Upgrades and energy efficiency impact on rent

[Andrei Zamfir]

Hello everyone,

Would you please share any data you may have or any information based on your experience:

1. Do upgrades such as quartz countertops in the kitchen and bathrooms, stainless steel appliances command higher rent? If yes, by what percentage on average?

2. Would investing in energy efficient upgrades attract higher quality tenants and can those upgrades justify a higher rent? For example: energy efficient appliances, blow additional insulation in the attic, install a hybrid water heater. If the rent can be increased based on energy efficient features, what percentage of increase would be possible?

Thanks in advance.

[James Mc Ree]

It depends on your market and the condition of the property.  A high-end market may require some of these upgrades.  A marketing plan for a "newly renovated home" may also require them.  One-off upgrades, like a high end countertop in a ho-hum kitchen probably won't do anything.  Low-to-mid market probably won't see much of a benefit in rent.  You probably will see a benefit in shorter vacancy time if your property has a great "Wow!" effect.

In general, tenants don't pay attention to high-efficiency anything.  They want heat, hot water, air conditioning, etc.  They expect it to be there and the air is warm/cold whether it is efficient or not.

I don't have any market data to share with you, unfortunately.  It seems like it would be difficult to get such data as finding identical properties and tenant prospects at the same time, situation, etc.