You’ve probably heard the term “going green” and why it’s good for the environment. But what about the dollars and cents look? There are several reasons why building and business owners should invest in energy efficiency improvements to their multi-family properties.
First, consider how much older LEAST efficient structures and related appliances and systems compare to newer ones. Take the example of a heating, ventilation and air conditioning (HVAC) system at one of your properties. Older buildings often have older HVAC systems with Seasonal Energy Efficiency Index (SEER) ratings of just 6-11. In contrast, a new building, or one with an updated HVAC system, has a SEER rating of 15-20 – or more. And energy savings = cost savings.
* As an advertising tool. Being seen as a developer interested in “going green” will reap dividends, as you will be seen as an environmentally friendly company – promoting the environment while reducing energy bills for tenants! This will make its properties more desirable, especially for the very young.
The caveat here is to practice what you preach. Green marketing won’t work unless your organization is committed to protecting the environment. The last thing you want is a connection between what your brand says and what it actually does. If you follow the other bullets in this article, you are well on your way.
* Differentiate yourself from your competitors. Because green costs more up front, you can be sure that not all commercial developers will be willing to commit to green. But doing so will pay off in the long run. You can expect the appraised value of your property, for example, double by installing SMART technology that improves energy efficiency. Going green earns a lot of “pennies”.
* Increase the final result of its properties. Homeowners know that upgrades like new siding, ceilings, etc. – it will increase the value of your home. It’s the same with developers too! As noted above, energy efficiency upgrades can easily mean adding twice the cost of the upgrade to your property’s value.
* Saving tenants money. Installation of energy efficient HVAC systems, lights, water heaters, etc. at your location you will save tenants on monthly expenses. A residence with energy-efficient upgrades can save 30 percent, or roughly $ 100 to $ 150, in a single month. Renters can save a lot of money pretty quickly!
* Extending the life of different systems (lights, water, air conditioning) with smart thinking technology to operate more efficiently. Efficient appliances not only cost less, but they also last longer. Consider the example of a simple LED light bulb. A typical LED light will last 1,500 days of operation, or nearly five years. Can your incandescent light bulb say the same? And if a single LED light can last that long, how much longer can much more expensive systems be expected to work?
As you can see, there are many reasons why investing in energy efficiency improvements in multi-family properties generates a lot of “pennies” for any developer or investor. What are you waiting for?