Today, it costs more than ever before to own and operate rental properties, whether it’s commercial or residential. This rising cost is forcing landlords to adapt by increasing rent, which also requires adding more features to keep tenants happy.
To justify the higher rent prices, many landlords are equipping their rentals with smart technology, like various devices, appliances, door locks, lighting systems, and more.
Some common forms of smart home tech landlords provide in their rentals includes:
- Smart thermostats
- Smart speakers
- Smart refrigerators
- Smart washers and dryers
- Smart ovens
- Smart coffee makers
- Smart lighting
- Smart electrical outlets
- Smart door locks for keyless entry
- Smart security systems, like doorbell cameras
- And more
The reason landlords are adding smart tech to their rentals is because that’s what tenants want. In fact, many tenants say they would be happy to pay higher rent if it means getting a home decked out with smart tech. If you have yet to turn your rentals into smart homes for tenants who want to live a high-tech lifestyle, here are some good reasons to do it as soon as possible.
- You’ll attract more applicants
The more applicants you can get, the better chance you have at selecting a good tenant for your rental units. With smart tech as a perk, you’ll certainly generate more applications than you would without that technology. Having a wider selection of potential tenants to choose from makes you more likely to fill vacancies with ideal tenants.
If managing applicants feels like a chore, you can always outsource the task to a professional property manager. There are significant benefits to hiring someone to manage your rentals. For instance, Georgetown property management company, Green Residential, provides Texas property investors with the services needed to run a hands-off rental business. They field applications, screen potential tenants, collect rent, handle repairs, and everything else required to keep a rental property running smoothly.
- You can charge higher rent
Typically, you’d need to charge fair market rent for your properties, but when you have a property with smart tech, you have some room to play with an increase. Research has shown that most property owners increase the rent between 5% and 30% when they add smart home devices to the property. That can be a significant increase in rental income. For example, if you would normally charge $2,500/month for a property, increasing the rent by just 20% would bring the rent up to $3,000/month.
Granted, you’ll need to invest the money upfront in the smart devices, pay for installation, maintenance, repairs, and replace the technology if needed. As a landlord, anything you provide to your tenants for their use will need to be repaired or replaced if it breaks. However, it won’t take long for you to generate your investment back through the rent.
Out of all the different types of technology available, most tenants want devices that prevent theft and burglary, like smart security cameras, smart lighting systems, and smart door locks. These items aren’t that expensive and are relatively easy to install.
- You’ll retain tenants long-term
The holy grail of tenants is the long-term tenant, and you can get them just by installing smart tech in your rentals. Tenants are more likely to stay in a house they feel comfortable in, and since smart home technology makes life easy, it automatically increases tenant satisfaction.
Satisfied tenants are less likely to move, and are more likely to be easy to work with, pay rent on time, and follow the rules outlined in the lease agreement. They’re also more likely to take good care of your property and avoid causing serious, preventable damage.
Smart homes will keep you more profitable
There are many tips and tricks to fill vacancies, but sometimes it’s a bad idea to try to fill them fast. When you rush to get someone in, you miss the opportunity to take your time finding the right tenant. However, when you put smart tech in your rental units, you automatically increase your chances of attracting good tenants who are willing to pay a premium to get the perks of living in a smart home.
Ultimately, having rental properties with technology, like smart thermostats, locks, and security cameras, is an easy way to increase your profitability by decreasing vacancies and supporting the level of tenant satisfaction needed to get lease renewals and keep tenants long-term.
