A new survey reveals the vast majority of residents are willing to increase their monthly rent payment to have more technology in their apartments, including smart home amenities and high-speed internet.
Conducted by Entrata, multifamily real estate's fastest-growing technology company, the survey findings highlight a key opportunity for increased revenue in rent growth and renewal increases 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 living in a smart, connected environment."
Key findings of the survey include:
- Electronic payments and living in a secure, smart community are more valuable to residents than a pool or covered parking. Residents' top amenities they would be willing to pay more each month for are:
- 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)
- The majority of residents are willing to pay more for a smart apartment. More than 3 in 4 residents would pay more for a package of their top three smart home amenities (i.e. security cameras, keyless entry, smart thermostats). More than half of residents (57 percent) are willing to increase their monthly rent by at least $20.
- Residents' most requested smart home amenities center on security and convenience. While smart home technology offers a wide range of use cases, residents place the most value on those that provide peace of mind and awareness of what's happening around them. The most important smart home services to residents are security cameras (e.g., doorbell cameras, ceiling cameras), keyless entry (including special codes for guests), smart thermostats and a security system.
- Residents are not loyal to smart home devices from one brand.One-third of residents do not have a preference for smart home products from a specific company, providing more flexibility for owners and managers to select the technology they provide in their communities. Among residents with a preference, 16 percent would be more likely to select an apartment community with Google Home, 12 percent with Amazon Echo and 11 percent with Apple's HomePod.
To read the Entrata survey summary, click here.