Raising The Value Of Your Rental Property With Solar
If you own a successful rental property or are in the business of developing properties and selling them, chances are you’re always looking for things that are going to bring perpetual added value to your investment. Capital decisions for rental properties, like all investments, involve trade-offs!
Have you ever considered solar as an investment?
If not, keep reading!
Here is a comparison of another common investment for a property - a deck or porch addition.
I have been a real estate agent, a property manager, and a real estate investor in the Asheville area for the past 17 years.
I started investigating how solar would work on a residential rental property four years ago and was surprised to learn that there were not a lot of solar panels going up on rental properties!
I would like to help change that. In the past four years I have installed solar panels on five rental homes in the Asheville area.
The value benefits of solar grow every year, but here is a short list of the ones that stand out most:
1) Like adding a new deck, solar panels increase the value of your home and make it more desirable for tenants.
2) Also like adding a new deck, solar panels can qualify for accelerated depreciation! This makes them an even better investment than if you were to install them at your own home.
3) The federal tax credit is 30% of the contract price and is available for rentals.
4) Unlike adding a new deck, solar panels are guaranteed for 25 years and will pay you back money every month in the form of lower electric bills (The current payback is around 10 years).
5) Solar panels can be installed with very little inconvenience for both owners and tenants.
6) In my experience, homes with solar panels rent faster and attract very high-quality tenants. Solar will significantly differentiate your rental from other homes.
7) Net Metering is available through Duke Energy Progress until 2027!
I have found that my tenants enjoy knowing that part of their energy comes from clean and renewable solar panels that they can see on their roof.
I also feel great knowing that I was able to make a good investment and do something positive to reduce pollution in our environment.
Let’s connect and talk about how solar can improve the value of your rental property!
