If you’re looking for a way to make your property more appealing to prospective tenants, you might consider investing in smart home technology. Smart homes are becoming more and more appealing to tenants in most areas.
But why exactly is this the case? And how can you take advantage of this as a real estate investor?
What Is a Smart Home, Anyway?
Smart home technology is a broad umbrella of devices and connective technologies designed to make life easier and more convenient. Sometimes, these devices are bundled together in the form of a comprehensive system, but more commonly, people mix and match various smart home devices to technologically upgrade their properties as they see fit.
For example, smart devices and installations can provide for greater security. A combination of cameras, motion sensors, and alarm systems can keep the property safer and enable tenants to remotely monitor the area for greater peace of mind. Smart appliances, especially in the kitchen, can automate certain tasks and make other tasks easier. And of course, smart thermostats and other smart HVAC technology can decrease energy use, increase overall efficiency, and give tenants more transparency into their daily habits.
Why are smart homes more appealing to prospective tenants?
These are just some of the reasons:
Security. As we’ve seen, homes equipped with smart home technology are often more secure. Obviously, security technology itself plays a powerful role in keeping the property safer. But we must also consider things like automatic lights, which can be used to keep a property illuminated even when you’re away.
Convenience. Smart home tech is often praised for its convenience. Instead of manually repeating the same task over and over, you can probably purchase a smart device that can handle it for you. Instead of manually adjusting the thermostat every time you want to change the temperature, you can set a schedule and have it handled automatically. Many smart devices and apps can even learn from your behavior and adapt themselves, decreasing the time you have to spend even further.
Efficiency. Some tenants are interested in smart home technology for the sake of efficiency. Smart appliances and devices are usually engineered to be as efficient as possible, minimizing energy use and facilitating patterns of behavior that require less energy overall. As consumers begin prioritizing energy efficiency and environmental friendliness even further, this is only going to become more important.
Control. Smart home devices give tenants more control over their domain. As a renter, you won’t have full control over the property. But with smart home technology, you’ll have more access and more control over the qualities that matter most. Even better, you’ll likely be able to control everything from a smartphone or a tablet.
Cost savings. Many types of smart home technologies can help tenants save money. For example, with a smart thermostat, you can optimize your temperature settings to stay comfortable while still minimizing the amount of energy you expend. Smart appliances can similarly use fewer resources, decreasing utility bills in the process.
Appearances. Some people love smart home technology because of its appearance and reputation. Showing off a property that’s been upgraded with the latest and greatest devices can feel empowering.
A positive sign. If a property has been equipped with the latest smart home technology, it may serve as a sign that the landlord is interested in staying with the times and keeping the property updated. It’s a positive indication of good property management all around.
Caveats and Limitations
There are some caveats and limitations to keep in mind, however. The big picture here is that not everyone is equally interested in smart home technology, and certain people may actually be averse to it. Before you spend a cent on any smart home technology for your rentals, make sure you understand who your demographics are and what their values are.
Some people have concerns about privacy – especially if your property and the tech within It has been used by previous tenants. Regardless of whether these fears are unfounded or not, people still have them. If you don’t make assurances about security and privacy, smart home technology can actually be a turn off.
Also, some landlords use smart home technology as foundational reasoning for increasing rent prices. Some tenants are averse to considering properties upgraded with smart technology simply because they don’t want to pay more than necessary.
Even so, smart home technology has more advantages than disadvantages in the realms of real estate investing and property management. If you want to keep profitability high and keep serving your tenants consistently, consider upgrading your units with an array of smart home features.
