Long before now, going green was an option for tenants and not a necessity, so homes that were not energy efficient were still in high demand but times have changed so much now. Millenials and Gen Z tenants are not ready to rent any home that does not promote eco-friendliness.
Landlords and realtors don’t have much choice here. If they don’t want their apartments to remain vacant for long, they have to go green. As a matter of fact, apart from increasing the rental potential or sales potential of your home, sustainable housing will benefit everyone as it will make the world a better, safer, and cheaper place.
Contrary to what you may be thinking, adopting sustainable housing is not as difficult or as costly as you think. This article outlines some of the simple ways to make your properties energy-efficient and raise its rental potential.
Here are ways to make your properties more energy-efficient
1. Switch to LED bulbs
LED bulbs are very bright yet they consume less energy and most importantly, they don’t generate much heat. This is why they are gradually becoming the standard. If you are yet to switch the lighting in your properties to LED light bulbs, your tenants are paying more electricity bills than they should.
According to a reliable report, the prices of LED bulbs have dropped tremendously in recent times. In fact, it is believed that the prices of the bulbs have reduced by about 85 percent, making it affordable for everyone. If you think LED is expensive, it is just a matter of time before you realize that not switching to LED is even costlier.
It is estimated that LED lighting system saves you about $8 every month. In a year, you will save $96 and in 5 years, you will save $480. Multiply the figure by the number of apartments you have for rent. Do you now agree that not switching to LED is costlier?
2. Retrofit your apartments
Generally, newer or modern home appliances are designed to consume less space and energy to give better output than older appliances. In other words, if you have old appliances in your properties, your tenants are still paying more for less.
For instance, modern toilet bowls consume less water for flushing. This will reduce the monthly water bill of your tenants. A report from an authority in real estate shows that changing the appliances in your properties to modern ones can reduce your tenants’ electricity bills by up to 30 percent excluding the reduction in the water bill. This reduction may seem negligible initially but it will accumulate to a considerable amount of money in the long run.
3. Buy properties in good locations
The importance of location cannot be overemphasized. Renters and homeowners can change everything about their homes but they cannot do anything about the location of their homes. You must have observed that the cost of 2-bedroom apartments in some locations is higher than the cost of 5-bedroom duplexes in other locations. This underscores the importance of location.
So, it is better to buy properties in choice locations so that potential renters will be attracted. A good location should be close to important amenities like public transportation, fun parks, restaurants, world-class malls, hospitals, and good schools. In addition, great locations also have a low crime rate. You don’t want your tenants to sleep with only one eye closed.
4. Availability of recycling facilities
Apart from saving a lot of resources, recycling also reduces the pressure on the landfill. So, you need to make recycling easier for your tenants by providing recycling containers and other recycling facilities around your properties.
5. Insulate your properties for energy efficiency
Do whatever you can to keep interior air in. A good way to achieve this is weatherstripping. Make sure all holes are sealed no matter how small. You may also pay more attention to the basement, garage and attic. In addition, you can change the doors and windows of your apartments to the modern ones that promote energy-efficiency. Proper insulation will save your tenants about 10 to 15 percent on their energy bills.
Considering all the benefits listed above, sustainable housing is definitely worth every dime you spend on it. As a matter of fact, your efforts towards energy efficiency will pay for themselves over time because the rent of energy-efficient homes is relatively higher than non-energy efficient ones.
Remember, the longer your apartments remain vacant, the more money you lose. Eco-friendliness increases the chances of tenants renting your apartments faster. In short, going green will increase the demand of your apartments. Higher demand leads to higher rents and that gives you more profit.
With the level of importance placed on energy efficiency by millennials and Gen Z tenants, it is no longer a choice for landlords and realtors but a necessity. That being said, it is needless to say that sustainable housing is worth every dime of its cost.