Bells and whistles are not for every market or resident, however. Alterra Capital Group, which has moved its portfolio from Florida condos to work-force housing across the Southeast in the last several years, has found that getting units all wired up is a low priority, says Alterra managing principal Matt Papunen.
Still, the tech tide may be rising across the board. “We will be looking at bolstering our systems and capabilities for collections and monitoring market rent,” says Josh Kornberg, head of investments at Lightstone Group, which owns more than 20,000 units.
And at Greystar South, a multifamily fee-based manager of more than 33,000 units, regional manager Stacy Hunt believes that 2008 will bring a migration by middle market players to more complex property and revenue management technologies.
“Large owners like the REITs have already blazed the trail for systems and improvements,” Hunt says. “I think you’ll see some of the more passive owners, especially the ones who use fee managers, ask for those upgrades. I think they might even chip in and help defray the costs.”
Talking Back
Matt Papunen, managing principal, Alterra Capital Group
Q: Is technology always a good investment?
A: “At workforce properties, technology is a complete waste of money. When you are trying to afford $500 in rent, you are not looking to pay extra for anything above basic Internet and maybe satellite television.”
Source: MFE/Specpan
