Leasing out homes is a competitive business. To be successful, you need to find and focus on a niche. That’s why leasing out only eco-friendly homes can be a successful strategy. This article will outline why you should choose this niche and provide tips on running a successful residential leasing business.
Why You Should Lease Out Eco-Friendly Homes
Here are some reasons why you should choose only eco-friendly homes to lease out.
Growing Demand for Eco-Friendly Housing
A survey conducted by Redrow, a house building firm in the U.K., shows that 82 percent of home buyers are willing to shell out a higher price for an eco-friendly home. More than 25 percent are willing to pay six percent or more for it.
The feature that home buyers value most in a home is having reduced energy bills. Because of that, they want a property that has energy-efficient boilers, thermal wall insulation, and renewable energy sources or supplies.
The survey was among home buyers. However, it reflects a need that is surely felt also by those who are leasing because they still cannot afford to buy a house. They will want to save money on energy bills to go toward a future home fund.
Leasing Eco-Friendly Homes Can Build a Landlord’s Reputation
While eco-friendly homes for lease are already enough to attract a lot of prospective clients, these also build a positive reputation for the landlord. People hold such landlords in high regard because they are helping build eco-friendly communities. That can be turned into a marketing strategy to attract more clients.
Tax Breaks and Financial Incentives for Eco-Friendly Housing
There are tax breaks and other financial incentives available for landlords who lease eco-friendly homes in the U.K. For instance, from 2022 to 2027, homeowners who improve their properties’ energy efficiency will not have to pay VAT for the materials used. With the Smart Export Guarantee, they can sell the excess energy they produce from renewable sources back to the grid.
Mortgage lender Halifax provides home mortgage borrowers cashback of £1,000 for heat pump installation. A cashback of £500 each is provided for any of the following:
- solar PV panels
- solar battery storage
- energy-efficient doors and windows
Tips to Succeed in Leasing Out Eco-Friendly Homes
If you’re thinking about leasing out eco-friendly homes, keep these things in mind:
Get an Energy Performance Certificate
You will need an Energy Performance Certificate (EPC) for every property you lease out. Get an EPC rating of E or above. The EPC is a document that shows how energy-efficient the property is and what Grade it falls under — from A (very energy efficient) to G (inefficient). It also provides recommendations on how to improve the property’s energy
Install Renewable Energy Sources
Install solar PV panels, a heat pump, or wind turbines. You spend less because materials have zero VAT. If you are a mortgage borrower from Halifax, you also get a cashback.
Improve the Property’s Insulation
Another way to make your property more energy-efficient and, thus, eco-friendly is by improving its insulation. You can do this by adding or upgrading cavity wall insulation and/or solid wall insulation. Similarly, you can improve a property’s insulation by investing in replacing or updating your flooring. Carpets and other options are affordable solutions and can help improve a property’s insulation. However, you’ll need to check with your local floor fitters to weigh your options, installation costs, and other fees you might need to spend up front.
Install Energy-Efficient Appliances and Lighting
Replace old appliances and lighting fixtures with energy-efficient ones. These will help lower energy bills. Choose LEDs, for instance, since these use 90 percent less electricity than incandescent bulbs and last up to 25 times longer.
Market Your Eco-Friendly Homes for Lease
Make sure your target potential tenants know about your eco-friendly homes for lease. You can do this by placing ads in online and offline publications focused on sustainability. You can also put up a sign outside the property or properties.
Ensure that you have a professional website for your eco-friendly home leasing business. Hire an SEO service to make this rank in searches. Post helpful content about sustainable living.
Set up accounts for your business in all social media platforms. Make regular and frequent posts that are attractive, engaging, and helpful about your properties and eco-friendly living.
Educate Your Tenants on How to Save Energy
Teach your tenants about saving energy. Show them how to take advantage of the property’s energy-saving features. Let them know about the benefits of saving energy, too, such as lower utility bills.
You can give eco-friendly bags during move-in day. You can also put up posters or send newsletters with tips on saving energy.
Monitor Energy Usage
Install a smart meter to help you monitor your property’s energy usage. This will also allow you to see how much your tenants are spending on utilities. A smart meter can help you detect any potential issues, such as a leak, and take action quickly.
Consider Offering Incentives
Offer incentives to encourage your tenants to save energy. You can give discounts on rent or give rewards for conserving energy.
Build Your Sustainable Home Leasing Business
Making your property eco-friendly and turning it into an eco-friendly home for lease will take time, effort, and money. But it will be worth it in the end as you help save the environment while also earning a profit.