Return on energy efficiency investments in rental properties

June 22, 2018
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Generally, residential tenants do not invest in energy efficiency, as the upkeep of rental properties is usually the landlord’s responsibility. This research, which is based on a survey of tenants, finds that up to half of rental tenants are willing to pay more for properties with higher levels of energy efficiency. Of rental tenants willing to pay for better energy efficiency, on average they are willing to pay €38 per month extra in rent for a 1-grade improvement in the 15-grade Building Energy Rating (BER) scale for their existing rental properties. How much extra rent tenants are willing to pay varies across a number of circumstances but the factor that had the largest impact is information; information related to BER ratings and the potential savings in energy costs associated with better BER grades.