Real Estate

Going Green makes a lot of CENTS

You’ve probably heard the term “going green” and why it’s good for the environment. But what about the dollars and cents aspect? There are a number of reasons why building and business owners should invest in energy efficiency upgrades to their multi-family properties.

First of all, keep in mind that older structures and related appliances and systems are LESS efficient compared to newer ones. Take the example of a heating, ventilating, and air conditioning (HVAC) system at just one of your properties. Older buildings often have older HVAC systems with Seasonal Energy Efficiency Ratings (SEERs) of only 6-11. By contrast, a new building, or one with an upgraded HVAC system, has a SEER rating of 15 to 20: or more. And energy savings = cost savings.

* As an advertising tool. Being seen as a developer interested in “going green” will reap dividends as you will be seen as someone who is eco-friendly – promoting the environment and lowering energy bills for tenants at the same time! This will make your properties more desirable, especially for the younger ones.

The caveat here is to practice what you preach. Green marketing won’t work unless your organization is committed to protecting the environment. The last thing you want is a connection between what your brand says and what it actually does. If you follow the other points in this article, you’ll be well on your way!

* Differentiate yourself from your competitors. Because going green costs more up front, you can be sure that not all business developers will be willing to make a green commitment. But doing so will pay off in the long run. You can expect the appraised value of your property, for example, double by installing SMART technology that improves energy efficiency. Going green makes a lot of “pennies.”

* Increase the final result of your properties. Owners know that remodeling such as new siding, roof, etc. – will increase the value of your home. It’s like that with developers too! As noted above, energy efficient upgrades can easily mean adding twice the cost of the upgrade to your property’s value.

* Saving tenants money. Installation of low consumption HVAC systems, lights, water heaters, etc. in your facilities will save tenants in monthly expenses. A residence with energy efficient upgrades can save 30 percent, or approximately $100 to $150, in a single month. Renters can save a lot of money pretty quickly!

* Extend the life of the different systems. (lights, water, air conditioning) with smart thinking technology to operate more efficiently. Efficient appliances not only cost less, but also last longer. Consider the example of a simple LED light bulb. A typical LED light will last 1,500 days of operation, or nearly five years. Can your incandescent light bulb say the same? And if a single LED light can last that long, how much longer can much more expensive systems be expected to run?

Summary

As you can see, there are many reasons why investing in energy efficiency improvements in multi-family properties makes a lot of “pennies” for any developer or investor. What are you waiting for?

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