Utility bills are climbing across the U.S., and it’s hitting hard—40% of people have had to skip essentials just to keep the lights on, according to a recent survey. For renters and buyers alike, a home’s running costs are now a top priority. Energy-efficient properties aren’t just nice-to-haves; they’re in high demand.
As a rental property owner, making your units energy-efficient isn’t just smart—it’s a competitive edge. Lower energy bills mean happier tenants, faster occupancy, and steadier income. Here are seven practical techniques to tighten up your properties’ energy use and keep those bills in check.
1. Get an External Energy Audit
Start with a pro. Hire a certified inspector to audit each property in your portfolio. They’ll dig into insulation, heating systems, windows, and energy hogs, then analyze usage patterns and bills. Angi pegs the average cost at $436—a small price for expert insight.
The payoff? Tailored fixes for your home’s weak spots, plus potential savings predictions if they run an energy simulation. Keep their contact handy (digital or old-school) for regular check-ins. Bonus: The Inflation Reduction Act might cover 30% of the cost, up to $150 per year.
2. Seal Those Air Leaks
Air sealing plugs gaps around windows, doors, walls, and attics with caulk, weatherstripping, or foam. These leaks let heated or cooled air slip out, forcing systems to overwork and spiking bills. The U.S. Department of Energy says sealing can cut energy costs by up to 20%—even more in older rentals.
Don’t assume insulation alone does the trick—it doesn’t stop air leaks. Seal first, then insulate, to max out efficiency.
3. Upgrade to Smart Thermostats
Swap out old thermostats for smart ones during your next reno. These Wi-Fi-connected gadgets let tenants tweak temps from their phones and learn schedules to adjust automatically—cooling off when no one’s home. Some even pull weather data for smarter tweaks.
Tenants get usage reports to spot savings, and you get a selling point: effortless comfort with lower bills.
4. Invest in Energy-Star Appliances
ENERGY-STAR-rated appliances—like fridges, washers, or AC units—slash energy use without skimping on performance. Certified by the EPA, they cut bills, last longer, and shrink your carbon footprint. Tenants save money, you save on replacements, and the planet wins. Highlight these in your listings—they’re a tenant magnet.
5. Hang Thicker Curtains
Low-tech can still pack a punch. Thick curtains bolster insulation by trapping heat in winter and blocking sun in summer, easing the load on HVAC systems. It’s a cheap, simple fix that keeps energy costs down without any rewiring.
6. Switch to LED Bulbs
Ditch incandescent bulbs for LEDs—they use 75-90% less energy and turn most of it into light, not heat. A 5W LED replacing a 50W halogen? That’s a 90% drop in usage. Plus, LEDs last way longer, making them a cost-saver over time. Swap them in, and watch the bills shrink.
7. Insulate Smartly (and Beyond the Basics)
Insulation’s a given, but are you doing it right? Start with the attic or ceiling—heat rises, and a solid barrier there cuts losses year-round. The Department of Energy calls this the top spot for savings.
Don’t stop at living spaces. Insulate garages, upgrade outdoor lighting to LEDs, and boost ventilation in non-home areas. Yes, it bumps up initial costs, but the long-term savings are real.
The Long Game Pays Off
Going energy-efficient takes time and upfront cash—especially for older properties. But you’re in rentals for the long haul, right? That mindset pays dividends here. Lower tenant bills mean higher occupancy and steady revenue. Plus, you’re future-proofing your portfolio in a market that craves sustainability.
Ready to cut costs and boost appeal? Start with an audit, seal some leaks, and let these upgrades work their magic.
