What is Green?

“I’m in the business of making money, not spending it,” a fella recently told me during a conversation. From his perspective green, energy and water efficient improvements for his multifamily property are unneeded and wasteful.

Maybe that’s where the wave of greenwashing has actually hurt income property owners‘ perceptions. For many, green translates into “tree-huggers” and “environmentalists,” not efficient resource managers. Ironically, not long ago green symbolized making money, not environmental choices.


Property owners do spend money, sometimes lots of it. Expenses are often dominated by the variable variety, as few fixed expenses exist. Water, electricity, gas, maintenance bills and replacement turnover costs can easily constitute the majority of expenses. Making money does in fact require investing money.

Some owners may not hesitate paying a property manager 7% of gross income or being charged $400/month to have their grass lawn maintained. When confronted with heating, plumbing or appliance problems many choose repairing old, deteriorating systems because replacement costs too much. Efficient up-front investments can and should reduce the reoccurring expenses that seem to dominate your monthly statements.

I get it. I don’t like to spend money on anything. It’s so much easier to leave everything status quo, receive the rent check and continue paying bills as you’ve done for years.  However, rental property ownership should be thought of as a business where thoughtful investments can yield increased income with lower expenses and happier customers (err...tenants). From a single family rental to 200 units, new or old, there exists so many efficient and “green” options for reducing variable costs. It adds up to saving money and raising income. Isn’t that the point?