Single-Family Renters: Connectivity & Smart Home

The single-family rental market is growing as constrained housing inventory and high interest rates push more consumers to rent.? Residents, landlords, and property management companies have unique safety, security, access control, and connectivity needs. This study delves into the preferences and usage patterns of single-family renters regarding internet services, home networking, security systems, and smart home devices.?

Parks Associates consumer study Single-Family Renters: Connectivity & Smart Home offers a nuanced understanding of the evolving demands within the rental market, providing property owners, management companies, service providers, and device makers with crucial data to tailor services and products that align with the desires of single-family renters in the rapidly advancing landscape of connected living.

Key questions addressed:

1) What housing market and lifestyle factors influence the decision to rent a single-family home instead of renting a multifamily unit or purchasing a single-family home or apartment/condo?

2) What is the future outlook for renting or purchasing a single-family home or apartment/condo?

3) What is the connectivity foundation in single-family rental homes, including broadband services to the home and use of Wi-Fi/networking equipment??

4) What smart living use cases are of highest appeal to single-family renters?

5) What is the adoption rate of security systems and smart home devices?

6) Who is the buyer of internet, security, and smart home solutions: the resident, landlord, or a property management company? Who pays ongoing service fees?

7 )How do connectivity, security, and smart home offerings impact the rental decision and rents?

Here are a few highlights from the research:

Single-family renters have the lowest net promoter scores (NPS) for home internet service out of any tested residence type.

Dissatisfaction with home internet among single-family renters is primarily driven by their cost-sensitivity. Single-family renters pay more for home internet than MDU residents do but have lower household incomes on average and a larger family size. Single-family renters look for deals, such as bundles with other services.

Single-family renters are interested in home security solutions and gigabit internet speeds, reporting higher interest than multifamily renters.

Roughly sixty percent of single-family renters find that having security systems and smart home devices preinstalled make a home more appealing to rent.

Smart home products and security systems can help attract and retain residents. The appeal is broad and crosses age and income groups, and households with and without children. The addition of smart products and security systems will signal to a buyer that the owner/operator cares about and invests in the home.

Three-quarters of single-family renters report strong interest in at least one tested smart home product.?

Security systems and video doorbells are the most desired. Many renters are interested in receiving property-provided devices from their landlords or property managers. In terms of demographics, single women and respondents with pets or children are more likely to find these tested products appealing. Younger respondents also generally find these products more appealing.

Data indicates significant demand for smart home systems and devices among single family renters and an opportunity for landlords/property managers to capitalize on it.

There is a significant opportunity for landlords to offer additional renter amenities, following trends in multifamily housing. Renters are particularly interested in smart security solutions, to meet their families’ needs.

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