What Multifamily Operators Should Consider When Selecting a Proptech Partner

With a sea of Proptech vendors to choose from, separating out what’s just a “sales pitch” and what’s actually “under the hood” of a solution can be difficult. Every vendor says they offer compliance monitoring, enrollment tracking, resident support, and integration capabilities with property management systems. However, there can be a big disparity between what is promised versus what actually happens after contracts are signed.

It’s important to ask the right questions to better understand key differences in both the product and provider.  What truly differentiates long-term success is not just technology, but execution, support, and alignment with your organization’s objectives—including whether a partner incorporates property damage liability waiver programs into their renters insurance compliance solution and how residents are enrolled and unenrolled.

The most frequent problems multifamily operators experience with renters insurance compliance solutions that fall short of expectations include:  

• Delays in implementation

• Ongoing execution and failure to achieve 100% compliance

• Fragmented and insufficient customer support models

• Lack of consistency in delivery solutions across a portfolio

Implementation: The First 60 Days Matter

A common frustration from operators is speed of delivery, with some operators still waiting for a program implementation months after contracts have been signed. “The false expectations that are getting promised during the sales cycle come to light once that implementation gets set up,” says Tyler Specht, Foxen’s vice president of relationship management. “So, it’s important to have a clear understanding of what happens within the first 60 days.”

• Who owns the launch? Before signing contracts, know who is responsible for what throughout the implementation. Operators want a solution that will create efficiency for property teams—not add more work. For management teams responsible for day-to-day operations, what does their training look like? How involved will they be when residents have questions?  

• What does rollout look like? A simple and easy enrollment process is important for both property teams and residents. From the resident side, people want simplicity and transparency, but operators must be prepared to explain the program benefits and point residents to answers if they have questions Work with a partner who understands the value of providing proactive communication, such as informational hand-outs for residents during the application process and emails prior to move-in.  

• What happens when portfolios change? Owners and operators are constantly dealing with portfolio changes related to the buying and selling of properties. Find a partner who is prepared to accommodate those frequent changes and deliver consistency. When the launch of a renters insurance compliance solution at a new property can’t keep up with the pace of change, it can become another point of frustration for owners and operators.

Support Models: Understand What’s Under the Hood

• How is support structured?

• Who will property teams be working with?

• Is there dedicated resident support?

• Are there specialized insurance experts?

• Are escalation paths clear?

Operators need to look “under the hood” to better understand a vendor’s support model. Once you start digging into the details you can better understand where potential problems or gaps might exist. What is the structure, accountability, and responsiveness of the customer support team?

Choose a partner who prioritizes best-in-class service at all levels of the relationship, from the decision-makers to the property management team to residents. If one level of support is missing, it creates problems that can cascade into other areas. For example, if residents are frustrated, they complain to the on-site staff, who in turn take their frustrations to the owner or management company.

Equally important, residents need information on all their options, including how to unenroll from a waiver program by providing a compliant renters insurance policy. “We don’t want it to be a great resident experience only for those people who are enrolling in the operator’s waiver program. The process also needs to be seamless and simple for those who are opting out,” says Specht.  

• What to look for: A provider that offers clear communication and education. Ideally, a provider should offer a dedicated resident portal, and multiple support channels. If a certificate of insurance (COI) for a resident’s renters insurance policy is rejected, it’s important to quickly and clearly communicate to the resident why that policy was rejected and what needs to be done to fix the issue – without involving property staff.

True Partners Add Value

After a resident-caused, uninsured incident led to significant out-of-pocket costs, Nashville-based Nicol Investment Company needed a way to guarantee renters insurance compliance across its entire multifamily portfolio. The goal was to reduce the risk of unexpected out-of-pocket costs, minimize the administrative burden, and increase NOI.  

Nicol Investment Company identified early on that Foxen could do the job. The company checked all the boxes when it came to capabilities, customer service, and the references to back it up. On top of that, it was clear that Foxen takes the approach that “when you succeed, we succeed,” says Kyle Burkett, COO at Nicol Investment Company. “That’s just a huge competitive advantage of Foxen, and why we keep doubling down on the partnership,” he says.

Preliminary results Nicol Investment Company has realized from its partnership with Foxen include:  

• A seamless  rollout in under 3 months, including integrations with their PMS and four property management partners

• Total renters insurance compliance across 12 properties with over 3,000 units

• Over $20,000 in additional ancillary revenue in the first six months

From the beginning, Foxen also has been transparent and fair, adds Burkett. “And they also took workload off of our property managers, which kept them leasing apartments. So, it was a win-win for everyone,” he says.

Tips for Selecting a Trusted Partner

Asking the right questions can help you find the right partner and avoid both frustrations and costly mistakes. That includes evaluating whether a provider offers an integrated approach that combines renters insurance compliance with a property damage liability waiver program. For example, an operator might sign up for a renters insurance compliance monitoring solution, only to find out later that their property staff is responsible for adding and removing charges. Key questions to ask when evaluating a renters insurance compliance solution partner include:  

• What does the timeline look like for implementation and time to value?  

• Who is responsible, the vendor or property staff, for what different aspects of a compliance monitoring program?  

• Does the vendor provide communication and marketing materials for the residents?

• Does the vendor track ongoing renters insurance compliance after a residents lease is signed?

• How does the vendor communicate to residents if their provided COI is not compliant?

• How does the vendor handle resident compliance gaps?

• How does a vendor provide compliance reporting to the operator?

Operators are fielding dozens of pitches from Proptech companies that make a lot of big promises, which leads to what some in the industry have described as a “trust deficit.” If you’re among those who have been disappointed by such promises, you’ve learned the importance of looking beyond the sales pitch. By asking key questions, you can better choose a product and partner that truly meets your needs.

Download the 100% Renters Insurance Compliance Blueprint for a full framework of information and tips on how to evaluate both product capabilities and vendor partners when choosing a renters insurance compliance and property damage liability waiver solution.