A Landlord’s Dilemma: Managing costs

Joe Gillach at Green by Design posts about the cost choices owners make with big capital purchases. In this case Joe ran through the competing interests of landlords and renters when contemplating the purchase of 240 washers and dryers.

This is a familiar problem and one of the reasons Multifamily Guide was started: a decided lack of clarity on cost analysis for the multifamily industry. When you are operating at the edges of financial stability because of debt service ratios <1.15 or with a non-profit owner, the incremental costs of your sustainable decisions make a substantial difference. To take Joe's scenario, you'll probably replace 6-7 washers and dryers during a year with a difference between the standard and Energy Star prices of $210 apiece. It doesn't sound like much, but $1470/year ($5.88/unit at his property) makes a difference.

Green By Design » A Landlord’s Dilemma: The Short View vs. The Long, Green View