Advantages of green investment may be difficult to demonstrate, quantify

Interest in energy-efficient construction and renovation projects is sometimes stymied by a lack of hard data demonstrating the advantages applying green principles can have.

Investors interested in energy efficiency may still derive several advantages, however, Apartment Finance Today notes. In the rental housing sector, energy efficiency can be a characteristic that attracts the environmentally conscious or those who are seeking affordable housing, due to the reduced energy use and potential for lower costs, respectively. Rental managers and owners may wish to highlight these characteristics when contacting prospective residents or advertising their properties.

Some industry stakeholders have noted these and other positive results of energy-efficient development and renovation, the news source notes. Energy efficiency can lower the costs of utilities for common areas in housing with multiple units, although single-family homes do not have that advantage. Energy efficiency could also appeal to potential buyers as well as renters, which may be beneficial for some investors in the long-term.

One way to demonstrate the benefits to tenants is through green leasing. While a relatively new practice, this may prove effective. In green leasing, the tenant can be shown future rent increases and the impact that energy-efficient improvements will have over time, which may convince them it is worth paying to cover the cost.

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