Like most industries, multifamily housing has been subject to considerable change in recent years. We live in a time when many new and exciting technologies are helping to deliver ever-improving living experiences to increasingly digitally native renters. It is hard to think of any technology with as much potential to revolutionize multifamily housing operations than smart building technology.
Long before macro-economic factors combined to disrupt our industry, smart building technologies were transforming operating models. Forward-thinking operators were already reaping the benefits, removing friction from their residents and site teams' day-to-day lives, and creating new automation opportunities.
Self-show provides an excellent example of an innovation that both streamlines multifamily operations and improves prospect experience. To deliver self-show, multifamily operators must solve for "curb-to-couch" access control, a foundational component of the smart community.
While self-show is by no means the only use case for smart building technology, it is contextually important to understanding the change in attitudes towards smart building technology. For example, during the 2020 lockdown, residents became increasingly dependent on delivery services, placing a higher priority on smart locks and building access. The impact on customer expectations is likely irreversible, which is one of many reasons why we think that smart building should be part of every operator's technology strategy.
Multifamily innovation excites us! Our team has firsthand experience designing, developing, using, purchasing, writing about, speaking publicly about, selling and marketing some of the most revolutionary new products in the multifamily industry!
To understand technology, you must look at it both from the operator and the vendor's perspective. Every technology sounds plausible based on the sales pitch, so multifamily operators need to be judicious in their choice of vendors, and vendors compelling in the language and strategies they use to reach customers.
Through our popular industry blog and our frequent publications on technology and industry best practice, D2 is an active participant in the industry conversation. Our unique buy and sell-side perspectives help us understand how to position products and companies to maximize their relevance in the increasingly competitive multifamily market.
D2 helps technology companies in diverse ways, from collaborating on research and developing industry-leading content to the broader positioning of their brand, sales and marketing materials. We use our deep experience of demand generation to turn content into leads and revenue for the leading technology companies we work with.
For some years now, D2 has championed the cause of Short-Term Rentals (STRs). In a world where demand for rental housing and lodging has been evolving rapidly, platforms like VRBO or Airbnb offer an alternative revenue stream for multifamily operators.
Recent changes to the macro-economic environment, particularly the travel industry environment, have been challenging for the STR sector. However, STRs represent an attractive revenue opportunity to multifamily operators, so it seems likely that they will ultimately settle into a more normalized business environment.
To capitalize on the opportunity of STRs, operators must address the operational considerations in delivering short-term hospitality in a predominantly long-term lease environment. They must also understand the ever-changing ecosystem of intermediaries and their business models.
For the foreseeable future, markets will be uncertain, and we can expect a variety of demand conditions across markets and submarkets. Flexibility will be critical to revenue management success. And flexible rentals will become a more useful and ultimately essential part of the revenue mix.
