Dual occupancies are an exciting investment where the landlord collects two rental incomes from a single property
If you share one block of land between two rental dwellings then why not share one solar system as well?
With ‘Solar for Dual-Occupancy’ a property investor can now make four incomes from a single property – accelerating their returns.
Matter has launched the much-awaited innovative ‘Solar for Dual Occupancy’ a new service for property investors with dual occupancy properties, like duplexes, town houses, dual key and even granny flats. It is the first anywhere in the universe, including Australia.
Melbourne, Australia — June 19, 2017 — Matter Technology has launched a new ‘Solar for Renters’ service for Dual Occupancy property investments. Keeping up with the latest property investment asset class to capturing the imagination of developers & investors.
Dual occupancies are a remarkable property investment where the landlord collects two rental incomes on one property and also a good way to increase equity. Matter thought well if you share one block of land with two rental dwellings then why not share one solar system as well? With ‘Solar for Dual-Occupancy’ a property investor can now make four incomes from one property.
With the ever-increasing price of land, it can make a lot of sense for property investors to capitalise on the land value by developing a dual occupancy, done right – it’s a good way to increase equity.
‘Dual-Occs’ with solar provides quad-income that accelerates becoming cash flow positive. For property investors this in turn speeds up building a property portfolio. Dual occupancy is an opportunity for people to change the composition of their negatively geared portfolio to create a neutral position, or even make it positively geared.
Usually dual occupancy properties can get rental yields that are higher than what a suburb would typically deliver for typical rentals. And buying a property that is suitable for dual occupancy can also be a way for first time homebuyers to get their foot onto the property ladder.
The most obvious way to boost income for dual-occupancy is why wouldn’t you use the roof-space of both dwellings to generate more cash flow and increase value. This is where Australia’s startup Matter comes into the picture. They are the inventors of ‘Solar for Renters’ a popular service for property investors and tenants to benefit from Solar.
‘Solar for Rentals’ is a service that provides a straight forward way for property investors to generate considerable value from selling solar power produced on their investment property to their tenants. Instead of power utilities making all the money the tenant pays the landlord a reduced rate for solar power produced during the day. It’s a win-win, but it can make considerable value to a property investor.
All this is possible because of the never-ending escalating price of grid power, Matter’s innovative technology and their remarkable ‘Solar-for-Renters’ service. For an upfront investment of about the price of a decent paint job a property investor can generate extra value of somewhere around $85,000 when coupled with “Matter Money”. Interestingly they can potentially make up to $200,000 of value if things go the investors way. ‘Matter Money’ is a service that boosts value for property investors from ’Solar for Rentals’ cash flow.
Push came from property investors
Matter’s ever-growing property investor admirers have been pushing Matter to support multi-tenancy investment properties for a while, in particular dual-occupancy. They have been asking Matter to use their innovative technologies to boost property investors’ returns on dual-occs – they have been demanding ‘Solar for Dual-occupancy’.
Matter not has not only responded with a resounding yes for dual-occupancy. And have also opened up the possibility for dual-occupancy property investors making more from their investment from other common or shared things or services, like hot water systems, air conditioners and evaporative coolers to name a few. Matter will have more to say on this soon.
Matter now supports not only supports single occupancy they have also included in their service repertoire dual- and multi- occupancy for its popular ‘Solar for Rentals’ service. This is good news for property investors as it opens up more avenues for positive cash flows.
‘Solar for Dual-Occupancy’ allows a property investor to install one solar system that is used by both rental dwellings in a dual-occupancy so that they can earn extra cash flow by providing tenants cheaper, cleaner energy that they are charged for. This coupled with “Matter Money” becomes rocket-fuel that generates significant value for a property investor.
How Matter handles Dual Occupancy
In a dual-occupancy tenants are charged for a premium energy product – Blended Energy – using Matter’s innovative energy plan based on a “pay as you go” energy plan.
So renters only pay for Blended Energy that they consume which worked out using Matter’s very accurate smart meters that measure this new Blended Energy. Matter’s innovative technology that works out what portion of the Blended Energy is from the grid and what portion of the Blended Energy is from solar being manufactured from the dual-occupancy’s roof. Each tenant in the dual-occupancy receives a bill as part of the Matter service. Each Dual-Occupancy bill breaks down how the charges are arrived at. Tenants are able to also see how much they saved by using Blended Energy.
The Blended Energy Plan uses a ‘piggy-back’ ToU (time of use) rate for the grid energy portion of the Blended Energy and flat rate for the solar energy proportion of the Blended Energy. The flat rate is normally priced at 20% less than what a tenant would pay from the utility for daytime power, so the tenant wins. For the Landlord Matter works out what the pricing structure (the Blended Energy Plan) for the ‘Solar for Dual Occupancy’ should be – and Matter also negotiates this with the tenant. This ensures that the dual-occupancy property investor can cover cost of the grid energy and make a good return for the solar energy part of the Blended Energy. The idea is not to make money from the grid energy portion, but not to loose money on the grid-portion as well.
In a dual occupancy the feed-in credit from the utility could be shared on a pro-rata basis or can be allocated to one particular tenant, or it can be allocated all to the property investor. In Victoria this can be 11.3 cents per kWh whereas in other states it can be as little as 5 cents/kWh. Since the property investor has the utility bill in their name the feed-in credit is typically not taken into account for the tenants and this feed-in revenue goes straight to the property investor as well.
While Feed-in further boosts income for Solar Energy not consumed at the Dual-Occupancies. It’s worth noting that this isn’t the main reason why property investors install a ‘Solar for Dual-Occupancy’ system. As a rough guide ‘Solar for Dual-Occupancy’ costs the property investor 5.6 cents / kWh to generate solar energy and typically tenants pay more than 28.5 cents per kWh for daytime power from the grid – some utilities charge more in some places like Adelaide tenants can pay 35 cents per kWh.
Matter invented Blended Energy to make Dual-Occupancy easy
Matter created the innovation Blended Energy for dual- and multi- occupancy in mind. In a dual occupancy situation to save on electrical wiring and buying extra expensive meters the solar power is automatically charged to each tenant based on pro-rata usage based on the their measured portion of the Blended Energy and solar and grid proportions, it is a very accurate, fair and cost effective way to charge tenants for this Blended Energy. Matter uses innovative smart meters for measuring Blended Energy that are accurate and but less expensive than utility grid meters. This avoids the property investor in dual occupancies running separate solar electricity wiring to each tenancy, and metering them individually. It’s a very clever practical way to bill dual-occupancy tenants for solar power that is mixed with grid energy that becomes Blended Energy.
The property investor can now take advantage of rising energy prices and do something positive about the energy crisis for the tenant and their investment portfolio and pocket.
You use one property for dual income why not use one solar for two more incomes. One property, four incomes.
For more about Matter’s ‘Solar for Dual Occupancy’, please visit http://www.matter.solar/
‘Solar for Dual Occupancy’ available from 1st July 2017
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For more information, images, or to request a spokesperson interview, please contact:
Matter Technology Ltd
M: +61 (0)2 8097 1420
Solar panels collect energy. Matter lets landlords sell it.
Matter is an Australian-based technology start-up and the emerging leader in ‘Solar for Rentals’. Matter is redefining the way consumers and businesses buy energy and how property investors make more through such leading product and service innovations. Our service enables landlords to earn money from solar by charging their tenant for daytime electricity generated from their roof. For tenants this means lower prices, clean electricity and more in their pocket. Matter’s goal is to use technology to help make energy cheaper and cleaner for everyone whilst putting more in property investors pockets. Matter’s advanced platform delivers outstanding experience to tenants who are unwilling to compromise on service quality and value.
For more information, please visit http://matter.solar