The ACT is unique in Australia for having mandatory energy efficiency ratings disclosures for all properties, so tenants have a lot of information at their fingertips when it comes to seeing how much a home could cost them to run.
There’s also a payoff for landlords though, according to the University of Melbourne. A recent study found that the more energy-efficient a property is, the greater its sale price. Those with a five-star rating, for example, sold for 2 per cent above similar properties with only average energy efficiency. Those at the other end of the scale were selling at a discount, with zero-star homes losing 2.8 per cent in sale value.
Landlords that are looking to move up these energy efficiency ratings to improve the value of their property have quite a few options. Thermal insulation is a great start, as are energy-efficient appliances.
It’s also worth thinking about where heat might be lost from a property before embarking on larger renovation work. If you’re installing new doors in a property, for example, choosing air-tight ones can make a big difference.
Even if selling your property isn’t a priority in the next few years, making these improvements may let you command a higher rental return, especially as tenants will be saving money on their utilities throughout the cold Canberra winter months.