The single-family rental home marketplace is bearing numerous modifications, of which is being boosted by 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. Therefore, renters presently convey various suppositions about the sorts of smart technology they will locate in single-family abodes.
Some tenants may like special smart devices delivered by their owners, from high-speed internet to smart thermostats to security systems. But is it worth enhancing your Cutten rental homes to engage these tenants? The remedy to this investigation will reckon on various elements, from where your rental property is situated to the forecasted 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 make sense in certain areas where there is a perception of crime as a problem, adding a sense of security that might attract renters who would otherwise be turned off by the location. Smart locks can make gaining access to your rental homes and providing a secure transition for new tenants easy. 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 a large number of renters work or go to school, it might make sense to upgrade. A rental with smart devices may appeal more strongly in these locations, and you can reasonably increase the amount of rent to compensate for any upfront costs.
Although smart devices offer many benefits to property owners and tenants, there are a number of potential drawbacks. Perhaps the biggest deterrent property owners face when considering a smart device upgrade is the cost. Most smart home technology devices aren’t too expensive by themselves, but the price tag does add enough to a rental home’s cost that it should be considered carefully 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. Additionally, 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.
A second concern is the quality 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 advertised and end up being an expensive mistake.
While many renters are drawn to smart home technologies, such features may actually 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 Cutten 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 Humboldt 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 Humboldt, contact us online or by phone at 707-444-3835 today.