As a property manager, the last thing you want for your units is high turnover. Vacancies left by short-term residents mean missed rent checks and a scramble to find new ones who will stick around for longer.
How can you encourage commitments from residents? Many property managers are realizing the benefits of renovating and upgrading their rental properties to make them a more desirable and safe place to live. For many prospective renters, technology is an important part of a rental.
While most tech features do require an upfront investment, the potential return—in the form of lower bills, increased rent, and quality renters who will take care of your property—is high. Consider these six technologies to attract and retain residents—in addition to improving the efficiency and increasing the security of your properties.
#1: Smart Thermostat
A smart thermostat is a Wi-Fi enabled device that automatically adjusts heating and cooling in rental properties to save money and attract eco-conscious renters. Unlike basic programmable thermostats, smart devices learn occupancy patterns and optimize temperature settings without manual input.
Smart thermostats can be managed remotely via smartphone app; connected to a voice-activated personal assistant, like the Amazon Echo or Google Home; and programmed to collect and monitor energy use data. Devices with the ENERGY STAR designation save both energy and money, with average savings are approximately 8% of heating and cooling bills, which means lower monthly bills for you and your renters.
How Smart Thermostats Work for Rental Properties
Smart thermostats use sensors and algorithms to learn occupancy patterns automatically. For property managers, this technology provides several key benefits:
- Remote monitoring: Control heating and cooling across multiple units from your phone
- Vacancy detection: Automatically adjust temperatures when units are empty
- Problem alerts: Get notified about HVAC issues before they become expensive repairs
Energy Savings and ROI for Property Managers
Smart thermostats can reduce heating and cooling costs by roughly 8–26% per year (often about $50–$284 annually), depending on model, home, and use. The ROI extends beyond utility savings:
- Faster leasing: Properties rent quicker with modern amenities
- Higher rents: Tech-savvy tenants often pay more for smart features
- Fewer emergency calls: Remote monitoring prevents HVAC breakdowns
Installation and Replacement Considerations
Most smart thermostats install in under an hour. Key installation considerations include:
- C-wire compatibility: Check if your HVAC system has continuous power supply
- Local regulations: Some areas require licensed installation in rentals
- Access controls: Administrators can set permissions and temperature limits while giving residents basic control
Potential Drawbacks to Consider
Smart thermostats have some drawbacks to consider:
- Upfront costs: Many popular smart thermostats cost about $100–$300 per unit (some entry-level models are under $100)
- Learning curve: Both managers and tenants need time to master the features
- Privacy concerns: Devices collect occupancy and usage data
- Potential misuse: Tenants may waste energy without proper temperature limits
Set temperature ranges and be transparent about data collection to address these concerns.
#2: Smart Bulbs
After smart thermostats, smart light bulbs are the next most popular tech feature among renters. Bulbs can shine in 16 million colors, can be set up in routines that mimic sunrise and sunset, and rarely need replacing as they can last 15 times longer than regular bulbs. They are also energy-efficient.
Lighting accounts for a meaningful share of building energy use. Experts suggest that smart bulbs may reduce energy costs significantly, as LED smart bulbs utilize 70-90 percent less energy than traditional incandescent bulbs—savings that will be reflected in your property’s utility bills.
#3: Smart Locks
Boost your property’s security and convenience (as well as its “cool” factor) with smart locks. The most basic models currently on the market grant entry via numerical keypads; the most advanced scan biometric data like fingerprints. Most are notoriously difficult to pick compared to a regular deadbolt, which adds an extra layer of protection against break-ins.
Smart locks allow you to create temporary “keys” for contractors and guests—or grant remote access using your smartphone—so you don’t have to be onsite to manage maintenance calls. Another perk: instead of rekeying or rotating locks every time a tenant moves out, simply reset the codes or clear any existing data and reassign the device to your new renter. Plus, you’ll never get another late-night phone call from a resident who’s locked out of their unit!
#4: Motion-Sensing Lights
Automatic lights are, admittedly, less exciting than other tech that you could add to your rentals; but they are an important aesthetic and safety feature, both inside and out. Screw bulbs into existing fixtures in hallways and entryways to light late-night and early-morning comings and goings without requiring residents to flip switches on and off; and install outdoor motion-sensing lights in dark corners of your property to catch potential prowlers off-guard.
#5: Updated Kitchen Appliances
While prospective renters likely don’t expect you to spring for top-of-the-line ranges and dishwashers, updated appliances have great aesthetic appeal—in addition to improved efficiency, cost savings, and ease of use. Upgrade old stoves, refrigerators, and microwaves as necessary, and keep in mind that the cheapest replacement might end up costing you more in repairs over a shorter lifetime.
#6: A Washer/Dryer
For renters, there are few things more frustrating than hauling a laundry bag to and from coin-operated machines in the basement—or worse, a laundromat—every time they run out of clean clothes. If your units have the capacity for a washer and dryer, consider providing this amenity to your residents. Machines come in stackable and combination options for smaller spaces; and with a little bit of creative planning and the help of a plumber, they can be added to units that don’t already have a designated hookup.
Look for ENERGY STAR-certified machines, which save energy and money and can reduce water consumption by over 3,000 gallons per year for you and your residents. To protect your investment and set clear expectations, lay out in the lease who is responsible for maintenance and repairs.
Making Tech Investments That Deliver Results
Choosing the right technology is about more than just adding features. It’s about making smart investments that attract quality residents, improve your operational efficiency, and reduce turnover. Each upgrade, from a smart thermostat to an in-unit washer, helps your properties stand out and makes them a better place to live.
When you manage these upgrades and your day-to-day operations with the right tools, you set your business up for success.
Buildium’s property management platform helps you track maintenance requests, communicate with residents about new amenities, and monitor the ROI of your technology investments, all from one centralized dashboard. You can even track your expenses on-platform with accounting features, use analytics tools to understand and report your savings to owners, and easily report deductions and file taxes.
Key Takeaways
- Smart thermostats reduce energy costs by 8–26% while attracting eco-conscious renters willing to pay more.
- Tech upgrades like smart locks and in-unit washers decrease turnover by improving convenience and security.
- Energy-efficient appliances and LED bulbs lower utility bills while enhancing your property’s competitive appeal.
- Strategic technology investments deliver ROI through faster leasing, higher rents, and reduced maintenance emergencies.
If you’re ready to see how a dedicated platform can help, you can test Buildium out with a 14-day free trial or guided demo.
Frequently Asked Questions About Tech Upgrades for Rental Properties
Is it worth getting a smart thermostat for rental properties?
Yes, for most property managers the energy savings and tenant appeal typically justify the initial cost.
Can you just replace a thermostat with a smart thermostat?
Most smart thermostats work with standard HVAC systems, though you may need to check for C-wire compatibility.
What are the downsides of smart thermostats for property managers?
The main concerns are upfront costs and potential privacy issues with data collection.
How much can these tech upgrades increase rent?
This depends heavily on your local market and the specific upgrades. While some studies show tenants are willing to pay more for tech-enabled units, the main financial benefit often comes from attracting higher-quality applicants, reducing vacancy periods, and increasing resident retention. Think of it as a competitive advantage more than a direct rent multiplier.
Do tenants really care about smart home technology?
Yes, a growing number of renters see smart home technology as a valuable amenity. Features such as smart locks, thermostats, and online maintenance requests offer a level of convenience and security that many people now expect. Offering these can make your property more appealing than others in the area.
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