How Energy Efficiency Can Reduce Void Periods for Landlords
An interesting snippet from recent research shows that home buyers and renters are less interested in fixer-upper properties and more in homes with all the latest modern conveniences. That includes more energy-efficient properties that will save them money on their energy bills and reduce their carbon footprint.
In the UK, rental properties have to be more energy efficient by 2030, and similar rules, or tighter versions of existing legislation, could follow in the US and globally. That’s especially for low-income properties, where “Many residential rental properties serve low-income households and tend to be the worst performing buildings from an energy perspective as well as other measures of housing quality.
In order to protect low-income households from the burden of costs of regulation, and further distortions in the housing market, appropriate financial support must be specifically targeted.” According to An International Review Minimum Energy Standard for Rented Properties
Whatever the property, there are many ways a landlord can make it more energy efficient to attract tenants, reduce void periods and improve the carbon footprint of their business, making it more investable and attractive to renters.
Aiming for Rental Energy Efficiency
The most obvious methods of improving the efficiency of a rental property in the lower-income bracket is to replace lighting and appliances with low-energy models to decrease power consumption, and improving insulation and ventilation through simple low-cost means like ventilation strips, seals and glazing panels to reduce HVAC usage.
Similarly, mold and damp removal efforts can improve the quality of homes and reduce their environmental impact, while making lower-end homes more attractive to renters.
Higher up the rental price bracket, homes and properties can have solar power, heat pumps and other energy saving systems installed. More efficient wall and ceiling insulation can further reduce a property’s heat loss.
Across condos and larger buildings, the cost can be offset among many properties, and the benefits, including on-site storage, can all help improve energy efficiency. And in any type of rental, the use of smart thermostats can help reduce consumption, with automated light switches that turn lighting off in communal areas.
Renting Benefits of Energy Efficiency
Modern renters will look for a minimum energy efficiency standards (MEES) or similar certificate to check that a property is efficient. Landlords can produce these, low-energy appliance paperwork and other indicators that they are making greater efforts in energy efficiency.
These and other methods will help generate demand among tenants, speed up the letting process, and lead to longer tenancies where the tenant is happy is a warm and efficient property.
Should there be a gap or void in rentals, landlords can turn to a “rent guarantee” to generate a guaranteed income during those periods. Working with a property manager, these services can also help deal with the legal costs in evicting tenants, and may cover some costs if there is property damage.
The rent guarantee provides a consistent income, supporting the business and maintaining cash flow, and providing legal protection. All of which adds up a further benefit for renters and landlords.
Landlords can also use these void periods to improve the energy efficiency of a property to make it more desirable to future tenants.
Considering High-End and Future Energy Efficiency Systems
For new-build rental properties, constructors and landlords have the advantage of being able to install smart home energy management systems as part of the build-out to maximize the efficiency of the properties.
These can be augmented by advanced heating, ventilation, and air conditioning (HVAC) solutions that are more precise and valuable, especially in more volatile climates.
Finally, installers can use more energy-efficient and environmentally friendly materials during construction to deliver a leading-class energy efficiency solution for an ultra-modern home.
Conclusion
Whatever the value and type of property, there are many standard and innovative ways to make them more energy efficient. That creates interest in the rental market, and makes them happier homes for the tenants.
As part of broader energy efficiency schemes and in the move to smart towns or cities, more properties will need to meet these standards, and there will be investment opportunities and funding to help landlords meet obligations and improve the quality of rental stock.