5 Reasons to Invest in Multifamily Energy Efficiency Housing

Designed to offer affordable housing, multifamily properties represent a promising avenue for investors. However, to drive optimum returns, it is crucial for property owners to provide energy efficient affordable housing options. Multifamily energy efficient apartments are not only easy on the pocket, but are also eligible for tax rebates. It is, therefore, important for multifamily property owners to an implement energy efficiency housing plan and hire a reputable redesigning contractor. If you are skeptical about investing in energy efficient multifamily housing, this blog post gives you five reasons to go ahead with a multifamily energy efficiency housing plan.

1. Reduced Environmental Impact

One of the biggest global problems today is greenhouse gases. World leaders are pledging to reduce emissions of GHGs and energy efficiency housing plan gives you an opportunity to do your bit. Improving the energy efficiency of a property can also help lower air pollutants by reducing the consumption of fossil-fuel-based energy. You can even contribute towards resource conservation and pollution prevention by purchasing energy star labeled equipment.

2. Improved Indoor Air Quality

Installing proper insulation system and sealing air leaks in home’s envelope and duct system can improve indoor air quality, as it restricts dust infiltration and odor intrusion from the outside environment and keep the air inside fresh. Adequate ventilation system is a must for every home, particularly the ones with senior and children. Ventilation is necessary to maintain indoor air quality and provide a healthy habit to occupants.

3. Lower Energy Costs

Energy costs is one of the major expenses that renters have to bear. Investing in energy-efficient appliances can help reduce energy consumption and make the units more affordable for prospective renters. According to federal government’s Partnership for Home Energy Efficiency (PHEE), improving energy efficiency can help households can save upto 30 percent on energy bills.

Related read - 5 Multifamily Property Design Trends to Keep Energy Consumption in Check

4. Improved Comfort

Every renter looks for a comfortable abode. Several conditions, such as cold floors, damp basements, and moisture on windows result in poor indoor comfort. Damp basements can lead to mold proliferation, structural damage, and increased indoor humidity that may, in turn, create moisture on windows, resulting in mold formation and damage to the sills. Investing in insulation and duct sealing can help owners improve indoor comfort. These measures help control the air entering the home, ensuring better air quality and controlled moisture levels.

5. Increased Home Value

Implementing multifamily energy efficiency housing plan can increase the property’s market value and rentability as most people prefer renting a home with energy-efficient features that keep the energy bills on the lower side. For investors who are looking to sell their asset in the near future, investing in energy efficiency improvements is a failsafe way to draw a high return on their investment.

Final Few Words

The highlighted factors give a clear indication why investing in multifamily energy efficiency housing plan is win-win proposition for multifamily property owners and investors alike. Before introducing any energy efficiency method, investors need to chart out a detailed plan about the resources and timelines required to execute the changes. In addition, investors need to hire experienced renovation professionals. Multifamily contractors can not only suggest suitable energy-efficient changes, but also ensure that every stage in executed according to the plan.

Federal Investment Tax Credit-A Brief Guide for Multifamily Owners

All You Need to Know About Federal Investment Tax Credit

The Federal Investment Tax Credit is arguably the most significant solar policy in the U.S. Whether we talk about individual homeowners or nationwide multifamily contractors, the Federal Investment tax credit has managed to attract everybody's attention. Since its implementation, the 30 percent tax credit has spurred an annual growth of 1,600 percent in the adoption of solar energy. The tax credit, however, is set to expire on December 31, 2016, which will eventually impact all rebates provisioned to property owners.

In this post, we will delve into the finer aspects of Federal Investment Tax Credit and how it works.

Federal Investment Tax Credit: Introduction
Introduced in 2005, the Federal Tax Credit for residential energy property was initially applied to social electric systems, fuel cells and solar water heating systems. In 2008, however, the tax credit was extended to geothermal pumps and wind-energy systems. The tax credit allows homeowners to claim up to 30 percent of the price that they have paid to install such systems in their property. The intention behind the introduction of the credit was to promote the use of renewable source of energy. As there is no credit limit, it  means homeowners are free spend as much as they want to minimize the carbon footprints of their property.

How Federal Investment Tax Credit Works
Property owners need to file their Federal taxes to claim a 30 percent refund of the qualified expenditures on renewable energy system installations. Those who owe Federal tax, will either:

1. Owe less
2. Owe nothing
3. Owe nothing but will have a credit leftover

To understand these three scenarios, let us consider the following examples:

A home owner Sam installed a solar system worth $30,000 in his house, which makes him qualify for a $9,000 Federal tax credit.

Scenario 1 - When Sam owes less
When April arrives, Sam files his tax and asks for the 30 percent credit. He comes to know that he owes $10,000 in taxes, so he deducts $9,000 tax credit and files for the remaining $1,000 that he owes.

Scenario 2 - When Sam owes nothing
Sam notifies his employer that he is entitled to a tax credit of $9,000 for the financial year. The employer adjusts Sam's withholdings so that he can take more money in the salary part. In this scenario, Sam will be required to apply $9,000 tax credit to his tax bill in April.

Scenario 3 - When Sam owes nothing but has a credit leftover
If Sam owns only $1,000 in taxes, his tax credit will cover the amount and the remaining $8,000 will be rolled over to the succeeding taxable year.

Solar tax credit is definitely a beneficial proposition for property owners as it results in substantial savings in the long run. Moreover, it increases the market value of the property. As there are no signs of an extension on the Federal Investment Tax credit, those planning to introduce energy efficient mediums in their property do not have much time to lose. Should you wish to learn more about the benefits of renewable energy systems for multifamily property owners, feel free to connect with our team of consultants.