Recent evidence suggests that it pays to go green – property managers and landlords who cater to the growing interest in green amenities in single-family rentals could see bigger returns.
In this period of sky-high inflation, energy efficiency can have another upside that has even more to do with saving money than saving the earth. Many tenants are looking for ways to cut costs and this extends to the criteria they prioritize while searching for a home.
According to the National Association of Home Builders, 57% of potential buyers would pay an extra $5,000 or more for an eco-friendly home in order to save $1,000 a year in utilities.
Energy-efficient home upgrades could save a tenant hundreds in energy costs per year, which would enable them to pay rent more reliably and put them in a better position to tolerate rental increases.
Fewer days on market
Green amenities can also add marketability and value to properties. Zillow reports that homes equipped with programmable thermostats, double-pane windows, or an electric vehicle charging station can sell 6 to 10 days faster and for up to 1% more than comparable homes.
Property managers who want to attract the 61% of apartment renters who would pay more for an eco-friendly property could benefit from highlighting these or similar features in the listing description.
In addition to assuring their regular income, landlords could over time recoup the initial outlay of green amenities with justified rental increases.
They can also take advantage of the tax credits and rebates for energy-efficient and clean-energy features, systems, and appliances provided by the Inflation Reduction Act of 2022.
Alongside pricier home improvements, there are quicker, cheaper solutions to reducing tenants’ energy bills.
Encourage your landlords to replace traditional light bulbs with LED lighting, switch to Energy Star-certified fridges and freezers, and install proper weather stripping on doors and windows.
A smart irrigation system can save gallons of water from being wasted and help keep the water bill under control. Landlords can operate the sprinklers from a remote location – very helpful to override them turning on automatically during an unexpected rainstorm.
Some energy-saving upgrades could also help increase the appliance or equipment’s overall running efficiency. This could save extra money on repair bills, and not just energy expenditure.
Replacing air filters regularly – or better yet, reusing a washable filter – can help extend your HVAC system’s life and reduce the amount of maintenance needed.
Insulating water pipes is a cost-effective project that can help retain enough heat to raise water temperatures by 2°F to 4°F, according to the U.S. Department of Energy. But insulation also prevents condensation from forming on the outside of the pipes and causing water damage to nearby surfaces and furniture.
Spend green to make green
Whether you do it yourself or hire a professional, once you know how to reduce energy bills using green amenities, landlords and tenants can see immediate benefits to their properties and their wallets.
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