range of integrations. This approach provides multi-family end customers with the flexibility to update their software solutions without needing to change the hardware.”

Compatibility considerations are paramount, Weinstein says. “Choosing the right solutions for multi-family properties can be filled with challenges, particularly when it comes to integrating multiple technologies. A common pitfall is the assumption that all smart locks and systems will easily connect to existing apps. Therefore, it is crucial for dealers and integrators to thoroughly evaluate compatibility before making recommendations.”

After taking into account that advice, the dealer/integrator is positioned to address multi-family end users’ recurring needs. “Beyond access control, the industry is still looking at adoption of things that are very familiar to our integrator base in the vertical, such as camera systems, additional security features,” Gaulden says. “Because of their interest in these technologies, there are opportunities for service contracts. These are cloud-based recurring revenue streams. There are great opportunities for integrators that are looking for recurring revenue streams to be able to move into this vertical.”

And these cloud-based systems offer benefits that the integrator can leverage to present the benefits of the recurring charge. “Property managers desire ease of remote management for their entire portfolio of properties,” Rooney says. “Cloud-based access control allows them to easily share staff and resources across multiple locations, automatic system backups, minimal IT infrastructure needs, and so forth.”

Training

Another primary consideration is the high turnover rate in the multi-family space. Training needs to be intuitive and comprehensive. Gaulden advises, “Understanding purpose-built multi-family software systems makes training a lot easier. It speaks the language of multi-family — create employee badge means nothing to a property manager, but move resident in means a whole lot. That can be the difference between having to retrain someone multiple times and having something be very simple and familiar.”

Weinstein adds, “Addressing cybersecurity concerns associated with these technologies can be a significant value-add for property managers. Training property managers on the importance of securing resident data within their apps, particularly concerning smart locks and payment options, can set integrators apart in a crowded marketplace.”

Manufacturers are also addressing the shrinking staff size in the space. These access control solutions can help fill in the staffing gaps in multi-family. “At the same time, property managers are handling more responsibilities with fewer staff members, driving the industry to automate many tasks that were previously manual,” Grutzmacher says. “This shift towards automation is essential for meeting the modern demands of both residents and property managers.”

As a parting piece of advice, Gaulden says, “Once you’re in with a property, chances are the ownership owns multiple properties. And if you can prove that you can offer both operational efficiency and improved resident experience, more than likely you’re going to get every building in that portfolio. So pick technology partners that allow you to grow.”