The figures are in. According to a study by Juniper Research, the smart home market will reach $71 billion by 2018, more than doubling 2013 figures.
Smart home technologies are making a major impact on individual homeowners and vacation property management companies as well. According to statistics reported in VRMintel's "The Smart Home Wave and the Impact on the Vacation Rental Industry", the upward trend is not likely to change anytime soon.
The Smart Home Impact on the Vacation Rental Industry Study Showed:
- 81 percent of home buyers prefer smart homes over non-smart homes
- Global smart home connected appliances are expected to reach 223 million units by 2020
- More than 10 percent of U.S. broadband households plan to purchase a smart thermostat in the next year
Why Smart Is In
Why is there such explosive growth in the smart home market? The answers lie in both its advantages and the increasing interest of innovative companies in producing readily available smart home technologies.
Some of the main advantages of smart homes are:
- Convenience of use
- Energy efficiency
- Enhanced home security
- Higher potential resale value
The Impact of Smart Homes on Vacation Rental Management
While these benefits apply to individual property owners, vacation rental property management companies stand to reap even more significant benefits.
The use of smart home technologies gives vacation rental managers more control over how vacation properties use available resources. Here are some examples of ways smart home technologies can impact the bottom line for your vacation rental property.
Temperature control: Automating energy usage allows vacation rental managers to remotely manage thermostats in a rental property to ensure guest comfort and reduce the use of unnecessary energy expenditure. For instance, smart thermostats can be set to automatically maintain a minimum/maximum temperature range without guest involvement. If a guest checks out of your property with the A/C still churning away, smart technology allows you to remotely adjust the temperature setting, thus reducing your energy bill significantly over time.
Increased security: Smart technologies like keyless entry allow vacation rental managers to remotely maintain excellent property security. Many guests prefer the convenience of keyless entry, while vacation property managers find that it saves time and money that was once spent in re-keying locks after keys were lost by guests. Smart home security systems also increase guest satisfaction, providing them with peace of mind about the safety and security of your vacation rental property.
Better marketing potential: Flipkey's "How Home Automation Can Boost Vacation Rental Profits" points to another significant benefit of adopting smart home technologies for your vacation rental properties. The article notes: "While home automation requires an initial investment, being able to market your property as a "smart home" attracts more renters and allows you to charge more per day."
When you consider the fact that more and more homeowners are using smart home technologies in their own homes, it is reasonable to assume that these homeowners will expect at least a comparable experience in their vacation rental homes as well. For the most part, travelers expect their vacation accommodations to provide as much or even more comfort and convenience than they experience at home.
The Importance of Staying on the Cutting Edge
Vacation rental management companies that wish to remain competitive in their markets must take advantage of advancing technologies to set their properties apart from the competition. This basic tenet holds true across your entire vacation rental property management system. From smart home technologies to cutting-edge vacation rental property management software, you must use all the tools at your disposal to remain ahead of the market.
Watch this video to see why Kigo's software is a total, end-to-end vacation rental property management solution.
Cutting-edge Vacation Rental Property Management Software
Kigo's software solution encompasses every area of vacation rental property management, including reservation management, booking automation, vacation rental property website design, back-end processes, channel management, revenue management, and much more.
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