5 ways to make your property more sustainable

Improving your rental property’s green credentials is not only a great way to protect the environment but also has potential financial benefits, read on to find out more.

Earlier this year, Australian voters indicated their passion for acting against climate change. From this, it is clear that a large portion of the nation’s population values eco-friendly initiatives aimed at addressing climate change. This environmental consciousness extends from single-use plastics to electric motor vehicles and housing. Meaning that energy-rated home designs are now a basic necessity for building approvals.

Having a “green” rental property has more benefits than just promoting a cleaner planet. Environmentally conscious investment properties result in more tenant appeals – therefore, higher rents – lower running costs and tax depreciation benefits.

If you’re a landlord who’s interested in adding some greener initiatives into your investment property, we’ve listed the best ways you can help the planet below:

  1. Heating and cooling

It's been proven that air-conditioning systems and high-energy heaters are huge contributors to carbon emissions, which in turn causes damage to the environment. Therefore, to improve your property’s carbon footprint in a major way, installing insulation into the roof and wall cavities of the house is a great place to start.

The addition of ceiling fans can also contribute to making a house more environmentally friendly and the financial outlay is fully depreciable on your next tax return. Window film is also an option that helps to keep out the Queensland heat in summer and is a capital works deduction in most instances.

  1. Power generation

Creating independent energy sources for your property is another financial and environmental benefit for homeowners. Solar power systems and battery storage are easy retrofits and worth the initial investment, in our opinion.

This is because having a solar power system installed at a property is becoming increasingly more appealing to tenants who are environmentally conscious. In addition, solar costs are able to be depreciated by 10% per year under the diminishing value method making this investment beneficial for the planet and your pocket.

  1. Water collection

Installing a water tank at your property to use for toilets and washing machines ensure that the possibility of tenants paying excess water charges is at a minimum.

This method of natural water collection has been popular in Australia for decades and for good reason. As of July 2019, the ATO listed rainwater tanks as a plant and equipment item. Meaning that rather than a 2.5% deduction, homeowners now receive 40% of the claim.

  1. Futureproofing for cars

There’s few things we know for certain about the future, but one thing we know is on the horizon is the rise in popularity of electric vehicles. For this reason, we encourage investors to consider fitting garages with an electric car charger which would strongly appeal to energy-efficient car owners.

Eventually, we expect to see these chargers installed into properties as regularly as rainwater tanks. Until then, electric car chargers will earn investors a 20% depreciation rate each year on your tax return.

  1. Eco-friendly landscaping

Ensuring that your investment property’s landscaping is complete with mulching and native flora is a cost-effective green initiative.

Mulch keeps soil moist and native plants are low maintenance and require less water. Natives also do their part in converting back carbon emissions which is important for promoting a cleaner planet.

Source: REB