Is your property truly profitable?
In a recent news article, iLOQ Sales Manager, Mason Reiff, outlined the huge costs associated with mechanical-key-based locking systems. He showed how adopting an electronic smart-locking solution, and particularly one that is battery-free, addresses the financial concerns of property managers by offering a fast return on investment (ROI) and low total cost of ownership (TCO).
To provide a clearer picture of the TCO for a mechanical-key-based locking systems, Mason’s article described a calculator that focuses on three main cost components:
- Key replacement and lock rekeying costs
- Operational costs
- The impact of security breaches
Calculating the TCO is a great way to quantify the challenges facing property managers and it gives them the information they need to manage costs effectively and make strategic decisions. But, particularly in the US market, there is another calculation that is equally important. This is the net operating income (NOI).
NOI is a before-tax figure, appearing on a property’s income and cash flow statement, that excludes principal and interest payments on loans, capital expenditures, depreciation, and amortization. When this metric is used in other industries, it is referred to as ‘EBIT’ (earnings before interest and taxes).
Is it worth the expense?
By calculating all revenue from the property, minus all the reasonably necessary operating expenses, the NOI indicates to a property owner if renting a property is worth the expense of owning and maintaining it.
For example, in addition to rental income, a property might generate revenue from amenities such as parking facilities, storage spaces or laundry services. Add those up and then subtract the operating expenses for the property, such as property management fees, taxes, repairs and maintenance and insurance, and you are left with the NOI. High revenues and low expenditure equal an increased NOI meaning a more profitable property.
NOI can be increased by raising rents and other fees, while simultaneously decreasing reasonably necessary operating expenses. As Mason’s article concluded, forward-thinking property managers recognize that adopting smart-locking technology, such as iLOQ, is a strategic move towards enhancing property security and operational efficiency while contributing to environmental sustainability and elevating the user experience.
Make your property a desirable place to live
The enhanced security, sustainability and operational efficiency and elevated user experience offered by iLOQ’s keyless smartphone-based solution all add up to making a property a desirable place to live. Occupancy rates increase and tenants are more readily willing to accept paying higher rents. And, by being battery-free, eliminating the need for key replacement and lock rekeying costs, and reducing operational costs and the impact of security breaches, iLOQ’s technology provides massive cost savings for asset owners and operators. This unlocks large property value for owners and is reflected in the enhanced NOI.
iLOQ is not just a company that provides secure access to the buildings and spaces we use daily. We offer a robust portfolio of digital services and software solutions that make life smarter, easier, and even more secure and sustainable. Installing iLOQ’s battery-free technology is a small step for your property managers – our cylinders can be retrofitted to standard doors in a matter of seconds with no drilling or changes to the existing infrastructure – but they are a giant leap toward enhancing the profitability of your property.
We will be showcasing our range of battery-free and keyless smart-locking solutions that help you enhance your NOI on stand number 23075 at the ISC West fair in Las Vegas in April. But, for more information in the meantime, please contact:
Joni Lampinen, General Manager, iLOQ USA
wbav.ynzcvara@vybd.pbz
Tel: +1 914 774 3919 / +358 40 3170 262
About iLOQ
iLOQ is a technology disruptor that has revolutionized the locking industry by replacing mechanical locking to make life limitless. Battery- and cable-free smart locks maximize security, minimize lifecycle costs and enhance the value and sustainability of properties and infrastructures. iLOQ operates in more than 55 countries with over 1,800 partner locations globally. In 2023, iLOQ had a turnover of €141,3 million and more than 320 employees. www.iLOQ.com
