Student housing property owners are facing pressure from every angle to maximize energy efficiency. More stringent environmental building code requirements, higher demand for energy-efficient living, and rising energy costs have driven a 3X increase in spending on retrofit programs over just a four-year span.
Add to this the potential to save up to $3 billion on utility costs in the U.S. alone, and it’s easy to see why energy management has become such a high priority for student housing owners.
While there’s no shortage of proptech solutions available, many properties struggle to find energy management systems that deliver savings and sustainability without adding overwhelming complexity to their operations. Many of the newest solutions are costly to purchase, install and operate, straining both financial and human resources, easily erasing any potential cost savings.
Automation seems a logical solution, but with staff already stretched thin, owners have legitimate concerns around who will manage the system, how much time it will take, and whether the investment will actually deliver higher net operating income (NOI).
That’s especially true for portfolio owners with multiple student housing communities across multiple regions or states, all aiming for lean operations. The last thing they need is a complicated system that requires special expertise. Instead, they need real cost savings with zero added complexity, maintenance, or new skill requirements for staff.
The secret to success is thoughtful implementation that balances measurable results with simple, hands-off operation.
Energy Savings You Can Measure
Energy management systems (EMS) are high-impact investments that deliver proven value and a measurable ROI. In fact, properties that implement smart home devices like EMS can expect OPEX savings up to 20 percent.
By using a best practice approach to EMS through a combination of occupancy detection, behavior patterns, and door event data from a networked Property Management System (PMS), a single property can reduce the heating/cooling runtime of its HVAC units.
Smart home solutions also make student properties more marketable and demand higher rents. In-unit energy management has not historically been a priority for property owners when students pay for their own utilities. However, as more students seek out more sustainable living, such investments can enhance community appeal, driving up occupancy and NOI.
According to a 2023 survey by the Princeton Review, 67 percent of prospective applicants say a college or university’s commitment to environmental issues would affect their decision to apply or attend. By improving the energy efficiency of their buildings, higher education institutions can save money, reduce their carbon footprint, and demonstrate environmental leadership to the public. Unlike offsets, efficiency can actually save institutions money, further benefitting them through increased asset values.
Above Property Visibility
For multi-property owners with hundreds or thousands of student housing units across their portfolio, network and cloud-connected systems can provide remote and above-property visibility for HVAC systems down to the individual unit level. These can send alerts for potential HVAC repairs to the on-property team, as well as allow centralized monitoring and management of technical functions in a “smart hands” role.
Additionally, cloud-connected thermostats provide better asset protection through automated minimum cold or heat settings. If a student turns off their thermostat before leaving town for a week in the winter, a frozen pipe that bursts could affect multiple units. Connected systems lower that risk by maintaining minimum temperature thresholds to guard against infrastructure damage.
Bringing Down Complexity and Costs
In the past, the cost of thermostat networking, new equipment, and maintaining the system was a challenge for owners and on-property staff. Older EMS solutions often required installing a dedicated network, an on-premises server, and training staff on how to keep the network and servers running, as well as resolve any issues. The lack of on-site resources often results in a poorly maintained system, which industry experts suggest could mean these systems lose nearly 50 percent efficacy in just a few years after deployment.
Fortunately, newer EMS solutions use Wi-Fi thermostats to leverage the existing networking and cloud connectivity, eliminating the need for new equipment on-premises. This makes adding a networked EMS solution and integrating it with the existing systems much less expensive, easier to self-install and simpler to manage.
With cloud connectivity, Wi-Fi thermostats and other devices can be easily accessed remotely for management and troubleshooting over secure networks. This also enables above-property visibility, allowing owners to monitor the systems across a portfolio of student properties, coordinate with local staff on resolving issues, and know when maintenance is needed and resolved.
All of this means less capital and resources are required to purchase, install and maintain, ultimately lowering the total cost of ownership while also delivering superior energy savings for student housing owners and residents.
Maximizing ROI in PropTech Investments
Strategic investment in proptech solutions that directly address the highest operational costs and greatest inefficiencies can streamline student housing operations.
In energy management, maximizing ROI demands a “right-sized” system tailored to meet your property’s requirements that balances savings with reasonable staff demand.
HVAC automation can overcome high energy costs and staff shortages, but student housing owners must navigate this transition cautiously. Proptech investments that offer low-cost, no-hassle installation, minimal hands-on management, and simple operation deliver the most value and long-term success.
By addressing the two biggest line items in the budget — labor and energy — EMS solutions safeguard against ever-rising energy costs, deliver a solid ROI, improve resident satisfaction and enable staff to focus on providing a well-maintained community.
—Jeff Johns is Global VP of EMS Business Development for Nomadix, an ASSA ABLOY company. Johns has over 20 years of experience in hospitality technology and providing consultative design for energy management systems for guest room automation for hospitality, casino, and other markets. He’s responsible for the Nomadix EMS Solution and works closely with Engineering and IT partners to specify product requirements and configurations for a select channel of strategic partners. For more information, email John at [email protected].