Deloitte Suggests an SaaS Approach to Multifamily

Deloitte is working with real estate clients to explore a subscription-based model through its Living-as-a-Service (LaaS). Under the model, residents pay a recurring fee for housing and a bundle of services. Such services can include utilities, furniture, housekeeping and amenities. The concept borrows from the software industry’s shift from one-time purchases to Subscription-as-a-Service, or SaaS.

As outlined in a report co-authored by Deloitte Consulting LLP principal Jody Hill, residents under this model could have greater flexibility to move between properties within an operator’s portfolio, potentially using 30- to 60-day arrangements rather than traditional annual leases. For multifamily owners, that could create a new revenue model while allowing them to serve a growing population of renters who value flexibility over long-term leases.

Making that model work, however, requires different technology and operations. Deloitte is helping clients evaluate the data, analytics, technology infrastructure and partnerships needed to manage more fluid occupancy, service bundling and resident movement across properties and markets.

The firm’s Center for Financial Services is also researching the demographic and housing-market forces that could accelerate adoption of flexible rental models.

These are some of the reasons why Deloitte was selected to receive ApartmentBuildings.com’s AB 100 Innovators of the Year Award, which recognizes those who demonstrate creativity, skill and success in the multifamily industry.