For every $1 you save in expenses, you add $10 to the value of your property!
Let’s assume that you pay for your common area lighting and your resident’s water usage. Your electric bill is $100 a month and your water bill is $50 a month.
You want to become "National Green Apartment Certified"TM by installing LED lighting and water saving devices (Bronze Certified).
| Common Area Electric Cost: $100/month. |
Resident Water Usage costs you $50/month. |
Installing LEDs
Let's assume 80% cost savings.
You save $80/month, $960/year.
|
Installing Water Saving Devices
Let's assume 50% cost savings.
You save $25/month, $300/year.
|
| Total Savings: $1,260/year. |
$1,260 / 0.08 (CAP Rate) = $15,750 in added property value.
You can see we took $150/mo. in expenses and reduced them to $45/mo. in expenses. This allowed us to add $15,750 in property value to our apartment complex. We assumed that your building would sell at an 8% CAP Rate.
Now imagine that you have a large complex and you are saving thousands a month and adding hundreds of thousands dollars in property value!
*Remember* You are not just adding to your property's value, but you are marketing your property more effectively and successfully by becoming
"National Green Apartment Certified"TM.
You will be able to fill vacancies quicker, obtain and retain better quality tenants, command higher rents, and experience higher occupancy rates compared to your competition.