There are many changes transpiring in the single-family rental home market, a number of them are influenced 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, there are certain expectations that new renters bring with them, and one of them is the kinds of smart technology they expect to find in single-family residences.
There will be tenants who assume that the common smart devices will already be installed by their landlord, from high-speed internet to smart thermostats to security systems. But is it really worth upgrading your Carson rental homes to draw these renters in? The answer to this question lies on a number of factors, from how much you expect as a return on the upfront costs to the location of your rental property.
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 are what some potential renters are looking for. 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 make sense for specific areas where the perception of crime is a problem. Installing these things would bolster up the sense of security that might convince renters who would otherwise be turned off by the location. Smart locks can make it easy for you to access your rental homes, and it also makes the transition for new tenants secure. 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 the location of your rental home has a lot of renters working or going to school, it may make sense to upgrade. Smart devices usually have a stronger appeal in these places, and you can reasonably increase how much you charge for rent to compensate for the upfront costs.
Potential Drawbacks
Smart devices truly offer a lot of benefits to tenants and property owners, but there are a few possible drawbacks that come with them as well. Possibly the most common complaint property owners make when considering a smart device upgrade is the initial cost. Most of the smart home technology devices are reasonably priced. Although they may not be expensive, there is enough incremental cost added to your rental home that it should be considered carefully before making a decision. Many devices work as a coordinated system, meaning you might not be able to do the job one upgrade at a time. Also, not all places can sustain the increased rent that you’ll be charging to regain your costs, so knowing your specific market for each rental home is important.
A second concern is the consistency and speed of the Wi-Fi in your area, and administrative access, which they will need to manage. 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 areas where geography or distance cause connectivity issues, smart devices might not be a good choice. They wouldn’t work the way they’re advertised and would just be an expensive waste.
While many renters would love to have smart home technologies, such devices may actually discourage others due to security concerns. Many are suspicious of automation; we’ve all read the horror stories about digital devices being hacked and our personal privacy being compromised. While these incidents are extremely rare, some potential renters still won’t feel comfortable and would rather look elsewhere.
In the end, the decision to install smart devices lies with the property owner. They have to be the one to determine whether upgrading their Carson rental homes is worth the cost. These types of decisions must involve good market data and detailed knowledge of a rental home’s area, both of which we at Real Property Management California Coast can provide. With our experience and data tools, we can help you find out which, if any, smart devices would be best suited for your rental home business. Don’t hesitate to contact us online or give us a ring at 310-535-2150 to know more Real Property Management California Coast today.
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