Beyond the top criteria – price, health, safety, location and size – there is general parity among most other characteristics tenants look for in rental property. One subject on the rise is energy efficiency, yet in many cases, this topic rarely comes up in landlord-tenant conversations.
Research from Rhode Island Energy shows tenants see value in energy efficiency as a cost-saver and a means of promoting environmental responsibility. Despite this, many tenants surveyed had little awareness of the energy-efficient products that may or may not be in their apartments. Others noted that while they understood the value of energy efficiency, they didn’t feel they were part of the conversation with their landlords.
According to Rhode Island Energy’s research that polled renters and owner/managers (O/Ms) in Rhode Island, one-third of tenants surveyed mentioned they were unaware of possible energy-efficiency upgrades in their apartments. Another 30% were not satisfied with their apartment’s energy efficiency.
It is important to note tenants’ dissatisfaction may result from a lack of awareness of energy-efficiency features. In short, if they don’t know it’s there, how can they see value in it?
Interestingly, seven in 10 O/Ms said they would consider tenant suggestions around upgrades, yet only 13% of tenants indicated they have discussed energy efficiency with their landlords. These results offer owners and managers a unique opportunity.
Develop a collaborative relationship with tenants
Engaging tenants in conversations regarding energy efficiency presents multiple benefits to the owner. More knowledgeable tenants will be better stewards of their living space. Guided by information from their landlord, they can look for ways to improve how they consume energy, ultimately lowering their expenses (and in some cases their landlord’s, too) while building goodwill with the O/M of the property.
Collaborative relationships between O/Ms and tenants can come in many forms. Here are a few ways to implement collaborative relationships without significantly changing your current communications:
- Talk to your tenants. By engaging them in conversations about energy efficiency, they are more likely to take an active role in improving energy efficiency in their living space, which benefits both parties.
- Regularly communicate with tenants regarding upgrades and other measures you are taking to improve building performance, so they know about and value the changes you are making – which they benefit from.
Periodically send tenants helpful information about things they can do to improve energy efficiency. There is plenty of sharable content online, including this series of tips from Rhode Island Energy.
Getting started
Here are some simple, low-cost ways to save money on energy bills, bringing an immediate return on investment. Rhode Island Energy offers incentives and expertise for many of these upgrades:
Use low-flow showerheads: Water usage can be reduced by up to 2 gallons a minute, a savings of approximately 8,212 gallons of water annually and up to $246 per year.
Install smart thermostats: According to the Department of Energy (DOE), heating and cooling costs can be reduced as much as 10% annually by turning back thermostats seven to 10 degrees Fahrenheit from their normal settings for eight hours a day.
Installing a smart thermostat that lowers the setting at night and when no one is home can save approximately $15 a month. Many smart thermostats learn your temperature preferences and establish a schedule that automatically adjusts to energy-saving temperatures when you are asleep or away. Plus, Wi-Fi enabled thermostats allow you to control your home’s heating and cooling remotely through your smartphone.
Care for your natural gas furnace or boiler: Replacing a natural gas furnace or boiler more than 20 years old can be the best way to reduce energy costs. Multifamily units can save approximately $9 a month with a tune-up alone. An older furnace or boiler or any heating system less than 80% efficient is a prime candidate for replacement. By replacing an older heating system with one 90% or more efficient can save you as much as $30 a month.
Invest in insulation: Insulation is another effective way to enhance tenant comfort and reduce vacancy rates. That’s because insulation makes it harder for heat to escape the unit and helps to prevent drafts in the winter. It also can keep an apartment unit cooler in the summer and reduce the likelihood of condensation that could lead to mold or moisture issues. By insulating the walls, ceilings and windows, you can save as much as $16 a month in energy costs.
Utilize advanced power strips: Approximately 5% to 10% of electricity is used by devices that are plugged in but turned off. Computers, televisions, DVD players, modems, cable boxes, cordless phones, radios, printers, chargers and more can consume small volumes of watts when plugged in but not in use. Of course, no one wants to manually unplug electronics every day. Instead, electronics can be “unplugged” with a remote control or “instant on” feature through an advanced power strip. This can save up to $4 a month.
Purchase ENERGY STAR appliances: When purchasing an appliance, there are two costs to consider – the cost of the appliance and the monthly operating cost. While an energy-efficient appliance may cost more upfront, the overall operating savings over the life of the appliance will more than make up for the initial capital expense. When buying new appliances, always choose ENERGY STAR and save $11 to $24 a month for the life of the appliance.
Conclusion
When the timing makes sense, investing in energy-efficiency upgrades at your multifamily property could go a long way toward showing you are listening to your tenants. Strong communication between O/Ms and tenants can also make a big difference in tenant retention.
Rhode Island Energy is here to help. Schedule an energy assessment of your multifamily property by calling 888-633-7947 or visit our website to learn more.