Swap Cost Centers for Savings: Reimagine Your Multifamily Technology Planning Process for 2026

As multifamily teams are deep in 2026 planning, a familiar challenge comes into focus. Expectations from residents, investors, and internal teams continue to rise, while operating budgets remain tight. Meanwhile, leaders are asked to improve the resident experience, ease the burden on already-stretched onsite staff, and reduce risk across the portfolio.

That tension forces difficult decisions every year. Dollars that go toward resident-facing improvements don’t always translate to measurable improvement in NOI. Investments in risk reduction may feel at odds with resident experience or create more busywork for staff. Too often, these priorities compete with one another during annual planning.

But what if they didn’t have to? What if new initiatives to reduce risk, streamline operations, and improve the experience for residents and staff could generate revenue, instead of requiring investment, and actually free up budget to use elsewhere?

As you plan for the new year, this article offers a different way to think about multifamily technology partnerships in 2026: not as line-item expenses to justify, but as strategic tools that can protect and grow NOI while easing operational pressure.

The Growing Role of Ancillary Revenue in Multifamily Technology Planning

During annual planning, it’s easy for tech decisions to default to a familiar question: Is this worth the cost? But for 2026, a more useful question is whether a solution meaningfully supports both the financial and operational health of the portfolio.

In today’s high-cost environment, every dollar counts. Joe McDiffitt, Managing Director at Coastal Ridge Real Estate notes, “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.”

The most effective tech investments are not those with the lowest cost – they are those with the highest payoff.  

This additional value may come from cost reduction in other areas of the business, such as cutting down on manual processes or administrative work, or even reducing exposure to financial or compliance risk. However, it can also be seen in higher revenues – solutions that add value for residents can provide an entirely new source of income.  

Solutions like rent reporting or a property damage liability waiver program are great examples of self-funding services that deliver tangible value to residents, while reducing operational strain or risk.

These types of partnerships change the nature of budget discussions. Instead of asking whether there’s room in the budget for another solution, teams can focus on how that solution helps fund staffing needs, resident improvements, or risk mitigation elsewhere in the portfolio – without worrying about whether additional costs will fit into their already-stretched budgets.

For Joe McDiffitt and his team at Coastal Ridge Real Estate, that method achieved an over $600k boost in revenue from Foxen’s Waiver Program in just one year, with 80%+ resident enrollment and complete renters insurance compliance across its portfolio.

“There is financial benefit to the property, both in terms of protection of investors by way of the protection offered, but also through [the ancillary income generation],” said Joe.  

Prioritizing Solutions That Improve Operational Efficiency

Another important factor when evaluating any technology partnership is the level of effort required to onboard and maintain a new tool portfolio-wide.  

Even the most “cost-effective” solution may prove to be far more expensive than anticipated if it adds new tasks and inefficiencies rather than meaningfully reducing onsite workloads. Onsite teams are often burdened with the downstream effects of inefficient technology platforms – when they should be spending time instead engaging with residents and providing personalized service.

To avoid this drain on their time, look for technology that can run largely in the background once implemented, and requires little to no daily effort from onsite staff. It should help lower portfolio-level risk or volatility, not introduce new points of failure. Focus on solutions that improve the resident experience in a way your renters can clearly understand and value – so that onsite staff don’t find themselves dealing with complaints or confusion.  

When a solution checks several of these boxes, you’ll know confidently that it is not just discretionary spend, it’s a strategic investment.

As Joe put it, “It can’t be a good solution in a standalone environment. It has to fit into our existing operating workflows and integrate well.”  

How Resident-Funded Services Reduce Budget Tradeoffs

One of the hardest parts of annual planning is deciding where limited dollars will have the greatest impact. Improving the resident experience, supporting onsite teams, and reducing financial risk are all important, but they don’t always fit neatly within the same budget.

Revenue-funded resident services can help bridge that gap. When residents receive clear, tangible value — such as financial protection, flexibility, or tools that support their financial well-being — participation can create new income streams. Those dollars can help offset operating expenses and improve overall financial stability.

Just as importantly, the most effective programs accomplish this without shifting additional work onto onsite teams. That operational simplicity is often what determines whether a solution succeeds long-term or quietly becomes another burden. ‍

Putting Your 2026 Technology Strategy into Action

Multifamily technology planning in 2026 is about choosing solutions that do more than add features. The right partnerships reduce risk, ease onsite workload, and create new revenue — helping fund your priorities instead of competing for budget.

If you’re looking for ways to grow NOI, reduce costs, and improve operational efficiency, a conversation with Foxen can strengthen your technology strategy heading into the New Year.

Book a 2026 strategy session to explore revenue-generating solutions designed for multifamily operators.