Multifamily operators are navigating sustained pressure on both revenue and expenses. Operating costs remain elevated, onsite teams are stretched thin and rent growth has moderated in many markets. At the same time, expectations from residents, investors and internal stakeholders continue to rise.
In this environment, technology decisions often feel like tradeoffs. Investments meant to improve the resident experience don’t always translate into measurable NOI gains. Risk mitigation initiatives can add complexity to onsite workflows. Too often, these priorities compete rather than reinforce one another.
But some operators are rethinking how technology fits into the broader operating model — shifting from viewing it as a cost center to treating it as a strategic tool for protecting and growing NOI.
Reframing Technology Conversations
Rather than focusing solely on upfront cost, operators are increasingly evaluating whether a technology partnership supports both financial performance and operational efficiency.
Joe McDiffitt, Managing Director at Coastal Ridge Real Estate*, describes this approach clearly:
“We really try and focus where we do have control in driving revenue and controlling expenses. With that in mind, we’re focusing on any opportunity to increase revenue through creative partnerships, putting good expense controls in place or things we can do to create a more seamless experience for our residents and our team members.”
This mindset has led many operators to prioritize solutions that deliver value beyond their price tag — whether through administrative time savings, reduced exposure to risk or new sources of ancillary income.
When Resident Services Help Fund Operations
Certain technology-enabled services fundamentally change how investments are evaluated. Programs such as property damage liability waivers and rent reporting can deliver tangible value to residents while also generating revenue that offsets operating costs.
For Coastal Ridge Real Estate, this approach resulted in more than $600,000 in revenue from their property damage liability waiver program in a single year, with over 80% resident enrollment and full renters insurance compliance across the portfolio.
As McDiffitt explains:
“There is financial benefit to the property, both in terms of protection of investors by way of the protection offered, but also through their revenue share program.”
Daniel Management Group (DMG) has taken a similar approach. According to Jonathan Sheil, Vice President of Operations at DMG, revenue generated through technology partnerships enables reinvestment where it matters most:
“When we can create revenue that didn’t previously exist, we can fully invest in the initiatives that drive true centralization and efficiency.”
Operational Efficiency Is Just as Important as Revenue
Financial upside alone isn’t enough. Even solutions with strong ROI potential can fall short if they add complexity or ongoing work for onsite teams.
Operators increasingly prioritize tools that integrate smoothly into existing workflows and require minimal daily oversight. The goal is to reduce friction — not introduce new points of failure.
McDiffitt underscores this requirement:
“It can’t be a good solution in a standalone environment. It has to fit into our existing operating workflows and integrate well.”
At DMG, operational simplicity has been especially impactful during resident move-ins. To ensure the efficiency of their property damage liability waiver program, they introduced technology for renters insurance compliance monitoring. As Sheil notes:
“The time savings during move-ins is tremendous. We’ve always required renters insurance, but [before] we were chasing down proof and sometimes residents didn't have it — meaning we couldn’t hand over keys, which led to frustration. Now, everyone is brought into compliance with their lease from day one.
Reducing Budget Tradeoffs
One of the most significant benefits of resident-funded services is their ability to reduce budget tradeoffs. When residents receive clear, understandable value — such as simplified compliance or financial protection — participation increases. That participation enables programs to generate revenue while also reducing risk and administrative burden.
A More Sustainable Technology Strategy
In a challenging operating environment, multifamily technology decisions must do more than add features. The most effective partnerships reduce risk, ease onsite workloads and contribute financially — helping fund priorities across the portfolio rather than competing for limited budget.
By reframing technology as a strategic asset instead of a cost center, operators can better align resident experience, operational efficiency and NOI performance.
*Coastal Ridge Real Estate and Foxen share common investors.
Sponsored by Foxen.
