Green leasing has become quite a common term in the real estate business. But what exactly is green leasing? In simpler terms, it only means a landlord-tenant contract whereby both parties agree to take specific responsibilities to ensure a sustainable occupation and operation of a rental property.
Apart from this increasingly popular trend, the large portion of the rental population, who are Millennials and Gen Z-ers, are inclined to seek out environmentally-friendly homes. More than half are even willing to splurge more for an eco-friendly place. Considering these facts, more and more landlords are eager to emphasize green features on their property.
What Are the Benefits of Green Leasing?
Reduced Operating Cost
High operating costs that significantly lower the net operating income of a rental property poses as a huge headache for most landlords. Implementing green measures to your lease contracts can lower energy consumption by 25 percent. On top of that, green leases make you eligible for financial incentives, such as tax deduction.
Young and modern renters want to live in houses and neighborhoods that promote a healthy lifestyle and concern for the environment. By adopting green measures to your rental property, you attract more of these potential renters. Since they feel more satisfied with their surroundings, they are more eager to stay as long-term tenants on your property.
Enhanced Brand Image
With the world becoming more environmentally-aware, green measures implemented on your rental property can increase your sustainability rating, making your property more attractive to the real estate market. And let us be honest, high-value tenants prefer properties that are green certified.
Improved Civic Relations
Several major cities, such as New York and San Francisco, are strong advocates for green leasing. By adopting green measures to your rental property, it shows the community your commitment as a landlord for a sustainable practice. Your methods could even serve as a model for local lawmakers to encourage other local businesses to practice green leasing.
Serving the Environment
Other than the business advantage we can gain from a green lease, we are helping the environment. It is not only smart, but it is the right thing to do. The real estate business accounts for about 30 percent of greenhouse gas emissions. Practicing sustainability will help our planet and the generations to come in the long run.
How to Add Green Features to Your Rental Property
Proper Waste Management
One of the easiest ways of practicing green living in your rental property is by implementing a proper waste disposal system. Encourage your clients to compost their compostable scraps such as fruit and vegetable scraps, eggshells, and teabags. Provide labeled waste bins for recyclable and non-recyclable items.
Another eco-friendly feature you can add to your rental property is programmable thermostats. Tenants can monitor and adjust the temperature, ensuring that no energy goes wasted. You can up your game by installing smart thermostats that can be programmed to turn off once it detects that no one is on the premises.
Modern renters prefer low-maintenance and eco-friendly flooring. Hardwood, bamboo, cork, tiles, and concrete are great options to choose from. Moreover, these materials can be easily cleaned, lasts a long time, and helps create an illusion of a spacious room.
If your budget even allows, you can further spruce up your property by having the kitchen remodeled to an open layout. Most Millennial and Gen Z tenants prefer rental units with open floor plans.
Old Bulbs Replacement
Switching to energy-efficient bulbs such as LEDs and CFLs is an easy and inexpensive step towards a sustainable rental property. Regular bulbs use a lot of energy and need constant replacement. But LED and CFL bulbs are more durable, and they can produce more light than incandescent bulbs. They also help significantly lower your electrical consumption.
Another way to make your rental property more environmentally-friendly is to improve your property’s insulation. You can have old small windows replaced with wide ones and have them properly caulked. Most of the time, the reason why the unit’s heating or cooling system works less efficiently is because of gaps around windows and doors. Save on utilities by ensuring your property is well-insulated.
Water Filtration System
Millennial and Gen Z renters are reportedly willing to pay extra for a water filtration system installed by landlords. Since plastic water bottles negatively affect the environment, and there are toxins and chemicals found on natural tap water, the most viable option for these modern renters is to opt for this amenity.
Green leasing doesn’t have to be complicated. It can be just a simple agreement. What matters most is the undertaking to ensure its proper implementation, maximum effectiveness, and sustainable success. When all parties work together, everyone benefits━especially the environment.