You became a property investor to make money, and part of running a financially successful business requires investing in technology that will increase your revenue and tenant satisfaction.
Naturally, you’ll attract more tenants when you offer appliances like a dishwasher and washer and dryer. You won’t find many people opposed to having these appliances in their homes. When it comes to smart technology, it’s not so simple.
While it’s true that many tenants want smart technology in their homes and are willing to pay more to get it, that eagerness often depends on the type of smart technology. Some types of technology are not desirable to tenants, and according to data sourced by Rent.com, 17% of tenants don’t want smart tech at all.
Here’s a list of technology to carefully consider before equipping your rental properties with smart tech from top to bottom.
1. Smart doorbells
Smart doorbells are a particularly useful piece of smart home tech that many people have come to rely on when they go on vacation. A smart doorbell lets the occupants of a home screen visitors without having to open the door.
Most of these devices work with a two-way speaker, allowing them to hear the visitor and speak to them. This is excellent for safety when they’re home and security when they’re away. Some people say they’ve been able to deter crime just by speaking to a suspicious person standing on their doorstep.
Although it’s hard to argue with the benefits of having a smart doorbell, there are some potential issues. Some tenants might not know how to operate one even after being shown. Other tenants might not want the complication, and some might even find it annoying to interact with visitors through a screen.
To figure out if you should install a smart doorbell, take your rental demographic into account. If your neighborhood primarily attracts an older crowd, they might not care about having a smart doorbell.
On the other hand, if your rental units are in a college town or anywhere that gets younger renters, it could be something that gets your properties rented fast.
2. Facial recognition security cameras
If you’re considering installing facial recognition security cameras in a multi-family complex, you may want to reconsider. At first glance, it might seem like this would be a smart move, at least in common areas like the lobby, laundry room, mail room, or clubhouse. However, facial recognition is the most challenging form of smart technology you could possibly introduce into your rental properties.
In 2019, 130 tenants living at the Atlantic Plaza Towers apartments in Brooklyn, New York, won the fight against their landlord’s plan to use facial recognition cameras in order to grant tenants access to certain areas, including the main entrance to the building. Had the landlord’s plan gone through, tenants would have had no other way to enter their home.
The courts ruled in favor of the tenants, who were concerned about their privacy and didn’t want to be tracked. This technology is so controversial, local police and government agencies have been banned from using it in San Francisco.
Facial recognition technology seems great, but it’s not that accurate, especially when a person has dark skin. Cameras struggle to capture distinct facial features the darker a person’s skin is, which has led to many false identifications using this technology.
Before installing any kind of facial recognition software, weigh the pros and cons. Chances are, you’ll have more than a few tenants who will be upset and it may not be worth following through.
3. Smart locks
Smart door locks are fairly popular, especially for homeowners who rent their properties through Airbnb and need a way to bypass the possibility of people making copies of keys. With a smart lock, they can give guests a special code to use throughout their stay and then reset that code with a smartphone app from a distance.
While smart locks have many benefits, they may not be that beneficial for landlords and their tenants. For instance, when a smart lock relies on Wi-Fi and a smartphone app to function, which means a lost phone, power outage, or lack of internet will cut off access to a person’s home. Even if this possibility is rare or unlikely, many tenants just aren’t willing to take the risk. They’d rather stick with traditional, metal keys that get inserted into physical locks.
4. Electronic keys without the option of using a physical key
Electronic key fobs are everywhere, and most new cars don’t even come with physical keys. While people have gotten used to electronic keys, many are still not sold on the idea of using electronic keys to enter their homes. Still, some landlords have switched over to keyless entry systems for front lobbies and elevator access without giving residents the option of using a physical key if they prefer.
If you’re thinking about installing any kind of electronic key system to enter a multi-family complex or even a single-family home, you might want to talk to your tenant(s) to get their input first. Sure, it’s your property, but you don’t want to make your tenants so uncomfortable that they file a lawsuit against you.
Consider your tenants
Upgrading your rental properties with smart technology is a big decision and a significant financial investment. It makes sense to carefully consider your plans before taking action. Will your tenants be upset?
On one hand, it’s your property and your tenants shouldn’t have a say in how you run your business. However, the issues surrounding smart tech center on privacy and a person’s right not to be tracked, so it’s about more than just making tenants happy.
Ideally, you should only implement smart tech that won’t cause a disruption to your tenants’ lives, including the perception that their privacy is being violated. This might conflict with your desires as a property owner, but your tenants are your source of income, and it’s worth taking their concerns seriously.
