Market energy efficient rentals/build in costs to monthly rates

[Jeremy Britt]

Good afternoon!  I am curious if anyone markets their rentals as energy efficient rentals?  I can see an opportunity where one could be possible generate a greater income by building in energy costs within the rental rates. The rental I'm about to close on, will require an extensive rehab, so is there any reason why I wouldn't do this?  Yes, understanding monthly utility costs can be tricky and great thought needs to take place, but outside of these factors...why not?  Any advice, thoughts, are greatly appreciated!

[John Walter]

I have never seen a rental marketed for energy efficiency but I think its a good idea.  While on that topic, you may also want to look into the availability of tax credits for utilizing renewable energy (see: https://www.energystar.gov/abo...).   

Please report back here on this thread if you move forward with it.  I'd like to hear how it goes.

[Jeremy Britt]

John,

Thanks for the link! I believe if we truly view at our renters as "customers," it begs the question why wouldn't we want to offer energy efficient rentals or other "outside of the box" services?  I will keep you posted as to how the marketing performs.  After I have signed rental agreements, I plan to perform a quick survey seeking why the renters chose their rental and compile the data to use moving forward.  Thanks again for the link.

[Eliott Elias]

Explaining the cost saving will be too confusing for tenants and will not, in their head be able to justify paying a higher rent. If the property inherently comes with a satellite and is paid off at closing, go for it. Don't go out of your way to make the home energy efficient unless all your competition does so 

[Seth Borman]

These threads are always fun because you find out which landlords have never been stuck with a utility bill on move out.

[Jeremy Britt]

Quote from @Seth Borman:

These threads are always fun because you find out which landlords have never been stuck with a utility bill on move out.

 Seth,

What are your thoughts regarding the original post?  Do you believe this a viable opportunity? 

[Adam Macias]

Quote from @Seth Borman:

These threads are always fun because you find out which landlords have never been stuck with a utility bill on move out.

 Definitely learn a lot in every way. Ha!

[Seth Borman]

Quote from @Jeremy Britt:

Quote from @Seth Borman:

These threads are always fun because you find out which landlords have never been stuck with a utility bill on move out.

 Seth,

What are your thoughts regarding the original post?  Do you believe this a viable opportunity? 

Unless you can offer a new amenity I don't think you can push rents with efficiency. It's still a best practice.

I did pretty well on adding heat pumps to some apartments because I added AC and pushed rents by $100/mo.

[Jeremy Britt]

Quote from @Seth Borman:

Quote from @Jeremy Britt:

Quote from @Seth Borman:

These threads are always fun because you find out which landlords have never been stuck with a utility bill on move out.

 Seth,

What are your thoughts regarding the original post?  Do you believe this a viable opportunity? 

Unless you can offer a new amenity I don't think you can push rents with efficiency. It's still a best practice.

I did pretty well on adding heat pumps to some apartments because I added AC and pushed rents by $100/mo.

 Understood, thanks!

[Jeremy Britt]

Quote from @Eliott Elias:

Explaining the cost saving will be too confusing for tenants and will not, in their head be able to justify paying a higher rent. If the property inherently comes with a satellite and is paid off at closing, go for it. Don't go out of your way to make the home energy efficient unless all your competition does so 

"Don't go out of your way to make the home energy efficient unless all your competition does so"
I understand your sentiment, my thinking is this could be separation from the competition, thus a possible value add.  I'm having to remodel the home regardless, just thought I would work in some features.