Valuation of Energy Efficient Investments by Duluth Landlords and Tenants

Abstract

The purpose of this study is to build upon the findings from the BBER’s 2016 study, expand the knowledge base related to the split incentive and its impact on student renters, and address the proposed adjustments to the previous research. Specifically, this investigation addressed the following research questions:

1. Are renters willing to pay more in rent for energy efficient upgrades to be installed in their rental property? 2. What monetary value do renters place on a monthly savings in utility payments? 3. Is there a significant difference between student and non-student renters in these two areas (willingness to pay and value placed on utility savings)? 4. What are landlords willing to pay for various energy efficient upgrades? 5. What portion of the cost for various energy efficient upgrades are landlords willing to pay themselves, and what portion would they expect to pass on to renters? 6. Are there any social or demographic factors that influence renter and/or landlord behaviors in this area?