Why eco-friendly updates can add value to your rental property.
As sustainability becomes a greater priority for renters and property owners, eco-friendly updates to your rental property are not only good for the planet, but they can also be great for the bottom line as well.
Eco-friendly upgrades reduce environmental impact; they also attract high-quality renters, lower operating costs, and can increase the value of your property. Here are just some of the reasons why implementing eco-conscious changes can give your rental property a competitive edge and maximise returns for your investment.
- Attracting renters
Today's renters are more environmentally aware than ever. Many renters seek out properties that align with their values, including energy efficiency, sustainable materials, and water conservation.
By incorporating green features such as energy-efficient appliances, LED lighting and smart thermostats, you will make your property more environmentally conscious for renters. A home that reduces their carbon footprint is a home that renters are more likely to stay in long-term, reducing renter turnover and vacancy periods.
- Lower utility costs = higher renter satisfaction.
One of the greatest advantages of eco-friendly updates to property is the potential for lower utility bills. Energy-efficient windows, insulation and solar panels can significantly reduce electricity and heating costs. Water-saving fixtures, like low-flow showerheads and dual-flush toilets, help conserve water and reduce bills.
If utilities are included in the rent, you’ll see direct savings on operating costs. If renters pay utilities, they’ll appreciate the lower bills, which as a result, will make your property more attractive compared to less eco-efficient alternatives. A property that saves renters money each month can justify slightly higher rent, further increasing your investment’s profitability.
- Higher property value and marketability.
Eco-friendly upgrades aren't just about cost savings—they also boost a property’s value. Energy-efficient homes are in higher demand, and buyers are willing to pay more for properties that come with sustainable features. If you ever decide to sell, green updates can increase resale value and help to shorten time on the market.
“Many states also offer tax incentives and rebates for energy-efficient improvements, such as solar panel installations or Energy Star-certified appliances,” says Cathie Crampton, National Property Management Performance Manager, Belle Property. “These incentives reduce the initial investment cost, making sustainable upgrades even more financially appealing.”
An example of some of these credits include:
Federal Solar Tax Credit – Allows property owners to deduct a portion of solar panel installation costs.
Energy-efficient upgrade rebates – Many local utility companies offer rebates for upgrades like smart thermostats, energy-efficient appliances, and improved insulation.
- Meeting future regulations and standards.
Governments are increasingly implementing stricter energy efficiency and environmental regulations for rental properties. An example of this is the recent mandatory dual-flush toilets scheme implemented for rental properties in NSW this year. For further information on the most recent rental reforms around the country, take a look here.
Making eco-friendly updates now will ensure that you stay ahead of the curve and avoid costly retrofits in the future. Some cities even require rental properties to meet minimum energy efficiency standards, meaning proactive landlords will save both time and money in the long run.
- Enhanced renter retention.
A property that prioritises sustainability often results in happier, long-term renters. Green upgrades contribute to a healthier indoor environment by reducing toxins, improving air quality and creating a more comfortable living space. Features like smart thermostats allow renters to customise their energy usage, adding convenience and efficiency to their daily lives.
Eco-friendly is no longer just a trend.
Eco-friendly updates are no longer just a trend; they're a necessity for property owners looking to maximise rental income and property value. By making green improvements, you attract reliable renters, reduce costs, increase marketability and future-proof your investment. Whether you're installing solar panels, upgrading insulation, or switching to energy-efficient appliances, every sustainable step adds value to your rental property.
So, if you're considering renovations, go green - it’s a win for your renters, your wallet, and the planet.