The ideal scenario now in the single-family rental home market is to attract quality long-term renters. Like many people, from millennials to seniors, find themselves not able to or not willing to purchase a home nationwide, large numbers are turning to long-term rentals instead. Because of this scenario, renters these days have a particular set of expectations regarding the kinds of smart technology that they are looking for in single-family residences.
Some tenants are longing for smart devices offered by their landlord–from high-speed internet to smart thermostats to security systems. Nevertheless, is it indeed worth the cost of upgrading your Parkland rental homes to draw in these renters? The response to this problem will hinge on many aspects including the location of your rental property to your anticipated return on the upfront costs.
Smart devices have the potential to make a rental home more efficient, more secure, and more convenient. Rental homes that are smart technology-ready may appeal to a certain percentage of potential renters. For example, a smart thermostat can make managing heating, and cooling costs much easier, reducing wear and tear on air conditioning units and furnaces as well as lowering utility bills.
Adding sensors and cameras to doors and windows can seem right in particular areas where there is an observation of crime as problematic, adding a sense of security that might attract renters who would then be discouraged because of the location. Smart locks can make gaining access to your rental homes and providing a safe transition for new tenants more convenient. No more changing the locks or emergency calls to a locksmith; you can simply change an access code to control who has access and who doesn’t.
If there are lots of renters who are working or are students in the area where your rental home is located, then it would be sensible to do the upgrade. A rental that has smart devices are appealing in these kinds of locations, therefore, making a move to increase your rent to counteract the upfront costs a bit easier.
Smart devices have plenty of benefits to both property owners and tenants alike, however, they also pose plenty of drawbacks. One of which, and perhaps the biggest challenge is the cost it takes for a smart device upgrade. Most smart home technology devices aren’t ridiculously expensive, but the price tag does change the cost of the rental home to a certain point, which is why landlords really have to think it over before making the move. Many devices work as a coordinated system, meaning you might not be able to do the job one upgrade at a time. Furthermore, not all areas will support the increase in rent you might need to recoup your costs, so knowing your specific market for each rental home is important.
Another worry is the reliability of the Wi-Fi in your area, and administrative access, which you will need to maintain. Many smart devices rely on wireless internet to function, and so if the signal is weak or drops, it may seriously interfere with the functioning of any smart device. In locations where geography or distance cause connectivity issues, smart devices just might not work as promoted and end up being a very costly slip-up.
Even though many renters are drawn to smart home technologies, such features may also repel other renters due to security concerns. Many are suspicious of automation; we’ve all heard horror stories about digital devices being hacked and our personal privacy violated. While these incidents are rare, some potential renters may not be able to overcome their concerns and look elsewhere.
In the end, it is up to each Parkland property owner to control whether upgrading their rental homes to include smart devices is deserving the cost. Such decisions must include good market data and detailed knowledge of a rental home’s area, both of which we at Real Property Management Sunshine can provide. With our experience and data tools, we can help you figure out which, if any, smart devices would be money well spent on your rental homes. If you still have questions or want to know more about Real Property Management Sunshine, contact us online or by phone at 305-930-7867 now.