There are things that you can’t control about your tenants. One can only make the best possible rental property, market and screen the best possible tenants, and then hope for the best. Of course, there are things that you can try to anticipate and prepare for, but there will always be unseen and unexpected variables. It is a good rule of thumb, while making the best rental, to make the things that are “out of your control” less of an inconvenience. One of those things, is energy consumption. A primary question on the minds of most prospective tenants is, “How is the unit on energy?” Basically, what can they expect in the way of utility bills. They may not even ask, but do their research and get the information from the utility companies directly.
Energy Hogs
You may be under the impression that how energy consumption is applied in a rental is solely the tenants’ responsibility. Not always. There is the case of furnished units. Although, even if your unit comes unfurnished, it’s good to know what may have a negative impact on your tenant’s bottom line…and, in turn yours. Your bottom line, because if energy efficiency is a known issue for your properties, you may very quickly face an inability to secure and maintain occupancy. Little known and more widely known energy hogs are:
- Ceiling Fans: They may seem like an economic and an aesthetically pleasing addition but they can really tack onto the electricity costs. One is not that costly, but newer homes are beginning to add them in multiple rooms, touting air circulation. There are updated, more efficient alternatives. Experts estimate of savings of 84% if current fans were replaced with the latest cooling alternatives.
- Electronics: What can Mario Brothers or the family microwave really do? Any item that is used frequently and thusly plugged in continuously can add to electricity costs. Microwaves, personal computers and the more widely used (across different formats: movie watching, internet surfing, etc.) video game consoles are a constant drain on electricity. If all of the video game consoles used the best available technology, energy use would be 87% lower.
- Chargers: For every electronic in a home, there is an equally draining charger or power adaptor that goes along with it. Laptops, cellular phones, tablets all have chargers that are usually plugged in all the time, especially given the technology of mobile chargers. These devices continue to draw energy, even when their devices are disconnected as long in the electrical outlet.
What You Can Do
First and foremost, in the renovation process, make your properties as energy efficient as possible. Replace windows, implement Energy Star appliances, and servicing and routinely maintaining HVAC systems should be as big a priority as any cosmetic additions. Be mindful of choices you make that may detrimentally effect the enjoyment of your rental property. Lastly, make disclosures about what could impact utility costs. If certain appliances aren’t included, advise in writing the cost-saving recommendations that were provided above. And, if you install or keep pre-installed ceiling fans, disclose that they are there to defray cooling costs but judicious use is recommended. Keep these things in mind and energy hogs won’t eat away at your profits!
