Some of the new renters entering the market are becoming apartment dwellers for the first time. The Urban Institute’s Housing Finance Policy Center reports that there are about 19 million renters who were homeowners at some time in the previous 16 years. Many of these folks have a foreclosure or some other negative mark on their credit that prevents them from qualifying for another home loan.

There are also millennials who have never owned a home and have no credit. What seems like bad news for the housing market can be good news for apartment owners and landlords. Many are now trying to hold onto their renters by providing the smart home luxuries that were previously only targeted at homeowners.

IOTAS

 
Leading the way in smart apartment technology is startup IOTAS. Their goal is to provide tenants with an apartment that learns from their usage habits and lifestyle to save on energy costs, enhance their daily lives, and help them be more efficient overall. For example, at bed time, the system ensures that all doors are locked, lights are off, and the temperature is set to the occupant’s sleep preference. Renters can program the IOTAS system themselves, or it has the ability to learn the preferences of renters based on their daily routine.

For the landlords and property owners, they hope to keep renters loyal, optimize rental income, and provide a wealth of useful information about tenant populations.

Targeting millennials

 
Just as they are dominating the housing market, this group of newly-forming households is the largest segment of new renters. According to Bailey Brand Consulting, about 75 percent of millennials believe technology enhances their lives. For apartment owners to remain competitive, they must embrace smart apartment technology for their units and have it available to an ever-increasing segment of their renters. If you think the current generation of renters is tech-savvy, just think about how the next wave of new renters will be a couple of years from now.

Investing in the latest technological advancements in rentals is likely to reap rewards for many years to come.

Related Articles

 
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Putting the Sizzle Back Into Your Rental Units

How to Study Your Rental Market and Outperform Your Competition

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Theresa Bradley-Banta writes about investing in real estate while avoiding the pitfalls that plague many new investors. She is a 2017 PropTech Top 100 Influencer and winner of 14 American and International real estate awards for her website and real estate investing programs. As featured on: The Equifax Finance Blog, AOL’s Daily Finance, Scotsman Guide, The Best Real Estate Investing Advice Ever Show, Stevie Awards Blog, Rental Housing Journal, and Investors Beat among others.

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