TECHNOLOGY
TECHNOLOGY
JUDY BELLACK | JUDY LAWRENCE ASSOCIATES
To buy technology or to build technology ? The cost is the true question
There are certain technologies that apartment operators simply shouldn ’ t build on their own – like property management and revenue management systems , business intelligence platforms and even customer relationship management programs .
With the growing demand for resident-facing technology from renters , many apartment operators are left with this question : should we build the tech ourselves , or should we buy it from a proven supplier ?
There ’ s a reason you wouldn ’ t ask a fisherman to cut your hair – you end up paying for it in the long run , and the same can be true when trying to build a technology someone else has already developed .
Translation : an apartment operator serves itself and its residents best when it hires a company that specializes in the design and implementation of new technologies to do the work .
THE TRUE COSTS OF BUILDING A TECHNOLOGY YOURSELF
In theory , it may make sense to tackle building a new technology in-house – I mean , you may already have an IT team . But in reality , building the technology that will deliver the results and success you are looking for can be costly , both in terms of actual expenses and the extent to which an operator has to draw valuable resources away from its core mission .
Let ’ s take building a custom , white-label mobile app for an apartment community as an example . White-labeled apps are those used by residents to communicate with management , pay rent online , make service requests , for example . They are created with both the resident experience and onsite process top-of-mind and are different from apps for a property management system , which are designed to only streamline operations and help onsite teams better manage a property .
According to Glassdoor , the average salary for a single app developer with about five years of experience is around $ 75,000 . Also , the time needed to build an advanced consumer-facing app is roughly 28 weeks alone ; that doesn ’ t include the time needed to ensure the app integrates with your current IT infrastructure . Let ’ s not forget that your app will require ongoing development dollars to stay relevant by adding new features , providing user training and help desk support , and general maintenance and hosting ; figure a minimum of 20 % of your initial investment each year .
Ask yourself : do you want to pay such a significant salary for someone who isn ’ t actively contributing to your IT department on a daily basis ? Isn ' t it more effective to spend that salary on someone who can maintain , update and troubleshoot your existing platforms ?
One of the main benefits of plug-andplay technologies are that they are built
by developers who focus exclusively on consumer technologies and how those technologies impact the user experience .
A BETTER RESIDENT EXPERIENCE
Yes , multifamily is a business , and we should be dedicated to streamlining our business processes . However , we are also in the world of customer service , and resident satisfaction should be our number-one priority .
When apartment companies hire a supplier partner that specializes in the creation of mobile apps , they get access to true expertise and can place the development process in the hands of someone who ’ s been there before . Supplier partners are steeped in best practices and use their experience to anticipate and prepare for any possible problems or snags . This ensures the best resident experience . And when you nail the resident experience , it delivers greater retention potential and enhances overall business processes .
A seasoned business executive and consultant with 25 years experience leading sales / operations / marketing teams for suppliers to the multifamily industry . Former NAA Supplier ' s Council Chair , NMHC Supplier Partner Alliance Chair and NAA Paragon Award Winner . Advisor to Mobile Doorman and Respage . www . aamdhq . org AUGUST 2018 TRENDS | 45