Is
Your Property Green?
"Going
Green" is now the popular thing to do to help save the planet and make it
more productive for everyone. It might surprise you that it could also help
improve the bottom line of your investment property as well. By improving or
adding a variety of maintenance items, you can 1) save dollars during vacancies
2) use some as marketing incentives 3) attract better tenancy 4) promote tenant
retention 5) avoid serious risks.
Take
the time to review your investment property and see if any of the following
items would be beneficial to both helping the planet and increasing your return
on investment (ROI).
Add
energy-saving incentives and savings
With the increase in gasoline, food, and utilities, millions of Americans are
looking for ways to save. These are incentives that may attract tenants if they
feel they may help them with their utility bills.
- Install ceiling
fans with a switch that changes the airflow direction - residents can benefit
from this when seasons change.
- Change light
bulbs, such as porch lights, vanity lights, and fluorescent bulbs in
kitchens, with new energy saving replacements.
- Weatherize
doors and windows with weather stripping. Ensure they adequately close to
avoid loss of air-conditioning.
- Provide attic
ventilation to remove hot air to help keep air-conditioning bills down.
- Replace old
water heaters with the new energy efficient models when appropriate.
- Replace old
appliances, if applicable, such as washers, dryers, and refrigerators with
new energy efficient ones.
- Add low-flow
showerheads and faucets to reduce water waste.
- Install low
maintenance landscape and timed irrigation systems to maintain plants and
reduce unnecessary water usage.
Not
only will the above items reduce utilities, they are also tax deductible. You
want good tenancy and the good tenants look for the best properties. If a
property shows care and concern for their welfare, it will help attract the
quality of tenants that you want. Many of these items will also help to reduce
costs when the property is vacant and it is the property owner's turn to pay
the bills until rented.
Avoid
areas of risk
Many of the items above may already reduce some risk. However, there are certain
high areas of risk in property management to avoid for obvious reasons and at
the same time, reduce a lot of unnecessary waste.
- Running
water: avoiding water waste both inside and outside a property is a key
area to reduce waste of a necessary resource and to avoid serious risks.
No tenant is happy with a running toilet or leaking faucets. If
maintenance deteriorates and their water bill increases, it could inspire
them to move. In addition, standing water can lead to mold, one of the
highest risk factors today in owning and renting property. Settlements of
lawsuits are often in the millions when awarded for negligence regarding
mold.
- Air-conditioning:
have semi annual or yearly inspections on air-conditioning units
to promote preventative maintenance and avoid costly bills. If necessary,
replace units or parts as needed.
- Lead-based
paint removal: if built before January 1, 1978, it is a government
requirement to remove lead-based paint properly and inform tenants in
writing. Proper disposal of the paint is important environmentally and to
protect your investment.
- Replace
old electrical and remove outdated electrical strips. Install adequate
covers on outlets. Repair or replace smoke detectors.
Perhaps many of these items are already in place, you
may need a few changes, or none at all. It is important to reflect on the
welfare of your property and your tenants. Then, if it can also help reduce
global warming and work toward saving our planet, the picture is even better.
