One of the greatest expenses that landlords face is the cost of utilities. Even with tenants paying for heat, water, and electricity,\u00a0common area\u00a0utilities are likely still a considerable drain on your monthly income, especially if you have vacancies. The good news is that landlords have a myriad of options when it comes to reducing their utility costs. All it takes is a little bit of ingenuity.<\/p>\n
We\u2019ve broken down each of our 8 recommendations for reducing utility expenses into 3 sections. The first provides a general explanation of the method, how it will reduce utility costs, and how it might work for your business. The next section provides a step-by-step process of how you can go about implementing the method, and the last section lays out what you can save. This final section is divided into what it\u2019ll cost you to carry out the method and what you stand to save. These sections will allow you to determine which of these ways of reducing the cost of utilities make the most sense for you and your business.<\/p>\n
As we\u2019ve discussed in previous sections, investing in green\u00a0appliances\u00a0and creating a more energy-efficient property has many benefits \u2014 one of which is lower utility bills. Landlords have plenty of options when it comes to green appliances, especially as we continue to see the market grow. It doesn\u2019t take much searching to find such appliances; just look for the Energy Star mark when shopping. Landlords can potentially replace dishwashers, washers and dryers, refrigerators, and more. We recommend easing into the world of eco-friendly appliances. There is no need to rip out your current appliances that are still in good working order. Instead, consider upgrading appliances that already need replacing with greener alternatives.<\/p>\n
Although there will be an up-front cost for going green, it will be worth it for you and your tenants in the end. Not only will you see lower utility costs, you\u2019ll also be able to use your green appliances as a marketing tool to attract prospective tenants. What\u2019s more, you\u2019ll be able to increase the property\u2019s rent\u00a0as a result of\u00a0upgrading to better appliances.<\/p>\n
Up-front cost:<\/strong>\u00a0$300-500 per appliance.<\/p>\n Potential savings:<\/strong>\u00a0Up to 30% of yearly energy bills.<\/p>\n The older your property is, the more likely your windows are allowing heat to escape during the winter. This requires tenants to turn up the heat, leading to greater costs for both of you. The good news is that you have a few options when it comes to insulating windows, all of which are inexpensive.<\/p>\n Windows can be insulating using plastic liners that minimize draft and reduce loss of heat through gaps. These plastic liners are only a few dollars each and take minutes to install. You can also buy specialty drapes that minimize draft, trapping in the heat. These come at a slightly higher cost, but still won\u2019t break the bank. Additionally, you can choose to combine these two methods for maximum draft prevention.<\/p>\n Up-front cost:<\/strong>\u00a0$4-5 per window insulation kit; $15-30 per draft prevention drapery per window.<\/p>\n Potential savings:<\/strong>\u00a0Up to $100 each winter.<\/p>\n Energy Star<\/a>\u00a0recommends changing your air filter at least every three months. This may seem excessive, but it\u2019s a quick switch that has a demonstrable impact on both air quality and the efficiency of your heating and cooling sources. Dirty filters reduce the amount of air that can get through, thereby reducing efficiency, jacking up heating bills, and creating lasting damage to your heating system. These effects are intensified during the winter months when your system sustains greater use, as well as if your tenants have pets \u2014 their dandruff will only cause further wear.<\/p>\n Up-front cost:<\/strong>\u00a0$5-10 per filter.<\/p>\n Potential savings:<\/strong>\u00a02%-7.5% of monthly energy bill.<\/p>\n Although buying the cheap, store-brand light bulbs may be tempting, spending a little bit more will save you money in the long run. Energy-efficient light bulbs \u2014 halogen\u00a0incandescents, LEDs, and CFLs \u2014 can greatly reduce your energy costs. These bulbs also last longer than traditional light bulbs, meaning you\u2019ll spend less on replacements overtime.<\/p>\n Up-front cost:<\/strong>\u00a0$3-10 per light bulb.<\/p>\n Potential savings:<\/strong>\u00a025%-80% of the energy cost for using traditional bulbs.<\/p>\n Electric heating is the most common form in the United States, but it is also one of the least efficient. As\u00a0Energy.gov<\/a>\u00a0notes, \u201cMost electricity is produced from coal, gas, or oil generators that convert only about 30% of the fuel\u2019s energy into electricity.\u201d Making a switch to a more efficient heat source can make a massive impact on your energy costs. One alternative is combustion appliances \u2014 on-site natural gas, propane, and oil furnaces \u2014 but these come with drawbacks. Your best bet is to go with modern alternatives like geothermal and solar energy.<\/p>\n Although investing in more efficient heating options comes with an up-front cost, you\u2019ll save thousands overtime. Not only will your energy bills decrease dramatically, you will also be able to sell your excess energy back to the grid, opening a new stream of revenue.<\/p>\n Up-front cost:<\/strong>\u00a0$10-15k after tax credits.<\/p>\n Potential savings:<\/strong>\u00a0$600-1,500 per year.<\/p>\n One of the greatest ways to reduce energy costs is to utilize shady landscaping.\u00a0Energy.gov<\/a>\u00a0claimed that neighborhoods with adequate shading experience temperatures of up to 6 degrees cooler than unshaded areas. Implementing trees, bushes, and other landscaping features that provide shade will demonstrably lower your costs of cooling. The fact that updating landscaping increases curb appeal is just\u00a0an added bonus.<\/p>\n Up-front cost:<\/strong>\u00a0$50-200 per tree.<\/p>\n Potential savings:<\/strong>\u00a0Up to 25% of your summer cooling bills.<\/p>\n Typical water heaters come with a default setting of 140 degrees\u00a0fahrenheit. Do you take\u00a0140 degree\u00a0showers? Your answer is more than likely \u201cno.\u201d You can turn your water heater down to as low as 100 degrees\u00a0fahrenheit, and it will go mostly undetected. This will drastically cut down your energy bills, and it costs you nothing to do.<\/p>\n Up-front cost:<\/strong>\u00a0$0<\/p>\n Potential savings:<\/strong>\u00a03%-5% of energy bill per 10 degrees\u00a0fahrenheit\u00a0dropped.<\/p>\n A great way to reduce your monthly energy bill is to insulate your water heater with a heater blanket. They are relatively inexpensive and help hold in the heat, thereby requiring less energy. Water heater blankets extend your heater\u2019s life, reduce energy costs, and\u00a0are considered to be\u00a0eco friendly.<\/p>\n Up-front cost:<\/strong>\u00a0$20-30 per blanket.<\/p>\n Potential savings:<\/strong>\u00a0$30-60 per year<\/p>\n Lowering the amount of\u00a0money\u00a0you pay to utilities providers isn\u2019t just about going green, it\u2019s about\u00a0making more revenue<\/a>\u00a0too. A small investment here and there can save you significant chunks of change in the long run. You can also save your tenants some money if they\u2019re paying for any utilities themselves. Don\u2019t be afraid to market this as an upgraded feature. Let your\u00a0renter\u2019s\u00a0know that you\u2019re conscientious of their spending and you\u2019ll be rewarded with better tenants willing to pay more in rent. All-in-all, reducing utility costs is a smart investment for any landlord.<\/p>\n <\/p>\n 8 Ways Landlords Can Lower Utility Costs<\/a><\/p><\/blockquote>\nInsulate Windows<\/h2>\n
How insulating windows reduces utility costs:<\/h3>\n
How to begin insulating windows:<\/h3>\n
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What you will save:<\/h3>\n
Change Air Filters<\/h2>\n
How changing air filters reduces utility costs:<\/h3>\n
How to begin changing air filters:<\/h3>\n
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What you will save:<\/h3>\n
Change Light Bulbs<\/h2>\n
How changing light bulbs reduces utility costs:<\/h3>\n
How to begin changing light bulbs:<\/h3>\n
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What you will save:<\/h3>\n
Avoid Heating Devices That Use Electricity\u00a0Or\u00a0Heating Oil<\/h2>\n
How avoiding heating devices that use electricity or heating oil reduces utility costs:<\/h3>\n
How to avoid such heating devices:<\/h3>\n
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What you will save:<\/h3>\n
Use Shady Landscaping<\/h2>\n
How using shady landscaping reduces utility costs:<\/h3>\n
How to begin using shady landscaping:<\/h3>\n
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What you will save:<\/h3>\n
Change\/Lower Water Heater Settings<\/h2>\n
How changing\/lowering water heater settings reduces utility costs:<\/h3>\n
How to begin changing\/lowering water heater settings:<\/h3>\n
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What you will save:<\/h3>\n
Use A Water Heater Blanket<\/h2>\n
How using a water heater blanket reduces utility costs:<\/h3>\n
How to begin using a water heater blanket:<\/h3>\n
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What you will save:<\/h3>\n
Conclusion<\/h2>\n