Increase your net operating income…

…without raising rents.

The world is fast becoming aware of energy savings; especially in the United States where even the Pentagon has put out a mandate that all branches of the service cut energy usage. Others taking a hard look at energy efficiency are not necessarily the ones who first come to mind; lenders, communities, and of course end users, be they owners or tenants – especially tenants with long term leases. Your customers may also be judging you based on their sense of social responsibility. Any edge you can gain over the competition is a good one.

So where do you begin? My suggestion is to hire a professional firm, with no product to sell, that can give you a thorough audit and written report showing itemized recommendations, the estimate of cost for each renovation, and the estimated payback time. That requires a company with a team of experts in various disciplines; such as solar, energy efficiency, engineering, incentives, alternative heating and cooling, finance, competing products…and the list goes on.

Finally, the report should contain the IRR (internal rate of return) for each of their recommendations or findings. That way you can say, okay, I like this one that gives me a 20% IRR, but this one with a 3% IRR is not worth the disruption. Further, they can suggest strategies such as picking the one with the greatest rate of return and using that savings to fund the other recommendations.

Take a look at this company’s web site. They are a fine example of what I am talking about and since I personally know some of the founders and key personnel it is one company that I can highly recommend. They will not take you further down the road if they cannot show a 10% IRR, overall.

http://www.greenpointpartners.com/

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