PropTech Pulse host Shelley Robinson sits down with Kevin Gardner to unpack how PropTech is reshaping the utility landscape. Utilities aren’t just background services—they’re at the heart of resident satisfaction, property value, and operational efficiency. But with shifting technology trends, electric vehicles on the rise, and the challenge of retrofitting aging properties, multifamily utility management is more complex than ever. Kevin shares how his company negotiates broadband service agreements and formulates customized solutions by simply listening to clients and understanding their needs. This in turn has transformed property performance and increased customer satisfaction.
00:00:01 – 00:01:25
Introduction to Prop Tech Pulse podcast
00:00:01 – 00:01:25
The podcast ‘Prop Tech Pulse’ is introduced by host Shelley Robinson, focusing on innovations and challenges in property technology within the multifamily sector. The show explores topics like AI-driven property management, blockchain, and real estate technology, aiming to provide insights for property managers, entrepreneurs, executives, and anyone interested in the future of living spaces. Shelley welcomes guest Kevin to the conversation, expressing enthusiasm for the discussion ahead.
00:00:59 – 00:04:12
Kevin’s career and telecom background
00:00:59 – 00:03:11
The conversation begins with an introduction to a prop tech adjacent topic focusing on multifamily utilities, which is relevant for residents, property owners, and prop tech founders. The guest shares his background, explaining how his career in telecommunications started unexpectedly when he needed a job after a personal life event. He began selling cable TV with Comcast, enjoyed the work, and advanced through various roles across the eastern United States.
00:02:37 – 00:04:12
The guest describes his role as area vice president of operations overseeing 1,200 employees near Detroit, but despite financial success, he sought new entrepreneurial challenges. He founded Telecom Marketing Strategies, the parent company of Multifamily Utility Solutions, initially focusing on consulting for cable (now telecommunications) companies. Their work evolved into representing these companies in negotiating access rights for multifamily properties until those companies brought the work in-house, ending their third-party vendor role.
00:03:41 – 00:06:50
Multifamily utility solutions and property owner representation
00:03:41 – 00:05:08
The speaker explains their work representing multifamily property owners and management companies in negotiating broadband access rights on private properties. While cities may grant easements for public areas, private property access requires contracts with homeowners, apartment owners, or homeowners associations who act as gatekeepers. They educate property owners about their rights and the importance of having well-negotiated agreements.
00:04:39 – 00:06:17
The company expanded its services beyond broadband to include utilities such as electricity, solar power, and water conservation through partnerships. Broadband is essential for many property technology (prop tech) solutions to function effectively. Although not a prop tech company themselves, they support the deployment of necessary technology infrastructure in multifamily properties.
00:05:42 – 00:06:50
They discuss the importance of technology for large properties, including systems like door sensors for controlled access in parking garages. Their client base includes those involved in lease-ups and property repositioning, focusing on adding value to properties through updated technological support.
00:06:16 – 00:09:44
Client types and business plans in multifamily
00:06:16 – 00:07:41
The discussion highlights the importance of understanding a client’s business plan in property technology. Clients using syndicated money often plan to sell within a few years, focusing on value-add strategies with shorter returns. In contrast, others aim to build generational wealth, requiring different investment approaches. The advice and tech solutions offered must align with these distinct goals.
00:07:12 – 00:08:38
The speaker emphasizes that property technology founders must grasp the nuances of multifamily ownership, which varies greatly. For example, REITs differ from value-add syndications or family-owned properties held for decades. These differing ownership philosophies influence sales strategies and highlight the need for tailored approaches in prop tech solutions.
00:08:09 – 00:09:20
The type of property significantly affects prop tech needs. Class A apartment complexes require more advanced broadband solutions compared to rural mobile home communities. Understanding property class and investment plans is crucial for recommending the right technology and services, such as broadband infrastructure.
00:08:44 – 00:09:44
Effective sales in prop tech depend largely on listening to clients rather than assuming their needs. The speaker stresses the importance of listening 80% of the time to truly understand client requirements and tailor offerings accordingly. Additionally, the conversation touches on evolving trends in utilities beyond traditional services like water, sewer, and gas.
00:09:14 – 00:12:48
Broadband trends and increasing competition
00:09:14 – 00:11:15
The broadband industry is becoming increasingly competitive with traditional cable companies, phone companies upgrading from DSL and copper to fiber, and third-party managed Wi-Fi providers entering the market. Over the past five years, the process for assessing broadband options has lengthened due to the growing number of providers and technologies available. Speeds have increased significantly, especially fiber upload and download capabilities, driven in part by increased demand during the COVID-19 pandemic.
00:10:46 – 00:12:48
Future technology advancements remain uncertain, as unexpected events like the pandemic have accelerated innovation in unforeseen ways. Industry ownership structures, such as family-owned companies, can influence the pace of innovation. In utilities, new products and services are emerging, though some areas like solar energy face varying prospects depending on state laws and recent changes in capital investment, making the outlook for solar different than it was two years ago.
00:12:14 – 00:15:54
Solar and electricity in multifamily properties
00:12:14 – 00:13:50
The discussion focuses on determining the best solutions for larger apartment communities, emphasizing factors like the condition of roofs, presence of carports or angled parking structures, and the local utility market. It highlights that competitive electricity bids are only available in deregulated markets such as Texas and some areas in Ohio, Illinois, and Pennsylvania. In contrast, states like South Carolina and Tennessee have regulated electric rates, limiting opportunities for alternative energy solutions.
00:13:49 – 00:15:18
Customization of strategies is crucial, considering business plans, regulatory environments, and property size. For example, cellular equipment leases on roofs require a minimum of four stories and flat roofs to be viable. The approach involves detailed client consultations to understand their portfolio and building types, followed by an assessment to identify potential savings or revenue generation opportunities.
00:14:48 – 00:15:54
Clients are actively seeking ways to increase Net Operating Income (NOI) due to rising costs and stagnant rents in many markets. Engaging with experts to uncover potential revenue or savings opportunities is valuable. Although such savings may not equate to large rent increases, they can still significantly impact financial outcomes, as illustrated by a budget meeting anecdote emphasizing the importance of incremental financial improvements.
00:15:21 – 00:17:19
Utility savings and revenue opportunities
00:15:21 – 00:16:22
The discussion highlights how small savings in utilities, such as an additional $20 per year per partner, can accumulate to a significant value when combined with others, potentially enhancing the overall asset value depending on the capitalization rate.
00:15:52 – 00:16:53
Value improvement is a key goal for all investors, whether focusing on immediate cash flow or long-term value. The conversation shifts to retrofitting trends in properties, noting that while some clients specialize in retrofitting, the topic can be complex and sometimes controversial.
00:16:22 – 00:17:19
Retrofitting with utilities like fiber optics faces challenges, especially in existing buildings that already have cable providers. The disruption and aesthetic issues, such as conduit wrapping, make the decision to retrofit carefully considered to avoid unnecessary complications.
00:16:51 – 00:25:39
Retrofitting challenges and technology modernization
00:16:51 – 00:18:42
The discussion begins with the importance of educating clients about the infrastructure demands of fiber installation, especially in new construction and smart community initiatives. Challenges such as dead zones in older properties affect the feasibility of technologies like virtual tours, emphasizing the need to plan with marketing and technology teams to ensure functionality and understand retrofit costs.
00:18:16 – 00:19:39
Older buildings often present significant challenges to modernizing technology infrastructure, such as fiber installation or electronic locks, due to their construction materials like cement blocks. Retrofitting these structures requires substantial investment and creative solutions, highlighting the complexity involved in upgrading legacy properties.
00:19:10 – 00:21:38
Electric car chargers in multifamily properties were once seen as a promising investment, especially for Class A properties, offering potential revenue and attracting residents. However, declining electric vehicle sales and political shifts have slowed adoption. It is advised to carefully evaluate such investments within the broader business plan to ensure optimal capital allocation and return.
00:21:13 – 00:22:39
The demand for electric vehicle charging varies by region, influenced by demographic and market factors. Investments in emerging technologies must consider these fluctuations and evolving political climates. Providers are encouraged to collaborate with experts to make informed decisions and avoid premature adoption of trends that may not yield expected benefits.
00:22:10 – 00:24:32
Technology adoption follows a lifecycle, often taking time to become mainstream. The conversation touches on generational differences in technology experiences, such as obsolete media formats and emerging trends like families reintroducing landlines to limit children’s exposure to smart devices. This reflects a broader societal tension between embracing innovation and seeking technological balance.
00:24:02 – 00:25:33
The closing remarks emphasize that technology needs differ across populations and over time. Senior living communities, for example, should anticipate future demands that will resemble today’s Class A property amenities and plan accordingly with long-term budgeting. The importance of tailored, forward-looking strategies in prop tech investments is underscored.
00:25:36 – 00:25:39
The episode concludes with thanks and encouragement to stay engaged with prop tech innovations.
