5 Ways Smart Thermostats Help Attract and Retain Better Tenants

Smart Thermostats Are No Longer a Luxury — They Are a Competitive Advantage

The Texas rental market is competitive. In metros like Dallas-Fort Worth, Houston, Austin, and San Antonio, renters have options. When a prospective tenant is comparing two similar apartments at similar price points, the details matter. And increasingly, smart home features are the detail that tips the scale.

According to a 2023 National Multifamily Housing Council (NMHC) survey, 72% of renters said they would prefer an apartment with smart home features over one without, even if the rent was slightly higher. Smart thermostats ranked as the number one most desired smart home feature — above smart locks, smart lighting, and package lockers.

Here are five specific ways smart thermostats help you attract and keep better tenants.

1. Listing Differentiation in a Crowded Market

When renters search for apartments on platforms like Apartments.com, Zillow, or Rent.com, they are scrolling through dozens of listings that all look similar. Granite countertops, stainless appliances, and in-unit laundry are table stakes. They do not differentiate anymore.

Smart thermostats give you a concrete, marketable feature that most competing properties do not offer. You can legitimately add "Smart Home Ready" or "Smart Thermostat Equipped" to your listing descriptions, and it stands out.

Here is what this looks like in practice:

• Listing headline: "Smart Home Apartment with ENERGY STAR Thermostat — Reduce Your Electric Bill"
• Feature bullet: "Smart thermostat in every unit — control your comfort from your phone"
• Tour talking point: "This smart thermostat learns your schedule and saves on energy costs automatically"

Properties that highlight smart features in their listings report 10-15% more inquiries compared to similar listings without smart home callouts. In a market where every lead counts, that edge matters.

2. Lower Utility Costs Attract Cost-Conscious Tenants

Texas renters are increasingly aware of energy costs — especially after experiencing summer electric bills that can spike well above $200 per month for a standard apartment. When a property can credibly promise lower energy bills, it is a powerful draw.

Smart thermostats deliver on that promise. Research shows they reduce HVAC energy costs by 8-15%, which translates to real monthly savings tenants can feel in their wallets. For a tenant spending $180/month on electricity, a 10% HVAC reduction could save them $100-$180 per year.

This is especially compelling for:

• Young professionals managing tight budgets in their first apartments
• Families looking to keep household costs predictable
• Remote workers who are home during the day and care about comfort efficiency
• Environmentally conscious renters who want to reduce their carbon footprint

When you can show prospective tenants that your property actively helps them save money, you are not just offering a place to live — you are offering a smarter way to live.

Explore the full energy savings data to understand what your tenants could save.

3. Reduced Tenant Turnover

Tenant turnover is one of the most expensive realities of property management. Between vacancy loss, unit preparation, marketing, and administrative costs, replacing a single tenant can cost $3,000-$5,000 or more.

Smart thermostats contribute to tenant retention in several ways:

• Comfort: Tenants who are comfortable are less likely to leave. Smart thermostats maintain more consistent temperatures and adapt to individual preferences.
• Perceived value: Tenants feel they are getting more for their rent when their apartment includes modern technology. This perception of value makes them less likely to shop around when the lease renewal comes up.
• Lower utility costs: When tenants save money on energy bills, the overall cost of living in your property feels more reasonable — even if rent increases slightly at renewal.
• Modern living experience: Tenants who control their climate from their phone feel like they are living in a well-maintained, forward-thinking property. That impression extends to their overall satisfaction.

Industry data suggests that properties with smart home features see 5-10% lower annual turnover rates compared to comparable properties without them. On a 200-unit property with average turnover, that could mean retaining 10-20 additional tenants per year — saving $30,000-$100,000 annually in turnover costs.

4. Sustainability Marketing That Actually Works

Sustainability is not just a buzzword — it is a genuine differentiator for a growing segment of the renter population. According to the National Apartment Association, over 60% of millennials and Gen Z renters say environmental sustainability influences their housing decisions.

Smart thermostats give you a tangible sustainability story to tell. Unlike vague claims about "green building practices," smart thermostats deliver measurable results:

• "Our smart thermostats reduce HVAC energy consumption by 8-15% per unit"
• "Our property prevents thousands of kilowatt-hours of energy waste each year"
• "Every unit is equipped with ENERGY STAR certified climate technology"

This is the kind of sustainability marketing that resonates because it is specific, credible, and directly benefits the tenant. You are not asking them to sacrifice comfort for the environment — you are showing them that comfort and sustainability go hand in hand.

For properties pursuing green certifications, ENERGY STAR designations, or sustainability-focused branding, smart thermostats are a foundational element that supports the broader narrative.

5. Tech-Savvy Tenant Appeal

Today's renters — particularly millennials and Gen Z, who now make up the largest segment of the rental market — expect technology integration in their living spaces. They use their phones to control everything from their music to their groceries. A thermostat they cannot control remotely feels outdated.

Smart thermostats meet tenants where they are:

• App-based control that fits seamlessly into their digital lifestyle
• Voice assistant compatibility for hands-free temperature adjustments
• Energy usage insights that appeal to data-oriented tenants
• Automatic scheduling that adapts to their routines without manual programming

When a tech-savvy tenant walks into a unit and sees a sleek smart thermostat on the wall — instead of a basic white plastic box from 2005 — it sends a message. It says: this property is managed by people who invest in quality and stay current.

That impression influences not just their leasing decision, but their willingness to pay premium rent and their likelihood of renewing.

How to Get Smart Thermostats Without the Capital Expense

Here is the best part: you do not have to spend a dime to get these benefits.

Through utility energy efficiency programs in Texas, qualifying multifamily properties can receive free ENERGY STAR certified smart thermostat installations. The programs cover the cost of the devices and professional installation — there is no expense passed to the property owner or tenants.

The catch? These programs are first come, first served with limited spots available each year. Once the annual allocation is filled, properties have to wait until the next cycle.

If you manage a multifamily property in the Oncor or AEP Texas service territory, you owe it to yourself — and your tenants — to check eligibility. It takes less than a minute, and the potential upside for your property's occupancy, retention, and NOI is significant.

Check your property's eligibility now or learn more about how smart thermostats increase property value.

Ready to give your property a competitive edge? Get started with a free eligibility check.