With rental demand remaining high, landlords need to find ways to set themselves apart from the competition. One way to differentiate from others on the market is by providing smart tech in properties, which is of particular interest to younger tenants.
To increase profits, investors need to prioritise all-electric properties to draw in tenants and beat the competition, from sustainable heating and vehicle charging to smart devices that run off electricity and create a more convenient, energy-efficient home.
The Growing Demand for Electrification in Properties
Investors who want to stay relevant in the property market need to have portfolios that embrace sustainability and efficiency, and be focused on what tenants are looking for in a home. The electrification of properties offers all of this and more, delivering resiliency for the future and an environmentally-friendly solution to energy needs.
Electrification is the direction that all businesses will be moving in, as evidenced by such regulations as the government’s update that all new buildings in England must be fitted with EV chargers from 2022, and that there will be a simpler methods of payment and faster charge points installed around the country to facilitate the adoption of EVs in the UK.
“The UK will become the first country in the world to make EV car chargers’ installation mandatory for new buildings”, explain electrical training specialists Trade Skills 4U, “The new legislation is expected to say that all charging stations must include ‘smart’ EV charging technology. The demand for qualified EV Charging Point installers is increasing month after month, and this latest announcement is yet more evidence of the speed at which the UK’s EV Charging infrastructure is evolving”.
Eco-Minded Home Viewing Varies Across Different Areas
The Energy Company Obligation (ECO), the government’s energy efficiency scheme in the UK (established to reduce carbon emissions and tackle fuel poverty), reported that in 2021, around 3.4 million measures were installed in around 2.4 million properties. And around the UK, certain cities have already become more eco-forward, with a higher interest in sustainability and eco options in the likes of Edinburgh, Norwich and Plymouth, where eco-friendlier homes are more desirable.
Electric homes are far cleaner and more respectful to the environment, as they don’t emit polluting gasses or use heavy metals, whether you’re using it as a heating source, a charger for a vehicle or for devices and appliances around the home. As the world moves away from fossil fuels and in the direction of more sustainable alternatives, the demand for an eco-friendly, electric-run home will increase even further.
The Importance of Smart Tech for Landlords and Investors
When it comes to making a profit, it seems that the higher rents are available where the additional features are. And, it’s not just electric chargers and heating systems that people are keen to find in a property. Something that goes hand-in-hand with an electric property is smart tech. Build to Rent provider Wise Living state that “tech is now so important in our lives that a fifth of UK renters say they would be willing to fork out up to 10% more in rent each month for smart features in their home”.
Their research showed that almost 85% of those surveyed wanted instant connectivity and access to superfast broadband and TV packages in a rental property, while 75% wanted smart lighting and heating.
For landlords and investors, the research shows that tenants are willing to pay extra for a property with smart tech and investing in a property that provides convenience and efficiency is definitely the way forward. Although the research from Wise Living indicates that this trend is driven primarily by a younger demographic, there’s certainly interest from older age groups as well.
What Options are Available for Landlords to Create Electric-Led Properties?
There are various ways that landlords and investors can create all-electric properties to boost their profits. The first is to install EV charging points that will encourage EV users to rent the properties or make it easier for tenants to switch to electric vehicles in the future. Since there’s an upcoming ban on non-electric cars in 2035 in the UK, to curb carbon emissions, having this infrastructure in place will put investors ahead of the curve.
There’s also the option to transfer the central heating system to a fully-electric set-up. Electric heaters are much cheaper to install and run than a gas central heating system, as there’s no pipework to worry about and, since there are very few moving parts, they’re lower maintenance. Mains electricity is available virtually everywhere in the UK, unlike gas, so it’s more accessible.
Security and simplicity are important for tenants, and installing smart appliances and devices around the property can provide both of these desired elements. From lighting and blinds to smart thermostats, CCTV cameras and smart doorbells enable tenants to check on the property remotely at any time. There are various technological tools that can enhance a home and make it safer and more reliable for those living in it.
The Future is Electric
For forward-thinking investors, the way to build a resilient property portfolio is to focus on the electrification of properties. More and more people are seeking out sustainable, cost-effective and efficient properties that allow for greater convenience, and smart tech, renewable energy systems and EV charging points are a great way to provide this to tenants.
With more legislation expected in the coming years to help the UK reduce its carbon footprint, investors that can make changes now ahead of time will reap the financial rewards.
