Long-term renters are slowly transforming how the industry of the single-family rental home operates. 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. Consequently, renters nowadays have particular things that they are expecting to find in single-family residences.
There are those who desire to have smart devices in their homes that are provided by their landlord, from high-speed internet to smart thermostats to security systems. In a landlord’s point of view, you may be wondering if the cons will outweigh the cost that it would take to upgrade your Woodstock rental homes to attract these renters. To get an accurate answer, you have to factor in some aspects including the location of your property and the projected return 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 draw in a certain fraction of possible 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 areas where there is an alarming rise of crime-related concerns, adding a sense of security would entice renters who are thinking twice because of the location. Smart locks can provide ease when trying to access rental homes and will make the 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.
In the event that your rental home is located in a place where most renters work or are students, it might be a sensible idea to upgrade. A rental with smart devices could draw more interest in these locations, and you can increase the rent within reason to buffer the upfront costs.
Potential Drawbacks
Even though smart devices present amazing perks to property owners and tenants, there are also plenty of potential drawbacks. Probably the most discouraging part for property owners when thinking about a smart device upgrade is the cost. The reality is that smart home technology devices are not costly by themselves; however, the price does add enough to a rental home’s value that ought to be considered carefully before deciding on it. Many devices work as a coordinated system, meaning you might not be able to do the job one upgrade at a time. Moreover, your chosen market may not agree with your increase in rent, so it’s always wise to check if your market will be able to put up with the cost that you need to have for your rent.
Because of Wi-Fi powers smart homes, the next concern is the network quality. The Wi-Fi in your area and administrative access, which will be used primarily by the smart devices has to be strong so that your devices will be powered right. 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 might not work as advertised and end up being an expensive mistake.
Although there are a number of renters that are attracted to smart home technologies, such features may discourage other renters due to concerns about their security. Many are suspicious of automation; we’ve all heard horror stories about digital devices being hacked and our 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 Woodstock 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 East Cobb 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 East Cobb, contact us online or by phone at 770-622-5657 today.
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