Does it pay to go green?

I have some properties that are about to be vacant. I was thinking about ways to get creative and create a niche for myself. With the green movement being such a big deal and all the talk about energy efficiency I thought it might be a good way to target to new tenants. I could do some easy and low cost upgrades, calculate savings and then advertise that it's "green" based on what I did and the savings. Does anyone have any thoughts about this or does it sound like a waste of time?

Edited: 06/26/2010 at 07:44AM

Curt Davis

Wholesaler · Memphis, Tennessee

1108 posts
6055 Influence
7 Awards

Icon_minipost Mar 26 '09, 09:39 PM

Ashley,

I think its a waste of time. Plus it would not be cost effective either. I am not against helping the environment but people are not going to want to live in the home because of being advertised this way. Renters are more concerned on how they can save money so things like having the home have better insulation which will save on heating bill would be more attractive.

Edited: 06/26/2010 at 07:44AM

Curt Davis, buyMemphisnow.com
E-Mail: crtdavis@gmail.com
Telephone: 901-881-0552
Website: http://www.buymemphisnow.com
Full Service Real Estate Investing in Memphis TN

Ashley Haas

4 posts

Icon_minipost Mar 26 '09, 09:52 PM

Thanks Curt,

I guess I should have been more clear with my question. I would incorporate improvements that would save my tenants money. When I advertise I would show why and how much they will save with the improvements made. There are plenty of inexpensive upgrades that can be done that save money.

So, I guess what I was wondering is, if I can save a renter money monthly on utilties would they be more likely to rent from me? If yes, would they pay a little more for rent? Or to state it differently. If the rental was greener would they pay more for rent, less for utilities (overall wash) just becuase it was green?

All comments are welcome. Thanks for your ideas.

Edited: 06/26/2010 at 07:44AM

NC Mark

Real Estate Investor · North Carolina

1086 posts
7096 Influence
8 Awards

Icon_minipost Mar 26 '09, 10:27 PM

Who is the 'Green Movement' a big deal with, Ashley?

Renters? Perhaps, but only up to a point, and only what they can understand or care about.

My college rentals care only about amenities such as a dishwasher that they can use. As for utility bills they just send 'em back to their parents.

Low income? The first thing they see is the amount of rent. Try explaining R-30 in the attic and they go blank.

Blue collar? They're a little more aware. But again, rent, amenities, location, new paint, etc. go further than the efficiency of their gas pak.

Don't get me wrong, I routinely install thermal windows or storms and blow in attic insulation, but that's more to KEEP good tenants once I find them (with lower utility bills they're more likely to pay me).

But that's just my $0.02.

Let us know how your own Green Experiment works in the actual field. Who knows, you may be starting the next great trend!

Edited: 06/26/2010 at 07:44AM

Phil *

Real Estate Investor · Connecticut

119 posts
24 Influence

Icon_minipost Mar 31 '09, 10:30 AM

- Energy Star appliances
- Dimmable lighting / Eco bulbs
- Cork / Bamboo flooring
- Low-E windows
- Energy Star water heater
- High-Eff furnace
- Convert fireplaces to gas
- Convert oil utilities to gas
- Add/upgrade Insulation
- Set-up recycling bins

.. just to name a few.

Edited: 06/26/2010 at 07:47AM

Jason Cano

Real Estate Investor · Harlingen, Texas

24 posts
50 Influence
1 Award

Icon_minipost Mar 31 '09, 03:14 PM

aside from the obvious such as energy star appliances and green building materials, some very inexpensive things you can do to save them money are...

-make sure all your a/c vents are propery sealed. this helps reduce drafts, moisture, dust, pollen, and noise. A tightly sealed home improves comfort and indoor air quality while reducing utility bills

-make sure the building envelope is propery sealed (use polyseal) around all cracks, holes, etc..Again, a tightly sealed home improves comfort and indoor air quality while reducing utility bills.

while the above statements wont be a huge marketing tool, they will help save "$mucho dinero$" in energy costs.

Edited: 06/26/2010 at 07:47AM

Jim Wineinger

Real Estate Investor · ten mile, Tennessee

1501 posts
16138 Influence
16 Awards

Icon_minipost Mar 31 '09, 03:27 PM

If it saves you money then its great!

But I am afraid we are beginning to see a backlash against those environmental things that only end up costing everyone money, like not being able to find and use our (US) own oil and natural gas. These government regulations combined with the economy are not going to mix very well if things do not improve soon.

Edited: 06/26/2010 at 07:47AM

Jeffrey K.

Real Estate Investor · Milwaukee, Wisconsin

1313 posts
11455 Influence
12 Awards

Icon_minipost Apr 01 '09, 11:30 PM

This "green" fad makes me sick. We are in this to make money. All things being equal in cost and quality, go with the one that is better for the enviornment. Paying more for a product like bamboo is not worth it. This might make sense on a flip to Yuppies who care about this BS marketing ploy, but most people just care about how they are going to pay their bills.

Edited: 06/26/2010 at 07:48AM

Just Don

448 posts
2480 Influence
3 Awards

Icon_minipost Apr 02 '09, 12:54 AM

Put those expensive eco bulbs in a rental and at first move out,,,see how many are left in it. OR any bulbs for that matter.

The biggest green to shoot for is more cash. BUT if things need replaced anyway,like windows or furnace etc,by all means use hi efficiency,,its about all you CAN buy anyway.

For windows the Jeld-Wen at big box stores are a GOOD value!!Vinyl is my first choice,,,cause renters sure dont take care of wood!! I know alot of people that put them in their personal houses,,,and they can afford any window they want!!

Edited: 06/26/2010 at 07:49AM