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Updated over 3 years ago,
Energy Efficiency for Rental Unit
Hello,
I have to replace a furnace for a rental property that gave out this winter (it was 30+ years old). I'm very into green energy and was looking for energy efficiency options, such as a Combi unit that also does hot water. However all quotes for these come in at an additional 4000+. Even replacing the furnace with another furnace but using a higher efficiency models costs a lot more.
Since my tenant pays the energy costs, it doesn't make financial sense for me to choose energy efficient units since I'll never recover the costs. And it's not like I can charge higher rent than the market, since tenants generally don't even have an idea of the various HVAC options.
The government gives incentives but generally none for rental properties and even if they did, the math would not work out. Basically, it seems like there is no incentive for landlords to improve energy efficiency on their properties and I feel that is a giant flaw in the market. Btw, same argument applies for solar.
Thanks!