Have you considered turning one of your rental properties into a smart home? It’s been said that a smart home can increase the value of a property anywhere from 5 to 35%.
That increase in value can apply to renters, as well. In other words, you can charge higher rent for a smart home.
We’re talking about something more than just a residence that contains a few cool tech gadgets. If you want to create a true smart home, you’ll have to incorporate multiple devices into a single coordinated system that includes simple controls.
Here’s how doing that will instantly make your property more appealing.
Table of Contents
1. People are short on time
Everyone has the same 24 hours in the day, but that’s not enough for busy people who don’t have any time to waste. When you make a smart home available to tenants, you’re providing them with time-saving appliances and gadgets.
According to statistics published by alarms.com, 57% of Americans say they save 30 minutes a day by using smart devices in the home. That amounts to a total of a week and a half each year.
Creating a smart home is the best way to help renters save more of their most precious commodity: their time. For many people, that’s enough to justify paying a higher rent.
2. Smart homes will capture more applications
When your property qualifies as a smart home, you’ll attract more applications from potential tenants. That will help you fill vacancies faster.
Tenants want smart-enabled homes to save time and enjoy the convenience. If you don’t know how to create such a residence by yourself, ask your property management company for help.
If you don’t yet have a property manager, think about bringing one on board. Make sure it’s a reputable company, however; one that serves a large area rather than an individual.
For instance, Green Residential supports property investors in several regions around Houston as well as San Antonio. This means the company has more experience and greater expertise.
A property manager will take over many of your landlord duties, and they’ll handle the difficult situations that will otherwise drive you crazy. Having a property management firm set up your smart home transformation will be icing on the cake.
3. Smart device options are customizable
There are so many different smart devices, which makes it easy to customize a lineup for your tenants. For example, most tenants will desire the following items the most:
· Smart thermostat
· Smart video surveillance system
· Smart video doorbells
· Smart locks
· Smart lighting
· Smart nightlights
A smaller number of renters will crave the following:
· Smart washer and dryer units
· Smart refrigerator and/or freezer units
· Smart drapes
· Smart coffee pot
These last four items are regarded more as luxury components, especially smart refrigerators. Although some brands sell basic smart refrigerators for a few thousand dollars, the fancy units can cost upwards of $20,000.
You can add or remove smart devices from a rental unit based on what your tenants prefer. For instance, if someone wants smart lighting, you can have that installed in exchange for an increase in rent.
4. Smart tech is a small investment
For landlords, a small investment is nearly always preferable to a large one. It already costs a substantial amount of money to maintain the property, given the repairs, taxes, and other expenses.
If there’s a way to make your property more profitable with a small investment, you don’t want to pass it up. Compared to most potential renovations, smart technology is a small investment.
Since entering the mainstream of real estate investment practices, most smart devices have become affordable for just about anyone. The prices have fallen significantly.
If you invest a few thousand dollars into creating a smart home system, you’ll have an advantage in the market. People are willing to pay for convenience, and you can recover the cost of installation over a brief period of time.
Once your investment has been recovered, you’ll earn greater rental profits.
5. Most people want a pre-wired smart home
A whopping 81% of people would pay more for a home if smart products are already installed. That’s a guaranteed profit.
Smart homes aren’t just for the wealthy, nor are they reserved for tech geeks. If 81% of people are that interested, you’re sure to attract a healthy number of prospects with your listings.
Smart homes are the future
Many people live in connected homes already, but we can’t say it’s become a standard feature yet. A smart home remains a luxury that some folks can’t afford.
In the future, they’re certain to grow more common than they are today. People will grow so accustomed to smart tech in their offices and homes that they won’t want to live without the technology.