Owning and managing a rental property is a never-ending practice in the art of prioritization– what needs to be repaired, what needs to be upgraded, and what needs to be done first. Installing smart technology in your rentals may not be urgent, but the ways in which it can increase your bottom line mean that when you ask yourself, “Should I install a smart thermostat in my rentals?” The short answer is yes.
Why A Smart Thermostat Is a Smart Investment
Like most property managers, your first question is probably “What’s it going to cost me?” The good news is that installing a smart thermostat will save you money, whether you pay the utilities on the property or not. If you pay for them, your Net Operating Income will directly improve. If your tenants pay, the savings will be an attractive feature that helps you rent the apartment faster and keep tenants longer. According to Nest, the makers of one of the most popular smart thermostats, their customers save about $140 annually, which means the thermostat will have paid for itself by the end of the first year.
Apartments that can be advertised as “smart homes” are attractive to renters for more reasons than just cost, however. Millennials make up over a third of all renters nationwide, and smart technology is widely used in most millennials’ homes. They are also a group to whom energy efficiency matters a great deal, and smart thermostats are proven to be more energy efficient than their analog counterparts.
But perhaps the most important point in favor of a smart thermostat is that convenience is a feature people are willing to pay a bit extra for. A 2020 report published by the National Multifamily Housing Council found that 70.5 percent of renters are interested in smart thermostats, and would expect to pay $30 a month extra for it.
There are many amenities of a smart thermostat. It’s not only easy to use– just turn the dial to change the temperature– but since it’s programmable from your phone, you never have to worry about changing it when you leave the house. Most connect to Alexa or Google Home, will automatically adjust according to the temperature outside, and report current weather conditions at a touch.
But which smart thermostat should you choose? CNet has compiled a consumer-tested list of the best smart thermostats of 2021 here: https://www.cnet.com/home/energy-and-utilities/best-smart-thermostat/.
How All County Denver South Can Help
All County Denver South Property Management is here to help property owners get the best return on their investment through knowledgeable and trustworthy property management services. From managing tenant relationships to lease enforcement, we look forward to working with you to see how your investment can be a long-term, stress-free asset. For a complimentary quote, call us today at (720) 664-4550.