Sustainability is a responsibility that landlords and property owners should take seriously. There’s a growing number of eco-conscious tenants who prefer to live in eco-friendly houses. In the US, 2 out of 3 tenants include “green practices” as a key criterion when choosing a place to live. In London, 50% of tenants look at the environmental credentials of a home before they consider living in it.
Clearly, this is not a trend that’ll pass. It’s a fundamental shift that the rental property market should implement.
Landlords and property owners who fail to meet these needs might find themselves struggling with longer vacancy periods and lower rental income. This is why environmental sustainability should be an integral part of every property management strategy. It’s not just for environmental reasons. You can achieve long-term financial benefits and stronger relationships with residents and guests if you comply with sustainability laws.
In this article, you’ll discover why it’s necessary to set up sustainable letting operations and how you can implement “green practices” in your property.
About Sustainable Letting Operations
What does it mean to implement sustainable letting operations? It’s about minimising the environmental impact coming from a rental property. It involves proper waste management, reduction of carbon footprints, energy-efficient appliances, etc. It also means implementing practises and strategies that make it convenient for guests to live a sustainable lifestyle.
Why is this important?
According to reports, 16% of the UK’s carbon emissions come from residential housing. If all landlords and property owners work on reducing their carbon footprint, that can make a huge impact on the environment.
Fortunately, landlords in the UK are open to being more sustainable. In one survey, 8 out of 10 landlords revealed that they’re prepared for the EPC (Energy Performance Certificate) regulation deadline in 2025. The EPC regulation consists of laws that strictly enforce energy efficiency in rental units. For instance, a property can’t be rented for profit unless it has at least an “E” rating on its EPC. This legal requirement will take effect in 2025. In 2028, the minimum would be an EPC “C” rating.
All this leads up to the government’s plan to achieve “Net Zero” status by 2050.
Benefits of Sustainable Property Management
Choosing to practise sustainable property management brings a lot of benefits for landlords and property owners. It’s not just about the environmental impact. It also positively affects your portfolio.
Enhanced property value and appeal
Sustainable investing can boost the market value of your property. Take solar panels as an example. It won’t just give your property a renewable source of energy. It also makes your unit look modern.
Installing energy-efficient appliances like inverter refrigerators and washing machines, smart thermostats and LED lights will also increase the appeal of your property. You can also design the flat to have more natural light coming in. Include small pockets of garden spaces as well. You’ll get the attention of eco-conscious residents if they see these as part of your home.
Cost-savings through energy efficiency
Now that energy-efficient appliances have been mentioned, you can expect that these will give you a lot of cost savings in the long run. By implementing green practices in your rental property, you can lower both energy and water consumption by up to 30% and 50%, respectively.
For instance, installing more windows to allow natural light to come in would minimise the need to open artificial lights. Smart thermostats can be programmed to adjust if nobody’s inside the property. Then it can automatically adjust right before residents come in - which will keep the unit comfortable and energy-efficient at the same time. The lower utility bills will keep operation costs low - which will add to your rental income in the long run.
Improved tenancy retention
Sustainable features in a home can also contribute to better health for residents and guests. Improved indoor air circulation and access to natural light are both good for the body. The smart thermostat will also lead to a more comfortable stay.
Water-saving features will promote conservation and make tenants feel like they're living a sustainable lifestyle. If you can make it easier for them, they’ll choose to stay on your property because it aligns with their eco-conscious beliefs.
The longer stays will reduce turnover costs and keep your rental income steady.
Compliance with local regulations
Staying compliant with local housing regulations is important if you want to avoid issues and penalties on your rental property. If you comply with the local environmental policy, you’ll get a higher EPC rating which you can use to market your property as a sustainable unit.
It would encourage you to know that local governments offer incentives to landlords and property owners who comply with these laws. For instance, you can avail of a special grant to help mitigate flooding risks in your basement. Installing renewable heating technology gives you access to the UK’s Renewable Heat Incentive or RHI. Other schemes include the Green Deal, Feed-in Tariffs, etc.
Tips to Implement Sustainable Letting Practices
Now that you have a list of the benefits that you’ll get from sustainable letting practices, it’s time to find out how you can make it happen.
Here are helpful tips that you can use to succeed in transforming your property management operations into a more sustainable one.
Thoroughly check the property
Start by taking a look at your property so you can identify what needs to be changed or improved. A thorough assessment would point out inadequate insulation issues, outdated windows, faulty lighting or damaged water fixtures. Even if there’s no physical evidence of damage, if the fixture or appliance is already old, it might be time for a change. It’ll be your chance to choose more sustainable materials to use.
Make a list of all that you can improve so you can make plans to upgrade them one by one.
Research and equip with renewable energy
Once you have your list, explore options that can help you improve your property. Check out solar panels and wind turbines. These can provide your property with renewable energy sources that’ll give you long-term energy savings. This will remove your property’s dependency on conventional energy sources. The lower electricity bills can increase your rental income and help you fund more investments.
You can use the savings to fund energy-efficient appliances and upgrade some of the fixtures and equipment in your unit.
Think of waste reduction strategies
Waste is a huge issue when it comes to environmental concerns. You need to implement property waste management strategies in your property so residents and guests can practise proper disposal of their trash. Providing a proper bin for recyclable, biodegradable and non-biodegradable items is a good way to start. Make sure it comes complete with clear instructions so guests won’t make a mistake in mixing their trash.
Hopefully, they’ll get used to the practice of disposing waste properly and they’ll bring the habit with them even after they’ve gone from your property.
Use eco-friendly amenities and products
If you have to provide guests with necessities like toiletries and other products, choose eco-friendly products. There are options like bamboo toothbrushes and organic bath soaps wrapped in eco-friendly packaging. You can also furnish your property with sustainable furniture made of eco-friendly materials and energy-efficient appliances.
These choices are aligned with your eco-conscious efforts and can help with environmental conservation. It’ll also reinforce your reputation for being an eco-friendly landlord.
Install proptech devices
Leverage the use of proptech devices to ensure sustainable letting operations. Use smart sensors to detect leaks and monitor the health of the property. This will help you monitor what needs to be cleaned, replaced or scheduled for maintenance. It’ll save the property from major damages caused by neglect.
Things like a keyless door is also another thing you can do. This leads to a faster and more efficient check-in and check-out process for guests.
Join sustainable community initiatives
Collaborating with sustainable initiatives of the local community is also a good idea. For instance, if a local business is collecting plastic trash, you can give them the plastic waste left by your guests.
You can also join clean-up events organised by the local government. This will help you take part in beautifying the surrounding area of your property so it boosts the appeal of the neighbourhood. This will also give you the chance to get to know other businesses in the area and interact with them.
As you get to know the other members of your community, you can promote your eco-friendly houses so they can recommend you to people they know.
Speaking of promotions, it’s also a good idea to market your sustainable rental property online. Emphasise the energy-efficient appliances and sustainable products that guests can use. Market the sustainable materials that you’ve hand-picked for guests. This will make your property attractive to eco-conscious travellers and visitors. They’ll be more likely to book your property.
Be an Environmentally Responsible Landlord
With the way residential homes contribute to the overall carbon emissions in London, it’s only right that landlords start stepping up when it comes to making their properties more sustainable.
Fortunately, embracing sustainable letting operations offers a wide range of advantages. While the primary beneficiary is the environment, you can also enjoy financial benefits. You’ll also gain a sustainable business reputation among residents and guests.
The long-term benefits will also leave you with an enhanced property and higher occupancy rates. This is why implementing sustainable practices is worth investing in.
Would you like to make the shift towards sustainability? Partner with a sustainable property management company. Opago will help you identify areas that you can improve. Partnering with us will also give you access to sustainable letting practices.
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