Dear Housing Heroes!

I hope your Thanksgiving was filled with joy, gratitude, and maybe even a second slice of pie!

As we gear up for the holiday season, let’s dive into a question many landlords are asking:

Solar as a Feature, Not a Premium

Solar panels are undoubtedly a great selling point—they lower utility costs, appeal to eco-conscious tenants, and contribute to sustainability. But here’s the catch: They typically don’t justify bumping up the rent.

Did you know that charging for utilities is illegal?

While it might seem fair to recoup some of your investment by charging tenants for the solar system, there are important considerations:

• Legal Restrictions: Laws like California’s AB 1482 restrict landlords from profiting from utilities. Charging extra for the solar system beyond actual utility costs can be legally problematic.
• Utility Billing Complexity: Separating costs for solar panels can complicate billing and may deter potential tenants who prefer straightforward rental agreements.

How can I maximize my ROI

Stand Out Without Raising Rent

• Market Smartly: Emphasize lower electricity bills and sustainability in your listings.
• Attract Eco-Conscious Renters: Appeal to tenants who value green living.
• Fewer Vacancies: Solar-equipped homes can fill faster, minimizing downtime.

You'll Benefit in other ways

• Tenant Retention: Tenants appreciating lower utility costs may be more likely to renew their leases.
• Property Value: Solar panels can increase your property’s value over time, benefiting you if you decide to sell in the future.

What we recommend to our clients

Focus on Competitive Pricing

• Set Market-Appropriate Rent: Price your rental competitively based on similar properties in your area, considering size, location, and amenities—not solely on the presence of solar panels.
• Avoid Additional Charges: Refrain from adding extra fees for the solar system to stay compliant with regulations and maintain tenant interest.

Communicate the Benefits

• Educate Potential Tenants: Make sure tenants understand the advantages of solar energy in your property, such as cost savings and environmental impact.
• Transparent Listings: Clearly state in your rental ads that the property includes solar panels and highlight any expected reductions in utility costs.

👉 Watch my 60-second video where I break this down further and share practical tips!

Get A Free Rental Analysis Are you wondering how to pinpoint the perfect rental price for your property? Setting the right rate isn’t just about covering your expenses, it’s about maximizing your investment while staying competitive in the market. Get my Free Report

P.S. Let’s connect! Reply to this email or find me on Instagram and LinkedIn. I’d love to hear from you! Links below👇

Steve Welty CEO @ Good Life Property Management DRE #01744610 ​​​​

5252 Balboa Ave #704, San Diego, California 92117
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