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The ‘Why” And ‘How’ Of Green Rental Homes

green rental homesLandlords should work out ways to give their homes a greener touch. Tenants and buyers favour green and energy-efficient homes a lot more. This is truer for hotter and more eco-minded geographical areas.

The ‘Prius’ effect

For instance, going by the ‘Prius’ effect, you can find out for yourself that areas with higher number of electric vehicles show greater penchant towards green homes.

Tenants and buyers pay more for a green home

Statistically, tenants are ready to pay about 3%-5% more and buyers about 10%-12% more for certified green homes. Also, homes which have a green rating tend to be on sale for a shorter duration of time.

A reputed broker quotes “Home buyers are looking for added value in every purchase they are making. They either want an awesome price or extras — such as those extras found in a more energy-efficient house.”

Changing doctrines of real estate

Real estate paradigms keep changing. A case in point is the waterfront properties. Buyers made a beeline for them a decade ago and yet they are being considered a liability today. Similarly, a couple of decade ago, no one thought about the greenness of a property and it is among the prime buying considerations today.

Why only homes, you can sell or rent office spaces for a higher price if you have spruced up its greenness.

Price difference higher for existing homes

The difference in prices before and after making energy-efficient changes is more visible for existing homes. In fact, there is a survey report which says that about 90% prospective buyers making an inspection (existing home) felt that they would have made ‘green’ changes had the home been theirs.

The underlying logic is simple. New homes are anyway built with an eye towards greenness. It is the old ones for which energy-efficient changes immediately pave way for a higher sale price.

Green homes reduce energy bills considerably

Green rental homes reduce energy bills, a problem that Sydneysiders have been combating for long. Apart from this, the greener a home lesser is its water usage and higher is its indoor air quality.

Seek third-party certifications

So, next time you conduct renovation or home staging, keep a stern eye on the green-factor and also reach out for the third-party certifications (for energy performance and sustainable construction).

Ways to make your home greener:

You can seek various upgrades, techniques and entities to give your home a cleaner and greener image. Discussed below are a few of them.

  1. Upgrade old appliances that are short on energy ratings.
  2. Use motion detectors and programmable thermostats. The former detects toxic gases which subtract from the indoor air quality. The latter allows your air conditioner to work at reasonably higher temperatures.
  3. Use insulating appliances that offer efficient thermal barriers. They may bring down your annual heating bill by roughly $100.
  4. Do not forget to talk about these savings with the broker or the buyer. Show them the bills before and after you underwent energy-efficient changes. It will be their first-hand experience with the results.
  5. Keep an eye on the indoor air quality too. Minimise Sick Building Syndrome by adopting greener measures like no-VOC paints and eco- friendly carpets. Get your home checked for lead and asbestos traces.
  6. You can benefit from concepts like living walls or green walls.

In fact, you will be well served by an energy audit from a competent professional. For all you know, smart energy changes also make you eligible for tax credits.

How many of the above changes have you sought? Is there a tip you would want to share with us?