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Utility bills continue to grow in the U.S., with some states seeing more increases than others. Indiana, for instance, has grown by 33% between 2012 and 2022, far from the national average of 19%.
Energy consumption is unavoidable, and the best way to reduce utility bills is to use energy efficiently. For property owners, a couple of energy-efficient upgrades for rental properties can be worth the investment.
How You Can Reduce Energy Consumption
Insulate Your Rental Property
Insulation helps the rental unit retain its heat or cool air temperature. Use proper insulation in your walls, attics, and floors to reduce HVAC system use and create a more sustainable living environment for your tenants.
Seal Windows and Doors
Proper insulation would be useless if you didn't seal your windows and doors. Sealing the gaps is among the simplest energy-saving practices since it can be a DIY project. Just use weather stripping or caulk to seal the gaps, and you're all good.
Install Smart Thermostats
A smart thermostat is a highly sought-after amenity that can help you automate energy efficiency measures. You can control it remotely and schedule when the heating and cooling systems should adjust. This can reduce energy consumption, as the thermostat does all the adjusting for the tenant.
Add Renewable Energy Systems
The installation of solar panels has grown exponentially in Indiana because many understand how the energy efficiency upgrade can provide long-term benefits. Residential rental properties continue to incorporate renewable energy sources not only for sustainable practices but also for substantial cost savings.
Use Energy-Efficient Appliances
Energy-efficient appliances consume less energy than other models, which can help reduce energy costs for heavy appliances like refrigerators and washers. When purchasing appliances, look for an Energy Star label to ensure energy efficiency.
Switch to LED Lighting
Shifting to energy-efficient lighting won't have the most impact, but it will help you save energy. Replace incandescent or CFL bulbs with energy-efficient LED lights. They last up to 25 times longer and use about 90% less energy.
Benefits of Energy Efficiency Upgrades
Energy efficiency improvements for rental properties may require an expensive initial investment, but they lower operating costs over time. Cheaper utility costs aren't the only benefit.
- Better Tenant Retention: Eco-conscious tenants with specific efficiency standards will want to stay longer if the property operates to their liking. Increased tenant satisfaction could also reduce operating costs, such as tenant turnover.
- Higher Property Value: Properties with energy-efficient appliances and renewable energy sources have higher value since these features are in demand.
- Better for the Environment: Landlords and tenants alike can appreciate that improving energy efficiency benefits our environment. The less energy you use, the fewer greenhouse gas emissions you make.
- More Comfortable Living Environment: If the rental property is cozy and comfortable, tenants will be encouraged to renew their leases. This alone is reason enough to prioritize energy efficiency.
How to Monitor Your Energy Usage
To learn whether your rental property's overall energy efficiency is actually leading to cost savings, you must first calculate your energy conservation and whether they are actually lowering utility bills.
Some utility companies offer free energy assessments, which can help landlords monitor their energy usage. You could also opt for smart meters or energy monitors to calculate your immediate savings.
To monitor appliances individually, such as refrigerators, TVs, dishwashers, and more, you can purchase smart plugs that track energy consumption and send the data to your smartphone via apps.
What Are the Key Components of Energy Usage?
Heating and Cooling Systems
These can be the biggest energy consumers, especially in extreme climates. Upgrading insulation and maintaining your HVAC systems can help lower utility bills. Door and window sealing, proper insulation, and maintained HVAC systems are your best bet for energy efficiency.
Water Heating
Monitoring your water usage to reduce bills is not enough. You should also account for heating for showers, sinks, dishwashers, laundry facilities, and more.
Lighting
The type, quantity, and usage of light fixtures can affect your overall consumption. While more light fixtures may make your rental property look more aesthetically pleasing and increase tenant satisfaction, they will also exponentially increase your energy bills.
Insulation
As mentioned before, proper insulation keeps your property cooler or warmer much longer, which means your tenants won't have to use the HVAC system as much, allowing them to save money.
Electronics and Appliances
TVs, computers, gaming consoles, routers, and many other electronic devices contribute to high energy usage, not just your essential appliances. While the only way to reduce energy consumption for electronics is by minimizing use, Energy Star appliances are more efficient.
Tenant Behavior
Frequent usage plays a huge part in how much energy is used in your rental property, along with negligent habits like leaving the lights on when not needed. Teaching your tenants about energy loss and usage can significantly help you lower bills.
Rental Property Energy Efficiency FAQs
What are the most cost-effective energy efficiency upgrades for rental properties?
- Some of the most affordable and impactful upgrades include adding insulation, sealing windows and doors, switching to LED lighting, and installing smart thermostats. These improvements help reduce energy use and attract tenants.
How do energy-efficient upgrades affect property value and tenant retention?
- Energy-efficient properties are more appealing to eco-conscious tenants and can lead to better tenant retention, as they offer lower utility bills and a more comfortable living environment.
How can landlords monitor energy consumption in their rental units?
- Landlords can track energy use through smart meters, energy monitoring apps, or utility-provided energy assessments. Smart plugs can also help measure the consumption of individual appliances and electronics.
Let CRM Properties Do The Work
Professional property management can be the greatest tool in your arsenal regarding energy efficiency. Companies like CRM Properties can advise you about measures and practices and maintain your rental property to ensure everything runs smoothly.
Upgrading your investment property for energy efficiency is just one step to making it as profitable as possible, and we can help you maximize its potential.
Contact us today to learn more about our services and why many landlords prefer professional property management.