When operating a rental property in the Philadelphia area, you may ask yourself, "how much can I rent my house for?" First, however, it's vital to know what trends will help you set the ideal rental rate and ensure you can maximize the return on investment.
One way to do this is to keep up with the trends and target amenities that renters want. Property owners can maintain tenant retention by staying on top of critical residential rental management upgrades, including small things that can make a big difference! Home automation is one area that can help attract quality renters to a property. Property investors have plenty of automated options to consider, from smart appliances to wireless, motion-activated security cameras. So how can home technology boost ROI? One of the best Philadelphia property management companies has insights for real estate investors here!
Understanding What Renters Want
Before making smart technology upgrades to a property, property managers know that it's helpful to understand who you are renting to. Knowing your target renter demographic and what they look for in rental properties helps investors choose upgrades that improve ROI.
What do typical Philadelphia renters look like>> According to the United States Census Bureau's data, most tenants in Pennsylvania are :
- Under 35 years old (about 34% of the renter population)
- 17% are between 35 and 44 years old
With a significant population of younger-generation renters, a property owner can attract quality residents by incorporating simple technology and automation into their properties. However, innovative home technology appeals to older generations as well!
Prioritizing Smart Upgrades
When it comes to making upgrades that attract quality tenants, conventional things might come to mind, such as a fenced yard or new floors. These amenities are great to add, if possible. However, if you're running on a tight budget and looking for something that doesn't cost a lot (but can make a big impression on prospective tenants), technology upgrades can be a better option.
Offering convenience amenities, such as automation or smart tech, often makes more sense considering the hectic pace of many people's lives. One study reveals tenants are willing to pay more for smart, high-tech options in their rental unit vs. paying higher rental prices for a pool or other amenities. A property management firm can help you find the right mix of upgrades to bring tenants in and keep your ROI in good shape.
What's the Best Smart Technology For a Rental Property?
Adding the right technology upgrades to an investment property is critical for success! Property owners must invest in upgrades that pay off with better returns.
Plenty of trendy smart tech items are popular right now, such as Alexa and Google Home. These voice-activated devices work with several appliances and other items in the home, allowing tenants to operate features in the home, including lighting and locks. Many renters already use Alexa or Google smart devices to listen to music and watch movies. Finding rental homes that incorporate Alexa helps them more likely to choose your properties!
A Philadelphia property management company also recommends installing a remote thermostat that allows the tenant to control the temperature when not home. With a smart thermostat, renters can reduce utility costs and choose your property over another rental that doesn't offer this feature. A wifi video doorbell and remote keyless entry can also help renters feel safer and find your rental unit more attractive than others.
However, some automation technology is more of a luxury item that tenants may like—but wouldn't want to pay extra rent for it in their Philadelphia, PA home. For example, a smart refrigerator that notifies you when you're low on items is phenomenal, but will tenants want to pay extra for it? Working with a property manager can help you weigh the pros and cons of specific smart home features vs. others.
How Property Owners Can Make Technology Worth the Investment
Once you decide to implement smart technology upgrades into your residential properties, it's essential to price your rentals accordingly. Work with a full-service property management company to review your rental rates and adjust them to stay competitive when adding innovative home features to the property. In many cases, prospective tenants are willing to pay more for technology conveniences and smart safety features. Increasing the rent by a reasonable amount helps investors maintain excellent ROIs!
A Residential Property Management Company Helps Investors Make Smart Upgrades
With the many decisions an investor needs to make to ensure tenant satisfaction, it's helpful to have a property manager. One of the best property management companies in Philadelphia can help you evaluate renter wants and needs, then choose the best home automation solutions to attract better residents to your properties. Rentwell delivers professional property management services to help property owners maximize returns! If you're ready to make property upgrades to boost ROIs, give our team a call to learn how we can help.
What should property owners consider to improve ROIs? Download our free resource, "10 Things You Should Do To Increase the ROI for Your Investment Property."
