Net operating income (NOI) is a key metric for property owners and managers, as it measures the profitability of a property. NOI is calculated by subtracting operating expenses from revenue.
Property automation can help to increase NOI in two ways: by decreasing operating expenses and by increasing revenue.
Here are some specific examples of how smart property automation can be used to increase NOI:
Reduce operating expenses
- Smart locks: Smart locks can eliminate the need for physical keys, which can save time and money on key management and replacement. Smart locks can also be used to track who is entering and exiting a property, which can improve security and reduce the risk of theft.
- Smart thermostats: Smart thermostats can learn your heating and cooling preferences and automatically adjust the temperature accordingly, which can save money on energy bills.
- Smart water sensors: Smart water sensors can detect leaks early on, which can help to prevent costly water damage.
- Smart lighting: Smart lighting can be used to schedule lights to turn on and off automatically, which can save money on energy bills and also deter crime.
- Smart security systems: Smart security systems can provide remote monitoring and control of your property, which can help to reduce the risk of break-ins and other crimes.
Increase revenue
- Smart locks: Smart locks can enable self-guided tours for prospective tenants, which can save time for property managers and make it easier for potential tenants to see a property when it is convenient for them.
- Smart thermostats: Smart thermostats can help to create a more comfortable and energy-efficient living environment for tenants, which can make your property more attractive to potential tenants and command higher rents.
- Smart water sensors: Smart water sensors can help to prevent costly water damage, which can save you money on repairs and also make your property more attractive to potential tenants.
- Smart lighting: Smart lighting can create a more inviting and appealing atmosphere for your property, which can make it more attractive to potential tenants and command higher rents.
- Smart security systems: Smart security systems can provide peace of mind for tenants, which can make your property more attractive to potential tenants and command higher rents.
Overall, smart property automation can be a valuable tool for increasing NOI. By reducing operating expenses and increasing revenue, smart automation can help to improve the profitability of your property.
When implementing smart property automation, it is important to consider the following:
- The needs of your property and tenants: Not all smart automation solutions are right for every property. Consider the specific needs of your property and tenants when choosing which solutions to implement.
- The cost of implementation and maintenance: Smart automation solutions can range in price from a few hundred dollars to several thousand dollars. Be sure to factor in the cost of implementation and maintenance when making your decision.
- The ease of use: Smart automation solutions should be easy to use for both you and your tenants. Choose solutions that are user-friendly and have a good reputation for customer support.
By carefully considering the needs of your property and tenants, as well as the cost and ease of use of different smart automation solutions, GreenMarbles can help with the right solutions to help increase NOI.