How Smart Home Technology Increases Property Value In A Challenging Market

In recent years, we have seen an increase in the demand for smart home technology as consumers continue to shift to digital lifestyles.

said Andre Sanchez, Rently's COO. , which is a smart home: "Smart home technology, whether it's keyless locks, smart thermostats or leak sensors, is something completely new to the market even five or six years ago." and self-management solutions provider. "However, renters now really expect to see this technology in their living spaces."

The demand for smart home technology comes from within the home, so to speak, but in times of economic stress, how can investors and property managers justify the effort and expense of improving their communities?

Why smart home technology now?

Interest rates are at their highest levels in 20 years and home values are about a quarter of what they were in 2008, according to Lawrence Yoon, chief economist for the National Association of Realtors. More and more people are renting, but are still looking for the best homeowner amenities.

“As we move into an even more turbulent environment in the coming years, it is critical that investors and asset managers assess their needs,” said Merrick Lackner, CEO of Rently. “Investing in this climate may seem counterintuitive, but there are many good economic reasons to implement smart home technology now.”

For example, Lackner points to the current staffing shortage, which leaves fewer people at rental locations to conduct tours for potential renters. Self-driving technology like Rently can help offset productivity losses.

"While it can be difficult for a rental agent to find the time to view properties each day, our technology basically allows anyone to travel on any day without being tied down by the agent's schedule," said Lackner. “It's a more convenient way to pitch real estate when we're in a recession. If you don't have the staff to facilitate traditional agent submissions, a self-presentation is a great tool for achieving your recruitment goals.”

In addition to more rounds, the automatic mapping technology also increases the efficiency and productivity of existing staff, he said.

Sanchez added that smart home technology also improves the operator's ability to monitor and secure vacant properties.

"Just like the economic situation, we're hearing more incidents with the potential for property theft and things like that," Sanchez said. “With smart home technology, you can tell if there's activity in a room, especially when it's empty — are the lights on, is the thermostat working, are the locks open? — and really helps the operator maintain a high level of security.”

Luckner said he believes the current economic climate will eventually increase the use of smart home technology.

"This allows landlords and operators to better maintain their properties, be more efficient with renting, save money on utilities and protect their assets," he said. “In a more disruptive environment, you need to take these efficiency and automation measures to reduce costs and keep your operating portfolio intact. So I think the economic pressures will be a catalyst for deploying smarter technologies.

How does smart home technology benefit investors?

Lackner describes two groups of rental property investors: groups that own and manage the property themselves, and groups that manage properties on behalf of others. He said that both groups are driven not only by the aforementioned advantages, but also by their ability to differentiate their advantages in the smart home technology market.

“In these circumstances, if you want to sell an asset, it will be very difficult to do so unless there is something more compelling and unique,” he said. “These are the homes that are better maintained, better painted, have better technology — they actually end up in a tougher market, with more value for resale or a long-term investment.”

Ultimately, Sanchez says, smart home features add value to a property, both operationally and as an investment.

“First, the technology is easy to implement by your management company; they don't just spend money on a platform and use it,” he said. “Second, the popularity of the technology helps them get hired faster, ensuring that there are no vacant units on the market that don't generate income. And third, smart home technology also helps keep that occupant happy and reduces the likelihood of them moving, which stabilizes the income stream. “”.

He said if tenants have a better experience renting a property equipped with smart home technology, tenants will be happier and stay longer, reducing cancellation losses.

“Retention of residents ensures that operators increase their investment,” Sanchez said.

Smart home equipment rental

Self-guided rental tours simplify renting with automated property demonstrations, while smart home technology helps property managers complete key operational tasks including property access, energy management, property security, and loss prevention.

Because Rently takes an open and flexible approach to product integration, all of its solutions can be easily integrated with popular property management systems, eliminating the technical friction that sometimes occurs when properties change, which often happens during times of economic instability.

Recent innovations in Rently products include a dynamic display feature that renters use to navigate property tours and a common area access panel that protects common facilities such as the pool, gym or lounge area.

"At the end of the day, this is a customer-focused product that delivers everyday convenience and long-term value to property owners," Sanchez said.

For more information on Rently's smart home technology, visit Rently.com.