Smart Home Tech for the Win in 2024

Image courtesy of Rently

2024 is the year for a new approach to multifamily rental property management. It’s time to consider the potential for smart home technology to alleviate current fiscal strains, transition to more efficient operations, and increase property value over time.

Win Now

Investing in smart home technology lowers operational costs and counters the inflationary pressures on property management budgets.  Smart thermostats and smart lighting provide immediate relief through efficient energy management and 30% lower annual utility costs, on average. These devices also positively impact property sustainability scoring. Enjoying these cost savings, while also attracting today’s eco-conscious renters, make this smart home investment a quick double win.

Another short-term benefit of investing in smart home technology is the potential to reduce water damage repair costs by 70-90% with preventative maintenance. Smart leak sensors and smart smoke/CO alarms keep small property issues from turning into larger, more costly ones. The average cost of remediating a multi-unit leak is $12,000, and manager surveys show that leaks occur 4-5 times each year. Simply by adding water leak sensors, managers can save up to $60,000 each year. Furthermore, using smart home tech to safeguard properties can lower annual insurance costs by as much as 10%, with some insurance providers also offering up to a 50% discount on smart home devices.

One more quick way to lower your current operating expenses is to consider a one-time installation of individual unit smart locks. Aside from pleasing residents with added convenience and ease, smart locks eliminate re-keying expenses, which average $50-$100 per unit turnover, adding up to thousands of dollars each year.

Taken together, reducing these recurring operating expenses leads to noticeable bottom-line improvements.

Win More

Consider investing in smart home tech this year to transition to the emerging “centralized” leasing model, which offers time-saving remote management capabilities, addresses workforce shortages, and aggregates valuable operational data. This leasing model is best suited for today’s challenging economic times because it allows leasing teams to “do more, with less.”

Smart home technology supports centralization by enabling remote property management. For example, by deploying smart locks, managers can remotely initiate renter tours, facilitate unit turnovers, and provide property access to vendors and maintenance technicians. Renter surveys show a growing popularity of self-guided tours, with a recent 63% increase in renters expressing a desire to tour a property autonomously.

“Whereas a leasing agent might find it hard to find the time to show properties every day, our smart home technology is essentially allowing somebody to tour any day without being limited by the agent’s schedule. It’s a much more cost-efficient way to show properties during tight economies. When you don’t have the headcount to facilitate traditional agent showings, self-showing is a wonderful tool that can keep your leasing goals on pace,” stated Merrick Lackner, Rently CEO.

Finally, centralized leasing also provides property managers with actionable data for better operational decision-making and stores the data needed for most AI-powered property automations.

Keep Winning

A third — and perhaps the most important — reason to invest in smart home tech this year is because renters continue to communicate their strong interest in digital amenities. Whether it be for convenience or security, today’s renters have embraced a digital lifestyle that spans from their property searches to their living spaces.

Property managers can easily satisfy the renter preferences of today and tomorrow by investing in a comprehensive smart home solution that allows for online property searches, tour scheduling, automated screening, and a resident experience that includes the cost and energy-savings mentioned above.

Interestingly, in the post-pandemic environment, renters are again expressing interest in shared amenities, such as gyms, laundry areas, and conference rooms. Common area smart access devices make these shared spaces accessible and secure for renters, while providing property managers with oversight and control.

Thanks to this increasing consumer demand,  Statista forecasts  steady growth in smart home technology usage. The U.S. smart home market is projected to reach $38.8bn in 2024, and continue to grow to $55bn by 2028, based on a 9% annual growth rate. These statistics reflect an increased recognition by property owners of the long-term value of deploying smart home technology. For instance, surveys show renters are willing to pay $37.65 more in rental rates for smart amenities. In addition, smart home technology has the potential to achieve a 3-5% increase in property value.  Overall, smart home technology has the potential to net an average 30% ROI — making it one of the best ways to achieve leasing success!

Smart home technology is shaping the rental housing market of the future. Investors and property managers are well advised to differentiate their rentals now to capture the many investment and renter retention benefits of this long-term trend.  By resolving to upgrade properties with smart home technology, managers can win in 2024 and beyond!

Contact Rently to see how you can start winning with smart home technology.