Smart Thermostats – Pros and Cons
Smart thermostats have been widely accepted and implemented by homeowners because of their ease of use, energy savings, and convenience. If you have a rental property or multiple properties, then you may have become interested in the potential provided by investing in smart technology – like a thermostat, but is it worth the initial investment? Let’s dive in and see where we land!
What do Smart Thermostats do?
Smart thermostats were designed to save energy, which means they help with lowering heating and cooling costs. They allow landlords or residents to control their home’s temperature based on usage, weather patterns, and time of day. Some smart thermostats are designed to make adjustments based on resident behavior patterns, like not heating or cooling a space if nobody is home. They also allow users to use manual control over the temperature from the comfort of their smartphone, which means that as a rental property owner, you can have more control over the energy outputs of each of your units.
Better yet, thermostats are pretty straightforward to install and are compatible with most heating and cooling systems. Now that we know a little more about these gadgets, let’s break down the pros and cons.
PROS vs CONS
- According to the Buildium Annual Renter’s report:
- 71% of millennial renters are more interested in properties that utilize smart technology.
- 32% said smart thermostats would make them more interested in renting a particular unit.
- 12% said they would resign their lease for another year if smart technology were to be added to their units.
- 23% of renters believe living in a home with smart technology is worth paying higher rent.
- Smart thermostats empower you to make your units as energy efficient as possible because you’re given the option to control cooling and heating remotely. This is one way for you to monitor energy consumption and save some costs in the long run.
- If you have a vacant unit, you can save costs by not heating/cooling that unit until needed.
- The initial cost of each smart thermostat can range from $95 – $250, so it can be pricey upfront (especially if you have multiple units.)
- If renters are paying their utilities directly, then you’re not saving any money on your rental property. However, if you’re providing renters an opportunity to save costs on heating/cooling, that may be an incentive for them to rent with you versus another landlord with higher utility costs.
- There are other rental property investments that though larger, are more attractive to prospective renters. If installing an in-unit washer/dryer or central air conditioning is realistic, that will more than likely be the better choice for you and your tenants.
Making the decision on whether or not investing in smart thermostats is right for you is based entirely on your specific unit and budgetary requirements—you know what works best. If you feel the need for some guidance in the realm of property management, then you’ve come to the right place. Working with a property management company like Metro REIG, means you can leave rental property updates and improvements to us. Reach out, and let’s see how we can work together. We specialize in property management and can help you navigate the sometimes complicated world of rental properties.