Author: Sherry Johnson, Sr. Product Manager, LiftMaster Access Control Accessories Follow Sherry on LinkedIn
How Mobile Credentials Help Property Owners Improve Business Operations
The LiftMaster experience for mobile credentials uses our myQ Community app to enable a unique, secure credential within a person’s smartphone. The hardware, either a smart reader or a smart video intercom, can communicate directly with a person’s smartphone, using Bluetooth low energy (BLE) that works for both iOS and Android. Here’s the best part. Mobile credentials enable keyless entry management for property owners and keyless entry for residents.
The 5 Ways Mobile Credentials Help Rental Property Owners Improve Business Operations
Rental owners with two or more properties have moved beyond the role of live-in landlords to that of real estate investors. Even though their business operations are more complex, the old way of doing things is hard to change.
For example, I’ve seen the miniature manilla envelopes that many owners use to keep their keys in. This leads me to believe that this old-school way of managing resident changeover is more than time-consuming and inefficient. It’s also a big security risk.
Anyone could easily make a copy of a key without the owner’s knowledge. Residents could share their pin code with friends introducing a risk factor, and fobs (like keys) can also be lost or stolen, leaving properties vulnerable to break-ins.
But mobile credentials are super-secure because they cannot be copied or shared. So only authorized users can enter the property. And, if needed, the owner could easily revoke access from the convenience of their laptop or tablet using the myQ Community cloud dashboard.
Property owners live in a perpetual state of multi-tasking, responding to residents, service providers, maintenance workers, and more. So, don’t discount the value of stress-reducing convenience.
With mobile credentials, owners don’t have to manage keys or pin codes. Instead, they can easily grant access to any of their properties remotely. This is especially helpful when you have last-minute bookings or need to give access to maintenance workers unexpectedly.
You also save time, ending the after-hours calls from locked-out tenants that disrupt your personal and family time. You may not have the superpower to be everywhere at once. But with mobile credentials, you can grant access from anywhere at any time as often as you need — with ease and without friction.
Let’s talk about the cost of old-fashioned key management. Property owners who transition to mobile credentials are saving both time and money. Here are just a few of the costs that go away.
Save money by ending the replacement of keys and fobs. Considering that three annual rekeys of locks can add up to about $450.00 a year it’s a significant saving.
Lower fuel costs by not driving to and from your properties whenever someone needs access.
Spend less on coffee to get you going in the morning. That’s because you’ve slept through the night with the peace of mind that your properties are secure and that residents can let themselves in using their smartphones as keys.
Real estate owners who want to attract and keep today’s renters need to offer the digital amenities this generation expects. This includes mobile access credentials and smartphone apps for guest management and keyless entry. Let’s look at the numbers.
61% of Gen Y respondents to Schlage’s Industry Insight Survey are more likely to rent a unit because of electronic access such as keyless entry.
63% of Gen Y would move out due to a lack of security.
And 1 in 4 residents would pay over $30.00 a month to get the high-tech apartment they want, according to the survey What Apartment Renters Actually Value. That adds up to $360.00 more per year per unit. Let’s say you have five units, that’s an added $1,800.00 in yearly rental income.
So, the relationship between mobile credentials and the convenience that today’s renters want is an opportunity for property owners to increase the rent they charge and still attract high-value, long-term residents.
Increase Net Operating Income
Let’s talk about how you can increase net operating income with mobile credentials. Net operating income, or NOI, is an important factor for both buying a property and setting its budget. It’s also a great benchmark for the profitability of each property in your portfolio. There are two ways a property owner can improve their NOI on a rental property.
Decrease operating costs
To increase revenue, an owner can either increase the rent they charge, reduce their vacancy rate, or some combination of both. To decrease operating costs, you need to improve efficiency.
One of the ways the government incentives real estate investments is by offering tax deductions for many of the expenses associated with running a rental property. In some cases, you can deduct the full cost of an investment you make in your rental units all at once rather than depreciating the asset over time. These are called Section 179 deductions and include purchases of equipment, vehicles, and smart access control technology within certain price thresholds.
Work with your tax advisor to choose the best path for your financial situation and goals. And don’t forget that you can write off your myQ Community subscription as an operating expense.
There’s never been a better time to invest in mobile credentials. You’ll improve your property and attract today’s renters. Because 25% of renters surveyed said they would pay more in rent for smart technology that makes them feel safe. And if you’d like to attract high-paying tenants, then mobile credentials are a no-brainer, right?
About the author: Sherry Johnson, Sr. Product Manager, LiftMaster Access Control Accessories, is responsible for the growth and awareness of Community Connectivity Solutions and Accessories Products. Sherry holds a BS in Applied Mathematics from Michigan Technological University. Prior to her current role, she was a Sr. Marketing Product Manager, Radio Control Sales Manager, and Business Development Manager with LiftMaster.