Complete Guide to Building Automation in Multifamily

Keeping multifamily investments profitable depends on being able to offer features that renters want. Building automation is one area of asset management that has gotten more popular over the last decade, giving renters smartphone-based control over things like locks, heating and cooling, lighting, laundry, and more. 

Without a doubt, building automation and smart devices are the future of multifamily properties. The only question left is how to get onboard with this exciting technology to leverage it and boost your investment portfolio. 

In this blog, you’ll learn how virtual property operations and building automation can provide convenience, security, and cost-effectiveness.

What is building automation?

Building automation system (BAS) is the blanket term for the network of technologies that monitor, control, and optimize building systems automatically. Basically, it’s a digital nervous system that can think, react, and adapt to property issues in real-time.

This technology isn’t new. Programmable thermostats and timed door locks have been around for decades, but over time, the complexity of these systems has grown to include:

• Customizable climate controls that automatically adjust to outside temperatures and moderate energy demands
• Locks that can be operated from anywhere in the world
• Lighting systems controllable by room
• Energy-saving initiatives that reduce power draw during peak usage periods
• Smartphone-based access control solutions 

Siri and Alexa have also become household names in automation. Using voice controls alone, property owners can now turn on AC units or open an entry gate from anywhere. 

 

What are the basic components of a building automation and control system?

Getting started in building automation can be a whirlwind. There are many pieces and parts to consider, each of which is essential to a functional system. 

As a builder or developer, knowing the components of an automated system helps you make cost-effective decisions for your investment. Let’s take a look at the basics of automated systems. 

Central control unit

Automation needs a brain to function a hub that can process information for the entire automated system. Small- to medium-sized multifamily properties tend to use third-party automation systems for processing data, but large complexes may need to process data on their own. 

A central control unit takes data from sensors throughout the system to process that data in real time. 

Sensors

You will need sensors for any data you want to collect. Most people know about door entry sensors and thermostats, but you can also use sensors to measure and monitor:

• Humidity 
• Water leaks
• Motion and occupancy 
• Light levels
• Air quality 
• Vibration and structural integrity

Like how a microphone needs a speaker, a sensor must connect to a network before it can provide data. 

Communication networks

You will need transmitters to send data from your sensors to the central processing unit. This means plugging in WiFi and Bluetooth transmitters to send data through secure channels (yes, people may try to steal your data).

Dashboard

The dashboard is where building operators and property staff can see data, receive alerts, and monitor the system. Smartphone apps are common, but there are plenty of other web-based dashboards you can use to make sense of the data your building gives to you. 

 

Building automation system examples

There are limitless possibilities when it comes to automating a building. Not only can tenants tweak appliances and lighting while they’re away, but property owners can also make sweeping adjustments to an entire building’s HVAC, plumbing, electrical, and access systems from anywhere.

Here are some current and emerging building automation system technologies:

Locks & access control 

It won’t be long before people aren’t fishing through their pockets for keys to enter their apartment. Smartphones make it easy for anyone to grant access to their dwelling, including friends, maintenance workers, delivery drivers, and more. 

Biometric entry systems are also on the rise, allowing tenants to enter buildings by simply scanning their fingerprint or show their face to a camera.

Climate control

Smart thermostats and building automation systems with temperature regulating controls make it easy to program the right temperature to suit unique preferences and ensure safe temperatures throughout a building. 

Climate control automations can include:

• Automated temperature across multiple zones
• Energy-efficient heating and cooling patterns
• AI-powered climate optimization
• Integration with weather forecasting 

Climate control is one of the highest costs for property owners, making automated climate systems a huge benefit in minimizing expenses. 

Premises security 

Building automation takes the guesswork out of premises security. Storing keys on a password-protected smartphone app ensures they don’t fall into the wrong hands. And if they do, solutions can be deployed right away. 

Automated security systems can include:

• Motion-activated cameras
• Automated door locks
• Real-time monitoring and instant alerts
• Integration with surveillance networks like Ring and ADT

Security is a space sure to see growth over the next few years, especially as AI programs get smarter. 

Leak detectors

Leaks can wreak havoc on your property, causing hundreds of thousands in water damage. But with leak sensors and a building automation system, you can prevent minor leaks from becoming major problems. 

As an added bonus, automated leak prevention can help protect or reduce insurance premiums, which is extremely valuable these days when insurance costs seem to keep going up. 

Emerging and future technologies

It’s easy to see the many possibilities that come with building automation. For property owners, this can also mean using AI-powered data to spot upcoming investments on the horizon.

In the coming decades, building automation may utilize technologies involving:

• AI-powered preventive maintenance systems
• Voice-controlled building interfaces
• Internet of Things (IoT) apartment systems
• Automation focused on environmental sustainability

 

The benefits of building automation for asset managers and developers

There is initial investment to automate an investment property, but the ROI is good. 

Building automation can:

• Reduce operational expenses to help maximize revenue
• Enhance the resident experience
• Increase property value
• Prevent property damage
• Protect insurance premiums and reduce the risk of large insurance claims
• Maintain safety and security throughout the property
• Provide valuable data and insights on amenity usage, access patterns, and more

Technology will only keep advancing stay ahead of the curve as a forward-thinking owner or developer.

 

How much does building automation cost?

Building automation can save you lots of money in the long run, but there is an upfront cost that may affect your investment strategy.

Here are a few ballpark figures to give you a rough picture of what to expect when investing in building automation:

Per unit cost ranges

• Basic systems: $500 – $1,500 per unit
• Premium/luxury systems: $5,000 – $10,000 per unit

Project scale estimates

• Small apartment complex (20 units): $20,000 – $100,000
• Medium residential building (50-100 units): $100,000 – $500,000
• Large multi-building development: $500,000 – $2,000,000

Additional financial considerations

• Annual maintenance: 5-10% of initial installation
• Software update costs: $500 – $2,000 annually
• System upgrade frequency: Every 5-7 years
• Potential energy savings: 10-30% reduction in utility expenses

 

Challenges to implementing building automation

You’re bound to encounter hurdles while rolling out a building automation system. You should be prepared for challenges involving:

• Retrofitting older buildings: Installing new technologies into old buildings can be complex and expensive. It may not always be the right option financially. 
• Technology learning curve: Some automation systems are more complicated than property staff and residents are used to. Plan for time and even educational resources to help people understand and utilize new systems.
• Adoption resistance: Some people don’t like new technology. Provide opt-in options as necessary.
• Update requirements: Staying compatible with modern technology requires ongoing software and hardware updates.

These challenges shouldn’t stop you from fitting your properties with up-to-date automation solutions. You may need help from consultants and technology pros, but making the shift will be a worthwhile move. 

 

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