Is Internet Access Just an Expectation?

Last week, Apartment Guide released a list of the highest ranking apartment features and community amenities that consumers searched for on ApartmentGuide.com over the past six months (from February 2009 to August 2009). Here are the results:

1. In-Unit Washer and Dryer
2. Pets (allowed)
3. Air Conditioning
4. Some Paid Utilities
5. Washer and Dryer Connections
6. Dishwasher
7. Balcony
8. Garage
9. Cable Ready
10. Furnished Available
11. Swimming Pool
12. Short-Term Lease Available
13. Fitness Center
14. Gated Access
15. Oversized Closets
    

Here's what surprised me most: Wi-Fi, or even wired Internet access, didn't even make the list. (To be fair, it did make the list over at Apartments.com.)

Over 74% of the U.S. population is online, yet renters don't need Internet in their apartment? (About 85% of the population pays for TV service from a cable, satellite or telco provider.)

This doesn't make sense to me, unless Internet access has finally become an expected utility, rather than an amenity. Heat didn't make the list. Water didn't make the list. Electricity didn't make the list. Now, Internet access doesn't make the list. (Just a couple years ago, Wi-Fi was touted as a "must-have amenity" ... I would argue it still is.)

What do you make of this? What are you seeing in the market? Is Internet access not as important, especially if apartment hunters are "being mindful of their budgets," or has it become such an expectation that searchers don't even think to list it as a requirement?

Multifamily Technology at the NAA Education Conference

I'm excited to be moderating a panel at this year's Education Conference, held at the end of the month here in Orlando. The session is titled "Tech-Savvy Residents Expect Tech-Savvy Homes."


My job will be easy, primarily because I'll be sitting next to some fantastic panelists: Henry Pye from JPI, Steve Sadler from Post Properties and Dave Hanchette from Russound. Henry and Steve are multifamily veterans that do nothing but eat, drink and sleep technology, and Dave is a home technology expert who brings great perspective from the electronics industry. These guys will cover the latest trends in apartment technology – focusing on real examples and strategies that will attract tech-savvy residents. Between the three of them, they've seen it all and will be able to share incredible opinions and insights that we all will learn from.

That said, I'm officially recruiting the help of the MT 360° community... If you have a question about all things technology that affect our industry, I want to hear it. Send me an email or a tweet, or just leave it in the comments below -- I'll give credit where it's due for any questions I'm able to use during the session. And if you'll be in Orlando for the event, please let me know -- it's always great to meet new folks and share ideas.

Now let's hear those questions!

Top 10 Questions to Ask Your Architect: Part II

Let's wrap up our list of questions that you should discuss with your architect as an early part of the design process for any project:

5. Is this design suited for any in-unit electronics upgrades I may want to offer?
Reliable technology and sophisticated fulfillment centers make offering HDTVs, home theater systems and other upgrades easier than ever, without putting property owners in the electronics business. Upgrades installed prior to move-in show residents you appreciate both their lifestyle and their time, but require some forethought to ensure you're providing the appropriate level of pre-wiring.

4. Will I have to allow individual satellite dishes on residents’ balconies?
Regardless of the terms of the lease or HOA bylaws, the FCC gives residents the right to mount a dish on their balcony, unless a central satellite TV system is already distributed to each unit. Your architect should plan for a 12’ x 14’ climate-controlled room in the clubhouse or basement to accommodate the necessary equipment.

3. How will access control be managed? Can I pull regular reports from each entry?
Properly managed access control to common areas and resident floors is possibly the best security feature a developer can offer, especially in mixed-use projects. However, as fewer residents use traditional landline phones, be aware of how this trend affects your building's access control systems (as well as burglar alarms, satellite TV and other building systems).

2. How can I use technology in the leasing office and clubhouse to create a vibrant community atmosphere and a lasting impression on my prospects?
You know it’s important to create a powerful impact that entices prospects and encourages a sense of community among residents. Multimedia theater rooms, distributed audio, custom lighting, gaming centers, wireless hotspots and digital signage are all ways to make your clubhouse the main attraction.

1. Can I provide the high-quality telecom services that my residents expect?
Residents are more connected than ever before. Although technology isn’t often the primary reason a prospect chooses to live at a given location, poor services can frustrate residents and increase turnover. Telecom industry standards dictate the distance that signals can travel between connections. Ask your architect to include small rooms for distribution equipment that are typically no more than 150’ from the further point of any unit – this will enable your service providers to meet these standards and provide quality phone, video and Internet services to your residents for years to come.

As with all the other materials and resources used in a project, there are always more questions to be asked and more considerations that can be given to the technology that goes into today's buildings. Above all, it's important to understand the needs and expectations of your residents - as well as those groups that represent your next wave of renters - to give your team the best gauge of which technologies might not yet be the best fit for your business versus those that have become absolute essentials.

Top 10 Questions to Ask Your Architect: Part I

Consumer technology is getting more exciting, more compelling and more complex than ever before. The choices that you face as a developer or property owner are increasingly confusing, but cannot be avoided. Here are a few questions to ask of your architect before you get started that will help get your project off on the right foot:

10. Do my property's technology needs change if my project is for rent, for sale, or some of both?
Condo associations might not want their telecom services from the same providers that you may contract with to provide service to renters – understand that you might need separate provisions (and contracts) for each. Also, buyers may expect more choices to be available - think multiple provider and in-unit upgrades.

9. How can residents select the phone, TV and Internet provider of their choice?
Multiple providers means more choice for residents, but it also requires a more thoughtful approach to structured cabling networks. In any case, caution the architect or MEP against using any proprietary service provider designs. Also, consider cellular network amplifiers as many residents will rely solely on their mobile phones.

8. Does the leasing office design consider how our staff will utilize technology?
The onsite staff has technology needs that are very different from those of the residents. What does the leasing staff need? Will there be terminals for residents to access the property's web portal? How can maintenance staff become more efficient? Security is also a huge issue; residents or other unauthorized folks should be on a separate network to keep them from accessing private data.

7. How will residents access wireless Internet services with minimal interference? Residents like the freedom of wireless Internet access, but it gets messy in a high-density environment if it’s not properly managed. You should consult an Internet service provider that can automatically authorize accounts and remotely manage wireless Internet access in each unit.

6. What in-unit entertainment options do you expect our residents to use most?
Walk through a Best Buy – flat-panel TVs, audio in every room, and iPod docks are quickly becoming the norm. Planning for your residents’ lifestyle will give them greater flexibility, reduce damages to your units (a poorly hung plasma can wreak havoc on drywall!) and enable you to offer electronics upgrades.

Pay attention to the gadgets that you see people using, and keep an eye on the unique experiences that other industries offer to their customers. Think about the options you would want available to you if you were a resident. Offer something new and different, but take the time to test it for yourself - a new service won't do you any good if it doesn't offer a great resident experience.

We'll have five more questions next week... by then, at the rate things change these days, we'll probably be asking ten completely new questions.

Thursday Think Tank

I want to expand on an idea that I touched on in my last post... I think we've only scratched the surface of the possibilities for technology in multifamily communities, primarily because these buildings have never truly been considered as a separate, unique market from single-family homes. Let me explain.

Don't get me wrong... developers of luxury condos and apartments have gone to great efforts to improve the technology systems that go into their buildings, both to increase appeal to potential residents and to improve operational efficiencies. These include access control systems, video surveillance, burglar alarms, intercoms, posh lounges and theater rooms, business centers, "state-of-the-art" exercise facilities, and so on. Features such as these are common today in most newer communities.

:: New Possibilities

There still seems to be a real lack of creativity when it comes to technology services that are truly designed specifically for the urban, high-rise lifestyle. For now, let's just focus on what the audio and video services could look like at a property that's optimized for community connectivity. (Communectivity, perhaps...?)

For example, I've mentioned previously about how so many people can't live without their TiVo. Verizon has introduced a multi-room DVR that will give users the opportunity to access saved shows, as well as music and photos, from anywhere in their home. Great news for the 4-bedroom house in the suburbs... but if it's for my studio in the city, then who really cares? Let's take that idea a step further though, and apply it more specifically to a multifamily environment. Let me access my personal content in the clubhouse lounge or theater room, and now we're talking. My 42" plasma is great for watching Jack Bauer on 24, unless I can watch those same saved programs with some friends on the six-foot screen downstairs! The network is already there - one screen to enter my unit and a PIN number, and there are my shows. And if people start leaving and I need to get some work done back upstairs... no problem, I hit pause and finish the episode later from the comfort of my own couch. Seems simple enough, but that's not how service providers, or property owners, think... yet.

But I'm not a huge TV buff... music is my thing. Whether it's from my iPod or Pandora, I like being able to access my music when I want it. I recently saw a video profiling a high-rise in mid-town Atlanta that has CD/DVD players at each piece of equipment in the fitness center, so residents can bring their own discs to watch. This makes no sense to me, because I would guess that most residents are not going to carry a case of DVDs or music down to the gym. Heck, I don't even like having to bring my keys! So why shouldn't a resident be able to access their personal music and playlists from the fitness center, or the lounge, or at the pool? These are just a few examples - properties today have robust networks that could enable a lot of great new services with only a little creativity and a user-friendly interface.

:: Any Drawbacks?

I suppose that most content producers, not surprisingly, would contend that this would somehow go beyond the user's allowed usage rights. I agree that digital rights is a issue that needs to be reasonably addressed, but content that I purchase or select, that is only accessible at my command, seems like it should pass muster. We'll have to see how things play out with Cablevision's network DVR, although I think distributing content throughout a building is significantly different than content that is stored on a service provider's centralized servers. (Engadget, Multichannel News)

The greatest obstacle that I see is that there would be a perception that there is a lack of demand for these types of capabilities. I would argue that services like these will become a regular part of life for the typical 20-something urbanite. They already understand the capabilities that today's electronics enable, and their homes should be places that allow them to embrace the lifestyle of their choice.

So what else is possible? What happens when we throw wireless in the mix? Bluetooth? Social networking? Building amenities could get a lot more interesting, don't you think?