Esperanza, a rental community in Duarte, California. Courtesy MBK Rental Living
Esperanza, a rental community in Duarte, California. Courtesy MBK Rental Living

Composting launched on opening day at Esperanza, a rental community in Duarte, California. Shortly afterward, it became a city mandate.

“Composting initiatives are poised for national growth and will soon be a reality for many developers as cities and states start adopting these programs,” says Lisa Cabral, director of design and marketing for Irvine, California-based MBK Rental Living, which counts Esperanza as part of its 6,000-unit (with 2,500 units in development) portfolio.

The company collaborated with the city and management providers on the rollout, which included getting answers to all kinds of questions, such as “What does it look like for our residents?” And more important, Cabral says, “How does that smell for our residents?”

Composting represents just one example of how sustainability is taking shape in multifamily communities. And the time is right: In a 2022 MRI Software survey of more than 2,000 renters across a mix of rental types and community locations in the United States, roughly two-thirds of respondents said green practices were important. The statistic makes sense to Cabral’s team. “We view sustainability as a cornerstone of enhancing our residents’ experience,” she says. “It promotes well-being, saves costs, and creates community.”

That’s why sustainability is the focus of MBK Rental Living’s With Our World sustainability initiative, which is organized into three tracks:

  • ProPeople provides amenities—from bicycle racks and storage facilities to property wide air filters that reduce airborne pollutants—that enhance each resident’s quality of life.
  • ProPlanet focuses on design that reduces each community’s environmental impact—features such as EV charging stations and energy-efficient LED lighting.
  • ProAction encourages residents to act on important matters, be it a recycling program or sponsored local cleanup that benefits the wider community.

“Today's new renters prioritize properties that demonstrate a commitment to resident well-being and environmental responsibility," says Ken McCarren, president of MBK Rental Living.

“We have seen an increase in renters attracted to sustainable initiatives in our communities,” observes McCarren. “At one point, sustainability was considered a trend in this industry. Let me be clear, this is not a trend—this is a way of life that developers need to grab onto and develop better living environments for their residents. With the support from our younger generations, our hopes are that, as an industry, we will continue to demonstrate a significantly greater concern for environmental issues than what was emphasized in previous generations."

Like generations, markets matter, too. MBK Rental Living’s communities, in California and more recently Colorado, are on the leading edge of sustainability efforts in the nation. But you have to understand where your market stands and what’s coming its way, Cabral says.

“Sustainability is in constant evolution, and you have to be willing to adapt and go down different paths,” she says.

And for developers just launching sustainability efforts, Cabral adds, “It’s best to understand what potential state or city mandates might be heading your way and, equally important, know your residents’ needs.”

That means features progressively impacting renters’ daily lives, as well as what they’re willing to pay for.

Recycling at Vida in Morgan Hill, California. Courtesy MBK Rental Living
Recycling at Vida in Morgan Hill, California. Courtesy MBK Rental Living

Sustainability Across the Spectrum

Most of MBK Rental Living’s communities feature dozens of initiatives. Here are three examples:

  • Increasingly expected: Smart-home technology integration. Apartments in all recent developments feature programmable thermostats that allow residents to control their apartment temperatures remotely. “This implementation has yielded a reduction in monthly expenses while simultaneously empowering residents to manage their comfort and utility costs,” Cabral says.
  • Nice but not always necessary: Community gardens. Several MBK Rental Living communities have implemented on-site community gardens, which don’t only allow residents to connect with nature and cultivate their own produce, but also help foster a sense of community. Blue Oak in Paso Robles, California, though no longer owned by MBK, provides a strong example.

"This garden was one of our initial forays into on-site sustainability initiatives," Cabral says. That said, an amenity like a community garden doesn’t always work. "Resident receptivity varies across communities. At one of our communities, the garden area remained underutilized. We ultimately repurposed the space for cornhole sets, which proved highly popular with residents. This experience underscores the importance of adaptability in amenity implementation."

  • Bigger investment: Solar panels. Two of MBK’s newest communities in California, Vida in Morgan Hill and The Haven in Petaluma feature solar panels, which contribute to more sustainable and cost-effective living environments for residents and the community itself, attributes especially attractive to environmentally conscious renters.

The features have resonated with renters, Cabral reports. “They appreciate the ease with which they can contribute to environmental responsibility. Simply residing in a solar panel-powered community allows residents to say they're part of the solution. These features cater to a growing desire among many to make a positive environmental impact. While not everyone has the time for extensive volunteer efforts, we've discovered that by providing accessible opportunities for residents to feel connected to sustainability initiatives, it has a significant impact on attracting and retaining residents."

"While the upfront investment associated with solar panel installation is significant," McCarren acknowledges, "Our residents recognize the value proposition and appreciate the environmental benefits. This resident appreciation, in turn, translates into increased value for our communities."

Solar panels at Vida in Morgan Hill, California. Courtesy MBK Rental Living
Solar panels at Vida in Morgan Hill, California. Courtesy MBK Rental Living

The Sustainability Journey: From Development to Lease-up

Sustainability as a commitment should be reflected from the beginning through alignment between the in-house team, the architect, and the landscape architect, Cabral says. “Together, we explore how each team member’s expertise can contribute to designing a luxury community that inspires and fosters a positive impact on our residents’ lives while prioritizing sustainable features and practices.” Among these practices is biophilia, which encourages the use of natural materials and strong connections to sunlight and outdoor spaces.

Sustainability priorities continue throughout the construction phase. While MBK does not directly manage on-site vendors, its construction management team works with general contractors to ensure sustainability initiatives are reflected as much as possible into their sourcing practices. MBK also assesses potential vendors’ commitment to sustainability via a questionnaire, with questions such as “Do you measure and report on the sustainability performance of your vendors and subcontractors?” and “How can we partner to further enhance sustainability within our shared supply chain?” Raising these questions during the vendor selection process helps ensure everyone is aligned around a sustainability focus, even if it’s fairly new or smaller in scope. “We believe that even incremental changes in sourcing practices can have a significant positive impact on the environmental footprint and overall lifecycle of our communities,” Cabral says.

Efforts at this phase also include a management plan to divert construction waste from landfills to businesses that can recycle this material.

Marketing should also reflect sustainability efforts, and, at MBK Rental Living, it starts during the development and construction phases through communications with local residents and the media, as well as through social media posts and informative construction fence banners that highlight the company’s commitment to sustainable development and guide them to a page online to learn more.

At all communities opening this year and going forward, clear signage at the entrance outlines the company’s sustainability efforts. From there, the leasing office features a dedicated wall highlighting location-specific sustainable features, down to the number of trees planted. And model units include a small handful of plaques noting sustainability features such as low-E windows and low-volatile organic compound (VOC) materials. On move-in day, residents get a welcome gift curated specifically for that location, such as a reusable stainless steel water bottle and a reusable bag or a bamboo cutting board and serving utensils.

The Sustainability Journey: Resident Experience

Besides dozens of features benefiting a resident’s quality of life—from bicycle racks/storage facilities and EV charging stations to low-flow faucets and low-E windows—MBK Rental Living works closely with Greystar Management on day-to-day operations for their communities to ensure sustainability practices integrate into their processes. This includes instructing the porters to use safer cleaning products within amenity spaces and educating renters about composting, recycling, and opportunities to connect with their local communities for cleanups and used-battery drives. “That way, it’s not always just us talking about it, but it’s involving our residents, and it’s involving the community,” Cabral says.

This multiphase approach ensures that residents and potential residents are informed about sustainability efforts throughout their entire journey, from initial awareness to move-in and beyond. “Sustainability is a continuous journey, not a destination, and with the support of our parent company, Mitsui, and our team, we are well positioned to help create a world that we want to live in,” McCarren says. “Keep evaluating your practices, seek new technologies, and strive for continuous improvement.”