Apartment owners interested in energy efficient construction and renovation projects have had difficulties showing that they are financially sound.
At times they suffer from a lack of hard data demonstrating the value of such undertakings, which impedes the spread of energy efficiency throughout the market. Despite that, green strategies have produced positive results for a number of industry stakeholders, according to Apartment Finance Today. One major advantage is that building utilities typically cost less, reducing operating expenses for energy-efficient apartments. This applies to common areas, as well as specific units. Improved lighting fixtures alone may save significantly.
Energy-efficiency also appeals to some renters, and can attract additional interest as a result. Rental property management firms may find it to be worth advertising. It may also be possible to engage tenants through green leasing. While still a new concept, green leases may allow landlords to show tenants exactly how energy efficiency improvements will benefit them and convince them to accept future rent increases to cover the costs.
Energy-efficient construction and systems may also help make buildings more attractive to potential buyers. Energy performance metrics and measurements are still being developed, but may enable competitive comparisons soon. Favorable comparisons might also appeal to prospective renters.