Did you know that when you add residential real estate investments to your portfolio, there are residential LEED-Certified improvements that will strengthen your investment? Maybe the house could use updated landscaping, or you think you could draw in more tenants with an updated kitchen. Instead of experimenting with improvements that may are may not increase your ROI, make proven, in-demand changes. Make your properties green through residential LEED-Certified.
What is LEED Certification?
LEED standards for Leadership in Energy and Environmental Design. When your homes are LEED-certified, it’s an objective status that establishes how green they are. Your properties can be rated in seven different categories of environmental design, which range from air quality to the incorporation of recycled materials. Meeting these LEED standards isn’t hard, but it does require deliberate renovations and changes.
So the next time you purchase a new residential property, or you need to replace one of your property’s appliances, work your way towards LEED certification.
Can LEED Certification Improve Investments?
Going green is good for the environment. But when residential real estate investment is your business, it needs to be profitable, too. Here are four ways making improvements in the seven LEED categories and getting your homes certified is good for business.
Make your Properties In-demand
Green homes are growing in popularity. Extra features water-efficient water heaters, insulated windows, and open floor plans that increase natural lighting draw in more potential tenants. People will want the good feelings and conscientiousness that come from living in a green home. They also want the value and convenience of the individual features that warranted the certification.
Reduce Expenses like Utility Bills
Profitability isn’t just about increasing revenue. It’s about reducing expenses, too, and that’s precisely what LEED certification does. Water-efficient appliances quickly cover their initial costs in just a few months or years; after that, the savings are a boost to your bottom line. HVAC units that improve air quality can do the exact same thing, especially if they’re paired with energy-efficient windows that mean your units have to do less work.
You can either aim for LEED certification all at once or you can start with the individual appliances that make the most impact. Have a professional inspect your plumbing and air conditioning systems and recommend the best starting point to cut down on expenses.
Offer Options to Tenants with Health Needs
Tenants with health problems have few options, especially in populated areas like New York City or Long Island. They usually have to make do with rental homes that are far from work or don’t have all the amenities they prefer. So open your properties to tenants who need HEPA air filters and better air quality.
When you invest in better HVAC units that meet more people’s needs, especially if their smart appliances with programmable settings and sensors, you can access another tenant pool. Renters who have highly specific requirements met are much more likely to become long-term tenants that follow the rules.
Short-term and Long-term Profits
Making green modifications is an excellent idea if you’re planning on flipping or selling the property soon. You can incorporate the cost of the HVAC, plumbing, and reconstruction costs into the new selling price, plus an additional percentage for having a LEED-certified, move-in ready home.
Fortunately, green improvements start turning you a profit within the first year. Making small adjustments like switching out old appliances for STAR-certified models and sealing up drafts cut down on recurring expenses quickly. More significant changes like remodeling with recycled materials or installing solar panels are even better: you’re both drastically improving the property and making changes that get your business more money immediately.
If you want to be residential LEED-Certified but you don’t know where to start, contact Aladdin Plumbing. We can inspect your properties to make recommendations and start improving their LEED scores.