Energy Efficient Improvements for Rental Properties

Managing a rental property means choosing your upgrades carefully. Between tenants, it is practical to improve the home in ways that will result in higher rents and happier tenants in the future. Naturally, you're looking for the best return on your investment. These improvements will repay themselves more quickly than others, either because they cost very little or because tenants value them very highly, or a profitable balance of both.

Energy efficiency is your best route for practical, high ROI improvements. Let's look at the top five high-ROI energy efficiency improvements for your rental properties.

Weather Stripping

Weather stripping around doors and windows is used to seal in the HVAC and prevent unnecessary use of electricity. These strips are affordable and easy to install. They also have a profound improvement on a house's energy efficiency, especially if the house had old or insufficient weather stripping before. The change in power bill could be profound with this simple, affordable improvement.

Upgrade & Seal Vents

Pay attention to the ducts and vents of the HVAC system. Replace old vents with new vents that seal when closed and direct air aply. Then use caulk or silicon sealant to attach the vents to the walls. This way, air only goes where it is directed inside the house.

Programmable Thermostats

Most people do not set their own thermostats optimally throughout the day. Who has the time to keep changing the setting to perfectly balance the outside temperature and the current needs of the family inside? A programmable thermostat can handle daily temperature changes, including running at a minimal setting when tenants are away.

Attic Insulation

Adding insulation to the home is a great way to quickly improve energy efficiency. The easiest place to add insulation (without opening up a wall) is in the attic. Add layers of loose or sheet insulation and consult with a roofer on placement.

New Doors & Windows

Last but not least, replace old doors and windows with items of newer and more efficient construction. This is a bigger investment, but also has a var greater ROI, because tenants can visually see and love the new apertures. Curb appeal is a big factor, along with new layered doors and well-sealed windows.

What Smart Home Features to Add to Your Rental Property?

When wondering whether you should be using smart home technology in your rental property is a question many landlords have asked. There is no cut-and-clear answer for every landlord. However, you want to consider who you are marketing your property to when you decide which smart home technology may be useful in your rental.

Many potential clients will find a wealth of smart home features in their rental to be overwhelming. Older individuals may not be sure how to use many of these features. Putting these features into a rental can also be quite expensive.

However, certain smart features may be more practical and useful to renters than others.

The Home Security System:

One smart feature that many tenants may find useful is the home security system. A home security system is a smart home investment that saves the landlord time and frustration in the future. If the tenant accidentally loses their keys or leaves them in their rental, a simple change of the access code solves the problem. 

Many low-cost options for automated home security systems can start as low as $149.99 in up-front costs. Moreover, renters value home security in the 21st century. A home security system can help your renters feel safe in their homes. That's a premium people will be willing to pay for.

Thermostat Home Control Features: 

People like to be in control, especially when it comes to their comfort and the environment. Allowing tenants to control the basics in their home from one central location can be appealing. Having one central location that is easy to operate to control things like the temperature of the home is a perk to many tenants. The system should be easy to use. Ideally, allowing someone to use the system from anywhere in the home makes it even better. Tenants will love pushing a button from their couch or armchair and controlling the temperature in their rental.

LED Light Bulbs:

Whether it's considered "smart home technology" or not, LED light bulbs do the planet, and your tenants both a favor: they help reduce the electric bill. LED light bulbs have become the standard for most homes today.  These light bulbs are not overly-expensive. They are better for the environment. These light bulbs are available at most regular hardware stores.

Moreover, tenants will appreciate the lowered utility costs.

Keep It Practical:

Smart features like a home security system or thermostat controls are practical for most tenants to use. However, going overboard with smart home features and appliances like Smart TVs, smart refrigerators, etc. might be a little much for the average tenant. People may have no clue how to use these appliances. Others have no needs for these exact features in their rental.

Conclusions:

Smart appliances may have places in very upscale rentals, but for most day-to-day needs of tenants. These features will not break the bank if you add them to your rentals. They will be practical for the use of your tenants without costing the landlord a ton of money to install them.

Is it Safe to Invest in Real Estate Today?

Investing in real estate during a recession has its pros and cons. While conventional wisdom would tell you that investing in real estate "never goes out of style", staying aware of the potential pitfalls will make you a more savvy investor. 

Interest Rates for Investors

You have probably seen that interest rates are at record lows however buyer beware. The purchase of an investment property may mean more scrutiny by banks. Given the uncertainty of the job market, those who are getting those great rates have stellar credit and collateral. While you may have a great pay stub to show a banker today, this is no guarantee to the mortgage industry that you will have that same level of income in two or four weeks. Therefore, those mortgage rates you see are reserved for those that can provide evidence that you can cover the payments in the future.

Rent Forbearance for Landlords

With the government giving the green light for renters to not pay their rent, as a landlord, this leaves you entirely responsible for paying the mortgage. Before you invest, determine your ability to manage this type of payment not only now but in the future, should there be another wave of stay-at-home orders. 

Concerns for Flippers

If your goal is to buy and flip a home, consider the following. What will be the Ripple Effect? Be prepared for a backlog of services when this crisis is over. Currently, in many states, homes are not undergoing home inspections or appraisals. This is creating a problem for those currently wanting to sell and, in time, will have longer term ramifications. Another concern is access to materials. Although much of the country is focused on getting essential food items to market, home building materials have taken a back burner.

The big question everyone has at this time is... Will the buyers, or renters, be there at the end of this crisis? The answer is that there is every indication that the government is doing everything possible to ensure that they will be. The question is can you weather the storm?