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$group = "writings";
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$keywords = "Rent, Rental Home, Efficiency";
$title = "The Rental Home Efficiency Problem";
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There is a fundamental problem with energy conservation as it relates to
homes that are rented from a central organization, such as a realtor.
It's a very simple problem: the realtor pays for infrastructure, but the
renter pays for the utility bills. This setup makes sense at a first glance.
Renters shouldn't have to pay to renovate a home that they may only be
living in for three months, and a realtor shouldn't be held hostage to the
utility demands of its renters. Hence the current arrangement seems
reasonable.
<p>
But a fundamental problem here is that there is no incentive for a realtor
to go to any great ends to make a home more heating or energy efficient,
since they don't have to pay any part of the utility bill. What does it
matter to them if the home needs twice as much heat because the doors
don't have weatherstrips and the windows are single paned? And even the
environmentally-conscious renter will be loathe to lay down a couple of
thousand dollars on a home that they may soon be moving out of: even if
they would like as many homes as possible to be inefficient, only the
extremely rich can afford to pay for homes not their own to be retrofitted.
So currently, most rental homes that I'm aware of are horribly energy
inefficient, without an obvious remedy.
<p>
I therefore have a proposal that might be workable for all parties involved.
Realtors should pay 10% of their renters's heating and electricity bill. This
is a small enough percentage that renters won't feel compelled to go on an
energy binge (10% off doesn't exactly feel "subsidized"), but it is enough
that the rental agency would feel compelled to assist the renters in making
their homes more energy-efficient.
<p>
Most renters in the San Francisco bay area are making absurd profit margins
anyhow, so 10% of a (max) $200 energy bill is $20/month of cost for them on
intake of an average $3000/month in rent. This is hardly going to put them
out of business, considering that it'll be a chunk less than 1% of the rent
income. A few hundred thrown in here and there on, say, weatherproofing,
could pay off quickly. A few dollars more a lightbulb for fluorescents
versus incandescents could quickly return the investment.
<p>
Without a co-pay structure like this that ties the utility costs in part
to the entity responsible for structural investments, rental homes cannot
help but remain horribly inefficient.
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