The certainty is that long-term renters are the ones being sought out by most property owners, and because of that, the single-family rental home industry is going through many changes to accommodate them. 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. Thus, renters nowadays have outlooks in their minds about the different kinds of smart technology that they can expect in single-family residences.
There are those who are yearning for smart devices provided by their landlord, from high-speed internet to smart thermostats to security systems. But, is it worth all the cost to upgrade your Baytown rental homes to entice these renters? Well, the answer will depend on many factors including the location of your rental property and the calculated yield on the upfront costs.
The Benefits
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 sensible in certain parts where there is a growing concern for crimes, adding an idea of security that could entice renters who would otherwise be disheartened because of where your rental home is located. Smart locks can make getting in and out of your rental homes a breeze and make the transition a bit easier. 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 your rental home is in an area where there is a large number of workers or students, it may be sensible to upgrade. A rental home that is powered by smart devices could be appealing in these locations, and you can raise your rent to offset your upfront costs.
Potential Drawbacks
Just like any other upgrade, other than cost, there are also drawbacks to installing smart devices. Probably one of the biggest cons that property owners have to ponder on is the fact that a smart device upgrade is expensive. Although most smart home technology devices aren’t too expensive on their own, except the price tag does add enough to a rental home’s cost that it should be well-thought-out before jumping in. Many devices work as a coordinated system, meaning you might not be able to do the job one upgrade at a time. Moreover, you have to know your specific market as not all areas understand the need for an increase in rent and will therefore not be open to paying.
A subsequent apprehension is the quality of the Wi-Fi in your area, and administrative access, which is required for the smart devices to work perfectly. 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 an expensive blunder.
Even though there are renters that are interested in smart home technologies, some are also not buying into the entire idea of relying on them because of security reasons. Many are suspicious of automation; we’ve all heard a story or two about digital devices that were exploited or hacked therefore making personal privacy vulnerable. 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 Baytown property owner to determine whether upgrading their rental homes to include smart devices is worth the cost. Such decisions must involve good market data and detailed knowledge of a rental home’s area, both of which we at Real Property Management Prestige 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 Prestige, contact us online or by phone at 281-532-5455 today.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
