Mass Save Program with tenant paying below market rate

[Elena C.]

Hi All,

I am wondering if anyone has used Mass Save for a rental property. We bought a duplex a few months ago and we are living in one unit and renting the other. We inherited the tenant and they are currently paying $500 below market rate. It seems like they are under a discounted rate with Eversource, so we qualify for energy assessment through the fuel assistance program. They just send us an agreement stating that we must not raise rent after the energy audit. More specifically:

"The present rent of $_____ per ____ for the Premises will never be raised because of any increase in the value of the Premises due solely to the energy efficiency work performed under this Agreement.

"The present rent of $____ per ____ for the Premises will not be raised for any Tenant of the Premises for one (1) year after completion of weatherization work performed under this agreement and for two (2) years after completion of any heating system replacement work, both completion dates as certified by ABCD.

I have tried for the last few months to raise my tenant's rent to market rate, but they are just way below and wont pay. They said they will move out when they find a new apartment. I dont think they are actively looking at all. I doubt they could find anything better than they are currently paying since the previous owner of our house did not raise their rent for the past 15 years!

I dont want to lock myself into an agreement that will basically make them stay for another year or two.

The issue is that I am paying for most of the utilities in this house (including the tenant's heating because it is one single heating system). This house is old and extremely inefficient. We paid $250/month in electricity alone. Another $200 in water because we had lead pipe changed to copper and financed it with 0% interest for the next few years. Heating is oil, so that is another $3000-5000 annual expense for oil alone. Gas is about $50-70.

I want to get this house insulated without paying much. Any advice?