While not every owner chooses to include utilities in the rent, many make initial and ongoing improvements to their property that will increase the desirability to potential tenants. One such area of improvement, is energy-saving measures. Be it programmable thermostats or double-paned windows, those investments pay back big dividends when you end up with continuous occupancy. And, after all, that is the prevailing goal to investment real-estate…dependable, continuous income.
Why do these improvements translate into occupancy? A savvy, potential renter will be looking beyond the cost of just rent each month. They will factor in: travel time to work, school, and activities; what is available in the area that will fit into their lifestyle; and, costs of living in the home that they choose. The costs of living, for any residence, have to include utilities, security, parking, etc. Summer is a good time to move because of favorable weather. Accordingly, that will go hand in hand with questions relating to the energy efficiency of your rental.
For instance, you almost never see a larger, newer complex that does not boast that they are energy-star compliant. They use that feather in their cap to attract energy and money conscious renters. Why? Because it works! Rental searchers can and will even contact the city to verify the average amount of utility costs for a particular residence. Now, some of that cost can be chalked up to energy hogs. But, as an owner, you want those energy hogs to be the past tenants, and not energy draining factors in your property.
What are things you can do to help your current tenants, and attract others?:
- Research and install energy-star appliances
- Install energy-efficient windows
- Maintain window and door casings to avoid energy-draining leaks
- Install ceiling fans in common areas to provide air-circulation, maximize air/heat distribution
- Install a programmable thermostat: Allows for more efficient use of air/heat, only in times of need or to reduce/shutdown at key times
Any of these things can add to the attraction of your property, to a potential renter. All these, and much more, should be considered when you make your purchase, when considering initial renovations, and when considering additional changes to keep with trend. Having and continuing to implement cost-saving energy measures into your rental will have a two-fold benefit. On one hand it is an attractive amenity to include in your listing. On the other hand, it betters your reputation in the rental community. Reputation can be just as important a factor in keeping your rental occupied as anything else.
