Effective Ways to Reduce Utility Costs in Your Rental Property

Smart Meters
Using smart meters provides your tenants with real-time data on their energy usage in a way that keeps them accountable for their energy consumption.

One of the major benefits is the boost in tenant awareness. Since energy consumption is fairly intangible, having a daily breakdown of usage encourages tenants to adopt energy-saving practices. This not only helps keep their bills in check but also lets them budget more accurately. If there’s a sudden spike in energy usage, tenants can quickly identify the cause and make adjustments.

Fortunately, many energy providers offer smart meters at no extra cost. You can arrange for a free installation by simply contacting your supplier, making smart meters an easy, inexpensive way to promote sustainability in your property.

LED Lights & Energy-Efficient Appliances
If you are offering a furnished property, it is worth upgrading to energy-efficient appliances and LED lighting or encouraging tenants to do so if the property is unfurnished. This will be effective in minimising electricity costs in the long run.

LEDs use up to 90% less electricity than traditional incandescent bulbs, which translates to significantly lower energy bills. Additionally, they have a much longer lifespan, meaning they need to be replaced far less frequently. This not only reduces costs but also minimises maintenance needs which is a win-win for both you and your tenants.

Appliances with high energy ratings are another excellent way to reduce electricity use without compromising on quality. Energy-efficient appliances, especially heavy-duty ones like refrigerators, washing machines, and dishwashers, are designed to consume less power, making them cost-effective and sustainable. Since these appliances are used frequently, the savings can add up over time, benefiting both the landlord’s budget and the property’s overall energy efficiency.

Investing in energy-efficient appliances is a great way to appeal to tenants with a high environmental conscience as the property promotes sustainable living.

Thicker Linen Curtains & Blinds

Besides the aesthetic appeal, thick curtains add an extra layer of insulation to your property. This enhances the property’s ability to retain warmth but also leaves the house feeling more cosy, providing additional comfort for your tenants.

Curtains are a great initial investment when preparing your rental property for new tenants. A set of quality curtains will last years and is a budget-friendly way to reduce energy costs incurred in the property.

Changing Showerheads
Another low-cost option for improving your home’s energy efficiency is changing to a water-saving showerhead. These reduce water consumption and the energy to heat the water when showering without affecting the pressure. This is done in such a way that tenants won’t be able to tell the difference tell the difference. 

This simple change will improve the quality of the shower while minimising your overall water and heating expenses.

Double-Glazed Windows

Now, we’re getting to longer-term investments. Double-glazed windows. They aren’t the cheapest way to improve your property’s efficiency, but they are definitely worth the investment for multiple reasons. They don’t just improve energy saving; they enhance soundproofing and reduce condensation, which helps prevent damp and mould build-up.

The process of double-glazing your windows may take some time and may have a higher initial cost than the previous energy-saving suggestions. In the long run, however, they will improve the appeal of your property due to improved safety, insulation and cost reduction.

Draft-Proofing

Draft-proofing your property is another way to insulate the house to ensure optimum efficiency. This is an option that can be done yourself at a low cost or with the assistance of a professional. Sealing gaps between doors, windows, floor gaps, and tiles will help make sure heat does not escape unnecessarily.

This way of reducing heat loss in your home is fairly straightforward and requires only a few hours of effort. This effort won’t go unnoticed, especially in the winter seasons when homes are prone to drafts from outside.

Upgrading to a Condensing Boiler

This is likely to be the most expensive option out of all our suggestions. That said, if you have the means to do so, we recommend upgrading your current boiler system. Many homes are running on old boilers that tend to break down regularly. These constant breakdowns will require a lot in terms of repair costs, as well as this, it can be inconvenient for the tenants living in the property.

Modern boilers are more efficient and will be a worthwhile investment in over time. They are also less likely to break down, and if they do, most will come with a warranty for the first few years. Although they may be costly in the short-term, in the grand scheme, a new boiler will give you peace of mind and provide a better experience for your tenants.

Implementing these suggestions to reduce the utility costs of your property is a great way to improve the value of your rental property on the market. Tenants will enjoy a higher quality living experience, which will improve tenant turnover rate. And with housing regulations changing the EPC requirements for rental properties, you will be more likely to be within the necessary criteria.

Most importantly, your property will become more profitable without you having to raise your rent prices, giving you a competitive advantage over other houses on the market.

Many landlords are unaware of how much utility costs impact the performance of the property portfolio. From tenant satisfaction to unwarranted expenses, it can be easy to neglect the little things that could take your property to the next level.

At Paul Alexander Group, through our guaranteed rent scheme, we partner with landlords looking to make the most out of their property. Our partners benefit from both profit and purpose and we are constantly looking to work with new landlords who may be seeking guidance in hopes of earning consistent return from the rental properties. Get in touch with us and let’s discuss how we can help you take your portfolio to the next level.