Landlords and rental property owners are always on the lookout for ways to increase the value of their rental properties and make them more attractive to potential tenants. One of the most effective strategies to increase rent prices of rental properties is integrating smart home technology into the rental units. When done right, these smart home upgrades can generate a significant return on investment, while offering tenants convenience, security, and energy savings.

Our Henderson and Las Vegas property management experts detail out below seven smart home upgrades that can genuinely increase rent prices of rental properties, along with the practical benefits behind each.

1. Installing Smart Thermostats

Smart thermostats like Nest, Ecobee, or similar brands are among the most valuable smart home upgrades for rental properties. These devices learn from tenants’ behavior, adjust temperatures automatically, and allow remote control via smartphone. Most importantly, they save the renter money on gas and power bills.

• Rent Premiums and Operational Savings: Smart thermostats can often reduce energy consumption by 10–23%, which can save hundreds of dollars per rental unit every year.
• Value for Renters: Lower utility bills make the rental property more appealing to tenants, especially to eco-conscious renters. The promise of energy savings can usually justify a rent bump.
• Rental Property Efficiency: For vacant rental properties, landlords can set the thermostat to an energy-saving mode, greatly cutting costs during tenant turnover periods.

2. Smart Locks and Keyless Entry

Installing smart locks within rental properties gives landlords and tenants a lot more flexibility than traditional physical key locks. This improved flexibility can directly translate to increase value for the rental property.

• Tenant Demand: In today’s digital age, many tenants value the convenience that keyless entry locks offer.
• Reduced Maintenance and Turnover Costs: Smart locks eliminate the need to replace or rekey locks when a tenant moves out. This can save time and labor costs during tenant turnover periods.
• Self-Guided Tours: By utilizing smart locks with keyless entry, prospective tenants can tour rental properties without a leasing agent present (if they desire). This can greatly boost the number of tours and reduce staff hours.
• Better Security: Digital codes, temporary access, and activity logs provide renters and landlords with greater peace of mind, making the rental property feel safer and more modern.

3. Video Doorbells and Security Cameras

Security is one of the top concerns for rental property owners and tenants alike. Installing smart security systems delivers visible and tangible value to the rental property.

• Increased Security: Video doorbells and smart cameras give tenants control and awareness over who is at the door, even when they are not home.
• Marketability: Rental properties that offer advanced security features can stand out in rental listings, attracting more prospective tenants.
• Risk Reduction: Smart cameras can help deter vandalism or break-ins, potentially reducing insurance risk or claims.

4. Water Leak and Moisture Sensors

Water damage is one of the costliest risks in real estate and for rental property owners. Installing smart leak detectors is both preventive and profitable.

• Early Warning Detection: Leak sensors can detect moisture or rising humidity early, alerting both landlord and tenant before a minor problem becomes a major repair.
• Insurance Mitigation: Preventing leaks can help avoid costly repairs and may even reduce insurance claims over time.
• Tenant Satisfaction: Knowing the landlord cares enough to install safety sensors in the rental property can build trust and contribute to long-term tenant retention.

5. Smart Smoke and Carbon Monoxide (CO) Detectors

Safety should not just be a selling point for rental property owners, it should be a necessity. Smart smoke and CO detectors offer a modern safety net.

• Remote Alerts: These smart detectors can notify both tenant and landlord if something goes wrong, reducing the risk of damage or delayed response.
• Liability Reduction: Faster alerts and remote monitoring can mean quicker action, which can reduce liability in emergencies.
• Premium Feel: High-tech safety devices give tenants a sense that the property is modern, responsible, and well-maintained.

6. Smart Lighting and Automated Controls

Lighting is often overlooked and undervalued, but smart lighting systems can elevate the rental property experience significantly for tenants. Even better, it can greatly help save energy.

• Energy Efficiency: Smart light bulbs and lighting systems can dim, schedule, or turn off lights depending on room occupancy, leading to lower energy usage.
• Customization Features: Tenants can adjust lighting moods (bright, warm, ambient) from an app or voice assistant. This can make the rental property feel more like home for many tenants.
• Modern Technology Appeal: Smart lighting systems enhance the perceived sophistication of a rental property, especially to younger, tech-forward tenants.

7. Voice Assistants and Centralized Smart-Home Hubs

Integrating a voice assistant and/or a central smart-home hub can bring everything together beautifully all under one roof.

• Convenience: Voice control enables tenants to adjust lights and thermostats with simple voice commands.
• Technological Branding: Listing a rental property as “Alexa-compatible” or “Google-Home enabled” can potentially infer a premium smart-living experience to potential tenants.
• Efficiency Gains: Property managers and tenants can both benefit when smart devices are networked and easily accessible through a centralized system.

How These Smart Home Upgrades Can Increase Rent Prices

Installing smart home features is not just about trying to look sophisticated. There are real economic and operational logic behind the rent hikes associated with these upgrades.

• Tenant Demand is on the Rise

  Tenants are increasingly requesting, and expecting, smart home technology in their rental units. With rent prices higher than ever before, these upgrades can make a big difference.

• Willingness to Pay More

  According to recent data, 65% of renters are ready to pay extra for smart features. This ranges anywhere between $25 to over $100/month, depending on the rental market and smart home devices installed.
  
  

• Higher Tenant Retention and Fewer Vacancies

  With smart locks, thermostats, and other devices, tenant retention can improve, meaning landlords ultimately spend less money on rental property vacancies and tenant turnover.
  
  

• Operational Cost Savings

1. • Self-guided tours enabled by digital smart locks can reduce leasing labor costs.
   • Remote smart thermostat control can save on utility bills, especially during rental vacancy periods.
   • Early detect leak sensors and smart detectors can prevent costly maintenance repairs.
     
     

• Higher Return on Investment (ROI) for Rental Property Owners

  Rental property owners who install smart home devices can typically implement anywhere between 10-30% increased rental prices. This can potentially deliver a ROI that more than justifies the upfront expenses of installing smart home technology.

Tips for Landlords Installing Smart Home Technology

• Start Strategically: Not all smart upgrades deliver equal ROI. Begin with high-impact devices like smart thermostats and keyless entry locks, then focus on smart security systems and sensors.
• Choose Reliable Brands: Choose smart home devices from trustworthy manufacturers to avoid reliability issues or tenant frustration.
• Communicate Clearly with Tenants: Let your tenants know what you are installing, why it will be beneficial for them, and how it works after installation. Make sure to disclose data access, usage, and any tenant responsibilities.
• Lease Language: Include terms on device ownership, reset procedures, and move-out protocols within your lease agreements and disclose this information during lease renewal Make sure tenants understand whether they need to reset devices or unlink accounts when they leave.
• Privacy and Security: Secure your smart home network and smart devices. Use separate accounts for landlord and tenant access and try to encourage tenants to reset devices when moving out.
• Measure ROI: Track changes in rent, tenant turnover, and maintenance costs after installing smart home technology to confirm your rental property investment’s performance.

Henderson and Las Vegas Property Management Services

Smart home technology upgrades have become powerful tools that can drive higher rent prices, lower tenant turnover, and increase overall operational savings. From smart home thermostats that save energy, to smart home keyless entry locks that streamline tenant access, integrating the right smart home technology can make your rental property more efficient and more appealing to modern potential tenants.

If you are a Henderson or Las Vegas landlord thinking about investing in smart home technology features for your rental property – contact our Henderson and Las Vegas property management team to see how we can help you streamline the process!