Sustainability is a big buzzword lately.
But it’s more than that. It’s also a good business practice, especially when we’re talking about the Torrance real estate and rental markets. Tenants are looking for properties that are more efficient and more responsible from an environmental standpoint. Today’s residents don’t want to contribute to a warming planet or climate disaster any more than they have to.
It’s also a matter of economics. They want their electric bills to be as low as possible.
Going green does not have to be as expensive or as extensive as you might worry it is going to be. Investors and landlords can make some small changes that have pretty big impacts when we’re talking about sustainable practices.
Let’s talk about those practices. Let’s look at why going green with your Torrance rental property can lead to less vacancy, higher rental values, and lower operational costs.
Why Invest in Sustainability for Torrance Rental Properties?
This is not a political movement, and it’s not a trend. It’s a matter of meeting market demand. Tenants are looking for energy-efficient homes. They’re looking for smart-home technology that keeps their energy bills in check and provides conveniences whether they’re at home or away from home.
So before jumping into the how around sustainable rental properties, let’s answer the why.
Sustainable rental properties benefit your Torrance rental property in several ways:
- Cost Savings. Energy-efficient systems and appliances can reduce utility bills over time. There’s going to be an initial investment required, but you don’t have to invest thousands of dollars into solar panels and a zero-carbon rental property. Small changes will suffice, and as you begin to notice the money that’s saved, you’ll have more resources to go a bit further when it comes to upgrades and updates.
- Tenant Appeal. Green buildings and homes are increasingly popular among renters who value sustainability. No one wants to rent an outdated property that’s deteriorating and full of problems. Tenants also tend to avoid properties that have appliances from 20 years ago, windows and doors that are not well-insulated, or older electronics that act as energy vampires even when they’re not being used. Appeal to quality tenants with a quality property. Show your willingness to invest in modern renovations and upgrades, and showcase your understanding of what the current market demands. Vacancy rates will be lower. Retention rates will be higher.
- Higher Property Values. There are long-term financial gains to be made, too. Properties with green certifications or energy-efficient upgrades can command higher sale prices. Even if you’re not planning to sell for several years, by making these improvements now, you’re setting yourself up for higher property values and, eventually, better appreciation and equity that’s able to grow a little bit faster. Make your property more valuable now. Don’t wait.
- Complying with Regulations. California’s strict environmental laws and regulations are steering property owners toward more sustainable practices. Get ahead of the curve before these changes become mandatory. You don’t want to be the last property in the state to switch from old light bulbs to LED lights.
By focusing on sustainability, you’re not just keeping up with trends—you’re future-proofing your investment. You’re preparing yourself for the modern rental market in Torrance and positioning yourself to attract modern tenants who have high expectations.
Green Practices for Rental Properties in Torrance
Where should you invest?
The first step in making your investment property greener is to conduct an energy audit. This will show you where your property stands and how you can improve with more sustainable systems. An energy audit can identify a rental property’s strengths and weaknesses when it comes to conserving resources and going green. You’ll know where your property is using the most electricity, gas, water, and other resources.
Once you have the results, zero in on those areas that seem the most accessible to you right now, such as solar panels, as we said, which are great. Any owner would want to take advantage of the sunny Torrance climate by installing solar panels. California offers various rebates and tax incentives for solar installations, making the transition more affordable. Plus, properties with solar energy appeal to tenants eager to save on electricity bills or reduce their carbon footprint.
But it doesn’t have to be that large of an investment right now. Go greener in more incremental ways. Here are some recommendations we have.
- Energy-Efficient Appliances
Replace outdated appliances with energy-efficient models certified by ENERGY STAR. Modern refrigerators, washing machines, and HVAC units use significantly less energy, reducing overall utility consumption for the property. While these upgrades might feel like a larger upfront investment, they’ll pay off in savings and tenant retention.
- LED Lighting
LED bulbs are worth buying. They’re not as expensive as they once were, and they use less energy than incandescent bulbs. Those LED lights are longer-lasting, making them cost-effective in the long run. Your tenants will be thrilled that they won’t have to change them out – probably for the duration of their residency.
- Water Conservation Systems
Water conservation is critical, especially in California, where drought conditions are common. Upgrade to water-saving fixtures like low-flow showerheads and dual-flush toilets. Consider investing in smart irrigation systems for landscaping—Torrance’s many properties feature yards that can benefit from these systems to reduce water waste.
- Smart Home Technology
Smart home systems, like programmable thermostats and energy-monitoring devices, not only improve convenience for tenants but also help reduce unnecessary energy use. Tenants who see your investment in convenience and sustainability are more likely to extend their lease agreements.
- Sustainable Landscaping
Replace traditional lawns with drought-resistant, native plants. Sustainable landscaping not only reduces water usage but also lowers long-term maintenance costs. Xeriscaping is an excellent option for Torrance properties, as it’s aesthetically pleasing and functional.
- Green Building Materials
If you’re renovating or redeveloping a rental property, consider using eco-friendly and sustainable building materials. Bamboo flooring, recycled steel, and low-VOC (volatile organic compounds) paint are excellent options that appeal to environmentally conscious tenants.
Seal Doors and Windows
One of the easiest and most cost-effective ways to create a greener rental property is to pay attention to your insulation. Energy is probably escaping from cracks and gaps in doors and windows. You don’t even know hot and cold air is leaving your rental property. Sealing your doors and windows will keep heat inside when it’s cold. It will also keep cool air conditioning inside when it’s hot. By paying attention to the way your doors, windows, and insulation work, you can improve your energy efficiency without buying any new systems or tech. You simply have to make sure that the insulation around your doors and windows is working the way it should.
Sealing the doors and windows in your rental property is an easy upgrade and something a handyman can accomplish. Air leaks are a big problem for energy bills and will always lead to terrible efficiency. Make sure those doors and windows are closed off to the weather elements. For most Torrance rental properties, this is as easy as caulking around door and window frames or adding some weather stripping.
Water Heater Settings and Torrance Rental Homes
Another quick thing that can be easily done is to regulate the settings of your water heater. Make sure you have the temperature set at an optimal level. The default setting for most water heaters is 140 degrees. It’s safer to turn it down to 120 degrees, and that’s also going to save energy. Just don’t put that setting below 110 degrees. This could invite bacteria into the tank.
Have you considered investing in a tankless water heater? If it’s time to install a new water heater anyway, this may be your best shot at maximum energy efficiency. They can be expensive, but the investment is worth your money.
Tenant Education
You can make these changes as the property owner, but there’s not much you can do to regulate tenant behavior. They might love their 30-minute showers, for example. Encourage tenants to adopt sustainable practices. Providing guidelines on recycling, composting, and efficient energy use can make a big difference. It’s also part of providing resources and tools to the tenants you’re hoping to retain.
Building a Sustainable Future in Torrance Real Estate
Include all the renovations and upgrades you’ve made in your rental listing. When tenants see that your property offers energy-efficient appliances and attentive details that are mindful of sustainability and green living practices, they’re going to be interested in seeing and renting your home.
We can help you incorporate sustainable strategies into your portfolio of Torrance rental properties, whether you’re leasing a single-family home, multifamily units, or an entire apartment building. Please contact us at Real Property Management Choice. We would love to talk about sustainability, the future of the rental market, and how to best position your investment for the coming challenges.