The single-family rental home market is experiencing a new trend where the goal is to appease and entice 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, renters are also anticipating to find some smart technology that is accessible in single-family residences.
Some tenants are fascinated by particular smart devices offered by their landlord, from high-speed internet to smart thermostats to security systems. No matter how awesome an upgraded Livermore rental home may sound, as a landlord, you will have to consider if the outcome will outweigh the cost it takes to upgrade. You have to take into consideration many factors which include your rental’s location and even your projected 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 draw in a certain fraction of possible renters. For instance, 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 are useful in areas where there is an increasing concern over crimes in the vicinity, adding a sense of security that might pique the interest of renters who are having doubts because of the location. Smart locks can make the process of accessing your rental homes easy as well as letting you have a smoother transition should you have new tenants. 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 are plenty of workers and students, it is indeed sensible to do the upgrade. A rental with smart devices may appeal more strongly in these locations, and you can relatively increase the amount of rent to counterbalance for any upfront costs.
Even though smart devices have a lot of benefits to property owners and tenants alike, there are a few drawbacks that you have to consider. Probably the most challenging one is the fact that making the change to a smart device upgrade is costly. Although smart home technology devices are not that expensive on their own, they do add a bit to the cost of a rental home, which is why taking the time to study the facts would be very important before doing it. Many devices work as a coordinated system, meaning you might not be able to do the job one upgrade at a time. Additionally, not all areas will welcome the rent hike you might need to recover your costs, so acknowledging your specific market for each rental home is essential.
A secondary concern is the state of the Wi-Fi in your area, and administrative access, which you will need to sustain. 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 problems, smart devices might not work as advertised and end up being an expensive mistake.
While many renters are fascinated by smart home technologies, such features may deflect other renters due to security matters. Many are suspicious of automation; we’ve all been scared hearing accounts of houses that were hacked using their digital devices, therefore, exposing their personal privacy to other attacks. Although these occurrences are occasional, some likely renters may be spooked by it and will not tolerate the risk albeit minimal.
In the end, it is up to each Livermore 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 One 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 One, contact us online or by phone at 925-794-8339 today.