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Energy-Efficient Improvements for Rental Properties

It can be a challenge to make rental properties more energy efficient, from high utility bills to tenants who may not consider saving energy a priority. But improving the energy efficiency of a rental property doesn’t have to mean choosing between expensive updates and skyrocketing bills.

Here are some changes you can make to your rental property to start saving money right away on energy bills while also improving the property and the environment.

1. Update Furniture and Appliances

Older appliances and furniture can use more energy than their newer counterparts. Start by replacing any old furniture with more energy-efficient furniture. You can also switch out any existing appliances in the rental property for newer, more energy-efficient models.

2. Add Insulation

Insulation is one of the best ways to make a rental property more energy efficient. Adding insulation to the attic, walls, basements and exterior surfaces will all help contain the temperature in the home and decrease the amount of energy needed to heat or cool it.

3. Install Energy-Saving Features

There are some relatively simple additions that will help you save energy and money. Installing a programmable thermostat will make it easier to regulate the temperature in the home and maintain an energy-efficient environment without compromising on comfort. You can also add motion sensors or dimmers to lighting in common areas to reduce energy consumption.

4. Monitor Water Usage

Monitoring water usage and making sure it is as efficient as possible is key to saving energy in a rental property. Check with your local water supplier for ways to reduce water usage. Installing low-flow showerheads and water-saving toilets and faucets are simple ways to reduce water usage without having to sacrifice quality.

5. Utilize the Sunlight

One of the most efficient and cost-effective ways to improve the energy efficiency of a rental property is to take advantage of the sunlight available. Installing skylights, high windows, and strategically placed mirrors can all be used to bring natural sunlight into dark rooms and help reduce the need for artificial light, which adds to the energy bills.

6. Consider Renewable Energy

Adding renewable energy sources such as solar panels and wind turbines can be an effective way to reduce energy costs in a rental property. These renewable energy sources are easy to install and can help reduce energy bills while also helping to reduce the rental property’s carbon footprint.

7. Choose Eco-Friendly Materials

Replacing older materials with more eco-friendly options when necessary can help improve the energy efficiency of a rental property. Choose materials that are made with renewable resources such as bamboo or cork, which can be used for flooring, and look for products that are certified as energy star.

8. Improve Ventilation

Improving the ventilation in a rental property will help keep the air circulating to help keep temperatures comfortable and reduce energy costs. Installing exhaust fans in key areas such as the kitchen and bathrooms can help remove moisture and increase air circulation, while adding insulation and weatherstripping to doors and windows can help contain air inside the property.

9. Go Green with Landscaping

Landscaping can be a great way to improve the energy efficiency of a rental property while also making a good first impression on tenants. Planting trees and shrubs around the property can provide natural shade and insulation to help keep the temperature comfortable. You can also switch out any non-native plants for those that are indigenous to the area to help reduce water usage and the need for artificial fertilizers.

Making a rental property more energy efficient is a great way to save money on energy bills while also reducing your environmental impact. With these tips, you can make sure your rental property is up to date and efficiently managed for today’s climate.


There are many ways to increase energy efficiency in rental properties, and these are just a few. From swapping out old appliances and furniture for more energy-efficient models, to investing in renewable energy sources, there’s something for everyone when it comes to Energy-Efficient Improvements for Rental Properties. Adding insulation and improving ventilation can help keep the property comfortable while also reducing energy costs. Lastly, using eco-friendly materials and landscaping can help save money while also making the property a more attractive place to live.

No matter the size or scope of the rental property, making energy-efficient improvements can help save money and reduce environmental costs. What changes will you make to ensure your rental property is as energy efficient as possible?

What tax benefits are available for energy-efficient improvements to rental properties?

The primary tax incentive for energy-efficient improvements to rental properties is an energy tax credit. This credit offers up to $500 for homeowners who make energy-saving improvements to their rental properties, such as installing storm windows, insulation, or energy-efficient heating and cooling systems. Depending on the nature of the improvements, the amount of the tax credit will vary. Other tax benefits may be available depending on the state in which the rental property is located. It’s important to check with local tax authorities for more information and specific details about the available energy efficiency tax benefits.

What types of energy-efficient improvements qualify for tax credits for rental properties?

• ENERGY STAR-rated windows

• ENERGY STAR-rated doors

• Insulation

• Roofing materials

• Non-solar water heaters

• HVAC systems

• Radiant barriers

• Advanced main air circulating fans

• Solar water heaters

• Geothermal heat pumps

• Small wind turbines

• Energy-efficient appliances (refrigerators, dishwashers, washing machines, etc.)

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