In the competitive world of real estate, landlords are always looking for innovative ways to attract and keep good tenants while also making their properties more valuable. Smart thermostats are a technology that has become popular with both homeowners and landlords. This guide will discuss the benefits and things to consider when installing smart thermostats in rental properties, showing how they can improve a landlord’s offerings and increase their return on investment.
What Do Smart Thermostats Offer?
Smart thermostats are advanced devices designed to optimize energy use and improve the comfort of living spaces. They allow users, whether landlords or tenants, to precisely control the temperature based on various factors, such as usage patterns, weather conditions, and time of day. These thermostats have advanced sensors that can detect when people are present and adjust the heating or cooling accordingly. Landlords can also remotely monitor and adjust the temperature in their units, giving them more control over energy efficiency.
Pros of Installing Smart Thermostats in Rental Properties:
- Attracting and Retaining Quality Tenants: In competitive rental markets, offering premium amenities can make a big difference in attracting potential tenants. Smart home technologies, including smart thermostats, are popular across different age groups. Surveys show that 71% of millennials and even 55% of baby boomer renters are interested in smart home technology, as long as it is easy to use. By adding modern features like smart thermostats, landlords can make their properties more appealing, reduce vacancy periods, and keep tenants longer.
- Opportunity for Increased Rental Income: The same survey showed that 32% of renters would be more interested in renting a unit with smart thermostats. Additionally, 23% of respondents said they would be willing to pay higher rent for a property with smart home technology. As a landlord, this means you could charge more for rent and justify the higher price with the energy savings that smart thermostats provide.
- Cost Savings for Landlords: For landlords who pay for their tenants’ utilities, installing smart thermostats can be a smart financial move. These devices help optimize energy use, which can lower heating and cooling costs. Plus, with remote control capabilities, landlords can monitor energy use in vacant units and make sure energy isn’t being wasted. This cost-saving measure can be especially helpful for landlords who manage multi-family residences.
Cons of Installing Smart Thermostats in Rental Properties:
- Initial Installation Costs: One of the main concerns for landlords is the upfront cost of buying and installing smart thermostats. Popular models can range from $95 to $220 per unit. While these costs can add up, it’s important to think about the potential long-term savings on energy expenses.
- Savings Passed onto Renters: If tenants pay their own utility bills, the cost-saving benefits of smart thermostats may not directly help landlords. In these cases, the focus should be on the added appeal of modern technology to attract renters who are willing to pay a premium for the convenience and sustainability of smart thermostats.
- Considering Other Investments: Landlords should assess their overall property improvement needs before installing smart thermostats. If there are more urgent renovations or upgrades needed, like adding an in-unit washer and dryer or central air conditioning, it might be better to prioritize those investments to attract a larger pool of potential tenants.
Additional Factors for Landlords to Consider:
- Property Age and Compatibility: Older buildings may have outdated heating and cooling systems that are not compatible with smart thermostats without additional modifications. Landlords should assess the compatibility of their existing systems before investing in smart thermostats.
- Tenant Tech Savviness: Tenants who are less comfortable with technology may not use the smart thermostat’s features effectively, which would limit the potential benefits. Landlords may need to provide user-friendly instructions or choose smart thermostats with simpler interfaces.
- Maintenance and Support: Landlords should also consider the ongoing costs of maintaining and supporting the smart thermostats. This includes troubleshooting technical issues and potentially replacing batteries. Some smart thermostat manufacturers offer warranties or service plans that can help with these costs.
- Data Privacy and Security: Some tenants may have concerns about data privacy if the smart thermostat collects and transmits usage information. Landlords should be transparent about data collection practices and make sure the devices have adequate security measures in place.
However, Stevens Realty can work with landlords to develop a comprehensive property improvement plan that incorporates smart thermostats alongside other upgrades.
Stevens Realty Smart Home thermostats offer a range of benefits for landlords, including improved energy efficiency, higher tenant appeal, and potential rent increases. While initial costs and utility bill responsibilities may be considerations, the long-term advantages make smart thermostat installation a worthy investment. As each rental property and market differ, landlords are encouraged to evaluate their unique circumstances and consult with property managers for expert advice on enhancing their properties with modern amenities.
With the right approach, installing smart thermostats can be pivotal in providing tenants with a more comfortable, sustainable, and desirable living experience while maximizing the landlord’s return on investment. Stevens Realty is committed to supporting landlords throughout the process, offering installation, replacement, and maintenance services to ensure a seamless transition and ongoing support. By partnering with Stevens Realty, landlords can confidently embrace smart home technology and elevate their rental properties to new heights.
