There are currently about 15 - 16 million homes in the single family rental (SFR) market, constituting about 15% of all occupied housing in the U.S. at the moment. This market is predicted to continue its growth as more and more renters take interest in houses for rent as home prices continue to skyrocket.
With so much rapid growth, comes more competition and the need for agility from property teams. Fortunately, each of these can be addressed by the inclusion of proptech into rental properties.
The Rise of Proptech
Proptech, or property technology, is the use of information technology (IT) to help individuals and companies research, buy, sell and manage real estate. Essentially, it addresses the needs of the real estate industry through digital innovations. It also helps real estate owners and operators maintain a competitive edge, and that’s no different for the single family rentals market.
For single family rental owners including different types of property technology in their portfolio will certainly give their company an edge over your competitors. For instance, a recent survey uncovered that residents are very interested in proptech devices for their homes, especially those that will help them save money over time.
70.5% of respondents indicated that smart thermostats are their most preferred smart home device, while smart lighting came in at a close second with 66.9%.
They’re also looking for convenience. 63% responded that smart locks are at the top of their wish list when it comes to smart home devices.
But nowadays it seems as if these aren’t just wishlist items. Many renters are expecting their rentals to already be equipped with these devices. In fact, this is so important to renters that they’re even willing to pay higher rents for smart homes. Millennials, for instance, are willing to pay 20% more per month for properties with smart home devices.
From a profit standpoint, this alone means owners can see a quick return on their investment, but including these devices can also improve their site teams’ efficiency. In a more holistic context, property technology solutions can help teams streamline their processes, manage their portfolios with ease, enhance security, cut operational costs and gather data for strategic decision-making.
Attracting Quality Prospects
Proptech isn’t just about adding smart home devices to your properties, it’s about utilizing smart technology to your advantage - like attracting quality prospects. How so? Take self-guided touring technology.
Including this technology in your sales and marketing plan will help you attract more qualified prospects than traditional tours. For example, our self-guided tours allow prospects to tour homes on their own time without a leasing agent present. They give prospective residents the autonomy to view the home at their own pace and without having to download yet another app. In turn, this allows single family rental owners to extend their showing hours and reduce their marketing and sales costs at the same time. Our solution also connects to industry-leading property management systems to collect valuable data that allows leasing agents to follow up with - reducing the leasing cycle and leaving fewer vacant units.
With more renters flooding the market, owners are expanding their portfolios. As business booms, there are also more properties to manage and site teams must become more agile. Including proptech into a portfolio’s strategy lets teams manage portfolios from a bird’s eye view while improving operational efficiency and reducing costs at the same time.
The inclusion also provides owners and site staff with data from residents and properties that can help guide them in making strategic decisions for their portfolio of homes. Think of energy savings, resident relationship management and effective maintenance management. When it comes to agility and operational efficiency, our Community Manager platform provides site teams with just that! It creates an ecosystem, that is accessible from virtually anywhere, to give owners and site teams visibility into each property. This then gives them the ability to manage work orders, vendors, vacant homes and tours.
While single family rental residents already have longer retention rates, proptech can increase lease length. Over time, fewer vacancies, higher rents and higher retention rates work together to increase NOI for SFR owners.
Grow With Us at Scale
Single family rental owners need solutions that grow with them as they continue to scale their portfolios. Our solutions like self-guided tours, smart home IoT and premium hardware allow owners to manage their portfolio effectively while also maintaining a competitive edge. Our solutions also work seamlessly to protect assets and reduce costs, leading to greater long-term NOI.