This article originally appeared in the October 2023 issue of Security Business magazine. When sharing, don’t forget to mention Security Business magazine on LinkedIn and @SecBusinessMag on Twitter.
There was a time when PropTech, the underlying property technology that real estate pros use to manage and improve real estate transactions, was a supplemental perk offered by a few property owners in some of their rental offerings.
Things have changed. Now, PropTech is seen as an expected part of every rental offering by a high percentage of prospective renters, with smart connected devices playing a central role.
According to a 2022 study by Parks Associates, 43% of multi-dwelling units are home to at least one smart home device. “The most significant benefit of installing smart home devices in MDUs is rental rate increases. Other benefits include reduced complaints from current residents and a boost in attracting new ones, along with many others,” it says.
The study goes on to predict a growing use of smart devices in the future, stating “more than 80% of property managers intend to install internet-connected devices in the next 12 months.”
Why are an increasing number of property managers installing smart-home tech like cameras, sensors, security systems, and smart electronic locks in their properties? For one thing, renters demand it; in fact, a survey conducted by Rent.com showed that “a significant majority of renters (82%) want at least one smart device or system in their homes.”
Perhaps just as important, smart home tech can be a competitive differentiator for a building owner, allowing them to charge higher rental fees. Renters want technology in homes that makes their day-to-day lives easier, safer, and freer of stress. And they are willing to pay for it.
Five Benefits of Smart Locks in PropTech Applications
The popularity of smart home tech is growing, and smart electronic locks are a big reason why. For many prospective renters, smart locks are becoming an essential part of prop tech packages, maybe even a condition of the deal.
More than a convenient, secure way to add access to any home, smart locks add unique benefits to PropTech that make life easier and better for both owner and renter. Here are five reasons that smart locks can and should play a central role in every PropTech package:
1. Securing customers: Let’s start with the obvious. Smart locks are great at their primary job, which is securing a property and the people inside. When it comes to choosing a new home, safety and security are a major concern of homeowners and renters; in fact, according to a 2022 Z-Wave State of the Ecosystem Report, “security devices dominate the list as the top devices added to a smart home control system.” These include smart door locks, as well as security cameras, video doorbells, smart door locks, CO detectors, and smoke detectors.
Today’s smart locks are, in many cases, more secure than traditional locks. Some have features that protect commands and settings to prevent lock tampering, they can be managed wirelessly for additional security, and provide resistance against break-in methods like torque attacks and lock bumping.
Perhaps most enticing to building owners/managers, and most gratifying to renters, smart connected locks can be integrated into a complete smart security ecosystem. This can include any combination of smart locks, video doorbells, video camera, lighting, motion sensors and more – a PropTech package that can deliver peace of mind.
2. Let smartphones be the guide: With self-guided touring, prospective renters can locate and “check into” a property using their phone, tablet, or laptop. Once approved, the prospect will receive a one-time entry code and use a smart lock to gain access to the property. There’s no longer a need to rely on an often-unreliable lockbox and key. Using self -guided touring with smart phones, the property management team doesn’t have to spend endless hours responding to leasing inquiries or being present at showings.
Direct access to useful information is an added benefit of this self-guided touring option. Real estate operators can not only see when prospective renters are interfacing with the smart locks, they can see also who is using the smart lock and they can create an interface to find out what listing service or resource drove the sale.
3. The cure for the common key: Because smart locks can be unlocked and locked via simple user codes, or remotely through any Web-enabled device, keys can be completely excised from the equation. Building owners and managers love this, because there is no need to drive to the property to physically meet with the renter and hand them a key. There is also no need to change or rekey the locks when units turn over, and there is no worrying about keys getting lost or stolen.
Additionally, keyless remote access control delivers a level of convenience and peace of mind that keys simply do not. For example, renters can lock or unlock their device when they are not home, whether they are at work or laying by the pool on a tropical island. Renters can also give different user codes to their kids or other members of the family, as well as give friends, neighbors, and service provides like caregivers and babysitters time-sensitive access to the home.
4. Remote controllers: Working with a central hub and a home automation protocol like Z-Wave, smart locks can wirelessly communicate with everything from thermostats to lighting to other security devices. And the renter is granted the same power. Residents can set up customized smart home “scenes” that will take effect upon entering the apartment. For example, they can program the lock so that every time they unlock the door, lights go on, cameras turn off, and shades go up. Building managers and owners can also set up similar scenarios for showing homes as well as open houses, creating an impressive display of high-tech cool and convenience.
5. Property management made easier: There are more ways that smart locks can make life easier for property managers and owners. PropTech that includes smart locks makes it easy to manage properties across several states. With smart lock user codes, managers can grant contractors access to a property, controlling their labor time while providing services to a tenant. So even from far away, managers can adjust a thermostat, get lightbulbs replaced (or just turn off lights if a unit is vacant), or even install another smart device.
Smart locks make it easier to monitor a property after a renter moves in, or after they move out when the property is vacant. With the information trail provided by connected smart locks, managers know exactly when a tenant has vacated the premises, when contractors or cleaning crews have performed their turnover services, and when a new tenant has taken occupancy.
Erik Glassen is the Senior Brand Manager for Kwikset and Baldwin.
