A new study has found that overall, residents would agree to higher monthly rent payments for more technology in their apartments such as smart home amenities and fast internet connections. Entrata, the fastest-growing technology company in multifamily real estate, conducted the survey, which identified opportunities for renewal increase and rent growth for property owners.
“While pools and other creative community features have often been seen as the draw for prospective residents, the survey shows that what residents really value upon move-in, and are willing to pay for, are technology add-ons and amenities,” said Chase Harrington, president and chief operating officer. “Shifting the focus of development, marketing and training efforts to these technologies is going to be key for apartments as residents begin to demand to live in a smart, connected environment.”
Some key discoveries from the survey:
Residents consider living in a smart, secure community more important than a pool or parking coverage. The top amenities for which they would be willing to pay each month are as follows:
- Basic technology package (e.g., high-speed internet and/or cable TV)
- In-home laundry services
- Online rent payments
- Secure access
- Gym/fitness center
- Smart home features (e.g. keyless entry, smart thermostat)
- Video surveillance
- On-Site Child Care
- Automated maintenance request system
Residents willing to pay more for smart apartment. Over three out of four residents said they would pay more for a smart home amenities such as keyless entry, security cameras, and smart thermostats. More than half of residents (57%) would find a monthly rent increase of at least $20 acceptable.
Security and convenience tend to be the focal points of many residents’ requests. Smart home technology provides a variety of use cases, but monitoring surroundings and having peace of mind are key to resident happiness. These include doorbell cameras, ceiling cameras, keyless entry, smart thermostats and a security system.
Brand loyalty is of little importance when it comes to smart home devices. A third of residents have no preference for a specific company’s smart home products, giving owners options when it comes to outfitting their communities. For those residents who did have a preference, 16% said they would be more likely to choose an apartment with Google Home, 12% Amazon Echo, and 11% with Apple’s HomePod.