How to Use Smart Home Upgrades to Increase Rent
Want to bump up your rental returns but not sure how? Read this article to understand how you can invest in some Smart Home Upgrades that can help you raise your rents by making your rental property more attractive to potential tenants.
Arbitrary rent raises are the fastest way to lose a good tenant. Rent raises generally need to be based on something justifiable, like a change in the market or rising costs. However, it's perfectly acceptable to charge higher rents when your property offers certain amenities, such as smart home tech.
There's a reason the pros use smart home tech. For instance, Houston apartment property managers at Green Residential manage rentals with extensive home automation packages and command higher rents as a result.
If you're a landlord who hasn't started incorporating smart tech into your rentals, here's why doing so can boost your rental income.1. Small upgrades offer a big impact
Of all the different smart gadgets you could add to your rental properties, starting small is your best move. Just because you can get a refrigerator that reveals its contents when you knock on the door doesn't mean it's going to translate into real value for your tenants. Sure, it sounds cool, but since you'll be responsible for repairs, it's an expensive liability.
Start with small upgrades that tenants actually want. For instance, smart thermostats are a great place to start. Tenants love these because they make it easy to control the temperature and help keep electricity bills low. With programmable schedules and energy monitoring, tenants will see the value and be willing to pay a little more each month for the convenience.
Smart locks are another convenience tenants love. They eliminate the problem of lost keys, late-night lockouts, and manual handoffs on move-in day. Tenants can lock or unlock their doors remotely, and you can reset the entry code fast during turnovers.2. Energy efficiency justifies higher rent
Energy efficiency is one of the strongest selling points for increasing rent because it provides ongoing savings. Smart home tech makes it easier for renters to use less power, which makes their energy bills drop each month. That's worth paying for. According to Google Nest, their smart thermostats can save users an average of 10%-12% on heating bills and 15% on cooling bills.
Smart appliances that use less energy are also a perk for tenants. Dishwashers, clothes washers, dryers, and refrigerators with smart capabilities can run optimized cycles to reduce energy and water usage.3. Smart tech improves security
Security upgrades with smart tech will attract tenants willing to pay more to feel safe. Smart security features increase your property's appeal and allow you to stand out in a competitive market. In fact, security is one of the top three factors tenants consider when choosing a rental property.
Having a smart home alarm system installed with window and door sensors will provide real-time alerts if anyone attempts to gain unauthorized access to the home. Tenants appreciate layered security that they don't need to install themselves.
If you're renting single-family homes, a smart video doorbell will be seen as a luxury. Tenants love being able to monitor package deliveries, visitors, and suspicious activity without having to risk their safety by opening the door.4. Smart lighting adds convenience
Convenience plays a big role in how tenants perceive the value of a rental property. Smart lighting and devices that can be controlled with an app can make a home feel premium. These are the kinds of features that significantly improve tenant satisfaction and will justify charging higher rent.
Tenants love being able to control lights with schedules, voice commands, and smartphone apps. Even small upgraded appliances like smart fans and window shades can make a home feel high-end without requiring renovations. Convenience always boosts appeal, increases perceived value, and justifies higher rent pricing.5. Smart home tech attracts high-quality tenants
Great tenants who pay rent on time and follow the rules often seem modern, efficient, and secure homes. Turnover is expensive, and smart upgrades can increase your long-term ROI substantially. Renters who favor smart tech are more likely to take better care of your property and stay longer, saving you plenty of money (and headaches) in the long run. They're also more likely to renew their leases.Smart home features deliver value tenants want
Smart home upgrades are more than just trendy gadgets. They're a powerful way to increase your property's value, attract better tenants, and justify higher rent prices. By providing features that offer convenience, energy savings, and security, you can command higher rents. Ultimately, smart home technology helps you earn more money every month while making your property easier to maintain and more competitive.
