The Rise of Smart Home Technology in Rentals: What Landlords Need to Install Now (and What to Skip)

Oct 15

3 min read

The modern renter isn't just looking for a place to live—they're looking for a smart home. Tech-savvy tenants are willing to pay a premium for features that offer convenience, security, and lower utility bills. For landlords, this is a golden opportunity to boost rental rates, attract high-quality renters, and drastically reduce operating costs.

But not all smart tech is created equal. To maximize your Return on Investment (ROI) and keep your property management streamlined, focus on the "Big Three" smart devices that benefit both you and your tenant.

The "Must-Haves" for Every Rental Property

When prioritizing your smart home investment, focus on technology that enhances security, saves on utilities, and prevents catastrophic property damage.

1. Smart Locks: Security and Seamless Management

A smart lock is arguably the most valuable piece of tech you can install.

For the Landlord: Say goodbye to lost keys and expensive locksmith visits for turnover. You can instantly issue new digital access codes for new tenants, maintenance staff, and self-guided showings. This drastically cuts down on manual labor and travel time, potentially eliminating two maintenance truck rolls per unit stack per week.
For the Tenant: Keyless entry is a massive convenience and a huge security boost. Renters often rank smart locks as a top desired feature, and they're willing to pay more for the added peace of mind.
The Bottom Line: Smart locks offer a high ROI through reduced turnover costs and the ability to charge a rent premium.

2. Smart Thermostats: Energy Savings for Everyone

High energy bills are a major pain point for tenants and a costly expense for you (especially in vacant units).

For the Landlord: You can remotely manage the temperature in vacant units, preventing unnecessary energy waste and protecting your pipes from freezing. When the unit is occupied, a good smart thermostat can reduce energy consumption by up to 10% annually by learning tenant habits and automatically adjusting.
For the Tenant: They gain the ability to precisely control their comfort and see a direct reduction in their monthly utility bills, making your property a more appealing and affordable long-term home.
The Bottom Line: Smart thermostats attract environmentally and financially conscious renters and provide tangible cost savings on utilities.

3. Smart Leak Detectors: Your Property's Best Insurance

Water damage is one of the most expensive and common rental property claims. A simple, affordable leak sensor placed near water heaters, under sinks, or near appliances can save you a fortune.

For the Landlord: You receive immediate smartphone alerts the moment a leak or excessive moisture is detected. This early detection can reduce an average claim cost by thousands of dollars, prevent costly mold growth, and avert structural damage.
For the Tenant: It protects their possessions and prevents the major headaches and health risks associated with flooding and mold.
The Bottom Line: This is a crucial risk-mitigation tool that protects your investment and can even lead to lower insurance premiums.

The "Skip-Its" (For Now)

While fun, some smart devices offer minimal ROI for a standard rental and can even raise tenant privacy concerns.

Voice-Activated Assistants & Smart Speakers: While convenient, these are personal preference and can be a privacy nightmare if not managed properly. Let the tenant bring their own.
Smart Appliances (Refrigerators, Ovens): The initial cost is extremely high, and the "smart" features (like a screen on the fridge) don't significantly improve a tenant's life or provide you with a return that justifies the expense.
Smart Lighting Systems (Beyond a simple smart plug): Complicated, custom lighting is prone to tenant tinkering and is an unnecessary upfront cost. A simple smart plug or motion-sensing light for a common area is a better bet.

Focus your budget on the foundational security, utility, and damage-prevention tools. By installing smart locks, thermostats, and leak detectors, you're not just upgrading a rental—you're future-proofing your business and securing a competitive edge in the market.