Security Systems on Rentals and Flips

4 Replies

I am curious how many of you guys use or would use a security system. We are just now adding properties to our portfolio so I am considering it. I do also have access to a distributor and can get basic systems at cost. I just don't know if there is an interest for that. 

I am thinking it could be a good thing to offer to tenants at a monthly "rental fee" to boost profits. From talking to my commercial insurance provider it will not reduce my premiums. How many of you guys think that a tenant would actually opt for the system? Maybe better to include into the rent unless they ask it to be removed? 

Hi Ryan,

Working for a Security Consulting company for my day job, I strongly believe in Security Systems, but only if they are property installed (i.e. built in redundancies). But as a property owner/landlord I can see the issue with ROI of the equipment and monthly monitoring.

That said, I think the more you can use your security system to provide tenants more "home automation" features (i.e. controlling lights, thermostats, locks, etc.) from their smart phones, I think that is where you may be able to recognize some returns, especially in "A" and "B" class neighborhoods.

Just my 2 cents.

Lee

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Originally posted by Ryan D.:

I am curious how many of you guys use or would use a security system. We are just now adding properties to our portfolio so I am considering it. I do also have access to a distributor and can get basic systems at cost. I just don't know if there is an interest for that. 

I am thinking it could be a good thing to offer to tenants at a monthly "rental fee" to boost profits. From talking to my commercial insurance provider it will not reduce my premiums. How many of you guys think that a tenant would actually opt for the system? Maybe better to include into the rent unless they ask it to be removed? 

 Hey Ryan,

I put in a security system during my renovation projects more often than not.

You'd be surprised how many less issues you have with your projects while they are under renovation and of course when they are sitting vacant waiting to either be sold or rented out.

The properties I sell retail, the new owners typically take over the monitoring service and is a nice feature for them.  On my turn key rentals, the tenants keep the service about 50% of the time.  I've always thought it best to offer it to them as an option, not build it into the rent and essentially make them pay for it.  I'm mostly selling these to cash flow investors so it's ultimately up to them what they do once they take the property over.

Of course, I always have the best insurance as well.

Ivan

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