Sustainable property management, also known as “green management,” is the practice of managing properties in a way that takes the environment into account. Many of you may have also heard of the term ESG initiatives, which stands for environmental, social, and governance initiatives. ESG is an increasingly popular framework which many stakeholders take into account when evaluating a development. Stakeholders nowadays are very interested in how a company promotes sustainability. Sustainable management aims to decrease a property’s negative impact on the environment while boosting social and economic benefits. All aspects of property management can use sustainable practices, from energy use to waste management.
Real estate still contributes to greenhouse gas emissions and accounts for a significant amount of global energy consumption. A key benefit of sustainable management is that it minimizes buildings’ adverse effects on the environment. Using sustainable systems such as energy-efficient lighting, recycling programs, and low-flow plumbing systems reduces waste and decreases energy and water consumption.
Incorporating sustainable property management practices has positive financial benefits as well. By using fewer resources, these systems save money for property owners in the long run. Implementing sustainable features costs about 2% more on average; however, property owners end up saving between 14%-19% in operational costs (Rosencranz, 2022). This allows property managers to increase their profitability. Buildings with sustainable features generally have higher market value and generate greater returns.
Lastly, sustainable property management can improve the well-being and comfort of their tenants. Studies show that people spend about 90% of their time indoors (U.S. Green Building Council, 2022). Therefore, it is vital for tenants to feel comfortable in their living spaces. Sustainable building materials and cleaning supplies don’t emit harmful toxins, whereas some non-sustainable products do. Natural and sustainable lighting has also been shown to have a positive effect on people’s moods and productivity levels (U.S. Green Building Council, 2022).
So how can we implement these sustainable practices? Property management companies can complete a sustainability assessment to determine which areas the building can improve both environmentally and cost-wise. Using the evaluation, they can develop a plan that lists their goals and targets for implementing these sustainable features. Property managers can also promote sustainable practices amongst their tenants, such as recycling for example.
Another major way to be more environmentally friendly is by using property management software. Not only is property management software extremely convenient, but it also helps companies cut down on paper usage. Property management software replaces paper cheques, paper maintenance requests, and lengthy paper leasing contracts, by providing everything in digital form. This type of software is becoming increasingly popular and for good reason.
Sustainability is essential for tenants, owners, and property managers alike. Sustainable building practices lower costs, boost well-being, and, most importantly, protect the environment. More and more people are looking for buildings that prioritize sustainability. It is important for property management companies to acknowledge this rising demand. Ultimately, sustainability is a solution from which all parties benefit.
Payquad offers a full and in-depth array of services and features to help your managers and tenants. On Payquad, managers have the option to message their tenants regarding new building initiatives, such as being more environmentally friendly. You can also give your tenants perks to encourage them to make more sustainable decisions. Learn more today about how you can customize your portal to your liking on Payquad, and sign up for a free demo!
References:
Rosenkranz, E. (2022, May 26). Financial benefits of green buildings – are they expensive? Smart CRE. Retrieved from https://smart-cre.com/financial-benefits-of-green-buildings-are-they-expensive/
USGBC. (2022). Benefits of green building. Press: Benefits of green building | U.S. Green Building Council. Retrieved from https://www.usgbc.org/press/benefits-of-green-building
