Have you ever heard a potential tenant complain about green updates to the house? Probably not! In fact, there are studies and many realtors and property managers who claim that tenants are willing to pay a higher amount of rental for properties with green updates. In this article, we talk about green updates that add value to the property.
Solar Panels
Solar installation can have a substantial upfront cost. Evaluate expected production, financing, maintenance and utility rates; lifelong steady returns are not guaranteed. Check incentives for the installation year and property use with a qualified tax professional. The IRS residential clean-energy credit guidance excludes property placed in service after December 31, 2025, and generally does not cover a landlord’s home that the landlord does not live in. Other business incentives have separate requirements.
Compare installation and financing costs with realistic energy savings before deciding. Any effect on rent or resale value depends on the property and market; neither is guaranteed. The Department of Energy’s solar guide explains factors to consider.
It’s truly a win-win situation for the owner and tenant.
Tenants may benefit from lower electricity costs, depending on the system, utility arrangements and lease; owners should not assume higher rent or the elimination of utility bills.
Upgrade Insulation
Energy-efficient insulation is also another update that can significantly increase rental rates and resale value. It can even drastically lower overall operational costs by maintaining the temperature and lowering the amount of energy required to keep the house comfortable.
If you want to lower the cost of upgrading the insulation of the whole house, we suggest you start with the roof. The roof gets the most sun exposure and is the first to heat up and last to cool down.
Energy-Efficient Windows and Doors
Energy-efficient windows and doors alone or with energy-efficient insulation can help the tenant save a substantial amount of money spent on utility bills. They also keep the dust out as they are sealed air-tight, reducing the amount of maintenance required to keep the house in optimal condition.
Here too, there are hacks available that can help you save on installation cost. You can install bottom seals or weather strips to close off any open spaces under doors. It keeps the insects and dust out and keeps the cooling and heating inside.
Zero VOC Paint
Paints with volatile organic compounds are harmful to one’s health. You will never hear a potential tenant complain about slightly higher rent if you tell them they don’t have to worry about their children breathing in hazardous chemicals.
LED Lighting
LED lights are another energy-saving feature that allows you to increase the rent. They can also lower overall energy consumption and run cooler than other light fixtures, which also lowers the heating, ventilation, and air conditioning cost.
Make sure to look into these green updates that add value to the property. They help you earn more, benefit the environment and provide value to the tenant. Some of these recommendations do come with a hefty price tag, but they provide long-term benefits. Estimate the payback period using actual costs and realistic savings; recovering the full installation cost within a few years is not guaranteed.
