According to reporting by the Census Bureau in 2014, the number of millennials in the United States outnumbers baby boomers with the former being 83.1 million and the latter being 75.4 million. These statistics mean that, while baby boomers used to represent the majority of our population, millennials are now representing one-quarter of our nation.
What does this mean for investors in the San Antonio real estate industry? Because millennials have a different set of ideas, including their rental interests and requirements, it sets the real estate market up for new opportunities for generating rental income through smart home renovations.
The Addition of Smart Home Renovations to Rentals
Real estate investors stand to benefit from the addition of smart home renovations to their rentals to attract millennial renters. According to a study performed by Schlage, 86% of millennials are willing to pay more for an apartment with smart home renovations. These statistics are in comparison to 65% of baby boomers who are willing to do the same. Because nearly half of the average Americans who rent in multi-family dwellings plan to continue living there for at least five years or longer, real estate investors should be paying attention to these statistics.
Where Should Landlords and Real Estate Investors Begin?
The integration of smart devices is not only an excellent way of attracting and attracting millennial renters, but residents and property managers will also experience cost savings that becomes beneficial to everyone. The challenge becomes zeroing in on the tech trends that will have the most value and the greatest appeal to the owner's properties. Therefore, initiatives must include more than the purchase and installation of gadgets they think are cool. They must evaluate what will provide their tenants with a higher standard of living, provide operational improvements, and provide cost-efficiency to their budgets.
What Features Do Millennials Prefer?
Because millennials work in environments featuring technology and they’ve grown up surrounded by computers, smartphones, cameras, and other devices, it’s smart for landlords and property owners to utilize similar features in their rentals. However, it isn’t necessary to include every single element in a rental property. The main reason for this is because renters will bring their Internet service accounts with them, so they can hook up their WiFi, have the bandwidth they need, and have vendors they prefer. However, there are other things they’ll need to embrace these services including:
- Smart plugs: installation of smart outlets will allow renters to turn their appliances and lights on and off, or set them on timers, with their smartphones, tablets, or other devices.
- Keyless door locks: according to a survey, many millennials prefer rentals offering keyless door entries.
- Security cameras: the majority of those who were surveyed preferred security cameras that were either ceiling cameras or doorbell cameras.
- Smart thermostats: not only can these thermostats be controlled by devices when renters are outside of the home, but they also reduce costs. When the rental is vacant, property managers and landlords can also control the temperature when they’re not present.
- Internet-connected flood light systems: this security feature connects to the renter’s smartphone or another Wi-Fi device to assist them in feeling more safe and secure in their rental property.
How Can Property Owners and Landlords Attract Tenants?
While the addition of these amenities is beneficial, they mean nothing if prospective renters aren't aware of them. Therefore, it's crucial for property owners and landlords to highlight these features in their listings to attract millennial renters. In doing so, they'll choose your listing in comparison to the competitor's failure to offer these amenities.
Because you're offering smart home features, you'll have the competitive edge over those in the marketplace and attract tech-savvy tenants. Consider the addition of other smart amenities including smart appliances including stoves, ovens, refrigerators, washers, and dryers. While these devices come with a higher price tag, your prospective tenants will agree that the higher rental prices are worth paying to have these appliances.
As a real estate investor, it's crucial for you to become savvy regarding industry trends within smart home technology. In doing so, you'll attract more prospective renters to your listings and retain more clients on your properties. You may find that, in addition to attracting millennial renters, you could also be attracting renters of all ages through the use of smart home technology.
A property management company can help you determine which improvements to your investment property will attract San Antonio renters. Download our free Guide to Finding the Best San Antonio Property Manager for tips on selecting the right property management company for you.