Managing a property includes the handling of a number of tasks. As a real estate investor, you always want to have a sustainable flow of cash and return on investments.
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This is possible if you understand the ways that can earn you profit. And, making your property energy efficient is one of the many ways. It helps you to eliminate the extra cost of your investment.
So, what are the energy-efficient properties, and what you need to do?
What makes your property energy-efficient?
U.S Department of Energy states that a property is considered to be energy efficient if it has a high score in energy savings rating. To be more precise, it depends on the cooling and the heating appliances installed in the building. Because these are the biggest energy hogs, it is necessary to install energy-efficient appliances. They will not only conserve power and energy but also offer comfort and durability.
Upgrades that you need to make
Now you know that saving on energy can save you from huge electricity bills. As a result, saving you enough money in the long run. But, what are all the things you need to do to have an energy-efficient property? Let’s dig in!
Install a thermostat: The studies have shown that installing programmable thermostat results in less energy consumption by 10-15%. This can help you in staying competitive. How? Well, a reduction in energy consumption means that your tenant has to
- Pay fewer power bills
- Turn the unit on-off according to the needs
- Lower the carbon footprint
This will attract a lot of tenants, ultimately providing you with an increased cash flow.
Storm Doors: Many investors believe that storm doors are not a great addition when it comes to reducing energy costs. However, this is not true. According to the U.S Department of energy, the storm doors can reduce the monthly power consumption by half. It is quite affordable and starts at $80. You should also discard environmentally irresponsible appliances that increase the power bills.
Maintain HVAC Systems: A well-maintained HVAC system cuts down the expenses on the emergency repairs. Also, a system running smoothly uses less energy to run. On the other hand, old and under-maintained systems can result in issues like backfiring. According to an expert at a Berkeley Property Management company, energy-efficient systems decide long-term rental experience. Maintaining them is quite easy, as you have to look after the air filters, lubricating parts, and clean coils.
As a real estate investor, you want comfortable, durable, and minimum maintenance additions to your property. And, an LED bulb is one of them. These LED bulbs are energy-efficient and have a longer life span.
The initial costs of the solar panels are high, but when installed they can attract a lot of tenants. By installing a solar panel you not only offer your tenants an extra amenity but also reduce the costs on power bills. On top of that, you can also generate a secondary source of income by supplying energy back to the main grid.
As a real estate investor, you look for a sustainable rental property. With the ideas mentioned above, you can make any apartment energy efficient and reduce utility costs. Besides, it is a great way to attract more tenants and improve the cash flow.