BETTER RENTALS, BETTER CITY

The report argues that targeting rental properties for energy efficiency is a high-impact strategy for cities to meet climate goals, as rentals often suffer from a 'split incentive' where owners do not pay utility bills. Using Boulder's 'SmartRegs' program as a model, the document outlines a seven-step roadmap for other cities: determining fit, analyzing impact, consulting stakeholders, developing financing, implementing measurement tools, establishing compliance, and creating disclosure frameworks. RMI's analysis of five US cities suggests that MESR policies could significantly reduce carbon emissions at a relatively low cost to municipal governments.

• Existing residential properties are typically 30 percent less efficient than new constructions and contribute significantly to citywide emissions, with nearly 70 percent of the stock built before energy codes existed.
• Rental properties are particularly prone to inefficiency due to the 'split incentive' barrier, where property owners lack financial motivation to invest in upgrades because they do not pay the energy bills.
• The City of Boulder's 'SmartRegs' policy, adopted in 2010, requires long-term licensed rentals to meet minimum efficiency standards. By the end of 2018, it was expected to save 4.2 million kWh and 940,000 therms annually, avoiding 8,300 metric tons of carbon emissions.
• Boulder's program offered two compliance paths: a prescriptive path using a custom checklist (used 98 percent of the time) and a performance path using the Home Energy Rating System (HERS) score of 120 or below.
• A high-level analysis of five US cities (Minneapolis, Philadelphia, Oakland, Washington, D.C., and Boston) indicates that an MESR policy would cost cities an average of $13 per rental unit or $3 per capita over three years.
• Energy insecurity disproportionately affects renters, with 43 percent reporting energy insecurity compared to 24 percent of homeowners, making efficiency upgrades a tool for protecting vulnerable households.

APA

Petersen, A., & Lalit, R. (2018). BETTER RENTALS, BETTER CITY. RMI. https://rmi.org/app/uploads/2018/05/Better-Rentals-Better-City_Final3.pdf

Chicago

Petersen, Alisa, and Radhika Lalit. BETTER RENTALS, BETTER CITY. RMI, 2018. https://rmi.org/app/uploads/2018/05/Better-Rentals-Better-City_Final3.pdf.

Wikipedia

{{cite report |last1=Petersen |first1=Alisa |last2=Lalit |first2=Radhika |title=BETTER RENTALS, BETTER CITY |publisher=RMI |date=May 2018 |url=https://rmi.org/app/uploads/2018/05/Better-Rentals-Better-City_Final3.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{petersen2018better, author = {Petersen, Alisa and Lalit, Radhika}, title = {{BETTER RENTALS, BETTER CITY}}, institution = {RMI}, year = {2018}, month = may, url = {https://rmi.org/app/uploads/2018/05/Better-Rentals-Better-City_Final3.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }