Boost Your Long-Term Rental’s Demand & Value With Energy Efficient Appliances
As a real estate investor, you know the key to career longevity and success is to maximize your return on investment (ROI) while keeping costs low. One approach that often gets overlooked by investors is to put energy-efficient appliances for your long-term rental properties.
This equipment will save your tenants money on their utility bills (or, if they’re short-term rentals, it will save you money) and make your property more appealing to potential renters.
Here are 7 reasons why investors holding long-term rentals should replace their appliances with energy efficient appliances today.
1. Tax Incentives and Rebates
Property owners who purchase energy-efficient equipment for their rentals can take advantage of tax breaks and refunds from a number of local, state, and federal programs.
And trust me - these incentives are not negligible. These incentives can help you get a faster return on your investment and even help you cover some of the costs of updating your rental properties.
But, before buying new appliances, find out what incentives are available in your region and talk to a tax expert if you want to make sure you're taking full advantage of these chances.
2. Lower Utility Bills for Tenants
Energy-efficient appliances use less energy than regular ones, which means your tenants' utility bills will be lower. This can be a big selling factor for potential long-term renters because it not only shows that you care about the environment, but that your concern for the environment will save them money.
3. Increased Property Value
Energy efficient appliances = building equity. Your property’s value will likely increase by putting in these appliances, and prospective buyers will find this attractive because they know it will save them money and help the environment in the long run. These are extra selling points you can include when looking to sell the property, and any extra selling points can give you a competitive edge over the competition.
4. Reduced Maintenance and Replacement Costs
Most energy-efficient built with higher quality standards and are made to last longer. Because of this, these appliances usually need less upkeep and fewer repairs than their traditional, cheaper counterparts. This means less maintenance and, in the long run, higher ROI.
5. Positive Environmental Impact
By making sure the equipment in your rental units use less energy, you're helping the environment. This lower energy consumption means they release fewer greenhouse gasses and leave a smaller carbon footprint. This shows that you care about sustainability as an investor, and it also appeals to tenants who care about the environment and are looking for eco-friendly places to rent.
6. Enhanced Tenant Satisfaction and Retention
Investing in appliances that use less energy can make tenants happier and help you retain them longer. Tenants prefer energy-efficient appliances because they save them money, make their lives easier, and help to protect the environment. This makes them more inclined to renew their leases and send referrals your way. Reduced rate of tenant turnover saves you money on the costs of advertising, screening, and maintaining units that are empty.
7. Competitive Advantage in the Rental Market
In a rental market that's getting more and more competitive, it's important to make your property stand out. Energy-efficient appliances can give your rental units a competitive edge and help you find tenants who care about the environment and are willing to pay more for green living. By buying energy-efficient equipment, you can make your property stand out from the others and show that you are a forward-thinking landlord who cares about the environment.
If you’re an investor looking for more tips on how to maximize your ROI and minimize risk, make sure to check out our guide to investing that lays the groundwork for everything you need to know about investing.
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