The global movement towards sustainability is gaining momentum as governments worldwide implement regulations to promote reduced energy and carbon consumption. Landlords and property owners, particularly those with multifamily buildings, are confronted with the challenge of decreasing energy usage among tenants. The American Council for an Energy-Efficient Economy (ACEEE) has projected substantial annual savings from the improvement of energy efficiency in multifamily buildings.
One approach to incentivise tenants to reduce energy costs is the incorporation of “green clauses” into leases. Green Lease Leaders have devised a leasing questionnaire to assist landlords in creating green leases, establishing the framework for new residents in terms of their responsibilities and the significance of sustainability.
However, green leases alone may not suffice to enforce energy-saving behaviours. According to Cass McFadden, Vice President and Global Head of Sustainability at Cortland, investment in community solar and technology is imperative. Upgrading units to be more energy-efficient between leases is crucial for achieving energy goals and positioning one’s property as a leader in green initiatives.
Cutting-edge technologies, such as smart thermostats like Google’s Nest thermostat, are being implemented in multifamily buildings. These thermostats enable landlords to regulate temperatures in unoccupied units and connect with utility companies to consume energy when it is most cost-effective and environmentally friendly.
In addition to technology and green leases, education and engagement play vital roles. Landlords can conduct workshops and provide resources to educate tenants about energy-saving practices. Financial incentives, such as rebates or rent discounts for tenants who demonstrate significant reductions in energy use, can motivate residents to adopt energy-efficient habits.
While these initiatives may involve initial costs, they can lead to the avoidance of fines and the attraction of environmentally conscious consumers, ultimately enhancing a property’s profitability and appeal. Through a combination of green leases, advanced technology, education, and financial incentives, the multifamily housing sector can make significant progress in reducing energy consumption and addressing climate change. These efforts not only result in cost savings but also contribute to a healthier planet and a more sustainable future.