Even professionals only tangential to real estate investment know what a persistent trend ecofriendly living has proven to be. All signs point to environmentally conscious consumerism as a force to stay.
If you are not making as many green renovations as you possibly can to your rental properties, you could be missing out on huge opportunities to make money while also attracting the next generation of renters.
Here are 5 reasons to take your rental property green (and 1 reason you might not want to).
1. Young People Want Green
Young consumers want green technology. They want to feel as though they are living in a sustainable and ethical way. Environmental concerns and climate change are at the forefront of every young person’s mind. It stands to reason that they would want to feel as though their lifestyle choices and energy consumption are performed with these things in mind, too.
2. They Will Pay a Premium for It
For solar panels in particular, homeowners are willing to pay big bucks. One report found that home buyers were willing to pay $15,000 more than the base price for a home if it meant the home would come equipped with solar panels.
Multifamily properties can even benefit from special, prestige status afforded to “green” communities.
3. Increase Resale Value
Sustainable properties are less costly to maintain and repair over time, because they are built to last. It’s that simple. Over time, when compared to a property which has not been “made” green, you will save money managing the greener property, which will require less maintenance, less repairs, and less energy usage.
Plus, being able to slap the ecofriendly “green” sticker on your marketing when it comes time to sell the property will put you leagues ahead of the competition.
4. Improved Resource Usage
There are plenty of ways to improve the energy efficiency of your property. And the greener your property, the more green you save. There is no shortage of opportunities for you to reduce the amount of energy it takes to heat, cool, and power your rental properties.
The best part of upgrading a home to use energy more efficiently is that you can do so on nearly any budget! In fact, it can be as simple as updating outdated windows or drafty hardware. You can either replace windows entirely or recaulk them for better air retention.
Of course, there are plenty of other ways you can improve the way your home uses energy. The example of the ways you can improve your windows are just some of many.
And energy is not the only feature to be preserved! You can also see a reduction in your water bill from installing appliances which are certified to use water more efficiently.
5. Modern Aesthetics
The appearance of green technology has come a long way. Solar panels were once heralded as the downfall of postmodern aesthetic, a bulky, unappealing symbol of our decision to embrace function at the cost of form once and for all, etc.
But the naysayers have been proved wrong, solar panels have come to represent environmentally friendly, “woke” sophistication, and they are here to stay. Consumers even consider energy efficiency to be a trendy feature of their newly minted favorite products and brands. Conscious consumerism is not just a way of life: it’s an aesthetic, too.
Not everyone is a fan of the aesthetics that come with a greener lifestyle. For example, some homeowner’s associations will restrict the appearance of certain solar panels in keeping with the visual style of a neighborhood. You can check any relevant homeowner’s association contracts using whatever management technology your company uses, like MyArdent.com.
Expensive Upfront Costs
With all of this said, it is worthwhile to note that going green is not an overnight process, and it is not a particularly accessible one. In fact, for a lot of property owners, the benefits—which accrue slowly with time—are just too marginal in the short term to justify the initial costly investment.
The truth is that it can be expensive to go completely green. If you are unsure of your ability to take the plunge, it is perfectly fine to opt to dip your toe in with small renovations. They will add up over time.
Or, you can opt to commit fully to one, big undertaking—such as solar panels—that will yield the largest dividends to make up for the initial investment. Some energy companies will even buy back any excess energy produced by your solar panels.