Does Solar Make Sense for Rentals?

[Greg Loosli]

Upgrading a property is expected to allow the owner to raise rents and attract higher caliber clientele. Owners have to decide if the cost of the improvement will generate additional revenue. And every improvement made has some useful life. Carpet maybe three to five years. Paint two to three years. Kitchen or bathroom seven to ten years.

So where does solar fall in all this?

Well, solar is one of very few improvements that shifts revenue from somewhere else to the owner! And instead of becoming less valuable over time (even though Uncle Sam lets you write it off), it becomes MORE valuable as the cost of power increases! You can't 'charge' for the electricity but you CAN raise rents and include it in the rent!

Remember when landlords 'gave' internet to tenants? Remember when landlords 'gave' tenants phone service? Well, now you can provide electricity to your tenants that isn't just a pass-thru service like phone or internet but an owner owned service become more valuable as costs rises!

So long after purchasing your solar system, you continue to receive revenue from your tenants!

And when you bought your solar system, Uncle Sam gave you an immediate tax credit of probably 30% of the cost of system in addition to whatever incentives and credits your state and/or city may offer! And Uncle Same allows you to write off the cost of the system!

What other property improvement can you make that has that much help from Uncle Sam and actually increases what you can charge your tenants???

AND, nationally, solar adds up to 13% to the value of your property!  Big or little!

So think solar for any property you own, whether short term or long term!

Solar just makes cents! Or dollars!