The majority of landlords understand the property management benefits of placing smart devices in their units, but the financial benefits are less obvious. Fortunately, more evidence on the financial benefits of smart home features is beginning to surface. More than 80% of renters polled indicated they would be prepared to pay more for a bundle of their top three smart home features, and more than half said they would be willing to pay rent hikes of at least $15 per month.
Both landlords and tenants are interested in smart home gadgets and property technologies. Smart homes improve tenant experience, boost security, and may even improve cash flow by increasing rents. Your landlord's guide to smart home gadgets has been put together to illustrate how smart technology may assist raise rents and enhance tenant retention.
According to research done, a maker of smart locks and security systems. 65 percent of millennial renters would be prepared to pay more for a rental property with high-tech door locks. However, different smart home gadgets may have varied capabilities, and automation and surveillance elements that appeal to landlords may offend tenants.
Smart home technology
"Self-monitoring. Analysis, and Reporting Technology" is the origin of the term "Smart." Smart technology and devices have been around for a long time, even though many people are unaware of them. Smart gadgets that we use every day include programmable coffee makers. Google search automobiles with GPS and cruise control, iPhones, and Amazon Alexa. Smart home technology is a catch-all phrase for gadgets that utilize the internet of things to connect, share information, and collaborate to make renters' and landlords' lives simpler.
Adjustable thermostats, security cameras, door locks, digitally capable appliances, lights, and music systems are among the smart technologies present in today's houses. They're smart because they can be controlled and monitored from afar using a smartphone, laptop, or tablet, as well as voice commands.
The advantages of smart home gadgets
Smart home gadget demand is rising so quickly that experts have invented the name or internet of real estate - to characterize the burgeoning sector. According to research from Precise Security, the industry has grown from $45 billion to $92 billion in the previous few years and is anticipated to reach $159 billion by 2024. The benefits that smart home gadgets provide are perhaps the most important reason why so many rental property investors desire them.
- Improved building security in common spaces, including built-in motion detectors, multiple video communication, and smart locks that monitor access and change the lock electronically in seconds.
- Before maintenance concerns spiral out of control, smart sensors connected to give out alarms for broken windows, plumbing leaks,radon, and carbon monoxide.
- Smart thermostats and lighting systems can monitor and control energy bills, saving time and money during unit turnovers and property showings.
- Smart irrigation systems can automatically modify landscape watering usage based on weather patterns, soil moisture content, and outside temperatures and humidity.
- According to the National Apartment Association. 66 percent of today's renters are singles just starting, young adult housemates and perma-renters (NAA)
- These are renters who grew up with the internet and expect smart homes to be the norm rather than the exception.
Another advantage for landlords is that smart home gadgets can be regarded as one-time or capital costs. You may make a plan to keep track of all of your work and prepare for tax season.
Will smart home gadgets make renters pay a higher rent?
Because every real estate owner wants to see a return on his or her investment it's natural to wonder if renters would pay more rent for properties equipped with smart gadgets. Yes. it appears, however how much depends on the population you're renting to and the smart home gadgets and amenities available. Smart home devices may provide the best return on investment for investors with mid-range rental properties since it is a feature that distinguishes properties and can attract renters to unoccupied apartments.
According to a recent poll, more than 75% of renters would tolerate a $20 increase in monthly rent in exchange for updated technology and smart home features. Tenants think smart home technologies that give them awareness and peace of mind are the most important to them. The potential rise in rental revenue for investors renting may be considerably larger.
Landlords should install the following smart gadgets in their rental properties.
Smart home gadgets provide additional revenue while simultaneously lowering operational costs. Smart home gadgets are now considerably more inexpensive than they were only a few years ago. thanks to increased product demand and technical advancements. Here are seven of the most popular smart home gadgets that landlords should consider installing in their rental properties:
- Smart door locks and keyless entry systems controlled by smartphones or the Internet of Things range in price from $150 to $250,
- Smart thermostats that learn and alter temperatures when no one is home start at $100 or less.
- Starting at $20. smart security systems with motion detectors, night vision, and 2-way audio connected to Google or Alexa are available.
- Smart smoke and carbon monoxide (CO) detectors, which cost approximately $110. can transmit warning notifications to your smartphone from anywhere on the globe.
- Smart electric plugs and light switches are available in 4-packs for as little as $25.
- Smart coffee makers may appear little；but they may seal the deal with fussy tenants and start at around $100.
- Smart garage door openers with smartphone app control and Alexa and Google integration regularly go on sale for around $25.
Smart Safety Features
Because increased safety is one of the most enticing aspects of a rental property to tenants, smart safety features are a potential area to invest in when updating your rental property. Because a physical key isn't required, smart locks are one of the most popular smart home gadgets for landlords and tenants, Most smart locks can be unlocked with a pin code, Bluetooth connectivity, or by scanning a smartphone, and landlords won't have to change locks or keys when a tenant moves out nor will they have to worry about renters locking themselves out.
Keep in mind that lower-end smart locks offer less security (pin codes may be exchanged and buttons wear out), and reports of smart door locks being vulnerable to hackers have made some renters wary of having such systems installed in their own apartments. If you determine that smart locks aren't right for your home, try investing in movement smart outdoor lighting. Smart lighting makes it safer for residents to go up the walkway in the nighttime and deters would-be burglars.
Installing smart cameras at building entrances is another safety solution. Tenants have added peace of mind knowing that the comings and goings around the building are being watched. They can also discourage package snatching, which is useful if you don't have a doorman to accept deliveries. Smart video surveillance for your facility is affordable and simple to set up. but bear in mind that cameras will need to be maintained or replaced as needed.
Savers of time and money
Smart thermostats and smart plugs (which allow you to switch off energy to particular outlets remotely) help tenants save money and prevent mishaps if something is left on. While adding smart thermostats or smart plugs might be costly upfront, they are both reasonably simple to set up and are frequently requested by renters. These utility savers assist renters in managing the property even when they are not there, and more significantly, they can avoid mishaps, saving a landlord money and time.
Your Rental Property's Smart Home Devices
It's critical to calculate the return on investment from every smart home gadget you install in your rental property. A rental with the correct smart home gadgets should help you locate good renters, boost your rent and save you time and money in the long term. Some smart home gadgets,such as a high-end smart lock for the front door, may be more expensive upfront but they will help you attract renters who are willing to pay extra for a tech-savvy house. As a gsneral rule, you shouldn't spend a lot of money on a smart home feature if you don't think you'll be able to recoup that money in rent (or other maintenance or running costs).
Look at other listings in your region to see if any of them offer smart home gadgets, and if so. how much they charge for them. Make sure your rental is in an area where smart home gadgets are popular, then select the smart home devices th at best fit your property's needs.
Some smart home gadgets gather information about their users to sell it to advertising. Renters understand this. and they expect landlords who choose to invest in smart home technologies to do their homework to secure their tenants' data. Smart home technologies that improve tenant safety. decrease electricity costs, or increase convenience without compromising their privacy may be a significant appeal for renters, Before you go all-in. make sure you understand how data is kept, how to maintain the system, and how to communicate the value to renters.
Tenants are drawn to smart home gadgets because of the added security and convenience they provide, and most are prepared to pay a premium rent for them. Rental properties are more appealing, tenants are more likely to stay, and investment earnings are possibly higher. Investors in rental properties keep track of how their assets are doing. You can make sure you're getting the most out of your smart home gadgets by keeping track of your revenue and costs.