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Part of being a smart and savvy property management company is knowing what’s best for owners and tenants in Los Angeles. That’s why we compiled the following information about green leasing and LEED certification–to keep your property cutting edge and efficient in 2020. To learn more about how green leasing and LEED can benefit your property and increase your bottom line, keep reading!
- » What environmental measures does your property want to take in order to achieve and maintain energy efficiency and sustainability goals? Don’t know where to start? Think about indoor temperature regulation, water use, and other materials used to maintain your property.
- » How should you, the landlord, and tenants cooperate to achieve these measures?
- » Which party do you want to be responsible for monitoring compliance with these measures?
- » What will happen if environmental and sustainability targets fail to be reached?
- » How will the costs and benefits of your green leasing measure(s) be allocated among you, the landlord, and applicable tenants?
What Is LEED?
When it comes to green leasing, many property owners and managers turn to LEED certification. LEED stands for Leadership in Energy and Environmental Design, and its certification program assesses building design and construction in terms of energy efficiency, water usage, air quality, and choice of building materials. LEED also considers indirect environment impact of a residential property by means of access to public transportation and responsible land use.
With LEED, compliance is key since the program itself is sponsored by the United States Green Building Council (USGBC). Building projects and existing structures that participate in the program can be awarded LEED certification on four levels based on a points system, as outlined below:
- » LEED Certified Buildings = 40–49 Points
- » LEED Silver Buildings = 50–59 Points
- » LEED Gold Buildings = 60–79 Points
- » LEED Platinum Buildings = 80+ Points
Why Your Property Should Get LEED Certified
If you’re a Los Angeles property owner wondering if LEED certification is right for you, here are some of the immediate benefits the accreditation can provide!
» Reputation + Value
Because the LEED certification program is the leading international program for sustainable building design and construction, earning points via their system demonstrates environmentally responsible building practices that are validated by a third party. Not only can this bolster the image and reputation of both a building’s owner, it also helps the contractors who design and/or construct LEED-certified buildings. This is because a record of LEED-certified projects can get a builder recognized as a leader in the competitive industry.
» More Money In Your Pocket
Beyond third-party validation from a credible source and public relations, LEED certification offers immediate incentives that can improve cash flow. For instance, as the USGBC states, “LEED buildings have faster lease-up rates and may qualify for a host of [benefits such as] tax rebates and zoning allowances. Not to mention they retain higher property values.” Aside from residential properties and project, these key advantages also aim to attract more commercial construction companies to green leasing practices. For residential construction companies, LEED certification can help homes sell faster and at a higher price.
» Tax Credits + Insurance Premiums
In addition to receiving tax credits for building LEED-certified homes and properties, this authentication also allows property owners and managers to advertise to prospective tenants, lessees, and homeowner that a LEED-certified house may lower their insurance premiums while allowing their home values to increase more over time compared to similar, non-LEED-certified properties in the same neighborhood or surrounding areas.
» Energy Efficiency Done Right
Property management is not always a piece of cake–especially when landlords are faced with soaring operating costs that lower the net profits of their investment properties. Adopting green building and leasing practices as part of LEED certification can lower overall energy costs by nearly 25 percent.
» Long-Term Tenants + Less Vacancies
From a tenant perspective, adopting a green lease and opting for LEED certification is attractive for long-term living, which can lead to less turnover and a better immediate environment–especially for multi-family properties. For commercial real estate, companies that choose LEED can enhance their reputation when it comes to better corporate social responsibility (CSR) by giving more to the environment, their employees, and their direct communities in general.
As mentioned earlier, environmentally conscious and sustainable rental properties are more attractive to modern tenants and therefore produce higher return on investment for landlords. In other words, benefits to tenants can be also considered as benefits to landlords, since they encourage a higher occupancy rate and thus higher profits and lower vacancy rates for landlords.
» Competitive Marketing Edge
Green leasing offers a competitive marketing edge when property owners are aiming to lower their vacancy rates. For instance, implementing an environmentally-friendly campaign such as recycling waste and/or using energy-efficient appliances to achieve a certain sustainability rating can make your property highly desirable in your local/regional market. Studies show that buildings that are certified under LEED rating system often achieve higher rental rates and occupancy rates than non-certified properties.
Learn More About LEED + Property Management Hacks
Do you have any additional questions about LEED certification or other property management tools and services that can help you cut costs and reap higher returns? Lucky for you, RTI Properties, Inc. works with residential and commercial properties all throughout the Greater Los Angeles area, including:
- Long Beach
- Culver City
- Hermosa Beach
- Los Angeles
- Marina Del Rey
- Redondo Beach
- San Pedro
- Santa Monica
To find out how LEED and RTI Properties, Inc. can help your property, call us direct to request a free quote at 310.532.9122.