If you are a rental property owner in New Jersey, or one of the many other states that have energy affordability programs, you might be able to get hundreds or even thousands of dollars in free upgrades, make your property more valuable, save your tenants money and may even make them happier! (Wow, that sounds like fiction, doesn’t it!)
Low-income tenants present certain challenges to landlords and their properties. Unfortunately, many of these tenants, which may or may not be on some sort of public assistance (SSDI, HUD/Section 8, TRA, etc.) often don’t have a heck of a lot of discretionary income. Although their rent hopefully gets paid on time, utility bills in many parts of the country during the extreme weather months of winter and summer can really make things difficult for them. And, if things become difficult for them, they may also become difficult for you (late rents, complaints, etc.)
So, how can you help, as a landlord? Well, many states have some type of energy affordability program for low-income households. In New Jersey, for example, there is the New Jersey Comfort Partners Program:
“The New Jersey Comfort Partners Program is designed to improve energy affordability for income eligible households. This objective is accomplished through the direct installation of energy efficiency measures, personalized customer energy education and counseling. Participants are asked to partner with the program to develop and carry out a household energy savings Action Plan.
Features and Benefits Program participants receive:
- Direct installation of cost-effective energy efficiency measures in the home (determined on a home-specific basis) which can include: efficient lighting
products; hot water conservation measures (water heater insulation, water heater pipe insulation and energy-saving showerheads and aerators); replacement of inefficient refrigerators; thermostats; insulation upgrades
(attic, wall, etc.); blower-door guided air sealing; duct sealing and repair; heating/cooling equipment maintenance and other dwelling-specific measures;- Comprehensive, personalized energy education and counseling; and account balance reduction for qualified participants who agree to payment plans.
Incentives All efficiency measures and energy education services are provided free of charge.”
In order to be eligible, the tenant must meet the income guideline qualifications, or receive USF, Lifeline and/or Pharmaceutical Assistance to the Aged and Disabled (PAAD). They must also use the home as a primary residence and be the ratepayer of record with the electric or gas utility.
Before New Jersey Comfort Partners would make modifications to your property, they require that a landlord permission form be signed by the owner.
If you think about it, it’s really a win-win-win situation. The tenant learns how to save on energy costs, reduces their utility bills and has a dwelling that has been upgraded for energy efficiency and is, therefore, more comfortable to live in. The property is made more energy efficient at no cost to the tenant or landlord. And, the state is successfully in meeting its program objectives by helping residents save energy, money and the environment!
I know of one property that was upgraded under this program to include new basement windows, a new exhaust fan for the kitchen stove and some insulation enhancements. Once again, at no cost to the owner or tenants.
I recently sent out information on this program to all of my tenants that I thought fit into the low-income guidelines. I explained to them the benefits and provided the program contact numbers. I will keep you posted in future a future blog as to how many of them sign up and the results that were attained.
If you don’t live in New Jersey, there are at least twelve states with similar programs and many others that offer some type of assistance. You may want to do an Internet search for “your state” and “energy affordability program for low-income households” or something of that sort. In fact, if you find your state’s program you can comment about it on this blog, or contact me with the link/phone number and I’ll compile a special page of all the programs and post it on my https://www.managerentalproperty.com/ site as a resource for fellow landlords.
Best regards,
Steven A. Boorstein
Landlord & Author
The Landlord Business Insider