As a building owner/manager it’s critical to find new ways to increase your property’s return on investment (ROI). Here we look at how going beyond the aesthetic improvements of building restoration offers an effective strategy to improve your ROI.
Reducing costs (and consequences) of water damage
It just takes a small amount of moisture to cause serious, costly damage over time including:
- Rotting wood structures
- Damaged interior materials such as drywall, ceilings, walls, flooring, etc.
- Deterioration of foundations and concrete structures such as parking garages and balconies
- Moisture-related mould
Water damage can also lead to increased insurance premiums or claim denial if the insurance company finds you’ve failed to take reasonable care to prevent damage.
Maintaining and restoring the following components will protect against failing water barriers to avoid high repair costs and possible increases to insurance premiums:
- Flashing
- Siding/cladding
- Gutters
- Underlayment/vapor barriers
- Sealants and weatherstripping on windows and doors
Improving occupant satisfaction
Improved ROI relies on high occupancy rates that pay the rent, cover operational costs, and generate income. However, if your building’s thermal barrier is failing, occupant satisfaction suffers, leading to tenant churn and increasing vacancy rates.
Your building’s comfort is negatively impacted by building elements such as balconies that create thermal bridges and ineffective windows and doors that allow noise to enter units.
Steps to improve occupant comfort and reduce vacancy rates include:
- Assessing and renewing insulation
- Installing new multi-pane windows and innovative curtain walls
- Assessing the building for thermal bridges and addressing them
- Using reflective coatings on windows to reduce UV light damage and improve daylighting
- Installing air-tight multi-pane doors and sliding glass doors on balconies
- Addressing air leaks with sealants and weatherstripping
- Improving insulation, windows, and doors to enhance sound barriers
Improving air tightness
Building restoration also improves air circulation. This is critical for several reasons, including:
- Preventing moisture and condensation to reduce the risk of mould
- Reducing heating and cooling costs
- Keeping outdoor pollution from impacting indoor air quality
Restoration ensures the building is free of gaps and holes that disrupt the continuous barrier required to keep the building airtight. This improves energy efficiency and building comfort:
Steps might include:
- Sealing joints or gaps between various siding panels
- Introducing liquid membranes that maintain a more flexible envelope to adapt to changing conditions and temperatures
- Installing updated materials such as rigid foam-board insulation to prevent conditioned air escape
- Updating insulation to manage moisture release with proper circulation
Reducing energy consumption
In commercial buildings, 60% of AC and heating energy consumption is related to building envelop heat transfer, compared to 50% in residential buildings. The following studies from around the world present compelling arguments to reduce operation costs through building restoration:
- Energy savings of 31.4% and peak load savings of 36.8% using passive energy efficient improvements such as extruded polystyrene (EPS) thermal insulation and reflective coated window glazing
- Energy effective building envelope designs saving between 35% and 47% of total and peak cooling demands respectively
- Thermal insulation in walls, roofs and flooring and low infiltration improvements reducing energy consumption by 20% to 40% and 20% respectively
- External shadings such as awnings and light-colored roof/walls reducing the space cooling load by 30% and 2–4%, respectively
Insurance premiums and compliance
Insurance companies investigate all aspects of compliance and can deny coverage or increase rates if they discover your building does not meet current safety regulations and building codes. Restoration contractors can create a framework that ensures all new materials, systems, and designs are building code compliant. As a result, you can save money in reduced insurance premiums while decreasing the risk for claim denial.
Speaking to a restoration team about the best strategy for your building is the first step to reaping the hidden ROI of building restoration.
The experienced restoration team at WellDone Inc., a building restoration company in the GTA specializing in building improvements for commercial and multi-unit residential buildings, can provide a thorough assessment and restoration plan to help increase ROI. Reach out to us today.