Smart home technology is changing the rental market. From smart thermostats to centralized apps, these devices aren't just trendy - they're now expected by tenants. Here's why smart features matter:
- Renter Demand: 54% of renters expect smart locks, thermostats, and security cameras as standard features. Gen Z and Millennials, who dominate the market, prioritize convenience, safety, and energy savings.
- Higher Rents & Retention: Smart-enabled units can charge 5–15% higher rents, lease 20% faster, and see tenant retention rates 18% above average.
- Cost Savings: Smart thermostats save 10–15% on energy bills, while smart lighting reduces energy use by 30%. Property managers also benefit from lower maintenance and operating costs.
- Convenience & Security: Centralized apps allow tenants to control everything from lighting to security remotely, enhancing daily life and peace of mind.
Smart devices aren't just upgrades - they're now essential for meeting modern renter expectations.
Smart Home Property Management Solution
Smart Thermostats: Better Comfort and Energy Savings
Smart thermostats are a game-changer for improving tenant satisfaction while cutting operational costs. These devices go beyond simple temperature control, offering automation, tailored climate settings, and features that adapt to residents' daily routines. Let’s dive into what makes smart thermostats a standout choice.
Personalized Climate Control
Smart thermostats let tenants adjust settings remotely, schedule temperature changes, and create customized comfort zones - all through easy-to-use smartphone apps. Features like occupancy sensors, geofencing, and machine learning take it a step further by automatically adjusting the climate based on residents' habits. In multifamily properties, zone control systems allow for independent temperature management in different rooms or areas. Plus, when integrated with other smart devices - like smart lighting - these thermostats create a more seamless and comfortable living experience for residents [15, 16].
Energy Savings for Residents and Property Managers
Smart thermostats can cut energy use by around 10–15%, which translates into noticeable savings on utility bills [6]. For example, Google Nest users report heating savings of 10–12% and cooling savings of 15%, adding up to approximately $131–$145 annually. Some studies even suggest potential savings as high as $100 per month [5]. According to the U.S. Department of Energy, adjusting the thermostat by 7–10 degrees Fahrenheit for eight hours a day can reduce heating and cooling costs by an average of 10% [7].
Property managers also gain significant advantages. These devices allow for optimized climate control in vacant units, ensuring comfortable conditions during showings without wasting energy [19, 20]. Additionally, predictive maintenance features monitor HVAC systems, identifying potential problems early. This proactive approach can lower maintenance costs by 18–25% and reduce unplanned downtime by up to 50%, enhancing operational efficiency while improving tenant satisfaction [7].
"Upgrading to smart thermostats can be a wise investment for rental properties. These devices combine cost savings (through reduced energy bills) with modern comfort and convenience that today's renters appreciate." [6]
David Bitton, Co-founder at DoorLoop, underscores why smart thermostats have become essential in multifamily housing, moving beyond luxury status to a must-have amenity.
Comparison: Standard vs. Smart Thermostats
| Feature | Standard Thermostat | Smart Thermostat |
|---|---|---|
| Energy Savings | Minimal efficiency | 10–15% energy reduction [6] |
| Convenience | Manual adjustments only | Automated scheduling & remote control [6] |
| User Control | Basic temperature setting | Personalized settings with geofencing and learning capabilities [5] |
| Additional Features | None | Energy monitoring, humidity control, multi-room management [6] |
| Integration | Standalone device | Connects with smart home systems [5] |
| Maintenance | Reactive repairs | Predictive maintenance alerts [7] |
Standard thermostats rely on manual adjustments and lack the automation modern renters expect [8]. In contrast, smart thermostats offer centralized control, self-learning automation, and advanced features like temperature locks, early-start scheduling, and detailed energy tracking. These capabilities not only enhance energy efficiency but also elevate tenant comfort. According to the Environmental Protection Agency, households using smart thermostats can save an average of 8% on their energy bills, making these devices a practical and valuable addition to any property [8].
For property managers, the ability to monitor energy use in detail and maintain ideal temperatures during showings further highlights the practical benefits of smart thermostats.
Smart Lighting and Connected Devices: Convenience and Customization
Smart lighting systems offer a modern way to control illumination through apps, voice commands, and automated schedules. These systems pair seamlessly with devices like Amazon Alexa or Google Home, allowing tenants to create lighting setups that fit their routines perfectly [10]. Similar to smart thermostats, smart lighting works within a unified system to enhance overall comfort for residents.
Customizable Lighting for Every Mood
With smart lighting, residents can easily tweak brightness, color temperature, and intensity using mobile apps or voice assistants. Whether it's warm tones around 2,700K for a cozy vibe or cooler hues near 5,000K for tasks requiring focus, the options are endless [11]. Pre-programmed mood settings make it simple to switch between relaxing, entertaining, or energizing scenes. Dynamic color-changing features and adaptive lighting schedules further personalize the experience, automatically adjusting throughout the day to align with natural circadian rhythms [11].
Smart LED strip lights are a popular choice for adding ambiance. For instance, in July 2025, Crutchfield writer Ned highlighted how a Satco Starfish light strip under his desk shelf provided both functional task lighting and a relaxing glow when not working [12]. Similarly, Crutchfield's Emily used a Nanoleaf light strip behind her dresser to create a soft, indirect lighting effect [12].
Beyond aesthetics, LED lights are energy-efficient, using about 75% less power than traditional incandescent bulbs and lasting between 15,000 and 25,000 hours [10]. This durability not only reduces energy costs but also minimizes maintenance and replacement needs over time. These features make smart lighting an integral part of a fully connected home experience.
Connected Devices for Modern Living
Smart plugs extend the convenience of connected living by turning everyday appliances into smart devices. Residents can remotely control lamps, coffee makers, and other electronics through smartphone apps or voice commands [14]. These affordable devices provide an easy way to step into the world of smart home technology [16].
Adding motion sensors takes automation a step further. When paired with smart lighting, these sensors can detect movement, automatically switching lights on when someone enters a room and off when it’s empty. This eliminates the hassle of manual switches [15][17]. Residents can also program lights to turn on at sunset and off at bedtime, ensuring a well-lit home without lifting a finger [14]. Some smart controllers even include energy monitoring, offering real-time usage updates and tips to reduce waste - potentially cutting energy bills by up to 10% [9][17].
Impact on Ambiance and Security
Smart lighting doesn’t just improve ambiance; it also enhances security. Pre-set schedules can mimic occupancy by turning lights on and off at realistic intervals when residents are away. Wi-Fi-enabled bulbs allow for remote control, making it easy to adjust lighting from anywhere [10].
For households with multiple members, personal profiles let everyone save their own lighting preferences. Integration with occupancy and ambient light sensors ensures that lighting adapts to natural light levels and room activity [11]. Plus, for special occasions, residents can design custom themes for holidays or parties. Some systems even provide insights into usage patterns, adding another layer of personalization [11].
"Smart lighting is the most important innovation in lighting since the invention of the lightbulb. It adds so much functionality to such a key part of our lives, elevating the concept of lighting our homes beyond just the utilitarian." – Jennifer Pattison Tuohy, Senior Reviewer, The Verge [13]
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Centralized App Control: Simplifying the Resident Experience
Centralized app control takes the advanced functions of smart devices and combines them into one user-friendly platform. Managing multiple devices through separate apps can quickly become a hassle. A centralized app streamlines this process, creating a single hub for controlling everything without the need to switch between interfaces.
One App for All Smart Devices
A good centralized app allows residents to manage thermostats, lighting, door locks, and other connected devices all in one place [9]. Imagine adjusting the thermostat, dimming the lights, and checking if your front door is locked - all from the same screen.
These apps also integrate with voice assistants like Amazon Alexa, Apple Siri, and Google Assistant, making it even easier to control devices using simple voice commands. Real-time push notifications keep residents informed about important events, such as motion detection, door openings, or smoke alarms.
Property managers gain just as much from this unified approach. By integrating with property management software, they can handle tasks like accessing resident information, processing maintenance requests, and managing automation settings - all from a single platform [9]. This setup simplifies operations like managing vacant units and coordinating maintenance, cutting down on complexity and time.
Take 2Bayshore, a luxury living community in Tampa, as an example. By adopting an integrated smart home system, they cut costs tied to physical key management by thousands of dollars and significantly improved the resident experience [19]. This system also makes it easier to implement personalized automations.
Personalization and Preset Modes
Centralized apps don’t just stop at basic controls - they offer robust customization options. Residents can create preset modes like "Away", "Night", or "Entertainment" to adjust multiple devices with a single tap [9]. For instance, an "Away" mode might lower the thermostat, turn off all lights, and lock the doors when heading out for the day.
Dashboards can also be tailored with widgets for specific devices, automations, or service requests [20]. Scheduling features allow residents to reduce energy usage during peak hours, set thermostat routines, or automate lights to turn on and off at specific times. These tools not only save time but can also lower utility bills [20].
For busy residents, the ability to schedule device operations is a game-changer. For example, timers can automatically adjust lighting or thermostat settings throughout the day. Some systems even take it a step further by submitting maintenance requests automatically when issues like water leaks are detected [21].
"Residents love being able to either set a thermostat schedule or adjust it from the app, and if they forget to shut off the heat or AC, they can still control it from their smartphones once they leave." - Antonette Patterson, Sr. Regional Manager, Greystar Properties [20]
These personalized options make living spaces more convenient and efficient.
Remote Access for Better Control
Remote access transforms how residents interact with their homes. With just their smartphones, they can monitor and control devices from anywhere, offering both convenience and peace of mind.
The security benefits are especially impactful. Residents can check if doors are locked, adjust lighting to make it look like someone is home, or receive instant alerts about unusual activity. Some apps even provide data analytics to track energy usage and identify trends, helping residents make smarter decisions about their home settings.
Many advanced apps also support third-party device integration, ensuring compatibility with various smart home platforms. This means residents aren’t tied to a single ecosystem and can choose devices that best suit their needs.
"The addition of garage gate, elevator, and building access control has created a frictionless experience for visitors and guests. Smart living is an exciting selling point that helps drive leases." - Becca Jung, Community Manager [19]
For property managers, choosing a centralized app that combines smart device control with features like rent payment, package tracking, and maintenance requests can create a comprehensive hub for residents [18]. This all-in-one solution enhances both convenience and efficiency for everyone involved.
Meeting Modern Renter Expectations with Smart Homes
Modern renters are no longer just impressed by smart home technology - they expect it. As Millennials and Gen Z dominate the rental market, the demand for smart features has shifted from luxury to necessity. For property managers, keeping up with these expectations is critical to staying competitive and retaining tenants.
Demand for Smart Home Amenities
Millennials and Gen Z have completely reshaped what renters look for in a home. These tech-savvy generations view smart home features as essential to their daily lives. In fact, recent surveys show that 58% of renters would give up amenities like pools or gyms for better smart home features [1]. Even more striking, 65% of renters say smart technology makes a unit more attractive [1].
"Unlike previous generations where technology was either seen as a marvel or sometimes an addiction, for Gen Z, it's a way of life because it's threaded into nearly every daily activity." – Michelle, Veteran Writer [22]
Security tops the list of priorities for many renters. According to surveys, 41% of renters prioritize smart-home tech to feel safer at home [1]. Specific features like security cameras (valued by 69%), smart locks or keyless access (58%), and smart thermostats (56%) are highly sought after [24]. Gen Z, in particular, has embraced smart technology, with 86% expressing a positive attitude toward smart-home products. This group is also willing to pay 10% more for eco-friendly options [1][22].
Reducing Turnover and Increasing Rental Value
Smart home technology doesn't just attract renters - it keeps them. Properties equipped with smart features can charge higher rents, lease units faster, and enjoy better tenant retention rates. For example, smart-enabled units typically see 5–15% higher rental rates, are leased 20% faster, and achieve 85% higher retention rates with lease renewals averaging 18% higher than units without these features [26][27][28].
The financial benefits extend beyond rent increases. A basic smart home package - featuring a smart thermostat, smart lock, and video doorbell - costs around $600 per unit. This investment can increase monthly rents by $30–50, adding $360–600 annually per unit [28]. On top of that, smart building solutions often lead to operational savings, such as a 19% reduction in energy costs, an 18% reduction in water costs, and a 16% decrease in property insurance expenses. Enhanced security features also contribute to a 21% decrease in security incidents [3].
Renters are willing to pay for these upgrades. For instance, 52% of renters are open to paying $20 or more per month for smart features, while 70% would pay $30 or more for conveniences like smart thermostats [1][25].
Smart Homes: From Luxury to Standard Feature
What was once considered a luxury - like in-unit laundry or air conditioning - is now a basic expectation. The same trend is unfolding with smart home technology. Properties that offer these features are better positioned to capture the attention of younger renters, particularly Gen Z and Millennials, who have grown up in a world of constant connectivity [2][23].
As smart technology becomes more accessible, even mid-market and affordable rental properties are incorporating these features. Early adopters reap the rewards: faster leasing, higher rents, and stronger tenant retention. Meanwhile, properties without smart features risk looking outdated and losing appeal to prospective renters. It’s clear that the integration of smart home technology is no longer optional - it’s the new standard for meeting the expectations of modern renters.
Conclusion: The Future of Resident Experience with Smart Technology
Smart devices are reshaping what it means to live in modern multifamily housing. A striking 83% of residents in multi-dwelling units equipped with smart home devices report high satisfaction, compared to just 66% in units without them [30]. This shift isn't merely about owning flashy gadgets - it’s about crafting living experiences that align with how people want to live today.
These devices bring convenience to the forefront, simplifying daily routines in ways that were once unimaginable. Whether it’s adjusting the thermostat from bed, unlocking the door for a delivery, or automating lighting schedules, smart technology makes apartment living more comfortable and efficient [29].
Modern renters are increasingly drawn to spaces that offer customizable controls for temperature, lighting, and security. Smart technology delivers on this demand by providing personalized settings that help turn an apartment into a home [29]. Beyond convenience, these devices also make a financial impact. Smart thermostats, for instance, can cut heating costs by 12% and cooling costs by 15% annually, while smart lighting systems reduce energy use by 30%. For property owners, the benefits are clear: buildings with smart home technology often see a 3–5% increase in valuation and a 30% return on investment [29][3].
The expectations of renters are changing quickly. Today, 54% of renters consider features like smart locks, thermostats, and security cameras to be standard [1]. As Sarah Bonder from Livly aptly puts it:
"Once residents experience true smart living, they don't want to go back. No one likes a downgrade." [4]
Properties that integrate smart technology are not only meeting these expectations but are also positioning themselves to attract high-quality tenants, secure higher rents, and improve retention rates. On the flip side, properties that fail to adapt risk being left behind. Smart home technology is no longer just an upgrade - it’s becoming the standard for what modern multifamily living should be. By embracing these innovations, properties can stay ahead in an ever-evolving market.
FAQs
How do smart home devices improve the living experience for renters?
Smart home devices transform everyday living by adding ease, comfort, and control to the mix. With app-based management, renters can handle tasks like adjusting lighting, setting the thermostat, or locking doors - all from their phone. It’s a simple way to make life smoother and more efficient.
These gadgets also allow for personalized touches. For instance, climate scheduling lets tenants set the perfect temperature for a relaxing evening or conserve energy when they're out. On top of that, smart devices boost security and minimize maintenance hassles, offering renters a more seamless and stress-free living experience.
How can smart thermostats and lighting systems help tenants and property managers save money?
Smart thermostats have the potential to cut heating and cooling costs by 10–15%, delivering noticeable savings for both tenants and property managers. These devices are designed to optimize energy use by learning user preferences, creating schedules, and automatically adjusting temperatures based on whether someone is home or not.
Similarly, smart lighting systems can help trim expenses by ensuring lights are used only when necessary. With features like motion sensors and app-based controls, they reduce energy waste and offer a practical, money-saving solution for all parties involved.
Why do Millennials and Gen Z renters expect smart home features in their apartments?
Millennials and Gen Z renters are increasingly drawn to smart home features, as these technologies complement their tech-driven lifestyles and preference for convenience. With nearly everyone in these generations owning a smartphone, they appreciate homes that integrate effortlessly with their digital routines. Things like app-controlled lighting, thermostats, and security systems provide the level of customization and efficiency they value.
These devices also bring added comfort and help with energy management. For example, renters can schedule climate settings, lower utility bills, and contribute to a more eco-friendly living space. As smart technology becomes more widespread, it’s no longer seen as a luxury but an expected amenity - one that strongly influences their housing choices.
