FEATURE >>
Investing in your Rental Property Energy audits can provide long-term financial gains by Holly Welles
Utilities are expensive, especially during winter months, when tenants rely on energy the most. In light of Canada’s recent carbon emission tax, electricity will only become more costly with time. Additionally, the uptick in energy consumption adds to the global warming crisis with each passing day. Leased spaces account for 490 million metric tonnes of carbon emissions annually. That’s the air volume equivalent of 245,000 Empire State Buildings. Energy’s impact on the environment — and consumer wallets — has led many property owners to consider conducting audits. These allow them to determine how much their tenants pay for power compared to competing properties. It also enables owners to see why their systems and facilities are losing efficiency and what they might do to fix it. Often, solutions include a renovation and an updated electrical system, resulting in happier tenants and more money in the pockets of property renters. What Do Energy Audits Tell Building Owners? The first step to a comprehensive savings plan is an energy audit. Depending on what kind of review a landowner has, the inspection can include an assessment of the building envelope and heating and cooling systems, as well as upgrade recommendations and data analysis of utility bills and costs. 24 | Canadian Apartment | Part of the REMI Network |
If an owner hires a professional auditor, the level of audit chosen will determine what information they receive. A level one audit is the most affordable and focuses on energy conservation measures that an individual might take at little or no cost. The inspection includes a walk-through of the buildings and an examination of the past year’s utility bills. This type of review can be a good starting point, but a level one audit is typically not extensive for a large apartment complex. A level two, then, may better serve a property owner’s needs as it also identifies energyusing systems and quantifies their power use. The most detailed, however, is a level three audit. This kind will provide the above information as well as specific details concerning a property’s electricity use and an in-depth analysis of each system’s energy use. This level of audit may be best for larger
facilities and property owners with more money to invest in upgrades or improvements. Prioritize Renovations Conducting an audit before beginning renovations is key to prioritizing remodels or improvement projects. Leveraging the data provided by the auditor will allow owners to make the smartest decision regarding what to fix first. Additionally, the choice will be based on necessity rather than aesthetics or intuition. Ultimately, this will result in happier tenants and better savings for both them and their landlords. And once building owners have renovated to improve energy efficiency, they can move on to other improvements that aren’t as pressing. Look for Incentives While planning renovations, it’s essential to search for incentives to minimize costs. Various
