Are you considering a more eco-friendly real estate portfolio?
Recent data from Pew Research found that residential solar panel installation is continuing its upward rise at 34%.
This development is helping both tenants and property owners do their part to cut energy waste. Solar energy is also a renewable resource. It decreases greenhouse gases, improves both outdoor and indoor air quality, and conserves water.
Installing solar panels on your rental property has even more benefits beyond the data.
Discover three more reasons to install solar panels.
1. Attract Eco-Friendly Tenants
Tenant procurement is one of many responsibilities of a property management company.
As a real estate investor, you want only the best tenants. This includes paying rent on time, keeping units clean, and contributing to stellar landlord-tenant relations. This generates top-rated reviews for your company, which is also a marketing asset.
Thus, property managers work hard to maintain and sell positive tenant experiences. Solar panels can make a considerable difference, attracting ideal tenant candidates. Installing solar panels speaks to the values of tenants who care about the environment.
Like on-site laundry, parking spaces, and beautifully-maintained backyards, solar panels are another selling point for rental property listings. You could also incorporate it into your brand, weaving it into your marketing strategies.
For example, solar panels allow you to include a "commitment to the environment" in your brand's mission statement. You could also tap into the consumer need for an eco-friendly lifestyle by including such phrases in your brochures, website, and social media.
2. Lower Your Energy Costs
Solar panels have a higher upfront installation cost than other energy systems. However, they are proven to save more money on energy in the long run. Depending on the state, rental properties can save up to $75,000 in energy.
The national average cost for installation on one single-family rental property is roughly $20,000, depending on city rates and home size. Fortunately, most cities offer tax credits to help pay for solar panel installation.
Check to see if your city offers a solar panel tax credit program. According to Eco Watch, Pittsburgh currently offers a 30% solar tax credit. Watch this program closely for any changes in thresholds.
Lower energy costs for landlords mean lower utility bills for tenants, as well. Like eco-friendly appeal, this benefit is also a good selling point for listings. It can even lead to excellent tenant-landlord relations.
3. Boost Value With Solar Panels On Your Rental Property
Again, think about solar panels as a selling point. Any factor that's a selling point increases the value of your property. This is also important to remember if you're planning on selling your real estate portfolio.
Solar panels are an attractive feature for eco-friendly real estate investors, as well. If the homes and rental properties in your neighborhoods are also installing solar panels, you may want to install panels on your properties, as well.
Watch property values in your zipcodes closely to see which upgrades add value.
Decide If You Want to Invest in Solar
There are several ways to improve your real estate portfolio. Consider all the ways you can save, increase rental income, and attract great tenants by installing solar panels on your rental property.
Check out our blog for more trips and tricks!
Contact us to learn more about our property management services or request a free rental analysis to get started.