Solar for a Rental Property

[Daniel Kitt]

Hi Everyone, 

We are getting ready to rent out our primary residence as we search for a new home. We have paid off solar on our current residence that powers the entire home. We are planning to leave it on when it becomes a rental. I am curious if any landlords have been in this scenario before and how you charged your tenants for the solar. 

[Rick Albert]

I would look at the comps and go from there.

Not all tenants think about utility costs and therefore you could be pricing yourself out. For example, let's say rents are typically $3,000 for a house. With solar you are asking $3,100. Now any tenant who is only searching up to $3,000 won't see it, even though it would work for them.

Another option is to charge a base rent and then do a utility fee. For example, $3,000 and a $100/month electricity fee. I did a water fee on my back unit. Less hassle and still get a bigger pool of tenants.