According to the latest research, over three quarters of tenants are unlikely to pay more for a smart home when renting a property.
The study from Ascend Properties contradicts predictions from industry experts who believe that smart homes with the latest mod cons will be in greater demand and command and higher rents.
The Build to Rent (BTR) sector is often seen as the future of renting, with smarter homes being presented to tenants. Smart homes feature mod cons including super-fast broadband, amenities on site, communal outdoor areas, voice-controlled technology and more. However, the latest research shows that residents aren’t too worried about smart tech integration, with only a third saying that they would be more likely to rent a home purely because it had smart tech.
Only 2% of those questioned said that they would be willing to pay more than the market rate because it was smart tech enabled and the majority said they would be less likely to pay more for a rental.
Those questioned who are currently renting said that the ability to save money through smart tech features including smart meters and utility management held the greatest appeal. In addition, safety features such as smart locks, surveillance technology and high-tech alarm systems was appealing – as were entertainment systems and the ability to access lighting and heating remotely appealed to tenants, but eco-friendly smart tech and voice activation features were less sought-after.
In summary, while smart tech is a welcome addition to a rental property, tenants are not willing to pay over the odds for a fully automated home of the future.
Instead, tenants want the basics to be spot in – including fast, reliable broadband, well maintained interiors, access to outside space and good quality fixtures, fittings and appliances.