Welcome to the July edition of the Investor Newsletter. Tight supply, sticky rents, and resilient tenant interest are keeping the floor solid. Whether you’re actively deploying capital or just keeping tabs, the information contained here is worth a closer look. Let’s dive in.
Are Smart Homes Worth More?
Smart home upgrades are becoming an increasingly common standard in rentals, but not all devices translate to higher value. For SFR investors, the key is knowing which features matter. According to CEPro, smart thermostats, lighting, security systems, and leak sensors are most likely to raise appraisal value (typically by 3 to 5 percent) thanks to their ability to cut utility bills and reduce insurance risk. Conversely, gadgets like smart fridges or voice assistants rarely influence appraisal. But why the discrepancy? It’s because appraisers look for fixed systems that deliver long-term savings. Smart thermostats, for example, can reduce heating and cooling costs by 10 to 15 percent, while leak detectors help prevent water damage. These are practical, cost-saving upgrades that appraisers can quantify.
Boosting the case for smart home devices, renters are increasingly being drawn to homes with smart features. A Vivint survey found that 63 percent of Millennials and Gen Z renters expect technology like smart locks and app-enabled thermostats. Rently reports that a staggering 82 percent of renters are more likely to renew their lease when smart amenities are present. That kind of retention can lift cash flow and reduce turnover costs. At the same time, renters also want safeguards. A survey by AHS found that 57 percent of Americans worry about privacy in smart homes, and nearly half flagged cybersecurity as a concern. That makes it essential to use trusted brands, enable security updates, and clearly explain how devices are managed.
The reality is that the best-performing upgrades are simple, secure, and useful. Smart locks, thermostats, lighting, and leak sensors typically cost $150 to $300 each but can shorten vacancy, extend leases, and support higher appraisals. When new features lower costs and meet (or exceed) renter expectations, the results are hard to ignore. Keep it practical, protect tenant trust, and let the numbers speak.
