You have bought an investment property and it is adding value to your financial future. Here is how forward-thinking property investors can get a variety of ROI from putting renewable heating such as biomass, into their rental homes.
- Energy efficient green properties have higher occupancy rates.
- Reduce the operating costs of your property and keep your tenant loyal
- Renovation experts recommend installing central heating to increase your property value
- Local energy spending to support the community
1. Energy efficient green properties have higher occupancy rates.
It is expensive to find new tenants for your property. Attracting and retaining ideal tenants is one of the best investments a property investor can make. There are studies which showed how in commercial and domestic situations, properties who invested in green efficient technologies were able to reduce turnover.
- Pivo proved in 2008 how Energy Star properties have a 0.9% higher occupancy rate. Pivo, G., and Fischer, J. “Investment returns from responsible Property investments: energy efficient, transit-oriented, and urban regeneration office Properties in the us from 1998-2007.” Indiana university, October 2008.
- Miller also proved it in 2008, citing results of 2-4% higher occupancy. Miller, N., Spivey, J. Florance, A. “Does Green Pay off?” Journal of real estate Portfolio Management, Vol.14, no.4, oct-dec. 2008.
- 2 years later in 2010, Wiley reported that occupancy rates were 16-18% higher for LEED certified buildings and 10-11% higher for Energy Star buildings. Wiley, J., Benefield, J., and Johnson, K. “Green design and the market for Commercial office space.” Journal of real estate Finance and economics, Vol. 41, no. 2. 2010.
LEED and Energy Star are rating systems for energy efficiency in buildings, and while property owners of small residential dwellings might not want to get full certification, just installing some key renewable energies in the most cost saving and life quality enhancing locations can be that little trick that keeps your tenants loyal to your property. Anything that can be done to keep this important cost for your tenants low, will also increase their loyalty as we see in the ‘second rent’ concept, whereby following initial rent or mortgage payments, heating is equivalent to a second rent payment.
2. Reduce the operating costs of your property and keep tenants loyal
Heating and hot water costs are a huge cost and concern for rental tenants in your property, and if they are high, this can turn them off wanting to stay long-term. You can influence how much they have to pay in this so called, ‘second rent’ by helping them keep their energy costs low. Although there are things out of everyone’s control such as climatic influences (long and bitter winters) or fuel prices (oil and gas price fluctuations) there are reliable solutions in renewable energies that you can count on.
3. Renovation experts recommend installing central heating to increase your property value
Renovation experts often recommend installing a central heating system to increase the re-sale value of your property. http://www.telegraph.co.uk/finance/property/buying-selling-moving/7906602/Phil-Spencers-top-20-ways-to-add-value-to-your-home.html We strongly recommend renewable heating sources, because that way you can manage future fuel costs the best.
4. Local energy spending to support the community
New world thinking about property investment has a lot to do with the abundance of resources in the region. With renewable energies, you will be working with local installers who are sourcing the best fuels for your local investment. Instead of paying for foreign fuels, your energy spending remains at home, and with companies such as Innasol who have a very close-knit installer network from metropolitan to rural locations, you can keep those costs close, and the local market abundant. We have a huge network of highly skilled installers who will construct, and help you maintain your biomass boiler (or whatever sustainable energy system you choose) and through this, you are boosting value creation in the region. In Germany, the Institute for Ecological Economy Research (IÖW) has calculated the influence of the development of renewable energies on jobs, corporate profits and tax revenues, especially at the municipal level. Additionally, Greenpeace Germany said that renewable energies added more than 11 billion Euros in 2012 at a local level, which represents approximately two-thirds of the total added value generated by renewables in that year. This shows us that renewable energy is becoming an ever more important economic factor for communities. Being a landlord of a property is also about participating in the community.
At Innasol, we are the nerds of renewable energy and believe after decades in the hub of sustainable energy innovation in Austria, that biomass, head pods and pumps are the best investment for property buyers to invest in their homes. Whether you are looking to add value to your investment property or to improve the home you live and celebrate family birthdays in, we believe that helping you make the most of your life savings and getting that return, without costing the earth, is our goal. This results in our partners receiving highly competitive access to the best products and training on the market, and our customers getting the best, most cost-efficient heating systems for their requirements. It is a happy win-win situation for everyone.
At present, we offer biomass boilers, including our ‘plug-and-play’ biomass heat pods, and both ground and air source heat pumps.
Biomass boilers are supplied to us by ETA, the market leader. Their biomass boiler range operate by burning wood (logs, pellets and woodchips) inside highly efficient, self contained units to provide heating and hot water to homes and businesses of all sizes. IDM Energie provide our heat pumps, which move thermal energy opposite to the direction of spontaneous heat flow by absorbing heat from a cold space and releasing it to a warmer one. This is a similar process to refrigeration, however in reverse. As with everything at Innasol, we are proud of what we help to achieve, install and maintain every day. We are also constantly improving our offering, continually searching for the best in renewable energy for our customers, for our partners, and for the planet.
What do they look like?
Biomass boilers https://www.innasol.com/what-we-do/biomass-boilers/
Biomass heat pods https://www.innasol.com/what-we-do/biomass-heat-pods/
Biomass heat pumps https://www.innasol.com/what-we-do/heat-pumps/
If you want to see how the Renewable Heat Incentive (RHI) from the UK government can help subsidise your investment, just check out our information here. https://www.innasol.com/rhi-financing/
This is a Government-backed scheme designed to financially reward those who use renewable energy and make it worth while to produce renewable heat. Thousands of happy Innasol customers have already started to reduce their energy bills, become more self-sufficient and earn extra income whilst reducing their carbon footprint. You are eligible for the incentive if you are a domestic user who operates biomass boilers, heat pods and heat pumps. Once our efficient and latest technology renewable heating systems are installed, the domestic RHI scheme provides you with guaranteed, index linked payments for seven years with tariff levels even higher than commercial RHI. Not only is there potential to add value to your home, manage risk relating to longer winters, and reduce high operating costs of heating homes and water, but also, get a little help along the way.
A bit more info about the RHI https://www.ofgem.gov.uk/environmental-programmes/domestic-renewable-heat-incentive
Contact us now to find a partner who can help you. We have over 2000 partners who are in metropolitan and rural locations around the entire UK who are green champions and passionate to help you add value to your home, save the environment and save your wallet when it comes to heating costs. https://www.innasol.com/contact-us/
Also here are some good case studies which show you HOW the whole concept works! https://www.innasol.com/wp-content/uploads/2015/06/Innasol-Domestic-Artizan-5.pdf
If you want to see other ways we see renewable energies being great signs of new world thinking, check out our blog on leadership https://www.innasol.com/blog/category/explorers/