Posted By ASSET MAPPING
Every real estate investor needs to balance between capital investments and expected returns. Automation is one factor that can significantly change the equitation and tip the scales in investors’ favour, justifying the initial expenses through faster ROI and slower depreciation of the asset. Smart buildings have numerous tangible advantages over traditional facilities, including profitability calculations.
Let’s run through some of the most important avenues for monetising automated systems in both residential and business buildings:
Lower cost of ongoing maintenance
While it may sound counterintuitive that high-tech assets cost less to keep functional, it’s often true. Thanks to the possibility to conduct proactive maintenance on a regular basis, there are fewer breakdowns that require extensive repairs. Since maintenance crews can receive notifications at the first sign of irregularities, it’s often possible to organise interventions in a way that allows several issues to be fixed at once.
Higher rents and lease payments
Tenants with deeper pockets expect maximum levels of comfort, so landlords and real estate investors need to include all the finest amenities. Today, that means having a smart system in place that controls energy consumption, regulates air quality and takes security to another level. It’s much easier to let an apartment or office with those features for a higher sum, so it’s unlikely that any part of the building will stay idle for long.
Automation minimises wear and tear and makes maintenance more effective, which is why smart buildings are expected to last for decades. Longer life cycles provide owners with additional time to recoup original investments and potentially turn a greater net profit, regardless of how the property has been utilised. In cases where companies invest in corporate buildings, every additional year is basically found money.
Reduced energy consumption
We all know that Electricity bills for large buildings can be expensive, so obviously, savings are significant when energy usage is reduced, even when it’s just by a few percentage points. When you install a smart system that keeps all doors shut and all needless lights turned off, the financial impact is quite considerable. The savings come entirely from preventing waste – occupants won’t have to alter their activities in any notable way.
Due to all the aforementioned factors, owners who decide to sell their smart property could be looking at a nice payday! The prices of real estate are continually increasing, so any value lost due to the age of a building could be offset by the changes in the market.