SMART Thermostats have been available for a few years now and the make the lives of homeowners easy because once they are installed, we can set the temperature in our homes anywhere we have an Internet connection.
The big question is should you install a SMART thermostat in your rental property?
Pros of Installing A Smart Thermostat in Your Rental
#1: Attract and Retain Renters with Premium Amenities
In housing markets with lots of options for tenants, securing quality renters can be competitive. However, homes with smart tech can be more attractive to renters of all ages. According to the Buildium Annual Renters’ Report, 71% of millennial renters would be more interested in a smart home tech-enabled unit. Even 55% of baby boomer renters (ages 67+) are interested in smart home technology—but only if it’s intuitive to use.
To break the data out to smart thermostats, on average 32% of renters surveyed said smart thermostats would make them more interested in renting a particular unit. Also, smart thermostats are an eco-friendly tech benefit, which appeals to more residents who follow sustainable and energy-conscious lifestyles.
For renters considering whether or not to renew their leases, smart tech could convince them to stay—in the same survey, 12% of respondents said they would be open to renewing if smart home technology were installed.
#2: Raise the Rent
Data from the survey also reveals that 23% of renters believe living with smart home technology is worth paying higher rent. Compared to the top 3 “more desirable” unit characteristics renters would be interested in paying a premium for (in-unit washer/dryer, central air conditioning, and a balcony/private patio), a smart thermostat is much easier to install and add as a benefit. When you add amenities to improve the value of a unit, we recommend doing some market research first to understand how much you can raise rent based on how much people would be willing to pay for added features.
If your residents are considering renewing their lease, you can add your explanation for the up charge in rent in your rent increase letter. For those who pay their own utilities, you can compare what they’d save in energy costs to what they’d spend in rent, and easily justify your case. Utility companies often do the analysis for you, so be sure to call it out when renters get the bill.
#3: Save Money if You Pay Utilities
For landlords who own multi-family residences and have no way to divide the heating bill amongst tenants, this is an easy way to save some money. Smart thermostats can help you make your units as energy efficient as possible and allow you to control the heating remotely. If your tenants aren’t paying for heat, they likely have no incentive to be attentive about the heating bill, so this is a way for you to monitor it and save some costs.
Contact Vestpro Residential Services
To learn more about the benefits of installing a SMART Thermostat in your rental property, or to speak with us about our property management services, contact us today at (832) 971-1841 or click here to connect with us online.