In the era of smart homes and connected living, multifamily housing operators face cybersecurity risks that weren't even on the radar just a few years ago. When everything from front gates to washing machines is connected or remotely managed, property owners, developers and managers must now treat digital security with the same vigilance as physical security.

But for many, this area falls outside of their wheelhouse, and they may not have the strategy, protocols or resources in place to protect themselves and residents in this new paradigm. With the risk of breaches, loss of trust and financial fallout all on the line, here's how MDU operators can deliver tech-savvy living with proactive, thorough risk management and mitigation.

Rising Tech Means Rising Risk

Smart home and IoT (Internet of Things) technologies are becoming standard in MDU living, with renters expecting a certain level of tech-forward amenities. And there are advantages for owners as well: smart tech has proven to deliver significant operational savings, reducing energy and water costs by nearly 20%, lowering labor costs and delivering other efficiencies.

But while these devices bring convenience and amenities, they also introduce vulnerabilities if not managed properly. In fact, attacks leveraging smart home devices have shot up nearly 125%, and a compromised security camera, HVAC system, or connected appliance is more than just an annoyance—it can serve as an entry point into more critical systems.

Shared Infrastructure & Third-Party Vulnerabilities

The MDU environment is home to many shared systems, including Wi-Fi networks, access control and building management systems. Some of those may be entirely under the property owner's control, but many are managed or accessible by third parties like contractors, vendors or service providers, which creates risk.

It could be as simple as a resident giving out door or gate codes to a cleaning service, or third-party contractors who require network or device access for troubleshooting. Most MDU property managers have no way of knowing who actually has that access or if their credentials are ever revoked, which means risk that lingers long after the physical access to those assets has ended. In addition, vendor systems like billing or property management software (PMS) may leverage cloud resources or rely on payment processors, creating an additional risk surface.

Resilience, Redundancy & Fault Detection

With so many devices, processes and people relying on connectivity, a resilient network is essential. But resiliency means it should do more than just work under normal conditions.

What happens if a switch, router, or primary network node fails? Is there built-in failover like a mesh network or backup device that takes over? And if that backup is activated, is someone alerted? Without proper monitoring and fault detection, the backup can remain in operation until it fails and only then is the primary fault discovered.

A network or power failure can also compromise physical security and resident safety. Critical systems like access control, gates and emergency alert systems must have resilient infrastructure to ensure safe continuity of operation.

Asset Inventory & Vendor Governance

You can't defend something that you don't know exists. The proliferation of digital infrastructure means many MDU properties have a multitude of devices, platforms and connections being added weekly or even daily. Before you know it, the connected landscape—and associated risk—is vast.

Get a handle on it by creating and maintaining an up-to-date inventory of all connected devices and infrastructure: who owns it, who maintains it, its firmware and software update status and whether the hardware is even still supported. Too often, organizations find that no one is managing things and they're woefully out of date.

Take the same approach with vendor and contractor management. Record and maintain inventory on who has access to what and enforce vendor security protocols, including background checks, the use of strong credentials and revocation policies when the contract or employment ends. Make sure software vendors have security best practices in place, including notification policies and liability insurance in the event they suffer a breach.

Incident Preparedness

It's a well-established cybersecurity mantra that it's not a matter of if an organization will have a breach, but when, so having an incident response plan is essential. Every property should have a written set of instructions—an actual printed paper copy, not one kept on a device or server because it could be inaccessible or compromised—for what to do in a suspected incident.

The plan must include who is to be notified, what steps to take, who is responsible and how to communicate both internally and externally in the event of a breach. And don't forget to clearly delineate lines of responsibility between property management, IT, corporate and vendors. Once again, too often, everyone thinks someone else is handling it, when in reality no one is.

Training, Awareness & Audits

Even the best systems fail if staff, vendors or residents aren't aware of the risks. Provide education and set policies to make sure everyone knows the rules, their role, and what to watch out for both digitally and physically.

Conduct regular audits and network monitoring to spot unusual activity, ensure backup systems are fully functional, and all property-owned and -managed devices are up to date.

Mitigate Risk with Technology & Strategy

For many MDU operators, cybersecurity is uncharted territory, but the risks are increasingly unavoidable and cannot be ignored. Aside from the financial implications (including the cost of remediation and potential insurance premium increases), the regulatory/legal and reputational risk can be just as damaging.

On the other hand, residents are also increasingly aware of the risk, and offering tech-savvy living backed by a strong cybersecurity program can serve as a competitive differentiator. Data from Parks Associates shows that security features increase NPS scores for properties, with cameras, controlled access and smart locks among some of the top desired security features.

By pairing secure technology like gateways with embedded firewalls and secure access protocols with smart operational strategy, investing in cybersecurity will pay off in resilience, trust and peace of mind for your organization and residents.