Dallas landlords: How do you handle water leaks?

Question

Hey Dallas landlords,

Quick question: How do you currently handle water leaks at your properties?

I'm asking because I've been researching water damage in multifamily, and the numbers are brutal:

- Average water damage claim: $17,000-$50,000

- 14% of all multifamily insurance claims are water-related

- Most leaks go undetected for 24-48 hours

I'm working on a solution—IoT sensors that detect leaks in real-time and alert you before they become $20k+ problems. I'm launching in Dallas and looking for 2-3 properties to do a free 30-day pilot.

But first, I want to learn from people dealing with this:

1. Have you had a major water damage incident? What happened?

2. How did you find out? (Tenant call, maintenance, etc.)

3. What was the total cost?

4. Do you use any leak detection system now?

If you're in Dallas and interested in a free pilot, send me a DM. If you just want to share your water damage story, I'm all ears.

Thanks!

Mazen

Bruce Lynn · Answer

Great PMs are proactive and do their best to prevent leaks.

They staff onsite during freeze events.They are proactive about checking vacant units, turning on heat, opening cabinet doors, dripping faucets.They are proactive about protecting outdoor/exposed fire suppression systems.They actively education residents about freezes and how to prevent them...Email blasts, signs, flyers, etc.We've had IOT leak detection for probably 15 years or more, so that is not a new or novel idea.  The trick will be the expense of installing and maintaining the devices.  I expect with the associate ROI.   Probably most water claims and expenses are not from undetected leaks.  It is from known leaks.  Sinks, toilet, bathtub, laundry draings back up and overflow.Where do you propose most leaks originate that an IOT device would detect before a human would?  Are they battery operated?   If so, how long does the battery last and who would replace that?  How many devices would I need per unit and what is the cost?I wish you the very best of success with your project and implemenation and riches selling them, but I think you will have a very tough uphill battle, especially in today's financial environment where investors are just trying to survive.

Mazen Daiban · Answer

Bruce – really appreciate the pushback. You’re absolutely right that proactive PMs are the first line of defense, and it sounds like you run a tight ship.

To your points about the "uphill battle" regarding ROI in this market:

1. "Most claims are known overflows, not hidden leaks."
You are correct that catastrophic overflows (tubs/toilets) are major claim drivers. While no tech prevents a tenant from clogging a toilet, the goal of sensors here is to detect the overflow the moment water reaches the floor. This turns a "ceiling collapse in the unit below" event into a quick "mop-up" event.
However, the silent killer is the "Hidden Leak": Pinhole supply lines, water heater base leaks, and slow drips behind cabinetry. These run for weeks, causing mold and structural rot that insurance often denies as "gradual damage."

2. "IoT is old news / Cost Concerns."
Agreed. Sensors have been around for 15 years. But Operations hasn't kept up. Most systems fail because they rely on passive app notifications that busy maintenance staff ignore.

• The Fix: A "3-Strike" escalation protocol. If the leak isn't acknowledged in 45 minutes, the system needs to physically call the owner/asset manager.

3. The Financial Model (Survival Mode)
This is the key. I know most owners are in "survival mode" and hesitant to spend CapEx.

• The Reality: Yes, there is a one-time installation fee per unit to get the hardware in place.
• The ROI: However, we structure the ongoing service as a Tenant Amenity. We see owners implementing a "Smart Home/Asset Protection" fee (similar to a trash valet fee). The tenant revenue covers the monitoring and creates a payback period that eventually recoups that installation fee and flips the system into Net Positive NOI.

Regarding the Pilot:
I'm actually looking to prove this "Net NOI" model on a pilot property here in DFW (10-20 units). If you (or anyone else in the area) is skeptical but open to seeing the data, shoot me a DM. I’m happy to set up a test run to prove the math holds up.

Cheers,

Mazen