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.
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.
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.
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