Do Smart Home Upgrades Increase the Rental Value of a Toronto Condo?

It’s easy to spend a few hundred dollars adding smart technology to a rental unit. 

But what do you really get back from it?

That’s the question we want to answer. 

If you’re an owner looking at smart home upgrades to improve the rental value of a Toronto condo, the first step is choosing technology that solves a current problem.

How Smart Home Technology Can Add Value to a Rental Condo

As a rental owner, you can look at the value of smart home tech in a few ways:

• Rental appeal: Does the feature make the condo more attractive compared with similar listings?
• Operating costs: Can it help reduce heating, cooling, or other expenses?
• Turnover efficiency: Does it make access easier for new tenants or when contractors need to enter the unit?
• Risk reduction: Can it alert you to a maintenance issue before the damage gets worse?

Just because an upgrade doesn’t lead to a direct increase in rent doesn’t mean it isn’t worthwhile. 

If you have a smart lock that saves time during a tenant turnover or a leak sensor that catches water under the washing machine before anyone notices, there’s value. 

The Best Smart Home Upgrades for Toronto Rental Condos

Smart Locks

Smart locks are all the rage. But as a rental owner, one of the main benefits is easier access.

Instead of relying entirely on physical keys, you can create or change access codes for tenants, cleaners, contractors, or other authorized visitors.

Keyless entry can be a huge convenience for tenants. And when that tenant leaves and a new one is set to move in, you can just change the code rather than dealing with another set of copied keys.

Before you install a smart lock, check with the condo corporation. They may have rules about changing hardware.

Smart Thermostats

Smart thermostats offer an obvious financial benefit, as they can help limit energy use. 

Tenants can create heating and cooling schedules and adjust the temperature remotely. After all, there’s no reason for a system to run when no one is home. 

If you pay for heating or cooling, lower energy consumption may directly reduce your expenses. If the tenant pays, the savings mostly benefit them. If they know they might save on energy costs with this system installed, it may make the unit more appealing.

Smart Leak Sensors

Leak sensors are one of the most useful smart upgrades you can make as a condo owner.

These small sensors can be installed near areas where leaks are more likely, including:

• Washing machines
• Dishwashers
• Sinks
• Toilets
• Mechanical or utility areas inside the unit

If water reaches the sensor, you can get an alert on your phone.

Not only can this help protect your place from water damage, but it can also help protect neighbouring units below or beside it.

A leak sensor probably won’t be a big driver for pricing your unit, but it will give you a bigger window in which to respond to a potentially devastating problem. 

Smart Lighting and Switches

Smart lighting can make a condo feel more modern. Plus, it gives tenants more control over their living space.

You can also add timers, dimmers, motion controls, and app-connected switches to cut back on energy use. 

For a rental unit, simple smart switches are more practical than filling every fixture with connected bulbs. Smart bulbs often need apps and accounts, which have to change when you switch tenants. That just creates more unnecessary work for you during turnover. 

Good lighting itself may be more important to a tenant than being able to control every fixture from a phone. So, if you have outdated lighting, upgrade it. Maybe add efficient LED lighting or go beyond standard builder’s grade fixtures. Lighting can have a huge impact on the way a property looks and functions.

Smart Upgrades That May Not Be Worth the Cost

Not every smart-home product makes sense for a rental property.

Before you spend a ton of money on new tech, think about why you’re doing it and if the benefits outweigh the costs. 

Expensive Smart Appliances

Connected refrigerators. Wi-Fi-enabled ovens. These things may sound impressive, but they won’t really add to the value of your condo or make it easier to rent. 

If anything happens to them over the course of a tenancy, they can also cost more to replace or repair.

Unless the unit is competing in a higher-end rental segment where tenants already expect premium appliances, stick with reliable conventional appliances.

Whole-Home Automation Systems

Complex automation can be more of a headache for certain tenants, even if it’s made to be convenient. 

Think about walking into a new home where you need several apps, a central hub, multiple accounts, and instructions just to use basic features. At that point, you have a system that may be too complicated for the property.

And again, you’ll have to reset or transfer those devices whenever that tenant moves.

Built-In Voice Assistants

Smart speakers and voice assistants are personal devices. Tenants who want them can easily bring their own. There is usually little reason for an owner to spend money installing them as part of the rental.

Will Smart Home Upgrades Let You Charge More Rent?

Something like a smart lock or smart thermostat may be a cherry on top for renters comparing several similar units, but for the most part, a condo will rent based on more heavily weighted factors, like:

• Location
• Building
• Unit size
• Floor plan
• Condition
• Parking
• Amenities
• Current rental demand

Just because you installed a $300 smart-home package doesn’t mean it’ll translate into a specific increase in monthly rent. Sure, it might make your unit a bit more competitive or easier to manage, but that might be it. 

When we price a condo at Del Condominium Rentals, we look at the unit and current rental market rather than assigning a fixed dollar value to individual upgrades.

Which Smart Home Upgrades Are Worth It for a Rental Condo?

Before buying any smart tech for your rental, run through a few questions.

1. Does the upgrade solve a real problem for you or the tenant?
2. Will a new tenant understand how to use it?
3. Does it require a monthly subscription?
4. Who benefits from potential energy savings?
5. Does it require a special reset or transfer process when the tenant moves out?
6. Does your condo corporation allow the installation?

Make Upgrades Based on Your Condo's Rental Market

The right upgrades completely depend on your condo.

The same upgrades might not be as appealing to a young, single professional living alone as they would be to a family of four.  

Before spending money, compare your condo with similar rentals in the building and surrounding area. You may find that, sure, a smart lock could be useful, but your money would be better spent on new flooring or a fresh coat of paint. For upgrades beyond tech, see our helpful guide on condo renovations that increase rental value.

If you are deciding which improvements to make before listing your unit, request a complimentary rental evaluation from Del Condominium Rentals. We can give you a better idea of how your condo compares with the Toronto rental market and which improvements may be most beneficial.