When it comes to green rental properties, many rental property owners wonder if they’re worth the investment. In most cases, the answer is a firm yes. Making your rental properties more eco-friendly comes with some up-front costs, yes, but the long-term benefits can be very significant. Arguably, the biggest pro of making your rental property greener is that it can help you attract tenants over your competition.
Why Green Rental Properties Are Good for Property Owners
There was a time when green features were optional, but those days are fading fast. As the tenant pool changes to include more millennial renters, these features are rapidly becoming a necessity. These days, there are more benefits than ever to making your properties greener:
- Reduced operation costs. It’s been well established that green buildings save their owners money over time. Even if green features cost more to add upfront, you can save more in the long run. Even in cases where landlords don’t pay the utility bills, you can save indirectly through higher rent.
- Higher rent. Many tenants are willing to pay higher rent in exchange for the benefits of living in a green property, and adding green features gives you an opportunity to earn more.
- Government incentives. The federal government, as well as many state and local governments, offer significant tax breaks and incentives for making rental properties more environmentally friendly.
- Lower vacancy rates and turnover. Greener rental properties have been shown to keep tenants happier, making them more willing to stay longer. That adds up to a higher occupancy rate (i.e. lower vacancy rate) and keeps your earnings steady by keeping the tenants you have rather than having to attract new ones.
- Market advantage. More and more potential tenants look for green features, and being able to advertise that your property is eco-friendly makes it stand out, and helps attract tenants.
Green Features Valued by Tenants
One of the biggest changes in recent years has been that millennials and Gen Z renters have grown to become a huge part of the renting pool. Younger tenants value eco-consciousness more than any previous generation. These are some of the green features that can make your rental property stand out:
- Efficient appliances. Offering environmental benefits as well as lower utility bills, energy-efficient appliances come up time and time again as one of young renters most desired features. They may cost more to install upfront, but they make your property much more attractive, and can save money across the board.
- Recycling. Recycling is one of the easiest and least expensive ways a landlord can make their property greener and it’s one of the biggest attractions for eco-conscious tenants. Consider adding recycling containers and instructions for their use in your rental properties.
- Walkability. Younger renters tend to favor walkability. Proximity to shops, restaurants, parks, schools and workplaces makes it easier for tenants to walk and/or bike to their favorite destinations. Being able to highlight the walkability of your rental property can give you a major boost.
- Better insulation. Properties with great insulation and efficient windows and doors are not only better for the environment, but also more comfortable and easier to heat. That’s a big attraction for many tenants.
Green rental properties look great to potential tenants, and there are clear benefits across the board. Not only do green features make a property stand out in a crowded market, but they can also earn you more in the long run.
If you own rental property, you may be looking for a property manager. Son-Rise Property Management has been serving the property management needs of Bellingham and Whatcom County since 1996. Contact us today to see how we can help you find a rental property for your family or manage your rental properties.