Seven Sustainable Qualities Property Investors Should Seek Out When Investing

(Photo : Joshua Mayo via Unsplash)

Being sustainable in your business practices not only helps you protect the planet but can massively boost your income and ROI if approached correctly. The world is changing slowly toward accommodating (and even rewarding) eco-friendly real estate practices, and the time to take advantage of this huge shift is now. With the right knowledge and grit, you can begin saving the planet while diversifying your portfolio with properties that are ripe for eco-friendly improvements. To get you started, here are seven sustainable qualities property investors should seek out when investing: 

1. An Eco-Friendly Location

Eco-friendly locations are prime for investment, as boosted infrastructure spending and expanding green-energy markets are proving attractive for property investors in the upcoming year. Austin, Boulder, and other green-friendly cities are more likely to have investments you can feel assured about as someone who cares about the environment. With green-friendly properties expected to see more consistent, greater value growth than their non-green-friendly counterparts, there's never been a better time to make an investment, or co-invest, in these markets. 

2. Energy-Efficient Building Materials

Properties that have been constructed using known energy-efficient materials will be more eco-friendly, and allow you to save tons of cost with your investment. The lower energy rates will also boost your interest from renters who are looking to save income that would otherwise be spent on outrageous utility bills. Metal roofing, spray-foam insulation, steel foundations, solar-ready rooftops, and efficient floorplans are all elements to seek out if you want to take advantage of prime, eco-friendly rental properties. 

3. Avoid Toxic Materials

The crisis surrounding toxic materials in buildings, pipes, and other infrastructure is ongoing. If you want to help keep your renters safe, and protect the environment, finding properties that are 100% free from toxic materials and pollutants are crucial. When doing any upkeep or upgrades on properties you may invest in, later on, be sure to keep your materials non-toxic and safe to ensure your investment remains profitable for years to come. 

4. Solar is the Future

Solar power remains the top way for individual properties to invest in sustainability within the United States. The clean, long-lasting, and consistent nature of solar energy makes it pay for itself despite a somewhat-expensive initial investment. Thankfully, more and more properties up for sale to investors are beginning to install solar panels, making this insanely profitable quality more common to investors than ever before. 

5. Potential for Further Eco-Friendly Upgrades

Not all properties are properly set up for quick, affordable eco-friendly upgrades. Roofs that can handle solar panels, plumbing that can be made more efficient, and other qualities are important to look for in any potential investment property. HVAC systems are especially ripe for eco-friendly upgrades. Consulting with professionals who understand how to access the potential eco-friendly upgrades a property can handle, and the costs are highly recommended. 

6. Local Weather Patterns 

When it comes to the environment, anyone in the know will understand that the changes climate change continues to bring affects every aspect of our lives. Real estate is especially impacted, as the longevity of an investment is affected by the insurance rates weather extremities can add to an investment property. Additionally, understanding what the costs will be for upkeep on a property while maintaining an eco-friendly business attitude, will be directly tied to your understanding of local weather patterns, and how climate change is affecting the specific area that you're considering investing in. 

7. Potential Tax Credits

The tax credits you can take advantage of by being eco-friendly in your business practices and rental property investments make the prospect of protecting the environment that much more appealing. Research what credits you might qualify for while looking at properties, and your ability to save the environment and make massive ROI on your rental properties will explode. 

Here's to a Cleaner Planet, and Higher ROIs

Environmentally friendly practices do not have to compete with the growth of the industry. Real estate is continuously proving this to be the case, and with this new knowledge, you can help make the world a better place by demonstrating how green-conscious rental property investment is possible. The massive amount of passive income you're set to experience along the ride is just a bonus (and a rather large one at that). The real estate world is going to be slowly but surely pushing toward a more and more green future regardless, so it's wise that you jump on the train before it gets too far from the station for you to catch a ride.