Asset managers are reevaluating how security influences long-term property performance

As the real estate sector continues to recover from the stagnation of 2025, asset managers are repositioning themselves to best navigate a softened market. Amid AI-driven trends and shifting investor attitudes, novel priorities are emerging with regard to property performance.

With mortgage rates remaining around 6% and home prices expected to rise by 4% through 2026, asset managers face some uncertainties. To help secure net operating income (NOI), many consultants are reevaluating how security influences long-term property performance.

The value-driving benefits of strong security

Physical security solutions deployed to protect real estate assets are no longer considered purely defensive measures as more stakeholders begin to notice their value-driving benefits.

Data suggests almost 60% of renters prioritize properties with smart home features, namely smart locks and security cameras, with almost 55% expecting such features as standard. In addition, smart security systems have been shown to raise property value by at least 5%, as well as contribute to homes selling up to 8.5 days faster than those without security features.

Properties with strong security features can command higher sale prices and appreciation rates by way of both enhancing the intrinsic value of the asset and limiting operational risks. 

Considering that around 2.5 million burglaries are reported across the U.S. in an average year, and that 83% of criminals look for signs of security measures like alarms before attempting break-ins, strong security measures can be attractive features for both investors and buyers.

The link between security and tenant retention

Asset managers are increasingly considering the importance of strong, adaptable and visible security systems installed at rental properties as a way to improve the long-term performance of real estate assets, primarily as features deployed to attract and retain high-quality tenants.

Systems and infrastructure designed to ensure safe and secure living environments continue to rank as top priorities for high-value tenants, with almost 50% of renters ranking safety and security among their top priorities and 66% citing safety concerns as tenancy deal breakers.

Research suggests a clear link between strong property security measures and high tenant retention rates. Physical security technologies like coded entries have been linked to a 40% increase in retention rates, while video intercom systems and access control measures have been shown to improve tenant satisfaction scores by as much as 40% and 24%, respectively.

By facilitating a safe and secure environment for tenants via visible, well-maintained and convenience-focused physical security measures, asset managers can raise the perceived value of real estate assets on the rental market and improve long-term property performance.

How proactive security measures minimize risk 

The presence of smart, integrated physical security systems can also be leveraged as a way to minimize operational risks for asset owners. Proactive security measures can be used to lower risk profiles and, in turn, decrease insurance premiums, a major expense area in 2026.

With the average annual cost of home insurance projected to reach over $3,000 by the end of 2026 and premiums expected to surge by 10% or more across some states, asset holders are viewing practical ways to minimize risk as attractive investments in property performance.

Research suggests that proactive security measures such as monitored alarms, surveillance systems and access control solutions can help to reduce insurance premiums by minimizing liability risk, with proactive security measures linked to an 80% reduction in physical security incidents in some instances and as high as a 20% reduction in property insurance premiums.

By leveraging proactive security solutions to lower risk profiles, asset managers can protect the physical asset value of real estate and reduce unexpected repair costs, thereby improving long-term property performance by safeguarding assets against physical damage.

Final word

As asset managers look to make the most of 2026’s housing market reset by implementing strategies to improve long-term property performance, many stakeholders are reconsidering the potential for proactive physical security measures to boost the value of real estate assets.

By installing new and upgrading existing security protections at residential and commercial properties, asset holders can raise property value, meet the needs of high-value tenants and safeguard themselves from risk, helping to positively impact long-term property performance.

Emma Williams is the founder and CEO of seene.online
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners. To contact the editor responsible for this piece: [email protected].