Three Questions to ask BEFORE Installing Smart home Tech in Rentals

Technology changes faster than real estate. An apartment built 10 years ago is considered new, but a 10-year old blackberry is practically a fossil. "Smart home" technology is growing rapidly, and most surveys show high demand from tenants.  Owners and property managers are taking notice and looking for ways to increase operating income by installing smart home tech in their properties. 

If you are one of them, here are 3 questions to ask BEFORE installing smart home tech in your rentals. 

1. Who does it serve -- your tenants, or you, or both?

Most smart home tech is designed for residents, but we find that the most valuable tech actually serves owners and property managers. Your tenants may not gush over app-controlled blinds, but you will be glad to know when your HVAC system is deteriorating or when there is a water leak in your attic. In managing our properties, we approach tech the same way we approach any other upgrade and look for (i) utility and tenant satisfaction, (ii) ease of maintenance, and (iii) return on investment.

2. Will your tenants love it?

When you put in something that your tenants don’t use (or even hate), you’ve just increased negativity and the likelihood of vacancy. Buy things that are unquestionably useful -- video doorbells are better than, ahem, app-controlled blinds.

Our tenants love video doorbells and thermostats they can control remotely. They don't mind the $25 extra we charge to provide this service. No one has yet asked for lights with inbuilt speakers. Smart locks are somewhere in between and merit a blog post all their own.

3. How do I install and manage these devices?

Most smart home tech is easy enough to install, but managing it is a different matter. For a rental:

• You need an access hub in each unit that talks to all devices and connects them to the internet.
• You need a foolproof way to retain control of your tech, as tenants move in and out. Ensure you can grant and revoke access at will.
• Even the best tech will malfunction sometime, and even the most tech-savvy tenant will screw up some setting. How are you going to handle support calls?

Whether you do this yourself or take professional help, it is important to stress test the system by listing all the things that could go wrong during the life of the devices and how you would deal with them. 

The Bottom Line

Smart home tech can help owners detect and avoid problems in the property, while also providing valuable conveniences to tenants. But select tech thoughtfully and ensure you have a management strategy in place before tech-ing up your rental property.