For real estate investors, diversifying your streams of income through the acquisition of multiple properties is key to building real wealth. On the other side of that coin, however, buying more properties means fielding more expenses.
To make the most of your investments, you’ve got to think about the long-term costs – and cut them down in a responsible, effective way.
And one of those ways is to prioritize eco-friendly property upgrades.
The First Step: An Energy Audit
Before you start planning a property overhaul, you should know how it performs on energy consumption and waste. An energy audit involves a thermogenic scan to determine where you’re losing heat and therefore, where to seal or insulate. For a few hundred dollars, you can target fixes that could save you between 5% and 30% on energy costs.
Energy.gov also has this handy DIY energy audit guide!
Then What? 6 Upgrades to Improve Property Efficiency
1. Make Your Property Airtight
Poor insulation, cracks, leaks, and gaps are responsible for heat loss in the home. This means your HVAC systems must work harder and kick on more often to maintain the appropriate temperature. We most often consider adding insulation to the attic but don’t ignore the other places where energy can siphon from the property. Walls, doors, and windows are major culprits!
Be sure to have the pros caulk, seal, or insulate any gaps and cracks. This is an interior and exterior job, as damaged or misaligned siding or cracks outside can contribute to the problem. Use gap fillers on all exterior doors, too.
2. A Programmable Thermostat
Programmable thermostats are not expensive and allow the residents to control when the heating or cooling runs and at what temperature. So, if everyone’s gone to work or school for the day, the A/C can be turned off to conserve energy and scheduled to come on and get the home to the appropriate temperature before everyone arrives at the end of the day. You could end up saving upwards of $100 each month on your energy bill.
3. Go Low-Flow
Low-flow toilets and shower heads help cut back on water usage. These fixtures don’t cost more than traditional options and limit the volume of water coming through at once. While your residents may bemoan lower shower pressure, it’s worth your while to take this easy step towards conservation.
4. Invest in New Windows
Installing new windows is an expensive venture and it doesn’t really make up for it in energy savings – but there are other benefits! New windows are better sealed and can be, depending on the model, better at keeping the outside temperatures from leaching in. You can prevent noticeable drafts and keep your HVAC from working overtime. Plus, they’re aesthetically pleasing and great for curb appeal.
5. Smart Landscaping
Landscaping is an important part of any property, but so often we work against nature to get that picturesque curb appeal. Instead of investing in exotic fare, look for plants, flowers, trees, etc., native to your area and climate. These plants are designed to thrive where you are – thus demanding less attention and water. This saves you money in two ways: plants are less likely to die and need to be replaced and you don’t have to use as much water to keep them healthy and happy.
6. Energy-Efficient Bulbs & Fixtures
Like programmable thermostats, smart LED bulbs can be utilized to save money. Lights left on are one of the big culprits for driving up monthly energy costs, so better managing them is key. Smart bulbs allow residents to program and control their lights from afar. That means no more “oops” moments when you get home and realize the kids left the bathroom light on all day!
Similarly, look for Energy-Star certified light fixtures, particularly for the outdoors. With both energy-efficient fixtures and bulbs, you can save quite a bit of money on power. It helps curb appeal and safety to have exterior lights, but you can (and should!) use solar-powered varieties to light pathways. The less you must rely on electricity, the better!
Reducing energy costs across all your properties isn’t particularly expensive and you could be looking at hundreds of dollars in savings each month! That means more efficient properties, better numbers, and faster wealth-building.
Looking to start earning passive income? Connect with one of our Portfolio Advisors today!
