The Impact of Eco-Friendly Upgrades on Property Value in Southwest Washington

If you’re a real estate investor who is always looking for new ways to increase the value of your rental properties, you may want to consider going green. The tenants in our market are environmentally conscious, and one of the ways to get the attention of those residents and increase your property value is by making some upgrades to your rental home that are eco-friendly and sustainable. 

Keeping up with improvements and updates is an excellent way to make your property more marketable and to compete on a crowded market. When you focus on making environmentally friendly updates and upgrades, you’re benefiting the environment and also adding value to your investment. 

We’ve been managing properties for years, and we can tell you that technology has made it easier for property owners to go green. A lot of the tech-friendly upgrades we’d recommend also happen to be good for the planet. In Southwest Washington, there are several eco-friendly upgrades that investors can consider. Today, we want to explore the impact of these upgrades on property value.

Considering Solar Panels for Your Rental Property

When you think of going green, one of the most immediate technologies you may think of for your property is solar. This is an energy source that’s becoming increasingly more popular over the years, and there’s been a strong push to invest in more solar energy. 

You can get in on this trend and provide an alternative to oil, gas, and electricity by installing solar panels at your property. This would be a notable eco-friendly upgrade, and one sure to get the attention of tenants who are environmentally aware. 

Solar panels not only produce clean energy but can also help investors and their tenants save money on energy costs. According to a study by the National Renewable Energy Laboratory, homes with solar panels sell faster and for more money than those without. On average, properties with solar panels sell for 4.1% more than those without. This is something to think about for the future. Not only can you increase your rental value right now, but you can also plan to earn more if and when you sell your property because the solar panels will make it more valuable to potential buyers later. 

Energy-Efficient Windows

Another eco-friendly upgrade that can add immediate value to a property is the installation of energy-efficient windows. These windows help reduce energy consumption by keeping a home cooler in the summer and warmer in the winter. They also help reduce outside noise and UV rays. You’ll find that when you install windows that promote better insulation, they’ll also look more attractive and modern. 

A study by the National Association of Realtors found that homes with energy-efficient windows sell for 2-3% more than those without.

Install better windows and use this as a marketing point when you’re looking for new tenants. It can also be used as an upgrade to keep current tenants in place. While you’re negotiating a lease renewal, offer the energy-efficient windows. It will make your rental increase more palatable and encourage your residents to stay in place. 

Replacing Old Appliances with Efficient Appliances

Replacing old appliances with efficient ones can also add value to a property and make your rental property far more attractive to prospective and current tenants. Good appliances and in-unit laundry are essential to tenants today, so make sure you’re investing in good machines that can be counted on to last for years and use fewer natural resources. 

Energy Star-rated appliances, for example, use less energy than traditional ones and can help investors save money on energy bills. According to the Department of Energy, replacing a refrigerator that is over 10 years old with a new Energy Star-rated one can save you an average of $270 over 5 years on energy bills alone. This type of upgrade can also appeal to environmentally conscious renters who care about the footprint they’re leaving on the earth. They don’t necessarily need stainless appliances, but they will be looking for machines that use less water, gas, and electricity.

Low-Flow Property Fixtures

Water is becoming an ever-increasing concern across the country. While we get plenty of rain in our area, nearby states and communities have experienced devastating droughts in recent years, and there’s been a real concern about the sustainability of the water supply. So, consider upgrades and updates that respect water. 

Investors can install low-flow fixtures in bathrooms and kitchens to reduce water consumption. These fixtures may include toilets, shower heads, and faucets, which use less water than traditional ones. Low-flow fixtures not only help save water but can also save money on water bills. According to the EPA, installing a low-flow toilet can save a family of four up to 22,000 gallons of water per year. This type of upgrade can also appeal to renters who want to reduce their environmental impact. When it’s time to sell, you’ll appeal to buyers who want a water-friendly home.

Local and Sustainable Landscaping

Finally, real estate investors can consider eco-friendly landscaping to improve the curb appeal of a rental property. This can include planting native plants, installing rain gardens, and using permeable paving. These upgrades not only provide a beautiful outdoor space but can also help reduce water consumption and runoff. According to a study by the National Association of Realtors, curb appeal and landscaping can add up to 10% to a property's value. It will certainly make your property more attractive to prospective tenants. Curb appeal counts as a great first impression, and when they see the care you’ve taken to make your outdoor space sustainable, you’ll likely attract more applications. 

Eco-friendly upgrades can have a positive impact on property value and rental value in Southwest Washington. From solar panels to efficient appliances, there are many options for investors to consider. By making these upgrades, you can reduce energy and water bills, appeal to environmentally conscious tenants, and improve the overall value of your properties. As the demand for eco-friendly homes continues to grow, these upgrades will become more and more valuable.