Trends to Watch in Smart Technology and Green Building in Multi-Family Real Estate Investing

The multi-family real estate market is always evolving, and it behooves investors to keep up with these trends. There are two areas that are showing a lot of promise as the areas that investors should focus on now. These are smart technology additions to homes and green building concepts.

Investors who are able to include these two areas into their real estate investments may be able to attract a wider tenant base, reduce operating costs, and increase property values. As Patrick Carroll and other prime investors teach, being able to do those three things are keys to being able to maximize their return on investment (ROI). Determining how to prioritize these points may help to improve your profit margin in multi-family real estate.

Smart Technology Options

Smart home technology is an investment that many multi-family investors don’t think too much about; however, this is something that may attract young professionals. They’re looking for options that make life easier, such as those that offer home automation and convenience. These can include smart lighting and thermostats, keyless entry, security systems, and home automation hubs.

These can all help tenants to keep energy bills under control and keep the property secure. Both of these factors may also help improve tenant satisfaction, which encourages tenant retention.

Energy Efficiency

Young professionals and families need to save money wherever they can. Having energy-efficient features like LED lighting, solar panels, and energy-saving windows can be major selling points for multi-family rental units. In some cases, properties with these features can command slightly higher rents and lower vacancy rates. This is particularly true when renters are environmentally conscious.

As an investor, you may also be able to benefit from tax incentives and rebates that enable you to reinvest more money into new properties. Investing in these energy-efficient systems upfront may seem costly, but the long-term savings on utilities and maintenance, along with the potential to attract eco-conscious tenants, make it a worthwhile investment for property owners.

Sustainable Building Materials

Sustainability isn’t often thought about when it comes to multi-family real estate investments. Using things like low-VOC paints, bamboo, recycled steel, and reclaimed wood can reduce the environmental impact of the property.

Multi-family real estate investors who choose these environmentally friendly methods can advertise them, which may help them to cast a wider net for tenants. It’s also possible that the use of sustainable materials can also lead to higher Leadership in Energy and Environmental Design (LEED) certifications, which can boost a property’s value and marketability.

Multi-family rental properties are often beneficial additions to investment portfolios. Being able to maximize the ROI on these may take a multifaceted approach, so considering these two unusual options may be beneficial.