Property investors should be thinking about sustainability in multiple different ways. But as a newcomer, it’s sometimes hard to figure out what people mean when they demand “sustainability” – and even harder to execute your sustainability goals.
In this guide, we’ll help you understand the value of sustainability – and then build a sustainability strategy from the ground up.
The Many Sides of Sustainability
Sustainability can mean different things to different people and in different contexts. These are some of the most important types of sustainability you’ll need to consider for your rental property investment strategy.
· Environmental sustainability. First, you can think about the environmental sustainability and impact of your rental properties. This is perhaps the most obvious and most popular form of sustainability to practice. Your goal here will be reducing reliance on finite resources, reducing energy consumption, and reducing waste and pollution.
· Financial sustainability. Second, you can think about financial sustainability. You may be able to optimize your property investment strategy for short-term profit or quick growth, but it’s usually better to make decisions that are much more sustainable in the long term.
· Social and cultural sustainability. Third, you’ll need to think about social and cultural sustainability. Are you making decisions that are good for local people and local communities? Or are you leaving a trail of destruction and frustration in your wake?
The Value of Sustainability
Why should you care?
Sustainability is important for several reasons. Regardless of whether you’re an idealist or a purely pragmatic thinker, there are motivations for you to follow.
· Positive impact. The obvious benefit of sustainability is that it has a positive impact. If you make a concentrated effort to reduce pollution, improve efficiency, and rely on renewable resources instead of limited ones, you’ll support a healthier ecosystem. It feels good to do good, so sustainability is its reward somehow.
· Greater appeal. Sustainability is an important factor in the economic decisions of over 60 percent of global consumers and 61 percent of U.S. consumers. More than a third of people are willing to pay more for products and services created or rendered sustainably. Offering a sustainable property-backed with sustainable practices could help you create a bigger, more compelling appeal to your target audience.
· Better relationships. Many of your responsibilities include forging better relationships with your tenants and community members. Better relationships will make it much easier to resolve conflicts and set you up for better profitability.
· A better reputation. Over time, these strategies will help you cultivate a better reputation. You’ll become more accepted in your local communities, and you’ll have an easier time managing every aspect of your property management strategy.
Tips for Greater Sustainability
So what can you do to offer more sustainability for your tenants and your communities?
· Choose the right partners. Think carefully before hiring a partner to help you in your property management strategy. Property management firms, landscapers, general contractors, plumbers, and electricians should all be interested in helping you create the most sustainable properties possible.
· Make decisions for the future rather than the present. Whenever you have the option, optimize your decisions for the future rather than the present. These will typically give you a greater payoff in the long run and help you avoid risky or destructive decision making.
· Audit and improve your property’s eco-friendliness. An energy audit will quickly reveal the eco-friendliness of your current property. You can analyze which improvements will be most impactful or meaningful, such as replacing the windows, upgrading the appliances, or adding more insulation.
· Encourage better environmental habits. Encourage your tenants and community members to engage in better environmental habits and make it easier for them to do so. For example, you can distribute recycling guides and make it easier for your tenants to recycle all their recyclables. You can also distribute energy reduction guides and give your tenants tips on how to reduce their utility consumption.
· Prioritize tenant happiness. Your ultimate goal is to make money with your rental property management strategy, and you’ll also need to prioritize tenant happiness. Unhappy tenants are more likely to move out early, they’re more likely to destroy your property, and they’re more likely to cause legal and reputational issues for you. Happy tenants are far preferable.
· Remain adaptable. No single change can instantly make you sustainable, and sustainability standards change over time. Remain adaptable to keep making changes and keep moving in a positive direction.
Sustainability isn’t always cheap or easy, but it is always accessible. Even making small, gradual changes can make a big impact. Stay committed to your sustainability practices, even if you don’t overhaul your approach, and you’ll start seeing the benefits in no time.
