Sustainable Property Management: Making Your Property Energy Efficient

Energy, efficiency, and sustainability are going to be hot topics as we enter both a new decade and a new age of environmental awareness in the Dallas-Fort Worth area. Dallas has enacted its first climate action plan, Fort Worth is following suit and four out of five Texans understand climate change.

With 38% of Texas households being rentals, property owners will be at the forefront of the increasing demand for “green” business strategies. Get ahead of the market and what the newest generation of renters want by making environmentally-friendly improvements to your property!

How This Helps in the Short Run:

Tax Credits:

There are Federal Income Tax Credits that “green remodelers” can apply for. In 2020, the credit was worth up to $500 of all costs, including installation.

Decreased Energy Bills:

The most obvious and immediate benefit is the savings! An energy-efficient home saves you and your tenants money year after year.

How This Helps in the Long Run:

Reduce Pollution:

Suburban neighborhoods contribute about 50% of all household carbon emissions in the US. As we continue to invest in housing, we must recognize the current and future legislative pushes that aim to reduce the average American’s carbon footprint. By implementing strategies now, you will be ahead of the curve should any mandates come down the line later on

Knowing Your Market:

The newer generations of renters – Millennials and Gen Z – have demonstrated that they will readily spend more money with a company that reflects their eco-friendly values. Promoting that your property has taken measures to be energy efficient is a great marketable sales point to what is quickly becoming the largest renting demographic!

Cost-Effective Energy-Saving Upgrades:

Energy Audit – You can hire an expert or do it yourself!
Caulk Interior Windows and Door Trims
Use Energy-Efficient Lightbulbs
Keep / Install Wooden front doors – hollow metal doors invite cold air in!
Use Native Plants for Landscaping
Go Paperless!
Install a Water Leak Detector

Larger Energy-Efficiency Investments:

Insulate the Attic – this can reduce your energy bill 10-50%!
Tankless Water Heater
Solar Panels
Programmable Thermostats
Install low-flow showerheads and toilets (or even dual toilets!)
Install low-consumption dishwashers and washing machines

The possibilities are nearly endless with green remodeling!

Whether you’re looking to rent one property or invest in a multi-family unit, a property management company like Frontline Property Management can help define your strategies as well as handle the day-to-day operations for your property.

Choosing a Real Estate Market

The Dallas / Fort Worth real estate market, where Frontline Property Management does the majority of our business, is one of the hottest real estate markets in the US – and that’s even considering recent shutdowns and other issues caused by the pandemic. But what makes a market a good one to invest in, or to convert empty property into rentals in, and how do you determine if it’s right for you?

Get a Market Overview

Don’t worry yourself too much with mining data – there are plenty of companies and websites out there who do this for you. This will let you know not only what the current housing trends are, but how that matches up historically. You will also get a good estimate of what the growth potential of the market looks like.

Dallas’ recent housing boom is expected to continue, for example, despite the pandemic. That’s because it’s not only the black and white of the economy that is a predictor of the housing market; there’s a very real human factor as well.

Study Population Growth (& Watch What Millennials Do)

The housing market isn’t the only thing that’s booming in the Dallas / Fort Worth area. We’re on track to have the most new residents of any metro area through the end of the decade. That’s not just native growth – due to low mortgage rates and other influences we’ll discuss, more people than ever are moving to the Dallas / Fort Worth area.

Where people are moving – especially millennials, who make up the majority of the workforce – there will be a demand for housing. The way things are working out for the largest portion of the population, we can expect that renting will be the most common form of housing financially available and affordable. (That’s where you come in!)

Look at the Job Market

As you are someone looking to provide housing as a means of income to a portion of the population who are on average more educated yet less wealthy than the previous two generations at the same time in life, it is safe to say that the job market will be a great barometer of the real estate market. DFW has a diverse economy and jobs market, including an influx of companies who have moved to town.

Millennials rank Dallas as the third-most popular city that they would want to live in. But again, it’s not just about the nickels and dimes with millennials, it’s about intrinsic values.

Quality of Life

There’s a reason some small towns are struggling to thrive and suffer housing depreciation while places like DFW are experiencing a skyrocketing population: accessible and diverse activities. The Dallas / Fort Worth area boasts of things to do! Everything from parks to the arts can be found, and everything in between. These are very important to millenials, who will more readily take a job in a city with entertainment, public transportation, and affordable housing over a market that has very cheap housing but not much else. After 2020, you can expect that millennials will emphasize connectivity.

For this reason, among the others, the home appreciation in DFW is expected to do nothing but climb.

Of course, there are a lot of nuts and bolts in the property management machine to consider! Frontline Property Management will help you evaluate your rental property and the market that it’s in, down to the competitive pricing of the neighborhood. If you haven’t yet invested in a property in the DFW area yet, but would like to, we’d be more than happy to discuss helping you build and manage a portfolio with us!

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