Energy efficiency improvements can significantly lower your rental property's energy bills and enhance the living environment for your tenants in various ways. Technology and energy-efficient practices can help you achieve this, and there are a few straightforward methods to begin with.
Assess Your Energy Consumption
Before devising solutions, you need to identify areas for improvement. Analyze your energy bills and conduct energy audits to identify inefficiencies and measures to resolve them. For instance, an audit can show how long lights, heating, and cooling systems are kept on.
The simplest solution is to make behavior changes to save energy for both you and your tenants. However, you can also make upgrades to exponentially improve energy efficiency in your rental properties and reduce energy usage.
Ways to Maximize Energy Efficiency for Your Rental Property
Upgrading to Energy Efficient Appliances
Technological advancements in the appliance industry have offered energy-efficient dishwashers, refrigerators, washers, and more. Look for Energy Star-certified appliances, which usually exceed minimum efficiency standards. This can even help you attract environmentally conscious tenants.
Installing Energy-Efficient Lighting
You can also reduce energy costs by installing energy-efficient lights, such as long-lasting LED bulbs or smart lights that allow you to schedule their turn-on and turn-off. It's a small change, but it effectively impacts your utility bills and reduces operating costs.
Sealing Air Leaks
Improving the insulation of your rental property can significantly reduce energy consumption from your heating and cooling systems. Warm or cold air stays in, which means tenants won't have to use the HVAC system as intensively. You can achieve this by sealing your door and window frames and installing proper insulation inside the walls.
Integrating Smart Home Features
Rental property owners are turning to smart home technology to increase energy efficiency. Some technologies can document energy consumption and automate its usage to maximize energy efficiency. You can add smart home tech to your rental property, such as:
- Smart thermostat
- Smart hub
- Smart light bulbs
- Smart power strips
- Smart plugs
- Smart appliances
Maintaining Your HVAC System Regularly
Regular maintenance of your HVAC system ensures optimal performance, prevents breakdowns, and reduces potential repair costs. You can do this by cleaning out filters or replacing them when needed, among other things. However, it's best to hire a professional to do the cleaning to avoid unwanted damage or ineffective maintenance.
Installing Solar Panels
Energy-efficient practices aren't the only ways you can reduce utility bills. You can also rely on solar power as an alternative energy source. It might be a heavy initial investment, but will pay off in the long run. You can install them on the roof for maximum exposure to light, but you can also opt for placing them on vacant plots of land.
Educating Tenants on Energy Efficiency
While energy efficiency upgrades can significantly benefit your rental property, educating your tenants on best practices can further enhance energy savings. This not only helps reduce their carbon footprints but also results in lower utility bills and long-term savings.
Taking Advantage of Landscaping
You can increase energy efficiency by planting trees and shrubs that can serve as shade. The plants can reduce heat absorption. While the purpose can be energy efficiency in your rental, it could also improve your property's curb appeal. You can plant drought-resistant plants to reduce water usage and save money.
Benefits of Energy Efficiency in Rental Properties
Reduce Operating Costs: The most obvious perk of energy efficiency in your rental is reducing utility costs. This is especially true for multifamily buildings, where expenses can be reduced exponentially, even just considering cooling costs.
Attract Tenants: To expand your tenant pool, you can appeal to eco-friendly tenants who prefer energy-efficient rental properties. Include this detail in your listings to find more prospective tenants.
Increase Rental Rates: These upgrades can help you command higher rental rates from your tenants for the benefits and added furnishings.
Add Property Value: Energy-efficient improvements, whether simple upgrades or major renovations, can increase your property value. This will benefit you when you sell your rental property or increase your rent price.
Contribute to Energy Conservation: It might not be affecting your business directly, but you will be contributing to reducing energy consumption. Your impact can be more substantial by using solar panels for clean energy.
Costs and Maintenance
Certain upgrades and actions, like preventing air leaks in your rental property, don't necessitate ongoing property management. While options such as installing solar panels and smart thermostats may have high initial costs, they will prove beneficial over time.
To ensure these upgrades remain effective, you must perform regular maintenance. For example, it’s important to check smart appliances to confirm they function properly. Additionally, regular inspections of the HVAC system are essential to your overall property management duties.
To learn whether they're worth the investment, simply calculate the potential cost you'll put down for the measures and subtract it from the potential cost savings by reducing your energy bills.
Let Us Take Care of It for You
Between the day-to-day operations and regular maintenance to ensure that your upgrades are always in good condition, it can be a lot to take on and is understandably overwhelming. Many landlords hire professionals to handle their rental business and meet their desired energy efficiency standards.
Green Tree Property Management has the resources and expertise to navigate the complexities of energy efficiency and managing a rental property. We aim to maximize the value of your investment property.
Let's discuss how we can make that happen for you. Schedule a free consultation now!
