In the field of real estate management, we are hearing more and more about "smart locks. While many attractive features are mentioned, such as the convenience of unlocking locks with a smartphone and freedom from the task of handing over keys, it is also true that various hurdles exist in the actual introduction of smart locks. This article explains the practical challenges of introducing smart locks and concrete measures to overcome them from the perspective of a real estate manager.
Many management companies and property owners want to introduce smart locks, but are hesitant to do so. The reasons for this are not only simple technical issues, but also uncertainty about cost recovery and compatibility with property characteristics. On the other hand, many successful cases show that with proper strategy and planning, a return on investment can be realized within 6 months to a year after installation.
Smart locks are not just an IT gadget, but should be viewed as a strategic tool for improving the efficiency and profitability of real estate management. This article provides the information necessary to make a decision to introduce them from a practical aspect.
The greatest benefit of implementing smart locks in real estate management is the streamlining of property management operations and the reduction of human costs. The time and effort traditionally required to respond to property inspections and manage keys when tenants move in and out can be drastically reduced. Let's take a look at the actual figures.
| Type of work | Conventional method | After introduction of smart locks | Reduction effect |
|---|---|---|---|
| Response time for previews | 60 minutes per case (including attendance) | 5 min/job (remote control only) | 55 minutes per case |
| Key delivery | 30 min/job | 0 min/every (not required) | 30 min/occasion |
| Key replacement (when moving out) | 60 minutes/times + 15,000 yen/times | 0 minutes/times + 0 yen/times | 60 minutes/trip + 15,000 yen/trip |
| Lost Key Response | 120 minutes/trip + 15,000 yen/trip | 5 minutes/trip + 0 yen/trip | 115 minutes/times + 15,000 yen/times |
As you can see, in many cases, it is possible to expect to save more than 20 hours of work per month. This effect is particularly noticeable when the number of units managed is large. For example, Leopalace21 reported a reduction of approximately 100,000 hours per year in key-related work by installing smart locks in over 200,000 units in January 2024.
In addition to improving the efficiency of property management, another major benefit is improved security. The introduction of smart locks enhances the following points
In addition, improved convenience for tenants can be a point of differentiation and a basis for rent increases. In fact, INA&Associates has managed a rental apartment in Tokyo that increased its monthly rent by 1,000 yen by installing smart locks, resulting in an annual revenue increase of 120,000 yen.
However, while there are attractive advantages, there are various barriers to actual implementation. Broadly speaking, there are technical and physical limitations, economic issues, and operational concerns.
The most likely to be faced are compatibility issues with the property's structure and cylinder geometry. As mentioned in the minutes, special keys, knob-integrated cylinders, and bow handles are not compatible in many cases, making it difficult to introduce a unified system for all properties.
Specifically, the following conditions make it difficult to introduce the system:
| Unsupported conditions | Reason | Alternatives |
|---|---|---|
| Cylinder with special shape | Not compatible with general-purpose products | Cylinder replacement (additional cost) |
| Cylinder with integrated knob | No independent thumbturn | Selection of specialized products (limited) |
| Bow handle | Difficult to secure mounting space | Consideration of another type of hardware |
| Apartment building with auto-lock | Compatibility with existing system | Consultation with management company, dedicated system |
In most cases, even cylinder replacement type smart locks are not compatible with existing electric locks or locks with special structures.
The next major barrier is the cost of installation and operation. The main cost elements are as follows
| Cost Item | Approximate cost | Remarks |
|---|---|---|
| Main unit price | 10,000-50,000 yen/unit | High-function models can cost more than 100,000 yen |
| Installation cost | 10,000 - 30,000 yen/unit | Additional cost for cylinder replacement type |
| System usage fee | Approx. 10,000 yen/month | Cloud management, issuance of one-time passwords, etc. |
| Maintenance | 1,000-5,000 yen per unit per year | Battery replacement, periodic inspection, etc. |
| Failure repair | 5,000 - 20,000 yen per repair | Outside of warranty period |
If smart locks are installed in a property with 100 units, the initial cost alone would be about 3 million yen, and the annual operating cost would be more than 1.2 million yen. The major issue is how to recover this investment.
There are several concerns about the actual operation of the system:
In particular, the fact that many functions of smart locks are "network-dependent" is a major limitation for vacant properties without an Internet environment. There is also the practical issue of incompatibility with auto-locking properties.
Let's explore a realistic approach based on a case study of a successful smart lock installation that overcame these hurdles.
Rather than aiming to install smart locks in all properties at once, an effective strategy is to install smart locks in a phased manner, starting with properties that are suitable for smart locks. It is a good idea to start with properties with the following conditions:
It is also important to confirm installation conditions in advance. Before installation, check the manufacturer's compatibility list for compatibility with your home's doors and consult a specialist if necessary. In the case of rental housing, it is important to remember to obtain approval from the management company or landlord.
Selecting the right product is important to achieve high effectiveness while keeping installation and operating costs low. In particular, you should pay attention to the following points
There are two main models for return on investment:
Business efficiency model: Payback in reduced labor and lock replacement costs
Property value enhancement model: Recovery through additional rent
In actual implementation planning, a hybrid model combining the two is effective.
Key points to mitigate operational concerns are as follows
Battery-powered smart locks are particularly effective as a disaster countermeasure. They are unaffected by power outages and can be unlocked using the PIN number or card information stored in the main unit, reducing the risk of being locked in or locked out in the event of a disaster.
Let's analyze the return on investment (ROI) from the case studies.
| Item | Details |
|---|---|
| Scale of implementation | 100 units |
| Initial investment | 2 million yen (20,000 yen/unit) |
| Annual savings | 1.5 million yen (labor cost and key replacement cost) |
| Payback period | Approx. 1 year and 4 months |
| Main effects | Reduction of time required for previewing (20 hours per month) and handling of lost keys (15 cases per year) |
In this case, the company achieved particularly significant results in streamlining the handling of previews and key management. Staff time was reallocated to other tasks, contributing to improved service quality.
| Item | Details |
|---|---|
| Scale of introduction | 10 units |
| Initial investment | 300,000 yen (30,000 yen/unit) |
| Annual revenue increase | 120,000 yen (rent 1,000 yen/month extra) |
| Payback period | Approx. 30 months |
| Tenant evaluation | Highly evaluated as "convenient because I don't have to carry a physical key". |
In this case, by clearly setting smart locks as a point of differentiation and setting rents accordingly, the company succeeded in achieving a return on investment in a short period of time. It seems that the tenant support was particularly high among younger tenants.
On the other hand, there are points to be learned from cases that did not go well:
These examples illustrate the importance of detailed advance planning and understanding of property characteristics. In particular, the investment payback forecast needs to be realistically set based on the actual market environment.
Product selection is extremely important when making the decision to install a smart lock. The following is an explanation of the main selection points.
Smart locks can be divided into three types according to installation method, each with its own characteristics:
| Installation type | Characteristics | Suitable properties |
|---|---|---|
| Drilled hole type | High security, rich in features Construction required, may not be available for rent |
Owned property, newly built property |
| Cylinder replacement type | Easy installation, little change in appearance Limited models, limited functions |
Property with standard cylinder |
| Paste type | Easy installation, can be rented Low security and durability |
Rental properties, for trial installation |
For rental properties, it is important to select a type that can be easily restored to its original condition when the tenant moves out. Especially, the stick-on type and the cylinder replacement type that fits the door shape are suitable.
The unlocking method is also an important selection point:
| Unlocking method | Characteristics | Suitable case |
|---|---|---|
| Smartphone-operated type | Remote control possible, history check Dependent on smartphone and communication |
Properties for young people |
| PIN type | Easy operation, good battery life Risk of number leakage |
For a wide range of age groups |
| Biometric authentication type | High security, no key required Expensive, environmental impact |
High grade properties |
| Multi-device type | Situational unlocking Configuration complexity |
Multiple occupancy properties |
Especially in real estate management, the multi-device type offers operational flexibility. Multiple means of unlocking the door, such as a smartphone, PIN, IC card, or physical key, can be used in a variety of situations.
The communication environment is also an important point to consider:
| Communication method | Features | Points to note |
|---|---|---|
| Wi-Fi required | Multifunctional, remote control Dependent on communication environment |
Requires a good communication environment |
| Bluetooth direct type | Short distance operation possible Remote operation limited |
Requires smartphone proximity |
| Offline type | No communication environment required, stable operation Limited functions |
Limited remote management |
Especially when disaster countermeasures are taken into consideration, products with offline functions that do not require Wi-Fi are safer. Battery-operated type that can store PIN and card information in the main unit can be unlocked during power outages or network failures.
Finally, here are some practical tips for smart lock installation and operation.
Of particular importance is the prior confirmation of the cylinder shape. Many smart lock manufacturers provide a cylinder check tool on their websites, so be sure to check it before installation.
In terms of operation, particular attention should be paid to the issue of network dependence, which may limit the use of the system to respond to room tours in vacant rooms without a Wi-Fi environment, since remote control and history functions are not available.
While the introduction of smart locks in real estate management has many advantages, there are also practical hurdles. The following points are particularly important
With proper planning and a realistic approach, smart locks can make a significant contribution to improving the efficiency and profitability of real estate management. In particular, the greater the number of units under management, the greater the efficiency of property inspections and the reduction in key management costs.
While it is not realistic to implement smart locks uniformly in all properties, selective implementation according to property characteristics and value-added creation with an eye on tenant needs will make smart locks a powerful tool for real estate management.
A: Yes, it is possible . In particular, the stick-on type and the cylinder replacement type can be installed in rental properties because they can be restored to their original state when the tenants vacate the property. However, be sure to obtain approval from the management company or landlord. If the cylinder needs to be replaced, the existing cylinder can be stored and replaced again when the tenant moves out.
A: Support varies by product . Battery-powered SmartLocks are not affected by power outages, but power-connected SmartLocks will stop working in the event of a power outage if there is no emergency power supply. Also, network dependence differs depending on the model. If the lock is a type that stores PIN and card information in the main unit, it can be used in an offline environment. When installing the system, we recommend choosing a product that can be backed up and unlocked with a physical key in consideration of emergency response.
A: Yes , but it is important to consider market conditions and tenant needs. The main options are
In some actual cases, we have succeeded in adding 1,000 yen per month to the rent. The key to acceptance is to appeal the point that there is no need to worry about losing keys or having to replace locks, and the convenience of locking and unlocking the door with a smartphone.
A: Many smart locks cannot be installed with the following types of cylinders and door shapes
Before installation, it is recommended to check the compatibility with your home door in the manufacturer's compatibility chart. Prior confirmation is essential, especially for older properties or doors with special shapes.
A: The one-time password feature is important. This allows for the following security measures
SmartLock in conjunction with a cloud management system can also be linked to a viewing reservation system to automatically issue and manage one-time passwords.
If you are considering installing smart locks in your own properties, we recommend that you first conduct a trial installation in a small number of properties to verify the effectiveness of the system. Product selection and operational planning tailored to the characteristics of the property are the keys to success in smart lock implementation. Please feel free to contact INA&Associates if you have any questions or would like to discuss the details.