SmartRent funding heralds new wave in 'smart home' market

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A producer of 'smart home' software that helps landlords cut operating...

NEW YORK - A producer of “smart home” software that helps landlords cut operating costs such as shuttling keys to waiting maintenance workers or guiding tours for prospective tenants has raised $32 million from Bain Capital Ventures and the owners of nearly 1 million U.S. apartments.

Investors are betting smart home technology such as remote access to cooling and heating systems and water leak detection will become standard at apartments. These functions will reduce operating costs, including insurance premiums to cover water damage, which can run to more than $10,000 per occurrence.

At the REITweek conference earlier this month, UDR said it has generated a 25% to 30% return in a pilot program involving 13,300 of its 49,795 apartment units and expects to have SmartRent installed in 20,000 units by the end of summer. SmartRent Chief Executive Lucas Haldeman is a former chief technology officer of Colony American Homes, now Invitation Homes. UDR’s Davis said Haldeman impressed RETV members with his knowledge of the apartment market and its needs.

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