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ESG: Amplifying Financial Sustainability in Residential Real Estate
The only path aheadis via sustainability. It has become a fundamental cornerstone of many realestate organizations' operations. Residential landlords have a responsibilitymake a good contribution to the betterment of our community and society.
We believe thatsustainability is multidimensional and should tackle not only ecological butalso social aspects.
Financial Sustainability Is Now More Relevant Than Ever
Renting arebecoming more unaffordable and unreachable due to soaring rent prices.Moreover, billions of euros in tenants' security deposits are dropping in valuegiven the present rising inflation. In Germany alone, we're talking about morethan 35 billion euros.
When moving in, thecostly security deposit (up to three times the monthly rent) is another one ofthe greatest obstacles for tenants. Whether you are a cashier, cab driver,student, or white-collar worker, a security cash deposit represents a burdenand an inefficient use of capital.
Affordable andaccessible housing is in great demand in nearly every major city in the UnitedStates and Europe. Renters are increasingly demanding options and more flexibility.
On the part oflandlords, there is a rising trend toward social responsibility, tenantsatisfaction which makes housing more accessible for tenants. Investors place ahigh value on businesses with these ESG efforts. In fact, according to theULI's 2022 Emerging Trends in Real Estate report, 82% of respondents considerESG factors when deciding on operational or investment choices.
Positive Social Impact
Growth that is not inclusive isnot sustainable. The "social" in ESG relates tothe influence a business has on the community as a whole, covering inclusivity,equality, diversity, and any other practices that promote social good.
As previouslymentioned, in Germany alone, there are approximately 35 billion euros in cashdeposits that may be returned to tenants and have a positive impact oncommunities.
When landlordsoffer Garentii as a deposit alternative to their tenants, they have a directand beneficial influence on their tenants' lives. For renters, this mighteliminate costly security deposits and also be able to access properties thatwould otherwise be out of reach.
Making rentingfinancially sustainable with renter-friendly ESG measures is gaining popularitysince landlords and investors can make significant social impact in theircommunities with almost no cost.
Additionally,implementing social ESG practices benefit residential landlords by improvingrenter happiness, rental experience, and retention.
This strategy alsohas a substantial reputational advantage for landlords and investors.
At Garentii, we areexcited to help our real estate partners build "sustainability-proof"businesses that drive real social impact on local communities.
Ready To See Garentii In Action?
See how Garentii can help you achieve your ESGtargets by making renting financially sustainable and accessible.
