Real Property Management Tip of the Month: 5 Reasons Your Property Should Go Green
Boosting your property’s energy efficiency not only makes it more desirable and saves money for the renters who live there, it actually makes the property a better investment.
- Tenants are demanding efficiency — a 2013 Strata Research survey showed 65% of renters consider energy-efficiency features important in deciding what apartments to rent.
- 57% of renters consider environmentally-friendly features important in deciding what apartments to rent.
- The U.S. Environmental Protection Agency and Freddie Mac recently agreed on a plan that will make it simpler and cheaper for property owners to get loans for energy efficiency upgrades.
- Today, roughly one-third of Americans live in multifamily buildings. According to the Center for Climate and Energy Solutions, studies estimate that increasing the efficiency of U.S. multifamily rental properties could deliver as much as $9 billion in energy savings by 2020.
- According to the survey, 64% of renters are willing to pay extra per month for a ‘green’ apartment.
- $125: The average price willing to pay above rent averages for a basic ‘green’ apartment
- $147: The average price willing to pay above rent averages for a deluxe ‘green’ apartment
According to the survey, renters chose ENERGY STAR appliances and energy-efficient windows as the most important features to a ‘green’ apartment and consider them in their rental decision.
With an easier path to secure financing for energy efficiency investments, property owners now have the ability to help in reducing energy use, while making rental properties more efficient, appealing to renters, and valuable.
While many of these facts are based on apartment renters, they likely reflect the opinions of those who rent single-family homes too.