A tech company says landlords must adapt as rising costs influence tenants’ renting decisions – and they should prioritise technology to set them apart from the competition.
According to Capterra, a software platform, 73% of tenants in an international survey somewhat or strongly agree that a property that features advanced technology could significantly influence their decision to sign up.
Yet the platform claims 44% of property owners in the UK still don’t offer renters tech and digital tools in their rental properties, highlighting a missed opportunity to remain competitive in the housing market.
With inflation and the emergence of short-term rentals making prices soar, renting no longer appears to be the affordable alternative to getting on the property ladder and Capterra states that 43% of UK tenants are dissatisfied with the amount they pay (much higher than the global average of 36%) with higher rental prices blamed partly on short-lets taking stock according to 65% of UK tenants (higher than the 51% of global respondents).
And 80% of UK tenants say rising rents in their area have significantly impacted their standard of living, compared to 76% of global respondents.
Currently, digital features are relatively rare in the UK rental sector. Only 34% of UK tenants have access to online document portals, and UK tenant adoption rates for online payment portals (19%), dedicated communication platforms (10%), smart locks (7%), and remote security apps (7%) are below the global average.
However, Capterra insists its survey shows that many tenants would pay more for features like home security systems, smart appliances, high speed connectivity options and smart home automation systems.
“Offering tech upgrades in rental properties can help to boost tenant satisfaction by improving security, convenience and efficiency. However, as rental costs rise, these features should no longer just be perceived as nice-to-haves but rather, key influencing factors in a tenant’s rental decision”, says Eduardo Garcia Rodriguez, analyst at Capterra.
