Many people are currently into real estate. Some are investing in real estate investment groups (REIGs), real estate investment trusts (REIGs), or real estate crowdfunding. Others would buy properties they can flip and sell for a higher price. But those who have the patience and skills to manage tenants would rather invest in rental properties.
Real estate investors with rental properties like the idea of owning multiple units and acquiring a passive income. With more people renting instead of buying houses, it only makes sense why you would want to own rental properties instead. Despite the risks, you can jump-start your wealth-building with the right strategies.
One tactic rental property owners are currently investing in are eco-friendly and sustainable improvements. But does it make sense to go with the flow and invest in such projects? The short answer is yes. Here’s why.
Attract Top Tenants
More tenants are eco-conscious. They practice green and sustainable living to reduce their impact on the environment. They want to make a difference and be a good example to others in spreading sustainability.
Today’s top tenants are willing to pay more if your rental property is sustainable. This is since sustainable rental properties are eco-friendly and energy-efficient. This makes sustainable living a lot easier when their next home already has the features that can support their current lifestyle requirements.
Improve the Quality of Life of Your Tenants
Sustainable home improvements do more than just reducing their impact on the environment. You are also giving tenants the chance to live a more improved quality of life. This is since the more sustainable a property is, the healthier and more comfortable it gets.
Let’s say you hired a local technician who offers air duct cleaning and maintenance services. This helps improve the temperature and indoor air quality of your rental. You can avoid costly damages in the future while improving the health, safety, and comfort of your tenants.
Window replacement can help boost your property value. If you invest in eco-friendly windows, you get to boost its efficiency, let more nature inside the rental, and improve its curb appeal. You get to lessen your tenant’s need for artificial light, reduce their energy consumption, and even improve their health.
Sustainable home improvements can also help you and your tenants save money. Sustainable properties make use of fewer resources like water and energy, thus cutting your utility bill. Tenants are willing to pay a higher rental fee in exchange for energy savings, and more.
These can also help reduce their energy and water waste. With energy-efficient appliances, they need not use many resources just to live a comfortable life. They will actually save money more money while fulfilling their plans on reducing their home’s environmental impact.
Installing energy-efficient HVAC systems is one way you and your tenant can save money in the future. These use a lot less electricity while effectively heating and cooling the property. The more energy-efficient your systems are, the more savings you can enjoy and the fewer wastes your units produce each month.
Tankless water heaters are another sustainable investment worth your time. These are highly-efficient and will only heat water as needed. This means your tenants won’t be wasting their money each month due to your electric heaters.
Boost Resale Value
When you invest in sustainable home improvements, you are essentially boosting the value of your property. Sustainable properties are often equipped with the latest home technologies. This means the property is both well-maintained and energy-efficient.
The higher the levels of sustainable certification a property has, the higher its premium price will be. Note that sustainable properties can also attract buyers that are willing to pay more. This means when you now have plans to sell your rental, you are essentially boosting its value.
If you are renovating a rental property, you are better off investing in sustainable materials. Aside from the higher returns and better environmental impact, you can also enjoy certain tax credits for eco-friendly builds.
Enjoy Better Financing Options
When improving a rental property, you need to have enough funds to finance the project. You have the option to use your savings, swipe your card, or apply for a loan to fund the project. But did you know that you can take advantage of green home improvement loans and grants?
There are government grants and bank loans that aim to help real estate owners in improving their properties the green way. With the increased need and demand for sustainable homes, different lenders and the government are providing loans and grants to eligible real estate owners. With a bit of research, you can already check if you are entitled to green financing.
These are but some of the best reasons to invest in sustainable projects for your rental properties. You get to save money, reduce your costs, and boost the resale value of your rental. You can even attract the best tenants who are willing to pay a premium price for your green rentals. The upfront costs may be discouraging for others, but these will eventually pay for themselves, thus making sustainable upgrades a smart move.