Renters are no longer swayed by granite countertops or staged furniture. They want control, safety, and efficiency, and they’re willing to pay for it. In fact, 77% of renters surveyed as part of Rently’s Smart Apartment Trends Report say they would consider signing a lease of two years or more if smart security and energy-saving devices were included.
That’s not just a shift in renter preference. It’s a signal to owners and operators: smart technology is no longer a nice-to-have amenity. It’s a measurable asset that can strengthen financial performance, reduce churn, improve net operating income (NOI), and future-proof a property’s value in a changing market.
Smart Tech Drives Financial Stability
High turnover is expensive. Between repairs, cleaning, marketing, and lost rent, each vacancy can cost thousands. When move-outs happen frequently, that cost adds up fast.
Smart technology helps break that cycle. Features like smart locks, thermostats, and security cameras give renters more comfort, more control, and fewer reasons to leave. When residents feel secure and empowered in their space, they’re far more likely to renew.
Longer leases lead to predictable income. Predictable income stabilizes cash flow. With three-quarters of renters open to long-term leases when smart tech is included, operators can reduce vacancy exposure and build more scalable, stable business models.
Efficiency Translates to Higher NOI
Smart home upgrades don’t just attract and retain renters—they also drive operational savings, directly boosting NOI.
Smart thermostats reduce energy waste. Leak detection sensors catch problems before they cause expensive damage. Smart lighting systems reduce power use in common areas during off-hours. App-based access control cuts down on costly lockouts and key replacements.
Individually, these features might save modest amounts, but when deployed across a portfolio, they add up to thousands in annual savings—with minimal added labor. These improvements also reduce maintenance tickets, insurance risk, and long-term wear on infrastructure—all factors that protect and improve asset value.
Renters Are Signaling Demand
Today’s renters know what they want, and they’re using lease terms to show it. For residents who say they’d consider staying longer in a unit with smart tech—like 77% of Rently’s survey participants—it’s a strategic opportunity for operators. In competitive markets, where standing out matters more than ever, these features can become a key differentiator that drives retention and long-term value.
Smart technology also supports tiered pricing models. Residents may be willing to pay more for units equipped with smart features. This creates new opportunities to improve average rent per unit without major construction or capital improvements.
Crucially, this isn’t a passing preference. As younger, tech-native renters dominate the market, expectations for connected living will only grow. Properties that lack smart features may struggle to justify rent increases or retain residents who find better options down the street.
Modernization Impacts Asset Value
While smart upgrades may start as renter-facing amenities, their impact reaches the balance sheet. Properties with smart systems often see higher appraisals. Energy-efficient features and preventative tech tools reduce long-term costs, extending the life of systems and reducing future capital expenditures. Those cost savings, paired with higher retention, translate to improved valuation.
Investors are also watching. A building with centralized tech infrastructure offers clearer reporting, easier integration with portfolio management systems, and lower operational risk. Properties equipped with scalable tech tools are more attractive to institutional buyers, especially those focused on operational efficiency and Environmental, Social, and Governance (ESG) metrics.
In addition, smart infrastructure also prepares properties for what’s next—whether that’s adapting to grid-based incentives, implementing centralized leasing platforms, or integrating AI-driven building systems. Owners who build with technology in mind are positioning themselves for smoother transitions as the industry evolves.
Smart Tech Enables Portfolio-Scale Optimization
At the portfolio level, smart tech enables real-time oversight across multiple properties. Cloud-connected systems give operators visibility into energy consumption, maintenance needs, and resident engagement. That means faster decisions, better data, and more control at scale.
Remote diagnostics reduce the need for on-site checks. Digital key systems streamline move-ins and vendor access. Smart lockers and delivery alerts improve package management. These tools let leaner teams manage more units without sacrificing service.
In tight labor markets, this operational efficiency matters. It enables portfolio growth without a proportional increase in staffing or complexity.
Conclusion: Smart Tech Is a Strategic Asset, Not a Trend
Smart home technology is no longer just about convenience—it’s a strategic lever for improving performance across the board. From increasing lease lengths and rent premiums to reducing turnover and operational costs, smart features are reshaping what it means to run a successful multifamily portfolio. Operators who prioritize these upgrades now will be better positioned to meet evolving renter expectations—and stay ahead in a competitive market.
