Really. Tenants desire your smarthome?

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As a landlord who writes about the benefits of SmartHome tech to other property owners, the there is of course another side to the debate. Some renters prefer a dumb home.

As a landlord who writes about the benefits of SmartHome tech to other property owners, the there is of course another side to the debate. Some renters prefer a dumb home.

A clear majority (57%) of tenants seek technology when they search for new homes. Additionally, during the 2018 holiday season, gadgets such as smart speakers were among the most purchased technology items. The ease, convenience, and security these devices provide makes it inevitable that regardless of if landlords do not pre-install them, renters probably will.

However, a best practice involves listening to tenants, and also not exposing yourself to unnecessary liability.

In recently case, an eager landlord insisted tenants use their smartphones to unlock their homes, and refused provide them physical key. The a group of New York city tenant sued the landlord, and won the right to have a physical key.

What makes this case interesting is that the tenants argued that they were trapped in their apartments without a smartphone. In addition to this, some tenants could not afford a smartphone, thereby making the unit unattainable for them to lease. Finally, the smart lock manufacturer had a policy allowing them to sell the data collected by the system to others–without consent.

One of the biggest takeaways from this ruling revolves around flexibility. In a city like New York, many apartments use electronic keying-door opening systems of one sort or another. Many use electronic keypads, some physical or electronic keys, others use human door attendants, after hours phone calls or receptionists. As a multi-unit property manager overseeing entry/exist, a good portion of time may involve replacing physical keys to tenants at odd hours. If you possess a leased unit, why would a landlord (inadvertently?) choose to be responsible for allowing or preventing access to a paying tenant? It’s easy to see the exposure in a scenario where an even-more-eager landlord attempts to convince a slow-paying-renter by locking them out.

To streamline this process, remember that a physical key has two distinct advantages: ubiquity, shifting the liability from landlord to the tenant. One of my favorite experiences as a property owner is when I give all of the keys to a tenant after lease signing. Like someone delivering flowers, the expression on their faces makes my day. I have a ‘key policy’ in my lease outlining the inventory of keys, fobs, and garage door openers as well as their costs. (Many HOAs issue fobs to use swimming pools and recreation centers). More importantly, on the day the renters receive their keys, they become responsible for the unit. If they lose them, forget them, etc., it’s on them. I’ve also had tenants who replace locks, mailbox keys, and change garage door openers, but, their security deposits cover these occurrences when the lease is up, thanks to the already-agreed-upon key policy. (*I also list all smart devices in the home, show them how to use them, and encourage them to either disconnect or change the passwords.)

What about the tenant who wants a completely disconnected, dumb home. Each property owner will need to make this determination whether or not this type of arrangement works for them.

In some homes I rent, landscaping is provided by either the HOA or me. In these cases, the automatic sprinkler must function; otherwise, the HOA or community will penalize the owner. Another example is automatic blinds, which have the option of being manually drawn and closed.

The best solution is to provide options where Smart devices can be unplugged/unused and still function using manual means. Another option, as in the sprinkler case below, explain to the tenant what times the device will activate, and to the best extent possible, automate this process. In this way, the tenant who has concerns can decide whether your home is a good fit for them.

Electricity is a mandatory utility. However another question would be, what happens when you provide tenants a disconnected home, and then they desire to automate it to respond to Alexa, Cortana or OK Google?

A clear majority (57%) of tenants seek technology when they search for new homes. Additionally, during the 2018 holiday season gadgets such as smart speakers were among the most purchased technology items. The ease, convenience and security these devices provide makes it inevitable that regardless of if landlords do not pre-install them, renters probably will.

However, a best practice involves listening to tenants, and also not exposing yourself to unnecessary liability.

In recently case, an eager landlord insisted tenants use their smartphones to unlock their homes, and refused provide them physical key. The a group of New York city tenant sued the landlord, and won the right to have a physical key.

What makes this case interesting is that the tenants argued that they were trapped in their apartments without a smartphone. In addition to this some tenants could not afford a smartphone, thereby making the unit unattainable for them to lease. Finally, the smart lock manufacturer had a policy allowing them to sell the data collected by the system to others–without consent.

One of the biggest takeaways from this ruling revolves around flexibility. In a city like New York, many apartments use electronic keying-door opening systems of one sort or another. Many use electronic keypads, some physical or electronic keys, others use human doormen, after hours phone calls or receptionists. As a multi-unit property manager overseeing entry/exist, a good portion of time may involve replacing physical keys to tenants at odd hours. If a unit is occupied, why would a landlord (inadvertently?) choose to be responsible for allowing or preventing access to a paying tenant? It’s easy to see the exposure in a scenario where an even-more-eager landlord attempts to convince a slow-paying-renter by locking them out.

In an effort to streamline this process, remember that a physical key has two distinct advantages: ubiquity, shifting the liability from landlord to tenant. One of my favorite experiences as a property owner is when I give all of the keys to a tenant after lease signing. Like someone delivering flowers, the expression on their faces makes my day. I have a ‘key policy’ in my lease outlining the inventory of keys, fobs, and garage door openers as well as their costs. (Many HOAs issue fobs to use swimming pools and recreation centers). More importantly, on the day the renters receive their keys, they become responsible for the unit. If they lose them, forget them etc, it’s on them. I’ve also had tenants who replace locks, mailbox keys and change garage door openers, but, their security deposits covers these occurrences when the lease is up, thanks to already-agreed-upon key policy. (*I also list all smart devices in the home, show them how to use them, and encourage them to either disconnect or change the passwords.)

What about the tenant who wants a completely disconnected, dumb home? This article, written by a tenant who deals with security in the home, brings up several issues. Each property owner will need to make this determination whether or not this type of arrangement works for them.

In some homes I rent, landscaping is provided by either the HOA or me. In these cases, the automatic sprinkler must function, otherwise the HOA or community will penalize the owner. Another example are automatic blinds, which have the option of being manually drawn and closed.

The best solution is to provide options where Smart devices can be unplugged/unused, and still function using manual means. Another options, as in the sprinker case below, explain to the tenant what times the device will activate, and to the best extent possible, automate this process. In this way, the tenant who has concerns can decide whether your home is a good fit for them.

Electricity is a mandatory utility. However another question would be, what happens when you provide tenants a disconnected home, and then they desire to automate it to respond to Alexa, Cortana or OK Google?