IoT continues to gain popularity, with the number of global IoT devices reaching 21.1 billion in 2025. However, for multifamily property owners, not every trend translates into a smart investment. So, is IoT worth the cost for MDU (multi-dwelling unit) properties?
The short answer: Yes, it can be, but IoT is often misunderstood in the multifamily space, and its value depends heavily on how—and where—it’s deployed.
We spoke with Stefan Prince, Multifamily Solutions Specialist, about what it takes for multifamily IoT investments to deliver meaningful results.
What is IoT?
IoT stands for the “internet of things.” It refers to the huge variety of appliances and devices in a home that can now be connected to the internet. That includes your robot vacuum your fridge, thermostat — any appliance that can be linked up to the internet.
IoT in Real Estate
IoT is increasingly common in residential real estate, such as apartment buildings, military housing, and other multifamily properties. Property owners have more options than ever for adding IoT-enabled devices to their properties, such as:
- Smart lights and locks that residents can operate from their phones
- Water leak detectors that can alert management if pipes develop problems
- Smart waste bins that can sense when they’re full
- Smart parking sensors that can provide real-time data on parking availability
As IoT devices provide value to residents, more property owners are looking at IoT as a valuable upgrade. However, it’s important to understand that value for residents doesn’t always mean value for a property. However, with the right planning, investing in IoT can yield a measurable return for MDU properties.
Is IoT Worth the Effort for Multifamily Properties?
While some amenities clearly justify higher rents, they tend to be the kinds of upgrades that significantly improve quality of life, or which offer independent value that’s easy to calculate.
It’s relatively easy to estimate the value to tenants of a high-quality gym, for example, because it can be compared to the cost of a separate gym membership. In such cases, higher rental prices are more reasonable to potential tenants.
Despite their convenience, the value of many smart home devices is much harder to quantify, but specific ones tend to be well worth the investment for multifamily properties.
Consider the following when evaluating IoT solutions to help ensure your property invests in technology that delivers a verifiable return on investment.
- Multifamily IoT Involves Upfront Planning
Between purchasing the hardware, having it installed, and integrating it with a property’s existing cabling infrastructure, IoT investments require a clear understanding of all the setup requirements.
Beyond installation, many multifamily IoT solutions also involve ongoing considerations such as software updates, security enhancements, and periodic maintenance. Factoring these elements upfront helps owners and operators better assess the long-term value and operational impact. - IoT Works Best as Part of a Broader Amenity Strategy
Any time you’re thinking about making a significant capital investment, such as adding an IoT system, it’s important to look at the full picture of what you’re offering to residents.
IoT features tend to work best when they’re included as part of a strong package of fundamental amenities — including fast, reliable WiFi, which residents expect as a non-negotiable.To ensure you’re offering the right mix of amenities, survey your current and prospective residents to find out which ones influence their leasing decisions and renewals — and which ones are just extra perks. - It’s Best to Consider Upgrades with Clear, Trackable ROI
Ultimately, the upgrades property owners offer their residents should deliver a measurable revenue stream, or discernible cost savings.
“For multifamily properties, managed WiFi is an example of an upgrade that makes financial sense”, Stefan says. With managed WiFi, an internet services provider supplies high-speed WiFi to the building, which the property owner can charge residents a monthly fee to access.
“For something like managed WiFi or cable or anything else along those lines, property owners can see a direct return on their investment,” says Stefan. “If the service costs $20 per unit and residents are being up-charged to $70, that’s $50 in realized revenue.”
In terms of IoT, smart thermostats are a great example of a strong investment.
“Smart thermostats are a great IoT investment, especially with something like student housing. For example, they allow you to shut off the A/C systems all at once when students move out,” Stefan says. “If it takes four days to manually shut off A/C systems across 400 units, and extra A/C use costs about $3 per unit per day, staged shutoffs could still leave roughly $2,400 to $3,000 in avoidable electricity costs, not including labor costs.”
Managed WiFi services should also be considered as part of an IoT investment. A managed services provider can make sure a property’s student housing WiFi, to continue the example above, is compatible with the latest smart thermostat devices, ensuring the technology is properly integrated and optimized for efficiency.
The Future of Multifamily Technology
While we’ve seen no shortage of multifamily technology trends in recent years, the most successful technologies tend to be those that align closely with clear operational goals with measurable outcomes. For many properties, that means prioritizing upgrades like managed WiFi with IoT capabilities, future proofing your property investment and allowing for IoT upgrades without having to put in a new network infrastructure with each IoT solution.
Ready to upgrade your multifamily property’s technology? Contact Touchstone 1 (formerly, MDU Internet Services) today for a free consultation. We can help you determine your current wiring infrastructure, assess what your property needs to support the latest technology, and recommend cost-effective solutions for both new builds and retrofits to meet your residents’ needs and your budget.