AAGO MARKET TRENDS
How to Increase Your Rent and Resident Retention With Sustainable Apartment Living By Ashley Tyndall, Chief Relationship Officer at Swifty https://beswifty.com/AAGMCO When a property can present creative ways to make residents’ lives easier, it can be a valuable form of relationship-building. Millennials and Gen Zs, in particular, are increasingly energy conscious, so offering an ecofriendly and sustainable apartment living experience can give your property an edge over the competition. Today’s renters have come to expect a level of sustainable features in their apartment home, from on-site recycling to energy-efficient appliances, in addition to more unique features like sustainable landscaping and bike-sharing stations. According to AMLI’s 2020 Sustainable Living Index, 83 percent of renters consider living in a green community as beneficial to their health. Energy-efficient utility savings, smoke-free living, and fresh air initiatives are among the top three green features. Plus, due to the COVID-19 pandemic, 71 percent of renters place an increased value on sustainable apartment living, especially considering 41 percent said they will be working from home in 2021. From short- and long-term investment returns to increased resident retention, there are many benefits to going green. Some studies even show that occupancy rates can rise up to 23 percent higher for LEED apartments. Below, we have compiled a few tips to make your property more eco-friendly and potentially add to your bottom line: 1. LOWER CONSTRUCTION AND MAINTENANCE COSTS It’s no secret that sustainable living can lower energy and water bills. What is lesser known is that green features can increase durability measures, thus reducing longterm maintenance costs through improved moisture management.
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Efficient design can also lower construction costs by avoiding excessive waste and material use. For example, efficient construction techniques eliminate non-essential materials and provide structural integrity, which can provide more room for insulation and reduce costs. 2. CONSIDER ECO-FRIENDLY TRANSPORTATION OPTIONS Apartment features should go beyond smart thermostats and door locks to deliver amenities that will enhance the quality of residents’ lives. According to Bloomberg, more than half of new-car sales will be electric by 2040. The rise of EV sales is prompting many companies to install chargers in their parking lots and garages — including multifamily properties. Several studies have also demonstrated that apartments and buildings near public transportation are often more valuable than similar properties without close access to rail lines, subways, and bus routes. Green homes within walking or biking distance of stores and popular attractions can also command higher rent, resident retention, and higher resale value. For example, many communities are also offering covered bike storage for their residents’ convenience and to reduce greenhouse gas emissions. Some properties are also prioritizing onsite fitness studios, business lounges, and game rooms to prevent residents from having to drive off community grounds to access these activities. 3. SAVE WATER Owners can also limit storm runoff, lower irrigation costs, and landscape maintenance, and lessen the impact on waterways through sustainable site development practices. Additionally, water-efficient designs often lower owner
