Companies today are giving a premium on environmental concerns as a smarter and more profitable way of doing business. Property investors are no exception since going green has shown that it can generate enormous savings in annual operating costs. Doing simple cost-effective improvements around and within the investment property can also add value and improve cash flow on it.
Aside from being gentle on the environment, green buildings also deliver a higher return on investment. Studies show that efforts to make a property environment-friendly increase its value by 7.5 percent and improve the return on investment by 6.6 percent.
This happens because people today are more sensitive to environmental issues. Living in an environment-friendly setting is also associated with health and aesthetics. In choosing a house to rent or buy, the first thing people look for are its environmental viability.
There are other benefits like the capability to secure tenants more quickly, commanding higher rents or prices, costing less to operate and maintain, and improving business productivity for occupants. Thus, it is highly profitable for the property investor to make his/her house or building green.
An investment property is considered green if the design supports the health and well-being of the occupants, construction workers, the public and the environment. The other criteria are: 1) the property uses energy, water and material resources in an efficient manner, taking into account how they are obtained, how they are manufactured, how they will b used, installed and disposed of; 2) the materials used in the construction are affordable and durable; and 3) the design enhance, improve the environment or provide a better life for everyone.
Ecological experts say going green means considering that individual components of a house or building interact as a system regarding energy use and comfort. For example, blinds or curtains that are always left up on portions where plenty of sunlight comes in could contribute to the unwanted heat build-up inside and thus cause the airconditioning unit to work double time.
Equipment for cooling, lighting, appliances, as well as electronics such as entertainment and computer equipment all have an impact on the environment and should be assessed. It has been shown that if owners and architects work together in setting up a green building, the owners would be able to enjoy structures that consume 32 percent less electricity. They could also achieve energy savings of at least 20 to 30 percent when compared with industry standards, and use 30 percent less water.
For the property investor, that’s doing a lot of favor to Mother Earth while at the same time reaping the monetary benefits of being green.
Trimax has developed 7 key strategies that will immediately increase cash flow and add value to your property. To learn more, contact us.
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