Landlords in the Monadnock region have much to gain by making energy efficiency
improvements to their residential and commercial properties. Even small investments can
have positive returns in revenue, property value, safety and tenant satisfaction.

Here are the most significant reasons why landlords should consider investing in energy
efficiency. Most also apply to developers of rental properties.

  1. Lowering tenants’ energy costs keeps higher rental rates competitive: Smart renters will look at the total cost to live or conduct business in a rental property. Documenting lower heating, cooling and electricity costs gives the landlord room to justify a higher rent as long as the total cost to rent stays competitive.
  2. Energy-efficient properties have higher market value: According to the U.S. Green
    Building Council, green-building certified properties can command as much as a 20%
    premium over those not certified.
  3. Energy efficiency improves your ability to attract and retain tenants: Again, tenants value a landlord’s efforts to keep their operating costs down. Energy efficiency is a goodwill gesture that will help keep the tenant-landlord relationship positive.
  4. Energy efficiency lowers landlords’ maintenance and operating costs: For example, LED bulbs last up to 25 times longer than incandescent bulbs. The current generation of heat pumps requires only filter cleanings a few times a year without the need of a professional service call. For some properties, installation of solar panels can reduce landlords’ electricity bills in cases where electricity is included in the rent.
  5. Favorable financing options might be available for commercial energy-efficiency
    projects:     Some regional financial institutions offer loans at a lower rate for green energy projects. Landlords should check with their lender.

Now let’s review how landlords can begin to achieve them.

Conduct an energy audit of the property: Energy audits are inexpensive and often reveal
problems that are relatively easy to fix with noticeable benefit — for example, drafty doors in need of seal replacement, inadequate insulation that needs supplementing, or inefficient lighting that should be swapped out. An audit will also identify bigger issues that might not make financial or practical sense to address now but can be put on a longer-term maintenance schedule. Landlords can also take advantage of the NH Saves program
(www.NHSaves.com), which offers funding for efficiency upgrades.

Install smart thermostats: No matter what type of heating and cooling system is in place, a smart thermostat gives the tenant the ability to use it more efficiently. It allows them to
program times to lower usage when heating or cooling is needed less.

Replace older heating and cooling systems with heat pumps: Heat pumps are by far the most efficient way to heat and cool a building, even in New England weather. They are fast becoming the HVAC system of choice in the U.S. Heat pumps outsold gas-fired furnaces by 32% in 2024 and oil-fired furnaces by 13,624% according to the Air-Conditioning, Heating, and Refrigeration Institute. A major regional HVAC installer told me that they rarely replace oil furnaces with another oil furnace.

Installation, however, requires project and financial planning. If the property has an HVAC
system nearing the end of its life, the landlord should do research now to determine if a heat pump system is the right replacement, taking long-term operating costs into consideration. Waiting until the old system breaks down will limit options.

Use window-mount heat pumps for problem heating/cooling areas: The Monadnock region is full of apartments and businesses in older buildings, many of which have HVAC
systems that perform poorly in parts of those properties. Window-mount heat pumps are
cheaper and safer than an AC/space heater combination to maintain temperature in problem areas.

Replace appliances with more energy-efficient models: Landlords will eventually need to replace appliances for their tenants, so they should consider energy-efficient options.
Induction stoves, for instance, are 10% to 15% more efficient than electric resistance stoves, don’t produce the indoor pollution that gas stoves do, and they have the bonus of reducing fire hazards. Always consider an appliance’s energy ratings when buying a replacement.

Consider installing solar panels: Solar panels won’t work for every property, depending on its structure and location, but they can provide significant long-term benefits to landlords, especially those who include electricity costs in the rent. Solar panels also add between 5% and 10% to the value of a property, according to multiple sources.

Keep a regular maintenance schedule for heating and cooling systems: Every type of
HVAC system will work more efficiently if it is well-maintained. Most landlords already have a regular maintenance schedule in place, but it’s too important a task to leave off this list.

Consider installing EV chargers: On the residential side, EV chargers might be a
worthwhile perk to attract renters of multi-unit apartment properties. On the commercial side, studies show that EV chargers can boost business as EV drivers shop or dine while they wait for their cars to charge.

Focusing on energy efficiency is really about improving both the landlord and tenant
experience by lowering costs and improving the performance of key systems. That will go a long way to attracting and keeping tenants.