Let Us Tell You The Reasons Why
Over the past few years, the rise in solar panel system installations has dramatically increased. With new technologies making them more affordable, government tax incentives, and climate change, many more people are choosing to go solar. But what about rental properties? How could solar panels be a good investment for a rental home? At Oak City Properties, we are here to tell you the many reasons why, and yes saving money is definitely one of them!
Attract and Retain Renters
Due to the increase in popularity of solar and all of its benefits, rental homes with solar panels will definitely attract quality potential renters. Many renters might like the idea of getting to live in a green-friendly home. Renters will also enjoy the savings in their monthly utility bills. With the perks of solar panels on a home like a battery backup system during a power outage, many renters won’t ever want to leave! Being able to attract and retain renters will reduce the cost associated with vacancies and high renter turnover, saving the property owner money!
Save On Utility Bill
It is no surprise that once you have a solar panel system installed on your home, your monthly utility bill will decrease. With your home getting its power from the sun, you have to rely less on the power from your utility company. Many utility companies use something called Net Metering, which is an exchange of power between you and the utility company.
For example, when you have excess energy that you are not using, it will feed into the utility company, and at times when you do not have energy (like nighttime), the power company will be the one powering your home. This exchange can lead to very low utility bills!
Increase Property Value
A home with a solar panel system will increase in value! Who doesn’t want to see their property value increase? Even if the property is a rental, it is still good for the property owner, especially if they have plans to sell the home at some point in the future. If the property owner has no interest in ever selling that home, it is still good for its value to increase!
Green is Good
With climate change being at the forefront of everyone’s mind, it is no wonder that many more people are choosing to go “green”. Installing solar panels is one of the first ways many people choose to go green because it will reduce their carbon footprint as well as save money in the long run. People are growing more eco-conscious and want to make cleaner choices for our environment, so having a rental property with a solar panel system will be a big attraction for renters that want to be eco-friendly!
Saving money is always a good reason to make changes to your rental property. There are a few ways that a rental property owner can save on taxes.
- Depreciation Expense
A high-quality solar system comes with a warranty period of 20 to 25 years. If you install a solar system on your investment property, it allows you to claim a 10% decline in your solar system’s value each year through the depreciation value method.
For example, if you invested $8,000 in a solar panel system, you could claim $800 the first year, $720 the following year, and so on. Over the course of ten years that would equal a savings of $5200.
- Federal Solar Tax Credit
Many homeowners are choosing to take advantage of the Federal Solar Tax Credit which can give you a 26% tax credit. While this tax credit does not apply to a non-residence, it does apply if you have a second residence. So if you have a vacation home that you rent out part of the year, then you are still eligible for this tax credit.
Consider Hiring A Property Management Company
At Oak City Properties, we have been helping those in the Raleigh area purchase and sell homes for years! Whether you are a family trying to sell your home or a landlord wanting to downsize your rental portfolio, our full-service property management company is here to help.
If you are interested in learning more about our services or speak to our listing agents, give us a call at 919-232-9222 or send us a message.
*Brent Vaughn of Oak City Properties highly recommends NC Solar Now for all your solar installation needs. If you want to find out more about solar panel options, contact NC Solar Now at (919) 833-9090 or via their website.