According to research conducted by NielsenIQ, having a sustainable lifestyle is important to 78% of consumers. With such a strong demand for eco-conscious living, making “green” property upgrades is becoming increasingly popular among rental property owners.
However, offering eco-friendly amenities doesn’t just benefit tenants and cater to their preferences—property owners can also enjoy plenty of advantages. Below, we’ll provide an overview of some of the main reasons why property owners should consider offering green or renewable amenities.
Greater Appeal to Tenants
As we mentioned earlier, an overwhelming majority of the population is drawn to eco-friendly living. Thus, property owners who make meaningful efforts to improve the sustainability of their properties can appeal to a broader tenant base. In turn, this can make it easier to fill vacant units and improve occupancy rates.
To appeal to the conscious consumer, you may consider adding green amenities like an electric vehicle charging station or recycling and composting bins.
Cost Savings
Making a rental property more eco-friendly and energy-efficient provides cost-saving benefits. This might include upgrading old appliances with more energy-efficient models, installing smart thermostats for more precise temperature control, improving insulation in the walls and attic, and replacing traditional landscaping with xeriscaping to minimize water usage.
These upgrades can lead to lower utility bills and operating costs for property owners, with pass-through savings for tenants with lower or less frequent rent increases to cover rising energy costs.
So, even though such changes might require an upfront investment, the long-term financial benefits are worth noting. Not to mention, tax incentives and rebates may be available for eco-friendly home features like installing solar panels or other renewable energy systems.
Lower Carbon Footprint
Both tenants and property owners can enjoy green amenities with the understanding that they’re doing their part to minimize their carbon footprint and lessen their environmental impact. This can lead to higher tenant satisfaction, making them more likely to renew their lease when it’s up for renewal.
Along with the eco-friendly upgrades we’ve mentioned thus far, property owners should also recognize the impact of using sustainable building materials like recycled plastics and wood. These materials are more durable and renewable than other options, meaning they must be replaced less frequently. Thus, the choice to select these materials can have positive benefits for the environment and the property owner’s finances.
Increased Property Value
Additionally, making eco-friendly updates and adding green amenities can increase the property’s value. In the near term, this can help support higher rent prices, as eco-conscious tenants may be willing to pay more for a property that has sustainable features.
Then, if the property owner is ever interested in selling, green amenities can lead to a higher sales price, creating a positive return on investment for the owner.
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Written by Bailey Schramm