The convenience and possibilities offered by smart technology appeal to tenants and landlords alike. When used for tracking maintenance issues, providing ease of access, and the many security applications, landlords love the possibilities of smart technology. In addition, tenants in the Millennial and Gen Z categories can’t get enough of the newest, techiest gadgets, and they get jazzed every time smart technology meets their everyday existence. The world of smart technology entices even some Baby Boomers.

While tenants charge full steam ahead, landlords find themselves considering the cost of adding smart devices to the rental properties versus the financial advantages such upgrades would afford. The bottom line: is the cost of these smart devices worth it? What will the potential ROI be?

Data supporting the value of smart devices in rental properties continues to filter in, supporting the notion that, in the long-term, smart devices are indeed a worthwhile investment. Consider these findings—

• • More than 3 in 4 apartment dwellers would pay more for a rental package which includes their top three smart home amenities, devices such as security cameras, keyless entry, and smart thermostats. More than half (57 percent) are willing to increase their monthly rent by at least $20.

• • Safety and security rank very high on the must-have list for tenants. A variety of easily installed, easy-to-operate smart devices can make a rental property more appealing, increasing the number of potential renters and impacting tenant retention. Preferred devices include doorbell cameras, keyless entry, and security systems. The option to add a unique code for guests offers a bonus. In addition, smart outdoor lighting that’s motion-activated can deter thieves even as it provides residents with a safe passageway when returning home after dark.

• • Eco-friendly features such as smart thermostats and smart plugs appeal to green-minded folks and those who favor lower monthly utility bills—which covers everyone. The plugs can also prevent accidents should something be unintentionally left plugged in.

 

Will every potential tenant be thrilled about a keyless entry or a smart thermostat? The answer is no. Some folks will never get on board, preferring to remain “old school.” Which means if a landlord installs smart devices in all his/her properties, a percentage of renters will be unenthusiastic, and too many smart devices could even be a deal-breaker. Therefore, landlords must investigate the potential tenant population in their area to know how tech-savvy the typical renter is.

Before a landlord makes a sweeping decision to go “smart device” across the board, especially in occupied units, they should carefully consider the ramifications. While some tenants will bounce with glee, others will likely be less than enthused. Communication is the key to making “smart” decisions that will not cause frustration and trepidation for current residents. Patience and a willingness to provide as much training as is needed will lessen the butterflies-in-the-stomach for many hesitant renters.

Staying abreast of the latest advances in smart technology will aid landlords in making informed decisions about including smart devices in their rental units.

About Rentals America

Rentals America provides full-service property management for residential rental properties. Our team is completely dedicated to property management and we’re here to help landlords navigate the rental market.