The need for housing combined with low inventory has been a boon for multifamily rental properties. According to a recent Zillow report, most renters (54%) live in an apartment building.
Commercial builders want to tap that market, do right by their end users, increase renting velocity at a premium price, and improve their own bottom line, but challenges seem to grow with each passing day: inflation, volatile material prices, labor costs, labor shortages, high interest rates, consumer demand, and regulations. Although studies by the consulting and investment banking firm FMI show multifamily residential as one of the highest-growing construction segments in 2023, the firm predicts fewer starts in the future.
Yet, there are opportunities for the sector. Multifamily homebuilders need every advantage to adapt to market forces, meet the needs of consumers, and see growth.
But builders can't go it alone. Every step of the commercial construction process — from finding a location to planning and development, financing, design, bidding, pre-construction, procurement, construction and beyond — requires multiple decisions. Leaning on the right partners at each stage can lead to success.
When choosing an appliance supplier, considerations range from product supply, communications, cost and quality to flexibility, service and support. You need to work with reliable and responsive companies that understand your needs and can make changes when necessary. A good partner relationship is a two-way street, and both parties must maintain it.
Here are five things to think about as you choose an appliance partner/supplier:
1. Quality
It should go without saying that builders want to install quality products. On a basic level, the higher the quality of the appliance, the less need for repair, replacement, and maintenance. In addition, higher-quality appliances are part and parcel of a leasing strategy that will increase property value, attract a more discerning clientele, and allow for higher rents.
Partnering with Samsung gives you access to appliances known for their quality, reliability, and durability. Samsung prioritizes design, performance, and connectivity in all of its home products. Top designers from around the world spec the finest materials and finishes, setting a high bar for the industry. And when it comes to performance, Samsung garnered the most number one rankings in J.D. Power's 2024 Appliance Satisfaction survey — in cooktops, freestanding ranges, over-the-range microwaves, French door refrigerators, top-mount freezer/two-door refrigerators, front-load clothes washers, and clothes dryers.
2. Cost/pricing
During the pandemic-induced supply chain debacle, many multifamily builders standardized orders, bought in bulk, and ordered way ahead of installation. Considering that 61% of logistics managers surveyed by CNBC don't expect the supply chain to return to normal in 2024, those habits are still good to maintain. It's important to have partners who have access to a vast array of the products you need when you need them, such as Samsung's portfolio of premium products, including Bespoke appliances and Dacor luxury appliances.
When you buy at scale, working with a partner like Samsung means a hefty financial advantage. You can choose from several packages tailored to your needs that fit within your budget. Samsung is at your side from the start to make planning, ordering, delivering, and installing easier, saving you money in the long run.
3. Interoperability
Many Americans own at least one type of large smart appliance, such as a washing machine, clothes dryer, refrigerator, cooktop, etc. Consumers have become more adept at using these appliances and have grown to appreciate their attributes — and want to continue doing so.
For homebuilders, choosing an appliance supplier whose strong suit is connectivity is key. Sourcing smart appliances has never been a smarter move — or an easier one. With a deep bench of knowledge, Samsung was ahead of the game with connectivity before other manufacturers. Samsung has already weathered the ups and downs and marshaled the benefits of integrated appliances.
Because smart appliances are constantly learning, they can be more efficient. The software can detect and troubleshoot challenges and make updates (even years after purchase), and if there is an issue, service calls can be more streamlined. The Samsung SmartThings app pulls it all together so one device manages the entire home from cooking to clothing care to diagnostics and more.
4. Support/maintenance
The efficiencies and benefits of integrated appliances give consumers and builders peace of mind. However, choosing an appliance supplier with an excellent support and maintenance track record offers just that extra bit of comfort.
Not only does Samsung have the #1 rankings in overall quality for TVs and appliance services by ASCI, but Samsung has one of the lowest repair rates in the industry. If there are issues, maintenance and post-installation services are at your fingertips. Samsung's service portal offers a streamlined experience with real-time status updates. There's a dedicated builder support team to help builders identify local service providers. The service also offers cosmetic-part replacement for units damaged on delivery and can help tackle performance, warranty, or support questions.
5. Consumer expectations
The apartment amenities war has been going on for years, and that includes interiors. People between the ages of 18 and 39 — millennials and Gen-Z — who make up 50% of all U.S. renters are looking for living spaces that include reliable, high-end appliances. For them, renting can be a way to experience a certain level of luxury without killing their wallet.
Products such as in-unit laundry can increase rents by $100 to $175 a month in a metro area like New York City, according to Redfin. And stainless steel kitchen appliances — beautiful, durable, practical — are a classic design trend that's nearly future-proof. While these may be traditional in look, younger generation digital natives are looking for high-tech appliances. They understand the benefits of integrated devices, so bring on Samsung SmartThings. And renters, particularly the younger generations, are all in on sustainability. Appliances should be energy-efficient and Energy Star-rated. Partnering with Samsung puts you in a position to easily access the products that consumers are demanding.
When you select a comprehensive partner like Samsung, you can streamline your buying process with build-out packages that work with your budget and scheduling help so every delivery and installation goes smoothly. Ultimately, your peace of mind leads to end-consumer satisfaction.
Multifamily homebuilders make myriad choices at every step of the building process. When choosing an appliance supplier, you're looking for a partner you can rely on who understands the residential rental market, has a track record for quality products, can help you navigate current industry headwinds, and is known for its high-touch customer service and support. The choice should be simple.
Partner with a leader in AI smart home innovation to deliver rentals that are efficient, sustainable and aligned with the future of connected living. Contact Samsung today to transform your residential projects and meet the expectations of the modern homeowner.