In today's rapidly evolving real estate landscape, multifamily property owners face a dual imperative: meeting the heightened security demands of urban living and delivering the usability and degree of technological sophistication that today's renters expect. Outdated security measures, such as traditional audio-only intercoms, are not equal to the challenge, leaving properties vulnerable to issues like package theft and creating operational inefficiencies. The changing landscape demands a leap forward in more advanced property technology (PropTech) solutions.
In this manner, video intercom systems have transformed from what amounted to a security enhancement to a basic amenity that helps to enhance tenant lifestyle and bring value to the building. Video intercom systems address resident and property manager pain points directly by allowing visual verification of callers, remote control of access, and comprehensive solutions for secure package delivery. Their uptake is all part of a broader trend across the PropTech sector of leveraging technology to deliver more secure, convenient, and efficient living environments.
This article delves into the strategic advantages and compelling return on investment (ROI) that video intercom systems offer to property owners and managers. We’ll explore how these systems boost property value and market competitiveness, bolster security and mitigate liability, streamline operations for greater efficiency and savings, and ultimately drive tenant satisfaction and long-term retention, culminating in a clear understanding of their quantifiable impact on your bottom line.
Enhance Property Value & Market Competitiveness
In today's competitive rental market, it's the amenities of the property that are the driving force for securing and keeping good tenants. Modern video intercom systems are more of a desired standard feature, not a peripheral security advantage, but a trend in the way of being a lifestyle booster. Properties with such advanced technologies, offering state-of-the-art access control and unmatched convenience, will not only command more rent but also appeal to a more high-tech savvy tenant base willing to pay more for the increased security and hassle-free living. Indeed, case studies have shown that properties can achieve $50-100 higher average rent per unit than properties without such high-tech systems.
A high-quality video intercom system really sets your property apart from comparable properties that haven't yet upgraded from old or standard access solutions. Since residents in your market prioritize security and convenience through the use of technology, an upgraded system is a great selling feature. They usually recommend that prospective tenants will be more likely to lease a property that has a high-tech system due to perceived increased security and convenience, which will lead to higher tenant satisfaction ratings and a better competitive position in leasing.
Such an investment in a state-of-the-art, IP-based, cloud-managed video intercom system is a future-proofed investment to future-proof your building. As tenant expectations continue to change, as well as the increasing need for smart home connectability and frictionless digital experiences, these types of systems will keep making your building stand out and technologically up to date for the next several years. This avoidance of technological obsolescence maintains the long-term value of your property, rendering it more competitive in today's fast-changing real estate environment.
Bolster Security & Mitigate Property Liability
The simplest benefit of video intercoms is the revolutionary improvement in a building's reputation concerning security. In contrast to audio systems that were previously typically equipped with identification verification that could be under questions, video intercoms allow tenants and personnel to visually see who is visiting before opening up for them. Visual recognition is a precious commodity in deterring unwanted callers, like possible intruders or unwelcome door-to-door solicitors, from entering the building, thus considerably increasing personal protection for all of the building's occupants.
Beyond immediate visual verification, these systems provide property managers with near control and precious audit trails. Sophisticated video intercoms provide full records of access with time-stamp photographs or even brief-duration video records of entry transactions. This data is priceless to security incident investigation like theft or vandal, tenant dispute, and to provide rock solid proof in case legal action has to be taken, avoiding liability on property and insurance charges. Auditable logging based systems are capable of providing unparallel access to all entries and interaction in a building.
Physical presence of high-definition recording devices on access points is highly effective passive crime deterrent. The perception that attempted breaking is observed, videotaped, and easily decoded acts as a dissuasion for would-be burglars, slowing the rate of breaks, acts of property destruction, and other offenses. This crime control imposes a direct positive effect on property owners by having reduced possible damage to property, reduced costs of repair, and overall improved living conditions conducive to resident attraction and retention.
Streamline Operations: Boost Efficiency & Savings
New video intercom systems are also accompanied by a major operation efficiencies with cost savings as well as real-time resource savings to the property management staff. Cloud-based management consoles make it possible for the property manager to carry out numerous operations from an off-site environment, from tenant directory updates to access permissions administration (credential add or delete), activity logs monitoring, and even commanding multiple properties from a single interface. This remote capability greatly reduces face-to-face visits necessary for everyday administrative functions, with property managers consistently reporting "unbelievable time savings" and "effortless" administration.
The tenant turn process is greatly simplified by these web tools. Instead of the time-consuming, and sometimes costly, ritual of using physical keys or fobs – collecting lost keys, issuing new ones, and perhaps rekeying locks – managers can electronically grant or revoke access credentials in a matter of seconds from the management system. Furthermore, integration with property management systems (PMS) like Yardi can automate the process through real-time syncing of rent roll updates into intercom directories, potentially saving up to a significant percentage of monthly update time and streamlining the whole resident lifecycle.
Other than tenant management, video intercoms also streamline efficiency in admitting varied sets of service providers. Such persons may be granted temporary, time-based remote access via special PIN codes or mobile app controls without requiring the site staff to personally meet them on the site. This facilitates the managers to efficiently carry out their job, even allowing the removal of on-site full-time employees such as doormen or security personnel for checking entries, leading to substantial operations cost savings along with workflow enhancements.
Drive Tenant Satisfaction & Long-Term Retention
For the modern tenant, technology-enabled security and convenience are no longer on the periphery but central assumptions met in their housing choice. Video intercom systems address these modern tenant expectations directly and are a part of substantially enhanced quality resident experience. Bottom-line impact of enhanced personal security, simple visitor and delivery management, and elimination of household annoyance like lockouts leads to higher overall tenant satisfaction. Managers consistently report that "residents love" the convenience and additional security provided by these new systems.
Happy tenants are much more likely to re-rent, and that clearly helps landlords by saving on tenant turnover cost. Too much turnover is extremely expensive in the form of vacancy time, advertising to get new tenants, and unit readying cost. Through offering amenities like video intercoms with a direct benefit to a desirable and safe living way of life, buildings provide residents with solid reasons for long-term tenancy, so retention levels are increased and rental income is sustained.
Package management and the runaway issue of package theft are among the largest nuisances to multifamily residents today. Video intercoms offer a decent solution to the problem. When a delivery driver finally does arrive, individuals can be uploaded into a video call on their phone, view the courier live, and remotely open the door to allow for a secure drop-off in the building or package room. The feature natively addresses "porch pirates" and does not leave the packages sitting out on the porch unattended, with tenants often commenting that "deliveries are much easier now" due to the system.
Quantify ROI: Costs, Savings & Valuation Impact
The cost of the financial investment on a video intercom system has several significant components. The hardware cost, mostly in the front door panel, ranges from approximately $1,500 to over $6,000 depending on features and longevity. Installation labor is also a high cost, particularly for wired systems requiring much cabling, while wireless or IP systems require less labor cost. Also, the majority of available cloud-based solutions are in a Software-as-a-Service (SaaS) subscription-based model with regular subscription fees, often monthly or yearly per-unit or per-user basis, usually $3-$5 per user, that include cloud hosting, software upkeep, and mobile app utilization.
Despite these costs, return on investment (ROI) is realized when the tangible operating efficiencies are taken into account. For example, some property management firms have estimated over $8,000 in annual savings through dedicated phone line elimination, reduced maintenance calls, and considerably less time devoted to manual tenant directory updates. The ability to remotely control access, on/offboard tenants with ease, and provide vendors' access all work in combination to offset staff burden, and in several cases, literally eliminate the requirement for full-time on-site staff, i.e., doormen, and thus achieve considerable cost savings. Beyond physical operating efficiencies, video intercoms also achieve intangible, but equally valuable, long-term benefits.
Their increased security and convenience can pay for premium rental fees and add to property value, making the property an even more valuable asset to be sold or refinanced in the future. Increased tenant satisfaction and retention directly reduce costly turnover expenses. Lastly, there has to be an adequate ROI analysis of video intercoms that, in addition to their direct cost savings, take into account their highly beneficial effect on property marketability, tenant retention rates, and therefore the long-term value of the asset, resulting in a high return on investment. The transformation of video intercom systems from specialty security devices to ubiquitous PropTech basics is a testament to their transformative impact on multifamily neighborhoods. More than an access device, our study illustrates, video intercom systems are complete solutions that enhance security, streamline operations, and enhance the resident experience, and when grouped together, represent a powerful return on investment for property managers and owners.
Its benefits are five-fold: increased property value and marketability, improved security management with less liability, stunning operating efficiencies that result in real cost savings, and a boost to tenant satisfaction and long-term retention by an impressive margin. By eliminating such aggravating issues as package theft and streamlining daily entry, video intercoms make a building more convenient, secure, and ultimately more desirable place to reside.
To gain maximum value from this ROI, careful attention to technology, vendor reliability, and proactive measures in solving issues like privacy and ADA compliance will be required.
The future of video intercoms is even tighter integration with AI and the larger IoT ecosystem, further solidifying them as hub points inside the smart multifamily building. Active adoption of these evolving solutions on the part of owners will put them in the strongest position to meet the demands of the future multifamily universe, with a successful bottom line and healthy community.