Can solar panels up your rental property value? The answer to that is: it depends! The question of whether or not to install them on your rental property is an important one. One that must be answered by looking at the numbers.
Solar Panels: The pros and cons
Despite the increasing popularity of residential solar, installing panels on a single-family house comes with a large up-front expense. However, the same may help attract better tenants and reduce utility costs. Therefore, installing them may more than pay for the initial price over the long term. Rental property owners, should consider the pros and cons of adding solar panels to their property in great detail. And more importantly, whether or not doing so will improve their bottom line.
The concept of using solar energy to power a rental property is an attractive one. Images of $0 electric bills and less reliance on fickle public utility companies are often the first thing that comes to mind. These are often the advertized advantages of solar. But the reality can be very different!
Solar Panels: Is it only about the bills?
Solar offers some clear benefits for rental property owners who have high utility bills. If your rental property receives a lot of sun exposure, and residential solar panels are relatively affordable, you can certainly consider the option. More so, if your state offers an energy credit or other tax incentives for going solar. In areas where solar is popular and summers are scorching hot, renters may be especially drawn to rental homes that offer to lower their cooling bills.
Conversely, your rental property may be located in a cooler climate, with less sun exposure. Or located in a state that does not offer energy incentives or tax breaks. In this case, there is little reason to invest in expensive solar panels per se.
Of course, there are other reasons that solar panels make sense anywhere. Such as a need to reduce dependence on a public utility or produce a more reliable supply. But these reasons are much more difficult to quantify. And so are often not easily figured into a cost analysis.
How we can help
Knowing fully, whether solar will boost your rental property’s bottom line can help you make wise investing decisions. And keep your property values growing year after year. At the same time, it is important to have the input of industry professionals when making important decisions. At Real Property Management Premier, we advise our property investors on solid business strategies and best practices. From solar and other improvements to tenant screening and beyond, we do it all.
Real Property Management Premier can assist property owners on the right decision when it comes to installing solar panels on a residential property. Our property management professionals have the necessary knowledge and required experience to make the call. With our expertise, we can make owning quality long-term rental homes a streamlined, profitable endeavor.
Contact us online or call 954-800-4433 and ask our property managers about our services in detail.
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