Solar panels. They’re something we’re seeing a lot of these days in California. The question is: Should you install them on your rental property?
For rental property owners, it is important to consider the pros and cons of adding solar panels to your rental property and, most importantly, whether or not doing so will improve your bottom line.
Remember, installing residential solar panels comes with a large up-front expense. However, if having solar panels on a rental house would help attract better tenants and reduce utility costs, installing them may more than pay for the initial price over the long term.
Solar can also offer some clear benefits for rental property owners who have high utility bills, live in a prime, sun-exposed location, and qualify for the solar tax credit. Particularly here in Southern California where summers are scorching hot, renters may be especially drawn to rental homes that can offer to lower their cooling bills over the long summer months.
Then again, if your rental property doesn’t have a lot of sun exposure it’s probably not worth the expense.
Knowing whether solar panels will boost your rental property’s bottom line can help you make wise investing decisions and keep your property values growing year after year. At the same time, it can be important to have the input of industry professionals when making important decisions. At APG Properties, we advise our property investors on solid business strategies and best practices, from solar panels and other improvements to tenant screening and beyond. With our expertise, we can make owning quality long-term rental homes a streamlined, profitable endeavor.