The Impact of Smart Home Tech on Rental Value: What Actually Moves the Needle

By PropsManager Team · Maintenance & Repairs · Jul 09, 2025

I'll be honest—when smart home gadgets first started showing up at Home Depot five or six years ago, I thought they were gimmicks. Fancy toys for tech bros. Why would I spend $250 on a smart lock when a $12 deadbolt works just fine?

Then I lost a tenant.

She was 28, worked in tech, paid rent early every single month. When I asked why she was leaving, she said, "I found a place with keyless entry, a smart thermostat, and a video doorbell. It just feels more modern." She was paying me $1,450 a month. The unit sat vacant for 31 days before I found a replacement. That's roughly $1,500 in lost rent—over a smart lock that costs $200.

That was my wake-up call. Since then, I've systematically upgraded 14 units with smart home technology, tracked every dollar spent and every dollar earned, and learned exactly which upgrades actually move the needle on rental value. Let me save you the trial and error.

Why Renters Care About Smart Home Features in 2025

This isn't about chasing trends. The demographics have shifted permanently. According to a 2024 survey by the National Apartment Association, 86% of renters between ages 22 and 40 said they'd pay more for a unit with smart home features. Not "would consider." Would pay more.

And it's not just young renters. Boomers downsizing into rentals are used to the Nest thermostats and Ring doorbells they had in their owned homes. They expect that same standard.

Here's what's really driving the shift:

• Security concerns are at an all-time high. Package theft alone costs Americans $12 billion annually. A video doorbell isn't a luxury—it's peace of mind.
• Energy costs have jumped. The average American household spends $2,000+ per year on energy. Smart thermostats cut that by 10–15%, and tenants know it.
• Remote work changed everything. People spending 8+ hours a day in their apartment care a lot more about comfort, connectivity, and convenience than they did when they only slept there.

The market has spoken. Smart home features aren't a "nice to have" anymore—they're becoming table stakes for competitive rental listings.

The Smart Home Upgrades That Actually Increase Rent

Not all smart tech is created equal. I've tested plenty of gadgets that tenants couldn't care less about. Here's what actually justifies a rent premium, ranked by ROI.

Smart Locks and Keyless Entry Systems

This is the single best upgrade you can make. Period.

A quality smart lock like the Schlage Encode Plus or Yale Assure Lock 2 runs $200–$300. Installation takes 20 minutes if you own a screwdriver. And the benefits cascade in ways you don't expect.

For tenants: No more worrying about lost keys. They can let in guests, dog walkers, or cleaning services remotely. If they get locked out at 2 AM, they just use their phone—no $150 locksmith call and no 3 AM phone call to you.

For landlords: No more rekeying between tenants. That alone saves $75–$150 per turnover. You can generate temporary codes for maintenance workers, inspectors, and showing agents. And if a tenant moves out and "forgets" to return the keys? You change the code in 10 seconds from your couch.

I've found smart locks support a rent bump of $15–$25/month. On a $200 lock, that's a payback period of 8–13 months. After that, it's pure profit—every single month, for years.

Smart Thermostats

The Nest Learning Thermostat (about $250) or Ecobee Premium ($230) are the go-to options. Tenants love them because they learn usage patterns, adjust automatically, and can shave $150–$200 off annual energy bills.

In markets where landlords cover utilities, this is a no-brainer. I installed Ecobee thermostats in three units where I pay for heat, and my gas bills dropped by an average of $38/month per unit during winter. The thermostats paid for themselves in six months.

Even in tenant-pays-utilities situations, you can market the energy savings as a feature. "Smart thermostat saves tenants an average of $15/month on energy bills" is a compelling bullet point in a listing.

Rent premium: $10–$20/month. Modest, but the vacancy reduction and energy savings make this a slam dunk.

Video Doorbells and Smart Security Cameras

Ring Video Doorbell ($100–$250) or Google Nest Doorbell ($180) installations are straightforward and tenants consistently rank security features as a top priority.

A 2023 Apartments.com survey found that 67% of renters would choose an apartment with a video doorbell over one without—even at the same price point. That's not a rent premium concern; that's a vacancy reduction tool.

I had one duplex that sat on the market for 22 days with no smart features. After installing a Ring doorbell and listing it with updated photos, the other unit rented in 4 days. Same price, same neighborhood, same layout.

Rent premium: $10–$20/month, plus dramatically faster lease-up.

Smart Leak Detectors and Water Sensors

This one's less sexy but potentially the highest-ROI item for you, the landlord. A Flo by Moen leak detector ($50–$80) or even a basic water sensor ($20–$35) placed under sinks, behind toilets, and near water heaters can save you from catastrophic water damage.

The average water damage insurance claim is $11,650. A $30 sensor that texts you when it detects moisture is the cheapest insurance policy you'll ever buy. I had a unit where the upstairs toilet supply line started leaking on a Friday night. The smart sensor alerted me at 8:17 PM. I had a plumber there by 9:30 PM. Without that sensor, I'd have discovered the damage Monday morning—and the water would've been running for 60+ hours through the subfloor.

Rent premium: $0 directly, but the asset protection makes this mandatory equipment in my book.

Smart Lighting Systems

Here's where I'll save you some money: don't bother with whole-home smart lighting for rental units. Tenants can buy their own smart bulbs for $10 each if they want them. In my experience, built-in smart lighting adds minimal rental value and creates maintenance headaches when bulbs need replacing or hubs need resetting.

The exception? Smart porch lights or exterior lighting with motion sensors. Those double as security features and do test well with tenants.

Smart Home Tech ROI Comparison Table

Bottom line: Smart locks, thermostats, and video doorbells are the "big three." Everything else is optional.

How Much More Can You Actually Charge?

Let's talk real numbers. I surveyed my own portfolio and talked to a dozen landlords in my local REIA group. Here's the consensus:

A unit with the "big three" smart home features (smart lock, smart thermostat, video doorbell) can command $50–$75/month more than an identical unit without them. In higher-end markets—think urban apartments targeting young professionals—the premium can hit $100–$150/month.

That means a $500–$800 investment in smart tech generates $600–$1,800 per year in additional rent. Even at the low end, that's a 75% annual return on investment.

But here's the thing most landlords miss: the real money isn't just in the rent premium. It's in the reduced vacancy. If your listing gets rented two weeks faster because it looks modern and competitive in photos, that's worth $500–$1,000 in avoided vacancy loss on a $1,500/month unit.

Stack the rent premium on top of reduced vacancy, and smart home tech easily delivers a 100%+ first-year ROI across a typical portfolio.

The Operational Benefits Landlords Overlook

Smart tech isn't just about what tenants see. There's a whole back-end operational story that makes your life dramatically easier.

Remote Property Access

With a smart lock, you can let in contractors, inspectors, and emergency workers without driving across town. I manage units in two different cities, and the ability to text a plumber a one-time access code has saved me countless hours and gas money. Create the code before the visit, set it to expire after two hours, done.

Maintenance Prevention

Smart water sensors, connected smoke/CO detectors, and HVAC monitoring systems let you catch problems early. A smart thermostat that reports your HVAC is cycling every 3 minutes? That's a failing compressor—catch it now before it dies on the hottest day of summer and your tenant is calling you furious at midnight.

Better Record-Keeping

Many smart devices log activity—when doors are locked and unlocked, temperature changes, motion events. This data can be useful during disputes, inspections, or insurance claims. I'm not suggesting you surveil tenants (that's a legal minefield and ethically wrong), but aggregate data about property systems is genuinely useful.

Using a platform like PropsManager to centralize your property data alongside smart device logs gives you a single dashboard for everything—rent collection, maintenance tracking, lease management, and property monitoring.

What to Watch Out For: Smart Home Pitfalls

I wouldn't be doing you any favors if I only talked about the upside. There are real pitfalls to smart home tech in rentals.

Privacy Concerns

This is the big one. Interior cameras are an absolute no-go in rental units—legally and ethically. Even exterior cameras need to be disclosed. Always include smart home devices in your lease agreement, specify what data is collected, and make sure tenants can control devices inside their unit.

Smart locks should always allow tenants to set their own codes. You need emergency access, but you cannot be logging every time your tenant comes and goes. That's surveillance, not property management.

Connectivity Dependencies

Smart devices need WiFi. If your tenant's internet goes down, their smart lock better still work with a physical key or keypad code. Always choose devices with offline backup functionality. A lock that only opens via Bluetooth and the tenant's phone is dead? That's a lockout and an angry midnight phone call.

Maintenance Complexity

When a traditional deadbolt breaks, any handyman can fix it. When a smart lock's firmware glitches, you might be Googling troubleshooting guides at 11 PM. Budget time for the learning curve, and keep physical backups for everything.

Tenant Turnover Reset

Between tenants, you need to factory reset every smart device, remove previous tenant accounts, set up new codes, and test everything. Build this into your turnover checklist. It adds 30–45 minutes to your turnover process, but it's non-negotiable for security and privacy.

Smart Home Tech Checklist for Landlords

Before you start buying gadgets, run through this checklist:

• Budget: Set a per-unit budget ($500–$800 covers the essentials)
• WiFi assessment: Confirm reliable internet is available or included
• Lease update: Add smart home device clauses to your lease agreement
• Choose offline-capable devices: Every smart device must have a manual backup
• Install the big three first: Smart lock, smart thermostat, video doorbell
• Add leak detectors: Place under every sink, behind toilets, near water heater
• Update your listing: Add smart features to photos and descriptions
• Create a turnover protocol: Document the reset process for each device
• Track ROI: Log costs and rent premiums so you know what's working
• Use property management software: Track devices and maintenance with PropsManager

How PropsManager Helps You Manage Smart Properties

Look, smart home devices generate a lot of moving parts—device inventories, access codes, maintenance schedules, tenant onboarding for each device. Layer that on top of rent collection, lease tracking, and maintenance requests, and you've got a management headache waiting to happen.

That's exactly the kind of complexity PropsManager was built to handle. You can track every device installed in every unit, log maintenance events, store vendor contacts, and manage your entire portfolio from one dashboard. When it's time to turn over a unit, your device reset checklist lives right alongside your cleaning and inspection protocols.

If you're scaling a portfolio and adding smart tech to multiple units, having a centralized system isn't optional—it's the difference between organized growth and chaos. Check out our pricing plans to see which tier fits your portfolio.

What's Coming Next in Rental Smart Tech

The market is evolving fast. A few trends worth watching:

Smart apartment platforms like SmartRent and PointCentral are building integrated systems specifically for multifamily properties—locks, thermostats, leak detectors, and lighting all managed from one landlord dashboard. Costs are coming down as adoption scales.

EV charging is becoming a differentiator. In markets like Austin, Denver, and Portland, having even a Level 2 charger can boost rent by $75–$100/month and attract higher-income tenants who drive electric vehicles.

Voice assistants built into units (Amazon Alexa or Google Home built into wall panels) are being tested in luxury apartments. The jury's still out on whether mainstream renters care, but it's worth monitoring.

Insurance discounts for smart-equipped properties are emerging. Some insurers offer 5–10% premium discounts for properties with smart leak detectors and monitored smoke alarms. That's $100–$300/year back in your pocket on top of the hidden costs you're already managing.

Explore More PropsManager Resources

Looking for the right property management software? Check out our in-depth guides:

• Compare Property Management Software — See how PropsManager stacks up against Buildium, AppFolio, Rent Manager, and Propertyware.
• Software for Small Landlords — Built for landlords managing 1–50 units without the enterprise price tag.
• AI-Powered Property Management — Discover how automation can save you 5–10 hours per week.
• Solutions for Property Managers — Scale from 50 to 500+ units without scaling your costs.

Frequently Asked Questions

Do smart home features actually increase rent?

Yes, but it depends on the market and the features. Across my portfolio and conversations with other landlords, the "big three"—smart lock, smart thermostat, and video doorbell—typically support a rent increase of $50–$75/month. In competitive urban markets targeting younger demographics, premiums can reach $100–$150/month. The bigger impact is often on vacancy reduction: smart-equipped units rent faster because they photograph better and appeal to a larger pool of applicants.

Which smart home upgrade has the best ROI for landlords?

Smart locks, hands down. They cost $200–$300, support a $15–$25/month rent premium, save $75–$150 per turnover in rekeying costs, and provide operational benefits like remote access for contractors. The payback period is typically under a year. Leak detectors are also incredibly high-ROI from an asset protection standpoint—a $30 sensor can prevent an $11,000+ water damage claim.

Are there legal issues with installing smart devices in rental properties?

There are a few things to keep in mind. Interior cameras are illegal in most jurisdictions and always a terrible idea in rentals. Exterior cameras and video doorbells should be disclosed in the lease. Smart locks must allow tenants to set their own access codes—you can retain an emergency master code, but logging tenant entry and exit patterns crosses into surveillance territory. Always update your lease to include clauses about installed smart devices and data handling.

Should I include smart home devices in furnished vs. unfurnished units?

Smart home devices should be included as part of the unit itself, regardless of furnishing status. Treat them like built-in appliances—they stay with the property. Include them in your lease as landlord-owned fixtures, and make clear that tenants are responsible for not damaging them but not responsible for replacing batteries or performing firmware updates. That maintenance falls on you, the landlord, just like you'd maintain a dishwasher or garbage disposal.

How do I handle smart home tech during tenant turnover?

Build it into your turnover process. Factory reset every device, remove the previous tenant's accounts and access codes, generate fresh codes, and test every device before the new tenant moves in. This typically adds 30–45 minutes to your turnover. Document the reset procedure for each device type so it's repeatable. With a tool like PropsManager, you can build this directly into your unit turnover checklist so nothing gets missed.

Ready to Modernize Your Rental Portfolio?

Smart home tech isn't a fad—it's becoming the baseline expectation for competitive rentals. The landlords who invest now are commanding higher rents, filling vacancies faster, and protecting their properties from expensive damage. The ones who wait are watching their listings get passed over for the property down the street with a Ring doorbell and a smart lock.

Start with the big three. Track your results. Scale what works.

And when you're ready to manage it all without losing your mind, start your free PropsManager trial and see how a centralized platform keeps every device, lease, and maintenance request organized across your entire portfolio.

The future of rental property management is smart. Don't get left behind.