Smart Home Features That Actually Increase Rental Income

Today’s tenant is looking for a lifestyle upgrade, not just a place to live. Over the last couple of years, smart home technology has evolved from a nice-to-have novelty into a fully-fledged amenity that is expected in rental properties, especially by millennials and younger Gen Z renters. But for property owners, the critical question is: which smart features are worth the cost because they drive increases in rental income and reductions in vacancy?

Let’s focus on smart home investments that deliver measurable returns.

The Business Case for Smart Home Upgrades

That said, before delving into specific features, the dual benefit to smart home technology should be understood: You can command higher rents while simultaneously reducing operational costs. Study after study has shown properties with smart features rent 20-30% faster than similar units without, and landlords can usually charge 5-15% premium rent, depending on market and feature package.

More importantly, smart technology can reduce your workload, minimize maintenance costs and provide valuable data about property usage and potential issues before they become expensive problems.

Smart Locks and Access Control: The Gateway Investment

ROI Potential: High
Smart locks are arguably the best intelligent investment in smart home technology for rental properties. The solution resolves several pain points simultaneously:
**Increased rent potential: **Tenants love keyless entry, especially those who frequently have guests over or have irregular work hours. You can add £20-40 per month to rent, depending on your market.

Operational savings: No more emergency lockouts at 2 AM, no rekeying between tenants and no lost key drama. Modern smart locks like August, Schlage Encode or Yale Assure allow you to create temporary access codes for contractors, cleaners, or showing appointments without you having to be there physically.
Security features: Most systems log entry and exit times, providing valuable data if disputes arise. Some integrate with security cameras for complete access monitoring.

In many cases, this upfront expense of £120-250 per lock pays for itself in 6-12 months through locksmith call reduction alone.

Smart Thermostats: The Tenant Favourite

ROI Potential: High
Thermostats, smart systems such as Hive, Tado, Honeywell Home & Drayton Wiser rate high with tenants because they offer immediate, tangible benefits: lower utility bills and superior comfort. For landlords, the value proposition depends on who pays utilities.

If utilities are paid by tenants: This becomes a very desirable amenity. Tenants will save 10-23% on heat and cooling costs per year. This makes your property more attractive, you can justify £30-60 more every month in rent.
If you’re paying utilities: Smart thermostats pay for themselves directly. In-between tenant vacancy periods no longer waste heating or cooling, and you can adjust the temperatures remotely during maintenance visits. The £200-250 investment typically recoups within one year in utility savings alone.

Modern thermostats automatically optimize heating and cooling schedules, while most of them can be remotely controlled with a smartphone.

Smart Doorbells with Video: Where Security Meets Convenience

ROI Potential: Medium to High
Video doorbells-Ring, Nest Hello, and Arlo-have become virtually standard in single-family rentals and increasingly expected in multifamily units with individual entrances.

Tenants appreciate the security and convenience-they can see and talk with delivery drivers, screen visitors and monitor their entrance from anywhere.
For landlords, video doorbells can enable property monitoring, reducing false security claims. They are especially valued for properties in urban areas where package theft is prevalent.

Installation costs range from £100-250, with most versions not requiring a monthly subscription for basic functionality, though cloud storage costs £3-10 per month.

Smart Lighting Systems: The Efficiency Play

ROI Potential: Medium
Smart lighting essentially falls into two categories: smart bulbs and smart switches. For rentals, smart switches- Philips Hue, LIFX, Lightwave & Wiz (Philips brand) -are better long-term investments than smart bulbs, since tenants won’t be able to take those with them when they go.

Motion-sensor lights in common areas, hallways, garages, and outdoors reduce electricity waste and improve safety. Interior dimmer switches appeal to tenants seeking ambiance control and energy efficiency.

The rent premium is modest at £15 to £30 per month, and when combined with energy savings-LED smart lights use 75% less than traditional bulbs-the payback period is relatively reasonable at 18-24 months.

Smart Smoke and Carbon Monoxide Detectors: Safety First

ROI Potential: Medium
Beyond basic safety compliance, smart detectors offer remote monitoring and granular alerts: if one goes off, you’re immediately notified with specifics about the problem location. X-Sense & Honeywell Home.

This little notice can prevent minor issues from becoming disasters and shows you care about the safety of the tenant-a pretty strong retention tool. The rent premium is small (£10-20), but tenant satisfaction and the risk reduction make those worthwhile, particularly for multi-unit properties where you cannot immediately respond to every alarm.

What NOT to Install

Avoid these common smart home mistakes:
Smart appliances: too expensive, frequently have connectivity problems, and the tech changes too fast. Don’t see enough value for tenants to command the premium for smart refrigerators.

Whole-home automation systems: Their sophistication often necessitates professional installation, in which case the investment rarely pays off in a rental due to increased rents not equalling or surpassing the investment.
Over-intrusive monitoring: Smart devices that come off as surveillance (except for security cameras in common areas) make tenants feel uneasy and may result in claims of privacy violations in some jurisdictions.

Conclusion

Smart home features aren’t just marketing gimmicks. If those are chosen strategically, they increase rental income, reduce operational costs and improve tenant satisfaction. Focus on features that solve real problems for you and your tenants alike. You’ll find that smart home technology will be one of the smartest investments one can make in a rental portfolio.