Sometimes, it can feel like just a fact of life in the twenty-first century that almost everyone has a Google Home or Amazon Alexa in their home. As technology advances, smart home devices are becoming commonplace in the home. Items that we have had in our homes for years, such as light bulbs, thermostats, electrical outlets, smoke detectors, locks, appliances, and even children and pet toys, can now be connected to the internet and controlled with your phone—sometimes, from near or far. Other devices, such as video doorbells and other security cameras, water leak detectors, home automation devices, and personal assistant devices, connect to the internet as well and, in many cases, all these devices are interconnected in one smart home “ecosystem.”

As with anything, there are certain advantages and disadvantages to using smart home devices.

This is called the “Internet of Things” – a network of devices that use sensors, software, and an internet connection to allow them to collect and share data. Data collection and sharing between the smart items used by one individual or household can improve user interface and make these devices even more efficient for the user. This interconnectedness, however, can also be a risk. The person who owns the physical device is not the owner of the data that it generates; almost always, the service provider or technology vendor who created the device owns the data, because these tech vendors are the ones who aggregate, process, analyze, and use the data.

As with anything, there are certain advantages and disadvantages to using smart home devices. Some of these pros and cons are obvious. For example, it can be extremely convenient to call out the name of your internet-connected personal assistant device and ask it to turn the music up or turn the lights off. On the flip side, the notion of having several microphones and speakers throughout your house, which are listening in the background at all times, makes many people uncomfortable. Some pros and cons are more nuanced. For example, some apartments and condominiums use key cards or fobs for unit access via electronic or internet-connected locks. Every time an electronic system like this is used, it generates data, and that data is not owned by the unit or building owner. Someone, likely either the company that created the fob and lock system, the software developer, or the internet service provider who enables the connection, owns the data that is generated every time someone opens their door.

The unspoken risk is that data from home technology systems is most valuable in the aggregate, especially as it becomes more common for one home to have several devices, which are all interconnected. Many people may consider the risk of malicious actors (i.e., hackers) and take steps to ensure that their smart home devices are protected from outside intrusion. However, some might not consider that there is also a risk associated with the collection, interpretation, and in some cases, sale of massive sets of data.

Benefits and Risks for Homeowners, Condominium Associations, and Developers

The advantages and disadvantages of implementing smart home devices can vary based on priorities. Homeowners and condominium associations might be most concerned with efficiency and convenience, while developers may find it difficult to balance the tradeoff of a possible increase in home value with the possibility of security risks. Additionally, there are typically two different points in time that people consider implementing smart home devices: installing smart home devices in an older or already existing home or condominium, or equipping new construction with the latest smart home technology.

Benefits of smart home technologies

1. Money and energy savings – in condominiums and in single-family homes, sensors and automated controls can save energy and money for owners. Some smart home devices save money and energy directly, by using sensors to optimize efficiency or leak detectors to prevent damage. Others might add up in little ways, such as automatic lighting systems or smart thermostats that can be controlled remotely and turned down when you are not home.

2. Convenience and accessibility – many smart home devices can improve self-management and independence for homeowners who are aging or disabled.

3. Increase in home value – in many cases, homes or buildings with smart home technology can be worth more than homes without.

4. Insurance incentives – some insurance providers may have programs for discounts if your home has a smart home security system.

5. Creative applications – some researchers have studied the use of smart home technology in ways that can improve the quality of life for certain groups of people—for example, the use of smart home health technologies to provide continuous monitoring in the care context, or the use of smart home devices by domestic violence survivors to improve safety and peace of mind.

Risks

1. Privacy – the owner of a smart home may own the connected devices themselves, but almost always, does not own the data. Usually, the companies that invented or manufactured the devices own the data, and, therefore, may have access to certain information such as what other devices are in your home, when you are home, and where you live.

2. Quality – smart home devices can be poorly designed, manufactured, or installed. Demand for smart home devices is increasing, and consumers should be aware that some companies may try to get their foot in the door without proper information or expertise on how to protect consumers from the risks of these devices.

3. Unauthorized access – owners of a doorbell camera or pet camera have probably thought at one time or another, could someone just hack into my camera and watch me, or see what I see? It is possible, but certain technologies are more vulnerable than others. For example, the more devices you have interconnected in your home ecosystem, the more points of vulnerability there may be for hackers to gain access, collect personal data, and sometimes even manipulate the devices themselves from outside the home.

4. Absence of legal authority – the law in this area is not well-developed, both in the sense that there are not many legal standards governing smart home technology, and in the sense that courts have not yet fully explored questions of liability when security breaches do occur.

Mitigation

New technology is almost always accompanied by new risks and challenges, but there are many ways that homeowners, condominium associations, and developers can mitigate the risks and maximize the benefits.

• Install all security updates pushed for your devices.

• Use strong, unique passwords for each device and for your WiFi network.

• Monitor network traffic and device activity or use an intrusion detection system to automatically identify suspicious activities.

• Limit unnecessary data sharing.

• Just because it can connect to the internet, doesn’t mean that it should! Try to limit connections to those that are useful, not just all that are available.

• If you are purchasing new smart devices, or considering installing smart home technology in a condominium or new development, prioritize security and select reputable brands that are known for prioritizing security.