Making your investment property more environmentally friendly not only saves the environment but it also saves tenants money.
Eco friendly properties are more desirable to tenants who can save considerable cash on water and energy bills.
As Australians are now more environmentally aware than ever, making some changes to your investment property could help set it apart from other rentals on the market and reduce extended periods of vacancy.
Here are some ways you can make your investment property more environmentally friendly.
Get water wise
Fix any leaks at the property to avoid water wastage and ensure the bathrooms are fitted with water saving shower heads and dual flush toilets. Look out for the Water Efficiency Labelling Scheme (WELS) rating and choose higher rated products which are more efficient.
Consider installing solar panels and a solar hot water system at your investment property to harness the sun’s energy and save on energy consumption. Solar is a huge drawcard for environment-conscious tenants and is a great way to reduce your property’s carbon footprint.
Investors who install solar panels on their properties can also benefit from claiming depreciation. Solar assets are classified as plant and equipment assets and can save investors thousands of dollars each financial year in tax deductions.
Installing solar assets is a win-win for both investors and tenants and is an essential part of eco friendly properties. Investors benefit from significant depreciation deductions while tenants enjoy improved rental affordability.
Invest in quality insulation for your property to reduce reliance on air conditioning and lower greenhouse gas emissions. Good insulation helps to keep a home warm during winter and cool in summer, reducing the need for excessive heating and cooling.
Thermal roof insulation is classified under capital works depreciation as it is deemed to be a fixed asset. Investors can claim a deduction for thermal roof insulation at a rate of 2.5 per cent over forty years.
Switch the lighting
Replace incandescent and halogen light bulbs with energy-efficient LED bulbs.
LEDs use around 75 per cent less energy than halogen bulbs and last around five to ten times longer, reducing replacement costs.
Install solar lighting outdoors and consider installing skylights inside the property to increase natural sunlight.
Ensure regular property inspections
It is important that your investment property is regularly inspected to look for anything that may be draining energy, water or your tenant’s pockets.
Look out for things such as plumbing leaks, dripping taps or damaged window or door seals which could cause drafts.
Fixing things as soon as they are noticed will avoid the issue snowballing and costly repairs later down the track.
Improved tenant satisfaction and the environmental benefits are turning more investors and tenants towards eco friendly properties. Try implementing some of the above changes at your investment property and do your bit for the environment.