Save Money, Save Your Building

Going smoke-free saves you money and helps save your building. Here are some interesting facts:

• Maintenance Savings. One paint contractor estimated that to paint a one-bedroom apartment of a smoker could cost $800-900, almost double that of painting a nonsmoker’s apartment. However, the cost of removing tobacco smoke from carpets, cabinetry, furniture, etc. could be much higher. Black Label Restoration in Colorado Springs estimates that the average cost for an entire cleaning due to the damage caused by smoking in a two-bedroom, two-bathroom apartment can run $9,500 to $15,000. In addition, if apartment units are furnished, creating a smoke-free environment will also reduce the wear and tear on the furniture. Robert Couch, president of Virginia-based Centrum Management says a smoker's unit costs $800 to $2,000 more to clean when the tenant vacates. In September 2006, his company banned smoking in more than 5,000 units in six states. Couch also says his company has had no problems enforcing the policy. When the Marriott Hotels became smoke-free, they experienced a 30% reduction in energy use for their air treatment systems.

• Risk of Fire. Nationally, smoking was the cause of 9% of smoking apartment fires. Of the property completely destroyed in 2002, an estimated $6.055 billion occurred in residential structures, an estimated $9.26 million of which occurred in apartments (NFPA Fire Analysis and Research, Fire Loss in the U.S. During 2002).

• Improved Resale Opportunities. Recent research suggests that smoke-free apartment buildings may have increased re-sale value, should you ever decide to sell your building. Agents who have assisted people selling or shopping for everything from starter-home Capes to Victorian mansions, agree: as the number of public places in which a person can smoke has shrunk, so has the number of home buyers who are even willing to consider a house with smoking in its past (New York Times, “Real Estate & Secondhand Smoke: On Tobacco Road, It’s a Tougher Sell,” February 8, 2004).

Insurance Premiums

Insurance agencies report that some insurers, although not necessarily all, give a credit or premium reduction for either or both the landlord or renter on their property/liability insurance if they do not allow smoking in their apartment building (landlord) or their apartment (renter).

Why not discuss obtaining such premium reductions with your insurance agent? Among the possibilities are the following:

• Check with you insurer to determine whether your current policy includes a penalty (explicit or hidden) if you don’t presently have a smoke-free policy in your tenant’s leases.

• Seek a “credit” for having a smoke-free apartment policy, since some insurers automatically add a “debit” to the premium unless they are shown that leases for the apartment building require all apartments to be smoke-free. One insurance agent stated that she had seen credits of as much as 5% to 10% of the premium.

• Seek a premium reduction since some insurers may have dropped a number of “premium perks” due to unrelated losses in the insurance business. Since the smoke-free apartment some insurers may have dropped credit “perk”, but not others, you should negotiate for its being included, inasmuch smoker-free apartment policies reduce the likelihood of fires and other cigarette-caused damages.

An Important Benefit

• Market Niche. Nearly 83% of all adults in Colorado do not smoke according to the Colorado Department of Health. Survey after survey across the United States indicate that most residents in the rental market would prefer a non-smoking building, want to avoid living next to a smoker, and would pay extra rent for smoke-free living. Surveys indicate that low-income residents also prefer smoke-free housing.

Join the In-Crowd

• Hundreds of multi-unit residential buildings in Colorado are now smoke-free and the number is increasing monthly. Many of these communities also prohibit smoking on the entire grounds. Visit http://www.mysmokefreehousing.com for the most up-to-date list.

Information adapted from www.mismokefreeapartment.org, www.mysmokefreehousing.org and other sources.