Creating eco-friendly rentals may be a trend for some, but it’s also a smart investment that can attract a higher number of qualified applicants. Eco-conscious tenants already make up a significant portion of renters, and you can appeal to them by making sustainable upgrades to your properties.
While you could target any particular demographic, there are plenty of reasons to focus on attracting eco-conscious tenants. For instance, they tend to be more responsible and are driven by core values that align with being a good renter, like desiring a nice living space and valuing relationships. A quarter of this demographic has a net worth of at least $250,000, and since wealthy tenants are more likely to pay rent on time and in full, they present less risk for late or missed rent. Since the number of wealthy renters is increasing, there’s a growing opportunity to attract financially stable tenants by owning eco-friendly property.
If you’ve been looking for ways to attract great tenants, eco-friendly upgrades are worth pursuing. But before you start overhauling your rentals, here’s what you need to know.
Work with a professional property manager
When you’re new to the idea of offering eco-friendly rental properties, a professional property manager will be a huge help. Based on real-world experience with many tenants, they’ll help you choose which upgrades to get and which ones to skip. Not all upgrades will pay off or be a priority for tenants. For example, the absence of a smart refrigerator wouldn’t be a deal-breaker for most people, but 70% of tenants would pay more to rent an apartment with a smart thermostat.
In addition to helping you sort out what upgrades to pursue, a property manager will also help you market your eco-friendly rental property so your ads meet all legal requirements and attract the renters you want.
Hiring a professional property management company is helpful, even if you don’t need a full-service package. Many companies allow investors to select only the services they need without being forced to pay for more. For example, Green Residential, a well-known apartment property management company in Houston, manages a range of landlord duties for their clients, including marketing vacancies to eco-conscious renters.
Property managers know exactly how to highlight the benefits of moving into an environmentally-friendly unit.
Eco-conscious renters are more likely to take care of your property
One of the best traits you can find in a tenant is the desire to take care of their space, even though they’re just renting. They’re more likely to report problems before they become a nightmare, and they aren’t likely to be intentionally or carelessly destructive.
When you appeal to the growing demographic of environmentally conscious renters, you’ll have an easier time attracting and retaining quality tenants who will take good care of your property.
Use smart home technology
Home automation is now an essential component in an eco-friendly home. Although the numbers vary based on the source, using smart tech can significantly reduce electricity bills by saving energy.
For example, smart thermostats make it easy to save money on heating and cooling costs by regulating temperature through an app. This means if you want to leave for vacation in the winter, you don’t have to leave the heater on the whole time. All you need to do is use the app on your phone to turn the heater on at night when temperatures are low. Without a smart thermostat, the heater would run day and night.
Other types of smart home tech that save energy include smart refrigerators and dishwashers, smart washers and dryers, smart lighting systems, and smart electrical plugs. Instead of controlling all of these devices separately, you can wire the entire property using Google Home so that all smart appliances work from one single app.
The initial investment in energy-efficient appliances and technology is high, but your tenants will save money on their energy bills, and that’s a huge draw for good tenants.
Improve insulation, windows, and doors
Improving how well a property is insulated may sound like a basic task, but it will make a huge difference for increasing a property’s eco-friendly credibility. While thin insulation in the walls, floor, or ceiling allow heat to escape, windows and doors are a main source of drafts. When you’ve got cold air pouring in through a window or door, the central heat will run nonstop, increasing energy bills and making the home uncomfortable.
By sealing gaps, fixing windows that were installed incorrectly and upgrading to triple-paned windows, you can create a space that more easily maintains its temperature. This will keep your tenants cool in summer and warm in winter without drastically raising their energy bills.
Focus on water flow
Eco-conscious renters want to save water, and that’s why low-flow showerheads, faucets, and toilets are attractive. These fixtures reduce water usage without compromising performance.
It’s also worth considering installing a rainwater collection system so your tenants can use rainwater for landscaping. Since water bills can get expensive, it’s yet another perk to advertise when you want to attract eco-aware tenants.
Use sustainable materials for renovations
When the time comes to renovate your property, use sustainable materials for the project when possible. For example, you can find beautiful flooring and cabinets made from bamboo, and cork is great for insulation and noise reduction. Recycled materials, like steel and glass, are also great eco-friendly choices for renovation projects.
Landscape consciously
Some of the most beautiful landscapes require a significant amount of water to maintain. However, you can create an equally stunning landscape with plants that don’t require much water or maintenance, like succulents, echinacea, yarrow, lavender, sage, and other drought-tolerant plants.
Build a green future for your rentals
Making your rental properties more attractive to the eco-conscious crowd is an excellent business decision that will pay off over time. By implementing sustainable upgrades, your rental properties will use less energy and support green living for the growing demographic of environmentally aware renters. Appealing to this market will help you get the high-quality tenants you want while supporting a healthier planet.
