Will solar panels allow me to increase rent to tenants?

[Kristina Heimstaedt]

Hi all,

I know the upfront cost of solar panels is significant. However, I'm wondering if I can pass the extra $50-$100/month to the tenant with the expectation to increase the demand for my property. Does anyone have any experience with this?

I definitely believe that tenants are looking for more amenities or a smoking deal. Being a fairly green millennial myself and if the rent is pretty comparable to the neighboring properties (Southern California pricing), I'm pretty sure that I would pick a green building that had free electricity with all else being equal, but maybe I'm a weird millennial. Any feedback would be much appreciated thx!!!

[Tanya F.]

Not sure of the dollar amount you'll be able to increase the rent, but we found  this.   We have a green rental with solar panels, efficient furnaces, good insulation, and garden space. We keep increasing the rent between tenants and still find we have a great applicant pool, multiple good applicants. I might argue that green features might increase the pool of interest if you're priced right. And the type of tenants who value these kinds of features are ones who will take good care of the property! (at least so far that's true for us)

Of course, location is critical, too. Are you on public transportation, near bike paths, in a walkable neighborhood? All of this stuff goes together.