The tides are changing in the single-family rental home industry, and this is partly dictated 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. Because of this trend, renters nowadays have a particular set of expectations about the kinds of smart technology that they can find in single-family residences.
Some tenants opt to have smart devices provided by their landlord, from high-speed internet to smart thermostats to security systems. However, will the pros outweigh the cons enough to decide on upgrading your Jasper rental homes to attract these renters? The real answer will rely on your responses to some factors that will include where your rental property is located and how much are you projecting your 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 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 be useful in areas where there is a growing concern for crimes as it adds a sense of security to renters who are doubtful because of the location of the rental home. Smart locks can make entering and exiting your rental homes easy at the same time affording you a secure transition for when 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 you have lots of renters that are working or are students, it may be great if you upgrade. A rental with smart devices may be more appealing in these locations, and you can logically raise the amount of rent to recompense for any upfront costs.
Potential Drawbacks
Although smart devices extend many advantages to property owners and tenants, there are some possible drawbacks. Maybe the most significant impediment property owners encounter when contemplating a smart device upgrade is the price. Most smart home technology devices aren’t too pricey by themselves, but the price tag does add somewhat 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 bear the rent hike you might need to recover your costs, so identifying your distinct market for each rental home is essential.
A second apprehension 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 turn out to be an expensive mistake.
Despite the fact that many renters are attracted to smart home technologies, such pieces may deflect other renters due to security matters. Many are suspicious of automation; we’ve all heard horror tales about digital devices being hacked, and our personal privacy infringed. While these incidents are rare, some possible renters may not be able to win their anxieties and look elsewhere.
In the end, it is up to each Jasper 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 Results 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 Results, contact us online or by phone at 812-461-1676 today.
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