Five Ways Tenants and Landlords Benefit from Energy Efficiency

Woman on tablet controlling smart thermostat

Smart thermostats are quickly becoming a standard appliance in single family homes but their adoption in multifamily properties has not been as rapid. This is largely because smart thermostats are more expensive than their standard counterparts, and the energy bill savings they bring in are passed on to the tenant.

Despite the lack of direct cost savings to the landlord or property manager, there are compelling reasons for multifamily property owners and managers to invest in smart thermostats for their common spaces and individual units.

Premium amenities and new technologies attract and retain tenants

Tenants decide where to live based on a variety of factors and one of them is the amenities offered by the community or building. Smart thermostats are a premium amenity, and they demonstrate management’s interest in staying current on the newest technologies to provide convenience and comfort to the occupants. When it comes to a decision between two similar buildings, a smart thermostat could easily be the feature that tips the scales in favor of your building over that of a competitor.

Comfortable tenants are happy tenants

As people spend more time in their apartments due to increased work-from-home opportunities and limited social interaction due to the ongoing pandemic, comfort and convenience in their apartments are all the more important. According to Buildium’s 2021 Renter’s Report, renters care more about the comfort and utility of their individual units than they have in the past. Smart thermostats make it easy for tenants to keep their unit comfortable without having to manually adjust the thermostat throughout the day.

Sustainability matters

Sustainability is important to Americans. The CGS 2019 Sustainability Survey found that more than two-thirds of Americans consider sustainability when making a purchase and that they are willing to pay more for sustainable products. California-based Genomatica’s 2020 survey found that 85% of Americans think about sustainability the same amount or more during the COVID-19 pandemic. These attitudes toward sustainability are reflected in renter’s attitudes toward their apartments and communities. Buildium’s 2021 Renter’s Report showed a 4% increase in the number of respondents who prioritized an energy-efficient property over the 2019 report.

Smart thermostats are one of the most affordable energy-efficient upgrades that can be made to a unit or building. They are easy to install and come at a relatively low price point compared to other efficient equipment. This makes smart thermostats an attractive way to score higher on sustainability without a large upfront investment.

Save money

While it is true that the monthly energy bill savings that smart thermostats deliver are typically realized by the tenant, there are two ways that smart thermostats save the landlord money. Firstly, smart thermostats can be installed in common areas and reduce the energy bill for the building. Lobbies, fitness rooms, and laundry rooms are areas that can remain largely unoccupied, especially overnight or during the workday. A smart thermostat will learn the patterns of your tenants and increase or reduce the temperature depending on the season enabling your building to use less energy heating or cooling the space when it is not in use.

The second way that smart thermostats can save landlords and property managers money is in the up-front cost of the unit. While smart thermostats tend to be sold at a premium to their standard counterparts, utility program incentives can even the playing field and, in some cases, make a smart thermostat cheaper than a standard one. For example, the Multifamily Energy Savings Program partners with PG&E multifamily customers to offer a $50 rebate for each smart thermostat installed in a property*. Most utilities offer some sort of incentive for smart thermostats so check the website for your local utility to find out if it makes a smart thermostat a more attractive purchase for your building. Visit www.MultifamilyESP.com to learn more about this program.

*rebate subject to change

Posted April 29th, 2022